[Title 19 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

                    19


          Parts 1 to 140

                         Revised as of April 1, 2002

Customs Duties





          Containing a codification of documents of general 
          applicability and future effect
          As of April 1, 2002
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register



[[Page ii]]






                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2002



  For sale by the Superintendent of Documents, U.S. Government Printing 
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[[Page iii]]




                            Table of Contents



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

  Title 19:
          Chapter I--United States Customs Service, Department 
          of the Treasury                                            3
  Finding Aids:
      Table of CFR Titles and Chapters........................     655
      Alphabetical List of Agencies Appearing in the CFR......     673
      Redesignation Tables....................................     683
      Chapter I Subject Index.................................     687
      List of CFR Sections Affected...........................     783



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

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  19 CFR 4.0 refers 
                       to title 19, part 4, 
                       section 0.

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

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

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evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

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EFFECTIVE AND EXPIRATION DATES

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OMB CONTROL NUMBERS

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

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
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CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
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This index is based on a consolidation of the ``Contents'' entries in 
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    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

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in the Code of Federal Regulations.

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ELECTRONIC SERVICES

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CFR Sections Affected), The United States Government Manual, the Federal 
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[[Page vii]]

    The Office of the Federal Register also offers a free service on the 
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                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

April 1, 2002.



[[Page ix]]



                               THIS TITLE

    Title 19--Customs Duties is composed of three volumes. The first two 
volumes, parts 1 to 140 and parts 141 to 199 contain the regulations in 
Chapter I--United States Customs Service, Department of the Treasury. 
The third volume, part 200 to end contains the regulations in Chapter 
II--United States International Trade Commission and Chapter III--
International Trade Administration, Department of Commerce. The contents 
of these volumes represent all current regulations issued under this 
title of the CFR as of April 1, 2002.

    Redesignation Tables and a Subject Index to Chapter I--U.S. Customs 
Service appear in the Finding Aids section of the first two volumes.

[[Page x]]





[[Page 1]]



                        TITLE 19--CUSTOMS DUTIES




                   (This book contains parts 1 to 140)

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

chapter i--United States Customs Service, Department of the 
  Treasury..................................................           4

Cross References: Regulations of the Department of Agriculture: See 
  titles 7 and 9.

  Internal Revenue Service, Department of the Treasury: See Internal 
Revenue Service, 26 CFR chapter I.

  Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury: 
27 CFR chapter I.

  Drug Enforcement Administration, Department of Justice: See Food and 
Drugs, 21 CFR chapter II.

  Coast Guard, Department of Transportation: See 33 CFR chapter I, 46 
CFR chapter I, and 49 CFR chapter IV.

  Department of Defense procurement: See Federal Acquisition Regulations 
System, 48 CFR chapter 2.

  Department of State: See Foreign Relations, 22 CFR chapter I.

  Food and Drug Administration, Department of Health and Human Services: 
See Food and Drugs, 21 CFR chapter I.

  Foreign trade statistics: See Commerce and Foreign Trade, 15 CFR part 
30.

  Foreign-Trade Zones Board: See Commerce and Foreign Trade, 15 CFR 
chapter IV.

  Immigration and Naturalization Service, Department of Justice: See 
Aliens and Nationality, 8 CFR chapter I.

  Importation of wildlife and plants: See Wildlife and Fisheries, 50 CFR 
chapter I, subchapter B.

  Postal Service (International Mail): See United States Postal Service, 
39 CFR chapter I, subchapter B.

  Public Health Service, Department of Health and Human Services: See 
Public Health, 42 CFR chapter I.

  Other regulations issued by the Department of the Treasury appear in 
12 CFR chapter I; and title 31.

[[Page 3]]



  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY




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


  Editorial Note: Nomenclature changes to Chapter I appear at T.D. 95-
77, 60 FR 50021, Sept. 27, 1995.
Part                                                                Page
1-3             [Reserved]

4               Vessels in foreign and domestic trades......           5
7               Customs relations with insular possessions 
                    and Guantanamo Bay Naval Station........          69
10              Articles conditionally free, subject to a 
                    reduced rate, etc.......................          74
11              Packing and stamping; marking...............         206
12              Special classes of merchandise..............         212
18              Transportation in bond and merchandise in 
                    transit.................................         271
19              Customs warehouses, container stations and 
                    control of merchandise therein..........         289
24              Customs financial and accounting procedure..         324
54              Certain importations temporarily free of 
                    duty....................................         375
101             General provisions..........................         376
102             Rules of origin.............................         389
103             Availability of information.................         430
111             Customs brokers.............................         450
112             Carriers, cartmen, and lightermen...........         473
113             Customs bonds...............................         482
114             Carnets.....................................         507
115             Cargo container and road vehicle 
                    certification pursuant to international 
                    customs conventions.....................         511
118             Centralized examination stations............         521
122             Air Commerce regulations....................         526
123             Customs relations with Canada and Mexico....         574
125             Cartage and lighterage of merchandise.......         598
127             General order, unclaimed, and abandoned 
                    merchandise.............................         602
128             Express consignments........................         609
132             Quotas......................................         613
133             Trademarks, trade names, and copyrights.....         621
134             Country of origin marking...................         637
135-140         [Reserved]

[[Page 5]]

                          PARTS 1-3 [RESERVED]



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




                      Arrival and Entry of Vessels

Sec.
4.0 General definitions.
4.1 Boarding of vessels; cutter and dock passes.
4.2 Reports of arrival of vessels.
4.3 Vessels required to enter; place of entry.
4.3a Penalties for violation of vessel reporting and entry requirements.
4.4 Panama Canal; report of arrival required.
4.5 Government vessels.
4.6 Departure or unlading before report or entry.
4.7 Inward foreign manifest; production on demand; contents and form.
4.7a Inward manifest; information required; alternative forms.
4.8 Preliminary entry.
4.9 Formal entry.
4.10 Request for overtime services.
4.11 Sealing of stores.
4.12 Explanation of manifest discrepancy.
4.13 Alcoholic liquors on vessels of not over 500 net tons.
4.14 Equipment purchases by, and repairs to, American vessels.
4.15 Fishing vessels touching and trading at foreign places.
4.16 [Reserved]
4.17 Vessels from discriminating countries.

                       Tonnage Tax and Light Money

4.20 Tonnage taxes.
4.21 Exemptions from tonnage taxes.
4.22 Exemptions from special tonnage taxes.
4.23 Certificate of payment and cash receipt.
4.24 Application for refund of tonnage tax.

                      Landing and Delivery of Cargo

4.30 Permits and special licenses for unlading and lading.
4.31 Unlading or transshipment due to casualty.
4.32 Vessels in distress, landing of cargo.
4.33 Diversion of cargo.
4.34 Prematurely discharged, overcarried, and undelivered cargo.
4.35 Unlading outside port of entry.
4.36 Delayed discharge of cargo.
4.37 General order.
4.38 Release of cargo.
4.39 Stores and equipment of vessels and crews' effects; unlading or 
          lading and retention on board.
4.40 Equipment, etc., from wrecked or dismantled vessels.
4.41 Cargo of wrecked vessel.

                          Passengers on Vessels

4.50 Passenger lists.
4.51 Reporting requirements for individuals arriving by vessel.
4.52 Penalties applicable to individuals.

                           Foreign Clearances

4.60 Vessels required to clear.
4.61 Requirements for clearance.
4.62 Accounting for inward cargo.
4.63 Outward cargo declaration; shippers' export declarations.
4.64 [Reserved]
4.65 Verification of nationality and tonnage.
4.65a Load lines.
4.66 Verification of inspection.
4.66a Illegal discharge of oil and hazardous substances.
4.66b Pollution of coastal and navigable waters.
4.66c Oil pollution by oceangoing vessels.
4.67 Closed ports or places.
4.68 Federal Maritime Commission certificates for certain passengers 
          vessels.
4.69 Shipping articles.
4.70 Public Health Service requirements.
4.71 Inspection of livestock.
4.72 Inspection of meat, meat-food products, and inedible fats.
4.73 Neutrality; exportation of arms and munitions.
4.74 Transportation orders.
4.75 Incomplete manifest; incomplete export declarations; bond.
4.76 Procedures and responsibilities of carriers filing outbound vessel 
          manifest information via the AES.

                           Coastwise Procedure

4.80 Vessels entitled to engage in coastwise trade.
4.80a Coastwise transportation of passengers.
4.80b Coastwise transportation of merchandise.
4.81 Reports of arrivals and departures in coastwise trade.
4.81a Certain barges carrying merchandise transferred from another 
          barge.
4.82 Touching at foreign port while in coastwise trade.
4.83 Trade between United States ports on the Great Lakes and other 
          ports of the United States.
4.84 Trade with noncontiguous territory.
4.85 Vessels with residue cargo for domestic ports.
4.86 Intercoastal residue--cargo procedure; optional ports.
4.87 Vessels proceeding foreign via domestic ports.
4.88 Vessels with residue cargo for foreign ports.

[[Page 6]]

4.89 Vessels in foreign trade proceeding via domestic ports and touching 
          at intermediate foreign ports.
4.90 Simultaneous vessel transactions.
4.91 Diversion of vessel; transshipment of cargo.
4.92 Towing.
4.93 Coastwise transportation by certain vessels of empty vans, tanks, 
          and barges, equipment for use with vans and tanks; empty 
          instruments of international traffic; stevedoring equipment 
          and material; procedures.

                                 General

4.94 Yacht privileges and obligations.
4.95 Records of entry and clearance of vessels.
4.96 Fisheries.
4.97 Salvage vessels.
4.98 Navigation fees.
4.99 Forms; substitution.
4.100 Licensing of vessels of less than 30 net tons.
4.101 Prohibitions against Customs officers and employees.

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624; 46 
U.S.C. App. 3, 91.
    Section 4.1 also issued under 19 U.S.C. 1581(a), 46 U.S.C. App. 163;
    Section 4.2 also issued under 19 U.S.C. 1441, 1486;
    Section 4.3 also issued under 19 U.S.C. 288, 1441; 46 U.S.C. App. 
111;
    Section 4.3a also issued under 19 U.S.C. 1433, 1436;
    Section 4.5 also issued under 19 U.S.C. 1441;
    Section 4.7 also issued under 19 U.S.C. 1581(a); 46 U.S.C. App. 
883a, 883b;
    Section 4.7a also issued under 19 U.S.C. 1498, 1584;
    Section 4.8 also issued under 19 U.S.C. 1448, 1486;
    Section 4.9 also issued under 42 U.S.C. 269;
    Section 4.10 also issued under 19 U.S.C. 1448, 1451;
    Section 4.12 also issued under 19 U.S.C. 1584;
    Section 4.14 also issued under 19 U.S.C. 1466, 1498;
    Section 4.20 also issued under 46 U.S.C. 2107(b), 8103, 14306, 
14502, 14511, 14512, 14513, 14701, 14702, 46 U.S.C. App. 121, 128;
    Section 4.21 also issued under 19 U.S.C. 1441, 46 U.S.C. App. 121-
125, 128, 129, 132, 135;
    Section 4.22 also issued under 46 U.S.C. App. 121, 128, 141;
    Section 4.24 also issued under 46 U.S.C. 2108;
    Section 4.30 also issued under 19 U.S.C. 288, 1446, 1448, 1450-1454, 
1490;
    Section 4.31 also issued under 19 U.S.C. 1453, 1586;
    Section 4.32 also issued under 19 U.S.C. 1449;
    Section 4.35 also issued under 19 U.S.C. 1447;
    Section 4.36 also issued under 19 U.S.C. 1431, 1457, 1458, 46 U.S.C. 
App. 100;
    Section 4.37 also issued under 19 U.S.C. 1448, 1457, 1490;
    Section 4.38 also issued under 19 U.S.C. 1448, 1505;
    Section 4.39 also issued under 19 U.S.C. 1446;
    Section 4.40 also issued under 19 U.S.C. 1446;
    Section 4.50 also issued under 19 U.S.C. 1431; 46 U.S.C. 3502;
    Section 4.51 also issued under 19 U.S.C. 1433;
    Section 4.52 also issued under 19 U.S.C. 1433;
    Section 4.61 also issued under 46 U.S.C. App. 883;
    Section 4.65a also issued under 46 U.S.C. 5101-5102, 5106-5109, 
5112-5114, 5116;
    Section 4.66 also issued under 46 U.S.C. App. 91;
    Section 4.66a also issued under 33 U.S.C. 1321, 46 U.S.C. App. 91;
    Section 4.66b also issued under 33 U.S.C. 407, 1321;
    Section 4.68 also issued under 46 U.S.C. App. 817d, 817e;
    Section 4.69 also issued under 46 U.S.C. 10301, 10302, 10314, and 
10315.
    Section 4.74 also issued under 46 U.S.C. App. 91;
    Section 4.75 also issued under 46 U.S.C. App. 91;
    Section 4.80 also issued under 46 U.S.C. 12106, 46 U.S.C. App. 251, 
289, 319, 802, 808, 883, 883-1;
    Section 4.81 also issued under 19 U.S.C. 1442, 1486; 46 U.S.C. 251, 
883;
    Section 4.81a also issued under 46 U.S.C. App. 883;
    Section 4.82 also issued under 19 U.S.C. 293, 294, 46 U.S.C. App. 
123;
    Section 4.83 also issued under 46 U.S.C. App. 91, 111, 123;
    Section 4.84 also issued under 46 U.S.C. App. 883-1;
    Section 4.85 also issued under 19 U.S.C. 1442, 1623;
    Section 4.86 also issued under 19 U.S.C. 1442;
    Section 4.88 also issued under 19 U.S.C. 1442, 1622, 1623;
    Section 4.92 also issued under 46 U.S.C. App. 316(a);
    Section 4.93 also issued under 19 U.S.C. 1322(a), 46 U.S.C. App. 
883;
    Section 4.94 also issued under 19 U.S.C. 1441; 46 U.S.C. App. 104;
    Section 4.96 also issued under 46 U.S.C. 12101(a)(1), 12108, 46 
U.S.C. App. 251;
    Section 4.98 also issued under 31 U.S.C. 9701;
    Section 4.100 also issued under 19 U.S.C. 1706.

[[Page 7]]


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

                      Arrival and Entry of Vessels



Sec. 4.0  General definitions.

    For the purposes of this part:
    (a) Vessel. The word vessel includes every description of water 
craft or other contrivance used or capable of being used as a means of 
transportation on water, but does not include aircraft. (19 U.S.C. 
1401.)
    (b) Vessel of the United States. The term vessel of the United 
States means any vessel documented under the laws of the United States.
    (c) Documented. The term documented vessel means a vessel for which 
a valid Certificate of Documentation, form CG 1270, issued by the U.S. 
Coast Guard is outstanding. Upon qualification and proper application to 
the appropriate Coast Guard office, the Certificate of Documentation may 
be endorsed with a: (1) Registry endorsement (generally, available to a 
vessel to be employed in foreign trade, trade with Guam, American Samoa, 
Wake, Midway, or Kingman Reef, and other employments for which another 
endorsement is not required), (2) coastwise endorsement (generally, 
entitles a vessel to employment in the coastwise trade, and other 
employments for which another endorsement is not required), (3) Great 
Lakes endorsement (generally, entitles a vessel to engage in the 
coastwise trade on the Great Lakes and their tributary and connecting 
waters, in trade with Canada, and in other employments for which another 
endorsement is not required), (4) fishery endorsement (generally, 
subject to federal and state laws regulating the fisheries, entitles a 
vessel to fish within the Exclusive Economic Zone (16 U.S.C. 1811) and 
landward of that zone and to land its catch) or (5) recreational 
endorsement (entitles a vessel to recreational use only). Any other 
terminology used elsewhere in this part to describe the particular 
documentation of a vessel shall be read as synonymous with the 
applicable terminology contained in this paragraph. Generally, any 
vessel of at least 5 net tons and wholly owned by a United States 
citizen or citizens is eligible for documentation except that for a 
coastwise, Great Lakes, or fisheries endorsement a vessel must also be 
built in the United States. Detailed Coast Guard regulations on 
documentation are set forth in Title 46, Code of Federal Regulations, 
Sec. 67.01-67.45.
    (d) Noncontiguous territory of the United States. The term 
noncontiguous territory of the United States includes all the island 
territories and possessions of the United States, but does not include 
the Canal Zone.
    (e) Citizen. The word citizen is as defined by the U.S. Coast Guard 
for purposes of vessel documentation (see subpart 67.03 of title 46, 
Code of Federal Regulations.)
    (f) Arrival of a vessel. The phrase ``arrival of a vessel'' means 
that time when the vessel first comes to rest, whether at anchor or at a 
dock, in any harbor within the Customs territory of the U.S.
    (g) Departure of a vessel. The phrase ``departure of a vessel'' 
means that time when the vessel gets under way on its outward voyage and 
proceeds on the voyage without thereafter coming to rest in the harbor 
from which it is going.

[T.D. 69-266, 34 FR 20422, Dec. 31, 1969, as amended by T.D. 83-214, 48 
FR 46511, Oct. 13, 1983; T.D. 93-78, 58 FR 50256, Sept. 27, 1993; T.D. 
93-96, 58 FR 67315, Dec. 21, 1993]



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

    (a) Every vessel arriving at a Customs port will be subject to such 
supervision while in port as the port director considers necessary. The 
port director may detail Customs officers to remain on board a vessel to 
secure enforcement of the requirements set forth in this part. Customs 
may determine to board as many vessels as considered necessary to ensure 
compliance with the laws it enforces.
---------------------------------------------------------------------------

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

    (b)(1) No person, with or without the consent of the master, except 
a pilot in connection with the navigation of the vessel, personnel from 
another vessel in connection with the navigation of an unmanned barge, 
an officer of Customs or the Coast Guard, an immigration or

[[Page 8]]

health officer, an inspector of the Animal and Plant Health Inspection 
Service of the U.S. Department of Agriculture, or an agent of the vessel 
or consular officer exclusively for purposes relating to Customs 
formalities, shall go on board any vessel arriving from outside the 
Customs territory of the United States without permission of the port 
director or the Customs officer in charge until the vessel has been 
taken in charge by a Customs officer.
    (2) A person may leave the vessel for the purpose of reporting its 
arrival as required by law (see Sec. 4.2), but no other person, except 
those designated in paragraph (b)(1) of this section, shall leave any 
vessel arriving from outside the Customs territory of the United States, 
with or without the consent of the master, without the permission of the 
port director or the Customs officer in charge until the vessel has been 
properly inspected by Customs and brought into the dock or anchorage at 
which cargo is to be unladen and until all passengers have been landed 
from the vessel (19 U.S.C. 1433).
    (3) Every person permitted to go on board or to leave without the 
consent of a Customs officer under the provisions of this paragraph 
shall be subject to Customs and quarantine regulations.
    (4) The master of any vessel shall not authorize the boarding or 
leaving of his vessel by any person in violation of this paragraph.
    (c) A port director, in his discretion may issue a cutter pass on 
Customs Form 3093 to permit the holder to board an incoming vessel after 
it has been inspected by the quarantine authorities and taken in charge 
by an officer of the Customs, as follows: (1) To persons on official 
business; (2) to news reporters, newspaper photographers, photographers 
of established motionpicture companies, and broadcasters of established 
radio broadcasting cmmpanies; and (3) in cases of special exigency in 
which the port director is satisfied as to the urgent need for the 
boarding and that its allowance will not result in undue interference 
with the performance of official business.
    (d) No person in charge of a tugboat, rowboat, or other vessel shall 
bring such conveyance alongside an incoming vessel heretofore described 
and put on board thereof any person, except as authorized by law or 
regulations.
    (e) [Reserved]
    (f) Term cutter and dock passes, for a period of not to exceed one 
year, may be issued in the discretion of the port director, to persons 
on official business and to duly accredited news reporters and newspaper 
photographers. Passes are not transferable and shall be forfeited upon 
presentation by others than those to whom issued.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 78-141, 43 FR 22174, May 
24, 1978; T.D. 82-224, 47 FR 35475, Aug. 16, 1982; T.D. 92-74, 57 FR 
35751, Aug. 11, 1992; T.D. 95-77, 60 FR 50010, Sept. 27, 1995; T.D. 00-
4, 65 FR 2872, Jan. 19, 2000]



Sec. 4.2  Reports of arrival of vessels.

    (a) Upon arrival in any port or place within the U.S., including, 
for purposes of this section, the U.S. Virgin Islands, of any vessel 
from a foreign port or place, any foreign vessel from a port or place 
within the U.S., or any vessel of the U.S. carrying bonded merchandise 
or foreign merchandise for which entry has not been made, the master of 
the vessel shall immediately report that arrival to the nearest Customs 
facility or other location designated by the port director. The report 
of arrival, except as supplemented in local instructions issued by the 
port director and made available to interested parties by posting in 
Customs offices, publication in a newspaper of general circulation, and 
other appropriate means, shall be made by any means of communication to 
the port director or to a Customs officer assigned to board the vessel. 
The Customs officer may require the production of any documents or 
papers deemed necessary for the proper inspection/examination of the 
vessel, cargo, passenger, or crew.
    (b) For purposes of this part, ``foreign port or place'' includes a 
hovering vessel, as defined in 19 U.S.C. 1401(k), and any point in 
Customs waters beyond the territorial sea or on the high seas at which a 
vessel arriving in a port or place in the U.S. has received merchandise.

[[Page 9]]

    (c) In the case of certain vessels arriving either in distress or 
for the limited purpose of taking on certain supplies and departing 
within a 24-hour time period without having landed or taken on any 
passengers or other merchandise (see section 441(4), Tariff Act of 1930, 
as amended), the report may be filed by either the master, owner, or 
agent, and shall be in the form and give the information required by 
that statute, except that the report need not be under oath. A derelict 
vessel shall be considered one in distress and any person bringing it 
into port may report its arrival.
    (d) The report of baggage and merchandise required to be made by 
certain passenger vessels making three or more trips a week between U.S. 
and foreign ports and vessels used exclusively as ferryboats carrying 
passengers, baggage, or merchandise (see section 441(2), Tariff Act of 
1930, as amended), is in addition to the required report of arrival, and 
shall be made within 24 hours of arrival.

[T.D. 93-96, 58 FR 67315, Dec. 21, 1993, as amended by T.D. 94-44, 59 FR 
23795, May 9, 1994]



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

    (a) Formal entry required. Unless specifically excepted by law, 
within 48 hours after the arrival at any port or place in the United 
States, the following vessels are required to make formal entry:
    (1) Any vessel from a foreign port or place;
    (2) Any foreign vessel from a domestic port;
    (3) Any vessel of the United States having merchandise on board 
which is being transported in-bond (not including bonded ship's stores 
or supplies), or foreign merchandise for which entry has not been made; 
or
    (4) Any vessel which has visited a hovering vessel as defined in 19 
U.S.C. 1401(k), or has delivered or received merchandise or passengers 
while outside the territorial sea.
    (b) Completion of entry. (1) When vessel entry is to be made at the 
customhouse, either the master, licensed deck officer, or purser may 
appear in person during regular working hours to complete preliminary or 
formal vessel entry; or necessary documents properly executed by the 
master or other authorized officer may be delivered at the customhouse 
by the vessel agent or other personal representative of the master.
    (2) The appropriate Customs port director may permit the entry of 
vessels to be accomplished at locations other than the customhouse, and 
services may be requested outside of normal business hours. Customs may 
take local resources into consideration in allowing formal entry to be 
transacted on board vessels or at other mutually convenient approved 
sites and times within or outside of port limits. When services are 
requested to be provided outside the limits of a Customs port, the 
appropriate port director to whom an application must be submitted is 
the director of the port located nearest to the point where the proposed 
services would be provided. That port director must be satisfied that 
the place designated for formal entry will be sufficiently under Customs 
control at the time of entry, and that the expenses incurred by Customs 
will be reimbursed as authorized. It may be required that advance notice 
of vessel arrival be given as a condition for granting requests for 
optional entry locations. A master, owner, or agent of a vessel who 
desires that entry be made at an optional location will file with the 
appropriate port director an application on Customs Form 3171 and a 
single entry or continuous bond on Customs Form 301 containing the bond 
conditions set forth in Sec. 113.64 of this chapter, in such amount as 
that port director deems appropriate but not less than $1,000. If the 
application is approved, the port director or a designated Customs 
officer will formally enter the vessel. Nothing in this paragraph 
relieves any person or vessel from any requirement as to how, when and 
where they are to report, be inspected or receive clearance from other 
Federal agencies upon arrival in the United States.

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



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

    Violation of the arrival or entry reporting requirements provided 
for in

[[Page 10]]

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

[T.D. 93-96, 58 FR 67316, Dec. 21, 1993]



Sec. 4.4  Panama Canal; report of arrival required.

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

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



Sec. 4.5  Government vessels.

    (a) No report of arrival or entry shall be required of any vessel 
owned by, or under the complete control and management of the United 
States or any of its agencies, if such vessel (1) is manned wholly by 
members of the uniformed services of the United States, by personnel in 
the civil service of the United States, or by both, and (2) is 
transporting only property of the United States or passengers traveling 
on official business of the United States, or it is ballast. However, if 
any cargo is on board, the master or commander of each such vessel 
arriving from abroad shall file a Cargo Declaration, Customs Form 1302, 
or an equivalent form issued by the Department of Defense, in duplicate. 
The original of each Cargo Declaration or equivalent form required under 
this paragraph shall be filed with the port director within 48 hours 
after the arrival of the vessel. The other copy shall be made available 
for use by the discharging inspector at the pier. See Sec. 148.73 of 
this chapter with respect to baggage on carriers operated by the 
Department of Defense.
    (b) The arrival of every vessel owned or controlled and manned as 
described in paragraph (a) of this section but transporting other 
property or passengers, and every vessel so owned or controlled but not 
so manned, whether in ballast or transporting cargo or passengers, shall 
be reported in accordance with Sec. 4.2 and the vessel shall be entered 
in accordance with Sec. 4.9.
    (c) Every vessel owned by, or under the complete control and 
management of, any foreign nation shall be exempt from or subject to the 
laws relating to report of arrival and entry under the same conditions 
as a vessel owned or controlled by the United States.

[28 FR 14596, Dec. 31, 1963, as amended by 39 FR 10897, Mar. 22, 1974; 
T.D. 83-213, 48 FR 46978, Oct. 17, 1983]



Sec. 4.6  Departure or unlading before report or entry.

    (a) No vessel which has arrived within the limits of any Customs 
port from a foreign port or place shall depart or attempt to depart, 
except from stress of weather or other necessity, without reporting and 
making entry as required in this part. These requirements shall not 
apply to vessels merely passing through waters within the limits of a 
Customs port in the ordinary course of a voyage.
    (b) The ``limits of any Customs port'' as used herein are those 
described in Sec. 101.3(b) of this chapter, including the marginal 
waters to the 3-mile limit on the seaboard and the waters to the 
boundary line on the northern and southern boundaries.
    (c) Violation of this provision may result in the master being 
liable for certain civil penalties and the vessel to arrest and 
forfeiture, as provided under

[[Page 11]]

19 U.S.C. 1436, in addition to other penalties applicable under other 
provisions of law.

[T.D. 93-96, 58 FR 67316, Dec. 21, 1993, as amended by T.D. 98-74, 63 FR 
51287, Sept. 25, 1998]



Sec. 4.7  Inward foreign manifest; production on demand; contents and form.

    (a) The master of every vessel arriving in the United States and 
required to make entry shall have on board his vessel a manifest, as 
required by section 431, Tariff Act of 1930 (19 U.S.C. 1431), and by 
this section. The manifest shall be legible and complete. If it is in a 
foreign language, an English translation shall be furnished with the 
original and with any required copies. The manifest shall consist of a 
Vessel Entrance or Clearance Statement, Customs Form 1300, and the 
following documents: (1) Cargo Declaration, Customs Form 1302, (2) 
Ship's Stores Declaration, Customs Form 1303, (3) Crew's Effects 
Declaration, Customs Form 1304, or, optionally, a copy of the Crew List, 
Customs and Immigration Form I-418, to which are attached crewmember's 
declarations on Customs Form 5129, (4) Crew List, Customs and 
Immigration Form I-418, and (5) Passenger List, Customs and Immigration 
Form I-418. Any document which is not required may be omitted from the 
manifest provided the word ``None'' is inserted in items 16, 18, and/or 
19 of the Vessel Entrance or Clearance Statement, as appropriate. If a 
vessel arrives in ballast and therefore the Cargo Declaration is 
omitted, the legend ``No merchandise on board'' shall be inserted in 
item 16 of the Vessel Entrance or Clearance Statment.
    (b) The original and one copy of the manifest shall be ready for 
production on demand. The master shall deliver the original and one copy 
of the manifest to the Customs officer who shall first demand it. If the 
vessel is to proceed from the port of arrival to other United States 
ports with residue foreign cargo or passengers, an additional copy of 
the manifest shall be available for certification as a traveling 
manifest (see Sec. 4.85). The port director may require an additional 
copy or additional copies of the manifest, but a reasonable time shall 
be allowed for the preparation of any copy which may be required in 
addition to the original and one copy.
    (c) No Passenger List or Crew List shall be required in the case of 
a vessel arriving from Canada, otherwise than by sea, at a port on the 
Great Lakes or their connecting or tributary waters.
    (d)(1) The master or owner of--
    (i) A vessel documented under the laws of the United States with a 
registry, coastwise license, or Great Lakes license endorsement, or a 
vessel not so documented but intended to be employed in the foreign, 
coastwise, or Great Lakes trade, or
    (ii) A documented vessel with a fishery license endorsement which 
has a permit to touch and trade (see Sec. 4.15) or a vessel with a 
fishery license endorsement lacking a permit to touch and trade but 
intended to engage in trade--

at the port of first arrival from a foreign country shall declare on 
Customs Form 226 any equipment, repair parts, or materials purchased for 
the vessel, or any expense for repairs incurred, outside the United 
States, within the purview of section 466, Tariff Act of 1930, as 
amended (19 U.S.C. 1466). If no equipment, repair parts, or materials 
have been purchased, or repairs made, a declaration to that effect shall 
be made on Customs Form 226.
    (2) If the vessel is at least 500 gross tons, the declaration shall 
include a statement that no work in the nature of a rebuilding or 
alteration which might give rise to a reasonable belief that the vessel 
may have been rebuilt within the meaning of the second proviso to 
section 27, Merchant Marine Act, 1920, as amended (46 U.S.C. 883), has 
been effected which has not been either previously reported or 
separately reported simultaneously with the filing of such declaration. 
The port director shall notify the U.S. Coast Guard vessel documentation 
officer at the home port of the vessel of any work in the nature of a 
rebuilding or alteration, including the construction of any major 
component of the hull or superstructure of the vessel, which comes to 
his attention unless the port director is satisfied that the owner of 
the vessel has filed an application for rebuilt determination as 
required by 46 CFR 67.27-3.

[[Page 12]]

    (3) The declaration shall be ready for production on demand for 
inspection and shall be presented as part of the original manifest when 
formal entry of the vessel is made.

[T.D. 71-169, 36 FR 12602, July 2, 1971, as amended by T.D. 74-284, 39 
FR 39718, Nov. 11, 1974; T.D. 77-255, 42 FR 56319, Oct. 25, 1977; T.D. 
80-237, 45 FR 64565, Sept. 30, 1980; T.D. 83-214, 48 FR 46511, Oct. 13, 
1983; T.D. 92-74, 57 FR 35751, Aug. 11, 1992; T.D. 00-22, 65 FR 16515, 
Mar. 29, 2000]



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

    The forms designated by Sec. 4.7(a) as comprising the inward 
manifest shall be completed as follows:
    (a) Ship's Stores Declaration. Articles to be retained aboard as sea 
or ship's stores shall be listed on the Ship's Stores Declaration, 
Customs Form 1303. Less than whole packages of sea or ship's stores may 
be described as ``sundry small and broken stores.''
    17-23 [Reserved]
    (b) Crew's Effects Declaration. (Customs Form 1304). (1) The 
declaration number of the Crew Member's Declaration, Customs Form 5129, 
prepared and signed by any officer or crewmember who intends to land 
articles in the United States, or the word ``None,'' shall be shown in 
item No. 7 on the Crew's Effects Declaration, Customs Form 1304 opposite 
the respective crewmember's name.
    (2) In lieu of describing the articles on Customs Form 1304, the 
master may furnish a Crew List, Customs and Immigration Form I-418, 
endorsed as follows:

    I certify that this list, with its supporting crewmembers' 
declarations, is a true and complete manifest of all articles on board 
the vessel acquired abroad by myself and the officers and crewmembers of 
this vessel, other than articles exclusively for use on the voyage or 
which have been duly cleared through Customs in the United States.

________________________________________________________________________
                                                               (Master.)


The Crew List on Form I-418 shall show, opposite the crewmember's name, 
his shipping article number and, in column 5, the declaration number. If 
the crewmember has nothing to declare, the word ``None'' shall be placed 
opposite his name instead of a declaration number.
    (3) For requirements concerning the preparation of Customs Form 
5129, see subpart G of part 148 of this chapter.
    (4) Any articles which are required to be manifested and are not 
manifested shall be subject to forfeiture and the master shall be 
subjected to a penalty equal to the value thereof, as provided in 
section 584, Tariff Act of 1930, as amended.
    (c) Cargo Declaration. (1) The Cargo Declaration, Customs Form 1302, 
shall list all the inward foreign cargo on board regardless of the port 
of discharge. The block designated ``Arrival'' at the top of the form 
shall be checked. The name of the shipper shall be set forth in the 
column calling for such information and on the same line where the bill 
of lading is listed for that shipper's merchandise. When more than one 
bill of lading is listed for merchandise from the same shipper, ditto 
marks or the word ``ditto'' may be used to indicate the same shipper. 
The cargo described in column Nos. 6 and 7, and either column No. 8 or 
9, shall refer to the respective bills of lading. Either column No. 8 or 
column No. 9 shall be used, as appropriate. The gross weight in column 
No. 8 shall be expressed in either pounds or kilograms. The measurement 
in column No. 9 shall be expressed according to the unit of measure 
specified in the Harmonized Tariff Schedule of the United States (HTSUS) 
(19 U.S.C. 1202).
    (2)(i) When inward foreign cargo is being shipped by container, each 
bill of lading shall be listed in the column headed ``B/L Nr.'' in 
numerical sequence according to the bill of lading number. The number of 
the container which contains the cargo covered by that bill of lading 
and the number of the container seal shall be listed in column No. 6 
opposite the bill of lading number. The number of any other bill of 
lading for cargo in that container also shall be listed in column No. 6 
immediately under the container and seal numbers. A description of the 
cargo shall be set forth in column No. 7 only if the covering bill of 
lading is listed in the column headed ``B/L Nr.''
    (ii) As an alternative to the procedure described in paragraph (i), 
a separate list of the bills of lading covering each container on the 
vessel may be

[[Page 13]]

submitted on Customs Form 1302 or on a separate sheet. If this procedure 
is used:
    (A) Each container number shall be listed in alphanumeric sequence 
by port of discharge in column No. 6 of Customs Form 1302, or on the 
separate sheet; and
    (B) The number of each bill of lading covering cargo in a particular 
container, identifying the port of lading, shall be listed opposite the 
number of the container with that cargo in the column headed ``B/L Nr.'' 
if Customs Form 1302 is used, or either opposite or under the number of 
the container if a separate sheet is used.
    (iii) All bills of lading, whether issued by a carrier, freight 
forwarder, or other issuer, shall contain a unique identifier consisting 
of up to 16 characters in length. The unique bill of lading number will 
be composed of two elements. The first element will be the first four 
characters consisting of the carrier or issuer's four digit Standard 
Carrier Alpha Code (SCAC) assigned to the carrier in the National Motor 
Freight Traffic Association, Inc., Directory of Standard Multi-Modal 
Carrier and Tariff Agent Codes, applicable supplements thereto and 
reissues thereof. The second element may be up to 12 characters in 
length and may be either alpha and/or numeric. The unique identifier 
shall not be used by the carrier, freight forwarder or issuer for 
another bill of lading for a period of 3 years after issuance. Customs 
processing of the unique identifier will be limited to checking the 
validity of the Standard Carrier Alpha Codes (SCAC) and ensuring that 
the identifier has not been duplicated within a 3-year period. Carriers 
and broker/importers will be responsible for reconciliation of 
discrepancies between manifests and entries. Customs will not perform 
any reconciliation except in a post-audit process.
    (3) For shipment of containerized or palletized cargo, Customs 
officers shall accept a Cargo Declaration which indicates that it has 
been prepared on the basis of information furnished by the shipper. The 
use of words of qualification shall not limit the responsibility of a 
master to submit accurate Cargo Declarations or qualify the oath taken 
by the master as to the accuracy of his declaration.
    (i) If Cargo Declaration covers only containerized or palletized 
cargo, the following statement may be placed on the declaration:

    The information appearing on the declaration relating to the 
quantity and description of the cargo is in each instance based on the 
shipper's load and count. I have no knowledge or information which would 
lead me to believe or to suspect that the information furnished by the 
shipper is incomplete, inaccurate, or false in any way.

    (ii) If the Cargo Declaration covers conventional cargo and 
containerized or palletized cargo, or both, the use of the abbreviation 
``SLAC'' for ``shipper's load and count,'' or an appropriate 
abbreviation if similar words are used, is approved: Provided, That 
abbreviation is placed next to each containerized or palletized shipment 
on the declaration and the following statement is placed on the 
delaration:

    The information appearing on this declaration relating to the 
quantity and description of cargo preceded by the abbreviation ``SLAC'' 
is in each instance based on the shipper's load and count. I have no 
information which would lead me to believe or to suspect that the 
information furnished by the shipper is incomplete, inaccurate, or false 
in any way.

    (iii) The statements specified in paragraphs (c)(3) (i) and (ii) of 
this section shall be placed on the last page of the Cargo Declaration. 
Words similar to ``the shipper's load and count'' may be substituted for 
those words in the statements. Vague expressions such as ``said to 
contain'' or ``accepted as containing'' are not acceptable. The use of 
an asterisk or other character instead of appropriate abbreviations, 
such as ``SLAC'', is not acceptable.
    (d) Crew List. The Crew List shall be completed in accordance with 
the requirements of the Immigration and Naturalization Service, United 
States Department of Justice (8 CFR part 251).
    (e) Passenger List. (1) The Passenger List shall be completed in 
accordance with Sec. 4.50 and with the requirements of the Immigration 
and Naturalization Service, U.S. Department of Justice (8 CFR part 231), 
and the following certification shall be placed on its last page:


[[Page 14]]


    I certify that Customs baggage declaration requirements have been 
made known to incoming passengers; that any required Customs baggage 
declarations have been or will simultaneously herewith be filed as 
required by law and regulation with the proper Customs officer; and that 
the responsibilities devolving upon this vessel in connection therewith, 
if any, have been or will be discharged as required by law or regulation 
before the proper Customs officer. I further certify that there are no 
steerage passengers on board this vessel (46 U.S.C. 151-163).

________________________________________________________________________
                                                                  Master

    (2) If the vessel is carrying steerage passengers, the reference to 
steerage passengers shall be deleted from the certification, and the 
master shall comply with the requirements of Sec. 4.50.
    (3) If there are no steerage passengers aboard upon arrival, the 
listing of the passengers may be in the form of a vessel ``souvenir 
passenger list,'' or similar list, in which the names of the passengers 
are listed alphabetically and to which the certificate referred to in 
paragraph (e)(1) of this section is attached.
    (4) All baggage on board a vessel not accompanying a passenger and 
the marks or addresses thereof shall be listed on the last sheet of the 
passenger list under the caption ``Unaccompanied baggage.''

[T.D. 71-169, 36 FR 12602, July 2, 1971, as amended by T.D. 73-27, 38 FR 
2448, Jan. 26, 1973; T.D. 77-255, 42 FR 56320, Oct. 25, 1977; T.D. 79-
31, 44 FR 5649, Jan. 29, 1979; T.D. 85-123, 50 FR 29952, July 23, 1985; 
T.D. 89-58, 54 FR 20381, May 11, 1989; T.D. 93-66, 58 FR 44130, Aug. 19, 
1993; T.D. 95-77, 60 FR 50010, Sept. 27, 1995; T.D. 98-74, 63 FR 51287, 
Sept. 25, 1998]



Sec. 4.8  Preliminary entry.

    (a) Generally. Preliminary entry allows a U.S. or foreign vessel 
arriving under circumstances that require it to formally enter, to 
commence lading and unlading operations prior to making formal entry. 
Preliminary entry may be accomplished electronically pursuant to an 
authorized electronic data interchange system, or by any other means of 
communication approved by the Customs Service.
    (b) Requirements and conditions. Preliminary entry must be made in 
compliance with Sec. 4.30, and may be granted prior to, at, or 
subsequent to arrival of the vessel. The granting of preliminary vessel 
entry by Customs at or subsequent to arrival of the vessel, is 
conditioned upon the presentation to and acceptance by Customs of all 
forms, electronically or otherwise, comprising a complete manifest as 
provided in Sec. 4.7. Vessels seeking preliminary entry in advance of 
arrival may do so by presenting to Customs a complete Customs Form 1302 
(Cargo Declaration) showing all cargo on board the vessel and Customs 
Form 3171, electronically or otherwise, no less than 48 hours prior to 
vessel arrival. The CF 3171 will also serve as notice of intended date 
of arrival. The port director may allow for the presentation of the CF 
1302 and CF 3171 less than 48 hours prior to arrival in order to grant 
advanced preliminary entry if a vessel voyage takes less than 48 hours 
to complete from the last foreign port to the first U.S. port, or if 
other reasonable circumstances warrant. Preliminary entry granted in 
advance of arrival will become effective upon arrival at the port 
granting preliminary entry. Additionally, Customs must receive 
confirmation of a vessel's estimated time of arrival in a manner 
acceptable to the port director.

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



Sec. 4.9  Formal entry.

    (a) General. Section 4.3 provides which vessels are subject to 
formal entry and where and when entry must be made. The formal entry of 
an American vessel is governed by section 434, Tariff Act of 1930 (19 
U.S.C. 1434). The term ``American vessel'' means a vessel of the United 
States (see Sec. 4.0(b)) as well as, when arriving by sea, a vessel 
entitled to be documented except for its size (see Sec. 4.0(c)). The 
formal entry of a foreign vessel arriving within the limits of any 
Customs port is also governed by section 434, Tariff Act of 1930 (19 
U.S.C. 1434). Alternatively, information necessary for formal entry may 
be transmitted electronically pursuant to a system authorized by 
Customs.
    (b) Procedures for American vessels. Under certain circumstances, 
American vessels arriving in ports of the United States directly from 
other United States ports must make entry. Entry of such vessels is 
required when they have merchandise aboard which is

[[Page 15]]

being transported in-bond, or when they have unentered foreign 
merchandise aboard. For the purposes of the vessel entry requirements, 
merchandise transported in-bond does not include bonded ship's stores or 
supplies. While American vessels transporting unentered foreign 
merchandise must fully comply with the usual formal entry procedures, 
American vessels carrying no unentered foreign merchandise but which 
have in-bond merchandise aboard may satisfy vessel entry requirements by 
making a required report of arrival, and presenting a completed Customs 
Form 1300 (Vessel Entrance or Clearance Statement). Report of arrival as 
provided in Sec. 4.2 of this part, together with presenting a completed 
Customs Form 1300 (Vessel Entrance or Clearance Statement), satisfies 
all entry requirements for the subject vessels.
    (c) Delivery of foreign vessel document. The master of any foreign 
vessel will exhibit the vessel's document to the port director on or 
before the entry of the vessel. After the net tonnage has been noted, 
the document may be delivered to the consul of the nation to which such 
vessel belongs, in which event the vessel master will certify to the 
port director the fact of such delivery (see section 434, Tariff Act of 
1930, as amended (19 U.S.C. 1434), as applied through section 438, 
Tariff Act of 1930, as amended (19 U.S.C. 1438)). If not delivered to 
the consul, the document will be deposited in the customhouse. Whether 
delivered to the foreign consul or deposited at the customhouse, the 
document will not be delivered to the master of the foreign vessel until 
clearance is granted under Sec. 4.61. It will not be lawful for any 
foreign consul to deliver to the master of any foreign vessel the 
register, or document in lieu thereof, deposited with him in accordance 
with the provisions of 19 U.S.C. 1434 until such master will produce to 
him a clearance in due form from the director of the port where such 
vessel has been entered. Any consul violating the provisions of this 
section is liable to a fine of not more than $5,000 (section 438, Tariff 
Act of 1930, as amended; 19 U.S.C. 1438).
    (d) Failure to make required entry; penalties. Any master who fails 
to make entry as required by this section or who presents or transmits 
electronically any document required by this section that is forged, 
altered, or false, may be liable for certain civil penalties as provided 
under 19 U.S.C. 1436, in addition to penalties applicable under other 
provisions of law. Further, any vessel used in connection with any such 
violation is subject to seizure and forfeiture.

[T.D. 00-4, 65 FR 2873, Jan. 19, 2000; T.D. 00-22, 65 FR 16515, Mar. 29, 
2000]



Sec. 4.10  Request for overtime services.

    Request for overtime services in connection with entry or clearance 
of a vessel, including the boarding of a vessel in accordance with 
Sec. 4.1 shall be made on Customs Form 3171. (See Sec. 24.16 of this 
chapter regarding pleasure vessels.) Such request for overtime services 
must specify the nature of the services desired and the exact times when 
they will be needed, unless a term special license (unlimited or limited 
to the service requested) has been issued (see Sec. 4.30(g)) and 
arrangements are made locally so that the proper Customs officer will be 
notified during official hours in advance of the rendering of the 
services as to the nature of the services desired and the exact times 
they will be needed. Such request shall not be approved (previously 
issued term special licenses shall be revoked) unless the carrier 
complies with the provisions of paragraphs (l) and (m) of Sec. 4.30 
regarding terminal facilities and employee lists, respectively, and the 
required cash deposit or bond, on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.64 of this chapter, has been received. 
Separate bonds shall be required if overtime services are requested by 
different principals.

[T.D. 72-189, 37 FR 13975, July 15, 1972, as amended by T.D. 84-213, 49 
FR 41163, Oct. 19, 1984; T.D. 92-74, 57 FR 35751, Aug. 11, 1992]



Sec. 4.11  Sealing of stores.

    Upon the arrival of a vessel from a foreign port, or a vessel 
engaged in the foreign trade from a domestic port, sea stores and ship's 
stores not required for immediate use or consumption on

[[Page 16]]

board while the vessel is in port and articles acquired abroad by 
officers and members of the crew, for which no permit to land has been 
issued, shall be placed under seal, unless the Customs officer is of the 
opinion that the circumstances do not require such action. Customs 
inspectors in charge of the vessel, from time to time, as in their 
judgment the necessity of the case requires, may issue stores from under 
seal for consumption on board the vessel by its passengers and crew. 
(See Sec. 4.39.)



Sec. 4.12  Explanation of manifest discrepancy.

    (a)(1) Vessel masters or agents shall notify the port director on 
Customs Form 5931 of shortages (merchandise manifested, but not found) 
or overages (merchandise found, but not manifested) of merchandise.
    (2) Shortages shall be reported to the port direct by the master or 
agent of the vessel by endorsement on the importer's claim for shortage 
on Customs Form 5931 as provided for in Sec. 158.3 of this chapter, or 
within 60 days after the date of entry of the vessel, whichever is 
later. Satisfactory evidence to support the claim of nonimportation or 
of proper disposition or other corrective action (see Sec. 4.34) shall 
be obtained by the master or agent and shall be retained in the 
carrier's file for one year.
    (3) Overages shall be reported to the port director within 60 days 
after the date of entry of the vessel by completion of a post entry or 
suitable explanation of corrective action (see Sec. 4.34) on the Customs 
Form 5931.
    24-27 [Reserved]
    (4) The port director shall immediately advise the master or agent 
of those discrepancies which are not reported by the master or agent. 
Notification may be in any appropriate manner, including the furnishing 
of a copy of Customs Form 5931 to the master or agent. The master or 
agent shall satisfactorily resolve the matter within 30 days after the 
date of such notification, or within 60 days after entry of the vessel, 
whichever is later.
    (5)(a) Unless the required notification and explanation is made 
timely and the port director is satisfied that the discrepancies 
resulted from clerical error or other mistake and that there has been no 
loss of revenue (and in the case of a discrepancy not initially reported 
by the master or agent that there was a valid reason for failing to so 
report), applicable penalties under section 584, Tariff Act of 1930, as 
amended (19 U.S.C. 1584), shall be assessed (see Sec. 162.31 of this 
chapter). For purposes of this section, the term ``clerical error'' is 
defined as a non-negligent, inadvertent, or typographical mistake in the 
preparation, assembly, or submission (electronically or otherwise) of 
the manifest. However, repeated similar manifest discrepancies by the 
same parties may be deemed the result of negligence and not clerical 
error or other mistake. For the purpose of assessing applicable 
penalties, the value of the merchandise shall be determined as 
prescribed in Sec. 162.43 of this chapter. The fact that the master or 
owner had no knowledge of a discrepancy shall not relieve him from the 
penalty.
    (b) Except as provided in paragraph (c) of this section, a 
correction in the manifest shall not be required in the case of bulk 
merchandise if the port director is satisfied that the difference 
between the manifested quantity and the quantity unladen, whether the 
difference constitutes an overage or a shortage, is an ordinary and 
usual difference properly attributable to absorption of moisture, 
temperature, faulty weighing at the port of lading, or other similar 
reason. A correction in the manifest shall not be required because of 
discrepancies between marks or numbers on packages of merchandise and 
the marks or numbers for the same packages as shown on the manifest of 
the importing vessel when the quantity and description of the 
merchandise in such packages are correctly given.
    (c) Manifest discrepancies (shortages and overages) of petroleum and 
petroleum products imported in bulk shall be reported on Customs Form 
5931, if the discrepancy exceeds one percent.

[T.D. 80-142, 45 FR 36383, May 30, 1980, as amended by T.D. 99-64, 64 FR 
43265, Aug. 10, 1999]

[[Page 17]]



Sec. 4.13  Alcoholic liquors on vessels of not over 500 net tons.

    (a) When a vessel of not over 500 net tons which arrives from a 
foreign port or a hovering vessel has on board any alcoholic liquors, a 
certificate respecting the importation of any spirits, wines, or other 
alcoholic liquors on board, other than sea stores, shall be delivered to 
the appropriate Customs officer with the inward foreign manifest. Each 
such certificate shall consist of a declaration of the master of the 
vessel, together with the certificate of a consular officer of the 
United States or other authorized person, and shall cover only one 
shipment from one consignor to one consignee or firm of consignees. The 
document shall be in substantially the following form:

  Declaration of Master and Certificate Covering Shipment of Spirits, 
 Wines, or Other Alcoholic Liquors on a Vessel of 500 Net Tons or Less 
                            (19 U.S.C. 1707)

    Declaration of Master. I declare that the following merchandise is 
being shipped in accordance with the facts here stated as true and 
correct to the best of my information and belief:
Date of shipment:_______________________________________________________
Marks, numbers, and quantities:_________________________________________
Port of arrival:________________________________________________________
Consignor:______________________________________________________________
Full description of goods:______________________________________________
Consignee:______________________________________________________________

________________________________________________________________________
                                                             (Signature)
Master of the___________________________________________________________
                                                        (Name of vessel)

________________________________________________________________________
                                                      (Port of shipment)

________________________________________________________________________
                                                                  (Date)

                  (Use whichever alternative applies:)

    Certificate of Consular Officer. I certify that the above 
declaration was this day produced and signed before me by the individual 
whose signature appears, that I am satisfied he is the person he 
represents himself to be, that I have delivered one copy hereof to him, 
and that I have retained a copy in my files.
Service number not required.____________________________________________
                                                                  (Post)
Tariff item No. 58(a) (no fee)._________________________________________
                                                                  (Date)
[consular
impression
seal]

________________________________________________________________________
                                                             (Signature)

________________________________________________________________________
                                                                 (Title)
    Certificate of Other Authorized Person. I certify that I have been 
designated by letter of ------------,19--, from (insert name of 
Officer), American (title) at (place), to provide certifications upon 
declarations made by masters under Sec. 7 of the Anti-Smuggling Act of 
1935 (19 U.S.C. 1707), that the above declaration was this day produced 
and signed before me by the individual whose signature appears, that I 
am satisfied he is the person he represents himself to be, that I have 
no interest in the shipment described, that I have delivered one copy 
hereof to the person making the declaration, and that I have forwarded 
one copy to the American (Embassy, Consulate General, Consulate) at 
(place).

________________________________________________________________________
                                                      (Port of shipment)

                                           ------------------ 19--(Date)
[seal not
required]

________________________________________________________________________
                                                             (Signature)

________________________________________________________________________
                                                                 (Title)


The provisions of this paragraph, read together with those of Sec. 91.4, 
title 22, Code of Federal Regulations, constitute the joint regulations 
contemplated for issuance by the Secretary of State and the Secretary of 
the Treasury under section 1707, title 19, United States Code.
    (b) When any shipment of spirits, wines, or other alcoholic liquors 
found on board a vessel not exceeding 500 net tons is not accompanied by 
a certified declaration as described in paragraph (a) of this section 
but is shown to have a bona fide destination outside the United States, 
the master shall furnish a landing bond on Customs Form 301, containing 
the bond conditions relating to international carriers set forth in 
Sec. 113.64 of this chapter in an amount equal to twice the potential 
duty liability with an authorized corporate surety.
    (c) The condition of the landing bond shall be satisfied by the 
delivery to the port director within 6 months from the date of the bond 
of a landing certificate or certificates of a revenue officer of the 
country of destination showing

[[Page 18]]

that all the alcoholic liquors have been landed at their foreign 
destination.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 67-201, 32 FR 12557, 
Aug. 30, 1967; 32 FR 12750, Sept. 6, 1967; T.D. 84-213, 49 FR 41163, 
Oct. 19, 1984; T.D. 92-74, 57 FR 35751, Aug. 11, 1992]



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

    (a) General provisions and applicability. Under section 466, Tariff 
Act of 1930, as amended (19 U.S.C. 1466), purchases for or repairs made 
to certain vessels while they are outside the United States, including 
repairs made while those vessels are on the high seas, are subject to 
declaration, entry and payment of ad valorem duty. This does not apply 
to reimbursement paid to members of the regular crew of a vessel for 
labor expended in making repairs to the vessel. These requirements are 
effective upon the first arrival of affected vessels in the United 
States or Puerto Rico. The vessels subject to these requirements include 
those documented under U.S. law for the foreign or coastwise trades, as 
well as those which were previously documented under the laws of some 
foreign nation or are undocumented at the time that foreign shipyard 
repairs are performed, but which exhibit an intent to engage in those 
trades under Customs interpretations. Duty is based on actual foreign 
cost. This includes the original foreign purchase price of articles 
which have been imported into the United States and are later sent 
abroad for use. For the purposes of this section, expenditures made in 
American Samoa, the Guantanamo Bay Naval Station, Guam, Puerto Rico, or 
the U.S. Virgin Islands are considered to have been made in the United 
States, and are not subject to declaration, entry or duty. Under 
separate provisions of law, the cost of labor performed, and of parts 
and materials produced and purchased in Israel are not subject to duty 
under the vessel repair statute. Additionally, expenditures made in 
Canada or in Mexico are not subject to any vessel repair duties. Even in 
the absence of any liability for duty, it is still required that all 
repairs and purchases, including those made in Canada, Mexico, and 
Israel, be declared and entered.
    (b) Applicability to specific types of vessels. (1) Fishing vessels. 
As provided in Sec. 4.15, vessels documented under U.S. law with a 
fishery endorsement are subject to vessel repair duties for covered 
foreign expenditures. Undocumented American fishing vessels which are 
repaired, or for which parts, nets or equipment are purchased outside 
the U.S. are also liable for duty.
    (2) Government-owned or chartered vessels. Vessels normally subject 
to the vessel repair statute because of documentation or intended use 
are not excused from duty liability merely because they are either owned 
or chartered by the U.S. Government.
    (3) Vessels continuously away for two years or longer. (i) Liability 
for expenditures throughout entire absence from U.S. Vessels that 
continuously remain outside the United States for two years or longer 
are liable for duty on any fish nets and netting purchased at any time 
during the entire absence. Vessels designed and used primarily for 
transporting passengers or merchandise, which depart the United States 
for the sole purpose of obtaining equipment, parts, materials or repairs 
remain fully liable for duty regardless of the duration of their absence 
from the United States.
    (ii) Liability for expenditures made during first six months of 
absence. Except as provided in paragraph (b)(3)(i) of this section, 
vessels that continuously remain outside the United States for two years 
or longer are liable for duty only on those expenditures which are made 
during the first six months of their absence. See paragraph (h)(3) of 
this section. However, even though some costs might not be dutiable 
because of the six-month rule, all repairs, materials, parts and 
equipment-related expenditures must be declared and entered.
    (c) Estimated duty deposit and bond requirements. Generally, the 
person authorized to submit a vessel repair declaration and entry must 
either deposit or transmit estimated duties or produce evidence of a 
bond on Customs Form 301 at the first United States port of arrival 
before the vessel will be permitted to depart from that port. A 
continuous or single entry bond of sufficient value to cover all 
potential

[[Page 19]]

duty on the foreign repairs and purchases must be identified by surety, 
number and amount on the vessel repair declaration which is submitted at 
the port of first arrival. At the time the vessel repair entry is 
submitted by the vessel operator to the appropriate VRU port of entry as 
defined in paragraph (g) of this section, that same identifying 
information must be identified on the entry form. Sufficiency of the 
amount of the bond is within the discretion of Customs at the arrival 
port with claims for reduction in duty liability necessarily being 
subject to full consideration of evidence by Customs. Customs officials 
at the port of arrival may consult the appropriate Vessel Repair Unit 
(VRU) port of entry as identified in paragraph (g) of this section or 
the staff of the Entry Procedures and Carriers Branch in Customs 
Headquarters in setting sufficient bond amounts. These duty, deposit, 
and bond requirements do not apply to vessels which are owned or 
chartered by the United States Government and are actually being 
operated by employees of an agency of the Government. If operated by a 
private party for a Federal agency under terms whereby that private 
party is liable under the contract for payment of the duty, there must 
be a deposit or a bond filed in an amount adequate to cover the 
estimated duty.
    (d) Declaration required. When a vessel subject to this section 
first arrives in the United States following a foreign voyage, the 
owner, master, or authorized agent must submit a vessel repair 
declaration on Customs Form 226, a dual-use form used both for 
declaration and entry purposes, or must transmit its electronic 
equivalent. The declaration must be ready for presentation in the event 
that a Customs officer boards the vessel. If no foreign repair-related 
expenses were incurred, that fact must be reported either on the 
declaration form or by approved electronic means. The Customs port of 
arrival receiving either a positive or negative vessel repair 
declaration or electronic equivalent will immediately forward it to the 
appropriate VRU port of entry as identified in paragraph (g) of this 
section.
    (e) Entry required. The owner, master, or authorized representative 
of the owner of any vessel subject to this section for which a positive 
declaration has been filed must submit a vessel repair entry on Customs 
Form 226 or transmit its electronic equivalent. The entry must show all 
foreign voyage expenditures for equipment, parts of equipment, repair 
parts, materials and labor. The entry submission must indicate whether 
it provides a complete or incomplete account of covered expenditures. 
The entry must be presented or electronically transmitted by the vessel 
operator to the appropriate VRU port of entry as identified in paragraph 
(g) of this section, so that it is received within ten calendar days 
after arrival of the vessel. Claims for relief from duty should be made 
generally as part of the initial submission, and evidence must later be 
provided to support those claims. Failure to submit full supporting 
evidence of cost within stated time limits, including any extensions 
granted under this section, is considered to be a failure to enter.
    (f) Time limit for submitting evidence of cost. A complete vessel 
repair entry must be supported by evidence showing the cost of each item 
entered. If the entry is incomplete when submitted, evidence to make it 
complete must be received by the appropriate VRU port of entry as 
identified in paragraph (g) of this section within 90 calendar days from 
the date of vessel arrival. That evidence must include either the final 
cost of repairs or, if the operator submits acceptable evidence that 
final cost information is not yet available, initial or interim cost 
estimates given prior to or after the work was authorized by the 
operator. The proper VRU port of entry may grant one 30-day extension of 
time to submit final cost evidence if a satisfactory written explanation 
of the need for an extension is received before the expiration of the 
original 90-day submission period. All extensions will be issued in 
writing. Inadequate, vague, or open-ended requests will not be granted. 
Questions as to whether an extension should be granted may be referred 
to the Entry Procedures and Carriers Branch in Customs Headquarters by 
the VRU ports of entry. Any request for an extension beyond a 30-day 
grant issued by a VRU must be submitted through that unit to the Entry 
Procedures and Carriers

[[Page 20]]

Branch, Customs Headquarters. In the event that all cost evidence is not 
furnished within the specified time limit, or is of doubtful 
authenticity, the VRU may refer the matter to the Customs Office of 
Investigations to begin procedures to obtain the needed evidence. That 
office may also investigate the reason for a failure to file or for an 
untimely submission. Unexplained or unjustified delays in providing 
Customs with sufficient information to properly determine duty may 
result in penalty action as specified in paragraph (j) of this section. 
Extensions granted for the filing of necessary evidence may also extend 
the time for filing Applications for Relief (see paragraph (i)(1) of 
this section).
    (g) Location and jurisdiction of vessel repair unit ports of entry. 
Vessel Repair Units (VRUs) are responsible for processing vessel repair 
entries. VRUs are located in New York, New York; New Orleans, Louisiana; 
and San Francisco, California. The New York unit processes vessel repair 
entries received from ports of arrival on the Great Lakes and the 
Atlantic Coast of the United States north of, but not including, those 
located in the State of Virginia. The New Orleans unit processes vessel 
repair entries received from ports of arrival on the Atlantic Coast from 
and including those in the State of Virginia, southward, and from all 
United States ports of arrival on the Gulf of Mexico including ports in 
Puerto Rico. The San Francisco unit processes vessel repair entries 
received from all ports of entry on the Pacific Coast including those in 
Alaska and Hawaii.
    (h) Justifications for relief from duty. Claims for relief from the 
assessment of vessel repair duties may be submitted to Customs. Relief 
may be sought under paragraphs (a), (d), (e), or (h) of the vessel 
repair statute (19 U.S.C. 1466(a), (d), (e), or (h)), each paragraph of 
which relates to a different type of claim as further specified in 
paragraphs (h)(1)-(h)(4) of this section.
    (1) Relief under 19 U.S.C. 1466(a). Requests for relief from duty 
under 19 U.S.C. 1466(a) consist of claims that a foreign shipyard 
operation or expenditure is not considered to be a repair or purchase 
within the terms of the vessel repair statute or as determined under 
judicial or administrative interpretations. Example: a claim that the 
shipyard operation is a vessel modification.
    (2) Relief from duty under 19 U.S.C. 1466(d). Requests for relief 
from duty under 19 U.S.C. 1466(d) consist of claims that a foreign 
shipyard operation or expenditure involves any of the following:
    (i) Stress of weather or other casualty. Relief will be granted if 
good and sufficient evidence supports a finding that the vessel, while 
in the regular course of its voyage, was forced by stress of weather or 
other casualty, while outside the United States, to purchase such 
equipment or make those repairs as are necessary to secure the safety 
and seaworthiness of the vessel in order to enable it to reach its port 
of destination in the United States. For the purposes of this paragraph, 
a ``casualty'' does not include any purchase or repair made necessary by 
ordinary wear and tear, but does include the failure of a part to 
function if it is proven that the specific part was repaired, serviced, 
or replaced in the United States immediately before the start of the 
voyage in question, and then failed within six months of that date.
    (ii) U.S. parts installed by regular crew or residents. Relief will 
be granted if equipment, parts of equipment, repair parts, or materials 
used on a vessel were manufactured or produced in the United States and 
were purchased in the United States by the owner of the vessel. It is 
required under the statute that residents of the United States or 
members of the regular crew of the vessel perform any necessary labor in 
connection with such installations.
    (iii) Dunnage. Relief will be granted if any equipment, equipment 
parts, materials, or labor were used for the purpose of providing 
dunnage for the packing or shoring of cargo, for erecting temporary 
bulkheads or other similar devices for the control of bulk cargo, or for 
temporarily preparing tanks for carrying liquid cargoes.
    (3) Relief under 19 U.S.C. 1466(e). Requests for relief from duty 
under 19 U.S.C. 1466(e) relate in pertinent part to matters involving 
vessels normally

[[Page 21]]

subject to the vessel repair statute, but that continuously remain 
outside the United States for two years or longer. Vessels that 
continuously remain outside the United States for two years or longer 
may qualify for relief from duty on expenditures made later than the 
first six months of their absence. See paragraph (b)(3)(ii) of this 
section.
    (4) Relief under 19 U.S.C. 1466(h). Requests for relief from duty 
under 19 U.S.C. 1466(h) consist of claims that a foreign shipyard 
operation or expenditure involves any of the following:
    (i) Expenditures on LASH barges. Relief will be granted with respect 
to the cost of equipment, parts, materials, or repair labor for Lighter 
Aboard Ship (LASH) operations accomplished abroad.
    (ii) Certain spare repair parts or materials. Relief will be granted 
with respect to the cost of spare repair parts or materials which are 
certified by the vessel owner or master to be for use on a cargo vessel, 
but only if duty was previously paid under the appropriate commodity 
classification(s) as found in the Harmonized Tariff Schedule of the 
United States when the article first entered the United States.
    (iii) Certain spare parts necessarily installed on a vessel prior to 
their first entry into the United States. Relief will be granted with 
respect to the cost of spare parts only, which have been necessarily 
installed prior to their first entry into the United States with duty 
payment under the appropriate commodity classification(s) as found in 
the Harmonized Tariff Schedule of the United States.
    (i) General procedures for seeking relief. (1) Applications for 
Relief. Relief from the assessment of vessel repair duty will not be 
granted unless an Application for Relief is filed with Customs. Relief 
will not be granted based merely upon a claim for relief made at the 
time of entry under paragraph (e) of this section. The filing of an 
Application for Relief is not required, nor is one required to be 
presented in any particular format, but if filed it must clearly present 
the legal basis for granting relief, as specified in paragraph (h) of 
this section. An Application must also state that all repair operations 
performed aboard a vessel during the one-year period prior to the 
current submission have been declared and entered. A valid Application 
is required to be supported by complete evidence as detailed in 
paragraphs (i)(1)(i)-(vi) and (i)(2) of this section. Except as further 
provided in this paragraph, the deadline for receipt of an Application 
and supporting evidence is 90 calendar days from the date that the 
vessel first arrived in the United States following foreign operations. 
The provisions for extension of the period for filing required evidence 
in support of an entry, as set forth in paragraph (f) of this section, 
are applicable to extension of the time period for filing Applications 
for Relief as well. Applications must be addressed and submitted by the 
vessel operator to the appropriate VRU port of entry and will be decided 
in that unit. The VRUs may seek the advice of the Entry Procedures and 
Carriers Branch in Customs Headquarters with regard to any specific item 
or issue which has not been addressed by clear precedent. If no 
Application is filed or if a submission which does not meet the minimal 
standards of an Application for Relief is received, the duty amount will 
be determined without regard to any potential claims for relief from 
duty (see paragraph (h) of this section). Each Application for Relief 
must include copies of:
    (i) Itemized bills, receipts, and invoices for items shown in 
paragraph (e) of this section. The cost of items for which a request for 
relief is made must be segregated from the cost of the other items 
listed in the vessel repair entry;
    (ii) Photocopies of relevant parts of vessel logs, as well as of any 
classification society reports which detail damage and remedies;
    (iii) A certification by the senior officer with personal knowledge 
of all relevant circumstances relating to casualty damage (time, place, 
cause, and nature of damage);
    (iv) A certification by the senior officer with personal knowledge 
of all relevant circumstances relating to foreign repair expenditures 
(time, place, and nature of purchases and work performed);
    (v) A certification by the master that casualty-related expenditures 
were

[[Page 22]]

necessary to ensure the safety and seaworthiness of the vessel in 
reaching its United States port of destination; and
    (vi) Any permits or other documents filed with or issued by any 
United States Government agency other than Customs regarding the 
operation of the vessel that are relevant to the request for relief.
    (2) Additional evidence. In addition, copies of any other evidence 
and documents the applicant may wish to provide as evidentiary support 
may be submitted. Elements of applications which are not supported by 
required evidentiary elements will be considered fully dutiable. All 
documents submitted must be certified by the master, owner, or 
authorized corporate officer to be originals or copies of originals, and 
if in a foreign language, they must be accompanied by an English 
translation, certified by the translator to be accurate. Upon receipt of 
an Application for Relief by the VRU within the prescribed time limits, 
a determination of duties owed will be made. After a decision is made on 
an Application for Relief by a VRU, the applicant will be notified of 
the right to protest any adverse decision.
    (3) Administrative protest. Following the determination of duty 
owing on a vessel repair entry, a protest may be filed under 19 U.S.C. 
1514(a)(2) as the only and final administrative appeal. The procedures 
and time limits applicable to protests filed in connection with vessel 
repair entries are the same as those provided in part 174 of this 
chapter. In particular, the applicable protest period will begin on the 
date of the issuance of the decision giving rise to the protest as 
reflected on the relevant correspondence from the appropriate VRU.
    (j) Penalties--(1) Failure to report, enter, or pay duty. It is a 
violation of the vessel repair statute if the owner or master of a 
vessel subject to this section willfully or knowingly neglects or fails 
to report, make entry, and pay duties as required; makes any false 
statements regarding purchases or repairs described in this section 
without reasonable cause to believe the truth of the statements; or aids 
or procures any false statements regarding any material matter without 
reasonable cause to believe the truth of the statement. If a violation 
occurs, the vessel, its tackle, apparel, and furniture, or a monetary 
amount up to their value as determined by Customs, is subject to seizure 
and forfeiture and is recoverable from the owner (see Sec. 162.72 of 
this chapter).
    (2) False declaration. If any person required to file a vessel 
repair declaration or entry under this section, knowingly and willfully 
falsifies, conceals or covers up by any trick, scheme, or device a 
material fact, or makes any materially false, fictitious or fraudulent 
statement or representation, or makes or uses any false writing or 
document knowing the same to contain any materially false, fictitious or 
fraudulent statement, that person will be subject to the criminal 
penalties provided for in 18 U.S.C. 1001.

[66 FR 16397, Mar. 26, 2001]



Sec. 4.15  Fishing vessels touching and trading at foreign places.

    (a) Before any vessel documented with a fishery license endorsement 
shall touch and trade at a foreign port or place, the master shall 
obtain from the port director a permit on Customs Form 1379 to touch and 
trade.

When a fishing vessel departs from the United States and there is an 
intent to stop at a foreign port (1) to lade vessel equipment which was 
preordered, (2) to purchase and lade vessel equipment, or (3) to 
purchase and lade vessel equipment to replace existing vessel equipment, 
the master of the vessel must either clear for that foreign port or 
obtain a permit to touch and trade, whether or not the vessel will 
engage in fishing on that voyage.28 Purchases of such 
equipment, whether intended at the time of departure or not, are subject 
to declaration, entry, and payment of duty pursuant to section 466 of 
the Tariff Act of 1930, as amended (19 U.S.C. 1466). The duty may be 
remitted if it is established that the purchases

[[Page 23]]

resulted from stress of weather or other casualty.
---------------------------------------------------------------------------

    \28\ If such a vessel puts into a foreign port or place and only 
obtains bunkers, stores, or supplies suitable for a fishing voyage, it 
is not considered to have touched and traded there. Fish nets and 
netting are considered vessel equipment and not vessel supplies.
    29-61 [Reserved]
---------------------------------------------------------------------------

    (b) Upon the arrival of a documented vessel with a fishery 
endorsement which has put into a foreign port or place, the master shall 
report its arrival, make entry, and conform in all respects to the 
regulations applicable in the case of a vessel arriving from a foreign 
port.
    (c) If a vessel which has been granted a permit to touch and trade 
arrives at a port in the United States, whether or not the vessel has 
touched at a foreign port or place, such permit shall forthwith be 
surrendered to the port director.
    (d) No permit to touch and trade shall be issued to a vessel which 
does not have a Certificate of Documentation with a fishery license 
endorsement.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77-28, 42 FR 3161, Jan. 
17, 1977; T.D. 83-214, 48 FR 46512, Oct. 13, 1983; T.D. 94-24, 59 FR 
13200, Mar. 21, 1994; T.D. 95-77, 60 FR 50010, Sept. 27, 1995]



Sec. 4.16  [Reserved]



Sec. 4.17  Vessels from discriminating countries.

    The prohibition against imports in, and the penalty of forfeiture 
of, certain vessels from countries which discriminate against American 
vessels provided for in subsections 2 and 3 of paragraph J, section IV, 
Tariff Act of 1913, as amended by the act of March 4, 1915 (19 U.S.C. 
130, 131), shall be enforced only in pursuance of specific instructions 
issued and published from time to time by the Secretary of the Treasury 
or such other officer as the Secretary may designate. (See also 
Secs. 4.20(c) and 159.42 of this chapter.)

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17444, 
July 2, 1973]

                       Tonnage Tax and Light Money



Sec. 4.20  Tonnage taxes.

    (a) Except as specified in Sec. 4.21, a regular tonnage tax or duty 
of 9 cents per net ton, not to exceed in the aggregate 45 cents per net 
ton in any 1 year, shall be imposed at each entry on all vessels which 
shall be entered in any port of the United States from any foreign port 
or place in North America, Central America, the West Indies, the Bahama 
Islands, the Bermuda Islands, the coast of South America bordering on 
the Caribbean Sea (considered to include the mouth of the Orinoco 
River), or the high seas adjacent to the U.S. or the above listed 
foreign locations, and on all vessels (except vessels of the U.S., 
recreational vessels, and barges, as defined in Sec. 2101 of Title 46) 
that depart a U.S. port or place and return to the same port or place 
without being entered in the United States from another port or place, 
and regular tonnage tax of 27 cents per net ton, not to exceed $1.35 
cents per net ton per annum, shall be imposed at each entry on all 
vessels which shall be entered in any port of the United States from any 
other foreign port. In determining the port of origin of a voyage to the 
United States and the rate of tonnage tax, the following shall be used 
as a guide:
    (1) When the vessel has proceeded in ballast from a port to which 
the 27-cent rate is applicable to a port to which the 9-cent rate 
applies and there has laden cargo or taken passengers, tonnage tax upon 
entry in the United States shall be assessed at the 9-cent rate.
    (2) The same rate shall be applied in a case in which the vessel has 
transported cargo or passengers from a 27-cent port to a 9-cent port 
when all such cargo or passengers have been unladen or discharged at the 
9-cent port, without regard to whether the vessel thereafter has 
proceeded to the United States in ballast or with cargo or passengers 
laden or taken on board at the 9-cent port.
    (3) The 27-cent rate shall be applied when the vessel proceeds from 
a 9-cent port to a 27-cent port en route to the United States under 
circumstances similar to paragraph (a) (1) or (2) of this section.
    (4) If the vessel arrives in the United States with cargo or 
passengers taken at two or more ports to which different rates are 
applicable, tonnage tax shall be collected at the higher rate.
    (b) The tonnage year shall be computed from the date of the first 
entry of the vessel concerned, without regard to the rate of the payment 
made at that entry, and shall expire on the day

[[Page 24]]

preceding the corresponding date of the following year. There may be 5 
payments at the maximum (27 cent) and 5 at the minimum (9-cent) rate 
during a tonnage year, so that the maximum assessment of tonnage duty 
may amount to $1.80 per net ton for the tonnage year of a vessel engaged 
in alternating trade.
    (c) A vessel shall also be subject on every entry from a foreign 
port or place, whether or not regular tonnage tax is payable on the 
particular entry, to the payment of a special tonnage tax and to the 
payment of light money at the rates and under the circumstances 
specified in the following table:




----------------------------------------------------------------------------------------------------------------
                                                                                     Rate per net ton
                                                                         ---------------------------------------
                           Classes of vessels                                               Special      Light
                                                                            Regular tax       tax        money
----------------------------------------------------------------------------------------------------------------
Vessels of the United States:
  1. Under provisional register, without regard to citizenship of         $0.09 or $0.27  ..........  ..........
   officers.............................................................
  2. All others:
    (i) If all the officers are citizens................................      .09 or .27  ..........  ..........
    (ii) If any officer is not a citizen................................      .09 or .27    \1\ 0.50     \1\ .50
Undocumented vessels which are owned by citizens \2\....................      .09 or .27         .50     \3\ .50
Foreign vessels:
  1. Of nations whose vessels are exempted from special tax or light          .09 or .27  ..........  ..........
   money................................................................
  2. All others:
    (i) Built in the U.S................................................      .09 or .27         .30         .50
    (ii) Not built in the U.S...........................................      .09 or .27         .50         .50
    (iii) In addition to (i) or (ii) of 2., Foreign Vessels, when             .09 or .27    \4\ 2.00     \4\ .50
     entering from a foreign port or place where vessels of the U.S. are
     not ordinarily permitted to enter and trade \3\a...................
----------------------------------------------------------------------------------------------------------------
\1\ This does not apply on the first arrival of a vessel in a port of the United States from a foreign or
  intercoastal voyage if all the officers who are not citizens are below the grade of master and are filling
  vacancies which occurred on the voyage.
\2\ This special tax and light money do not apply if the vessel is documented as a vessel of the United States
  before leaving the port.
\3\ This does not apply if the vessel is under a certificate of protection and the owner or master files with
  the port director the oath required by 46 U.S.C. App. 129. An unrecorded bill of sale is not such a document
  as will exempt a vessel from the payment of light money under 46 U.S.C. App. 128, and the recording of such
  bill of sale after the arrival of the vessel is not sufficient to relieve it from the payment of the tax.
\3\a The Democratic People's Republic of Korea (North Korea), does not ordinarily permit vessels of the United
  States to enter and trade.
\4\ This is to be collected on each entry of a vessel from such a port or place.

    (d) Tonnage tax shall be imposed upon a vessel even though she 
enters a port of the United States only for orders.
    (e) The fact that a vessel passes through the Panama Canal does not 
affect the rate of tonnage tax otherwise applicable to the vessel.
    (f) For the purpose of computing tonnage tax, the net tonnage of a 
vessel stated in the vessel's marine document shall be accepted unless 
(1) such statement is manifestly wrong, in which case the net tonnage 
shall be estimated, pending admeasurement of the vessel, or the tonnage 
reported for her by any recognized classification society may be 
accepted, or (2) an appendix is attached to the marine document showing 
a net tonnage ascertained under the so-called ``British rules'' or the 
rules of any foreign country which have been accepted as substantially 
in accord with the rules of the United States, in which case the tonnage 
so shown may be accepted and the date the appendix was issued shall be 
noted on the tonnage tax certificate, Customs Form 1002, and on the 
Vessel Entrance or Clearance Statement, Customs Form 1300. For the 
purpose of computing tonnage tax on a vessel with a tonnage mark and 
dual tonnages, the higher of the net tonnages stated in the vessel's 
marine document or tonnage certificate shall be used unless the Customs 
officer concerned is satisfied by report of the boarding officer, 
statement or certificate of the master, or otherwise that the tonnage 
mark was not submerged at the time of arrival. Whether the vessel has a 
tonnage mark, and if so, whether the mark was submerged on arrival, 
shall be noted on Customs Form 1300 by the boarding officer.

[[Page 25]]

    (g) The decision of the Commissioner of Customs is the final 
administrative decision on any question of interpretation relating to 
the collection of tonnage tax or to the refund of such tax when 
collected erroneously or illegally, and any question of doubt shall be 
referred to him for instructions.
    (h) Any person adversely affected by a decision of the Commissioner 
of Customs relating to the collection of tonnage tax, or to the refund 
of such tax when collected erroneously or illegally, may appeal the 
decision in the Court of International Trade provided that the appeal 
action is commenced in accordance with the rules of the Court within 2 
years after the cause of action first accrues.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71-169, 36 FR 12603, 
July 2, 1971; T.D. 75-110, 40 FR 21027, May 15, 1975; T.D. 76-280, 41 FR 
42647, Sept. 28, 1976; T.D. 79-276, 44 FR 61956, Oct. 29, 1979; T.D. 82-
145, 47 FR 35475, Aug. 16, 1982; T.D. 85-91, 50 FR 21429, May 24, 1985; 
T.D. 85-90, 50 FR 21430, May 24, 1985; T.D. 93-12, 58 FR 13196, Mar. 10, 
1993; T.D. 95-76, 60 FR 48028, Sept. 18, 1995; T.D. 97-82, 62 FR 51769, 
Oct. 3, 1997; T.D. 00-22, 65 FR 16515, Mar. 29, 2000]



Sec. 4.21  Exemptions from tonnage taxes.

    (a) Tonnage taxes and light money shall be suspended in whole or in 
part whenever the President by proclamation shall so direct.
    (b) The following vessels, or vessels arriving in the circumstances 
as defined below, shall be exempt from tonnage tax and light money:
    (1) It comes into port for bunkers (including water), sea stores, or 
ship's stores; transacts no other business in the port; and departs 
within 24 hours after its arrival.
    (2) It arrives in distress, even though required to enter.
    (3) It is brought into port by orders of United States naval 
authorities and transacts no business while in port other than the 
taking on of bunkers, sea stores, or ship's stores.
    (4) It is a vessel of war or other vessel which is owned by, or 
under the complete control and management of the United States or the 
government of a foreign country, and which is not carrying passengers or 
merchandise in trade or, if in ballast, which is not arriving from a 
foreign port during the usual course of its employment as a vessel 
engaged in trade.
    (5) It is a yacht or other pleasure vessel not carrying passengers 
or merchandise in trade.
    (6) It is engaged exclusively in scientific activities.
    (7) It is engaged exclusively in laying or repairing cables.
    (8) It is engaged in whaling or other fisheries, even though it may 
have entered a foreign port for fuel or supplies, if it did not carry 
passengers or merchandise in trade.
    (9) It is a passenger vessel making three trips or more a week 
between a port of the United States and a foreign port.
    (10) It is used exclusively as a ferry boat, including a car ferry.
    (11) It is a tug with a Great Lakes license endorsement on its 
vessel document, when towing vessels which are required to make entry.
    (12) It is a documented vessel with a Great Lakes license 
endorsement which has touched at an intermediate foreign port or ports 
during a coastwise voyage.
    (13) It enters otherwise than by sea from a foreign port at which 
tonnage or lighthouse duties or equivalent taxes are not imposed on 
vessels of the United States (applicable only where the vessel arrives 
from a port in the province of Ontario, Canada).
    (14) It is a coastwise-qualified vessel solely engaged in the 
coastwise trade (although arriving from a foreign port or place, it is 
engaged in the transportation of merchandise or passengers, or the 
towing of a vessel other than a vessel in distress, between points in 
the U.S. via a foreign point) (see Secs. 4.80, 4.80a, 4.80b, and 4.92).
    (15) It is a vessel entering directly from the Virgin Islands 
(U.S.), American Samoa, the islands of Guam, Wake, Midway, Canton, or 
Kingman Reef, or Guantanamo Bay Naval Station.
    (16) It is a vessel making regular daily trips between any port of 
the United States and any port in Canada wholly upon interior waters not 
navigable to the ocean, except that such a vessel shall pay tonnage 
taxes upon her first arrival in each calendar year.

[[Page 26]]

    (17) It is a vessel arriving at a port in the United States which, 
while proceeding between ports in the United States, touched at a 
foreign port under circumstances which would have exempted it from 
making entry under section 441(4), Tariff Act of 1930, as amended (19 
U.S.C. 1441(4)), had it touched at a United States port.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 72-264, 37 FR 20317, 
Sept. 29, 1972; T.D. 75-110, 40 FR 21027, May 15, 1975; T.D. 75-206, 40 
FR 34586, Aug. 18, 1975; T.D. 79-276, 44 FR 61956, Oct. 29, 1979; T.D. 
83-214, 48 FR 46512, Oct. 13, 1983; T.D. 93-12, 58 FR 13197, Mar. 10, 
1993]



Sec. 4.22  Exemptions from special tonnage taxes.

    Vessels of the following nations are exempted by treaties, 
Presidential proclamations, or orders of the Secretary of the Treasury 
from the payment of any higher tonnage duties than are applicable to 
vessels of the United States and are exempted from the payment of light 
money:

Algeria.
Antigua and Barbuda.
Arab Republic of Egypt.
Argentina.
Australia.
Austria.
Bahamas, The.
Bahrain.
Bangladesh.
Barbados.
Belgium.
Belize.
Bermuda.
Bolivia.
Brazil.
Bulgaria.
Burma.
Canada.
Chile.
Colombia.
Costa Rica.
Cuba.
Cyprus.
Czechoslovakia.
Denmark (including the Faeroe Islands).
Dominica.
Dominican Republic.
Ecuador.
El Salvador.
Estonia.
Ethiopia.
Fiji.
Finland.
France.
Gambia, The.
German Democratic Republic.
German Federal Republic.
Ghana.
Great Britain (including the Cayman Islands).
Greece.
Greenland.
Guatemala.
Guinea, Republic of.
Guyana.
Haiti.
Honduras.
Hong Kong.
Hungarian People's Republic
Iceland.
India.
Indonesia.
Iran.
Iraq.
Ireland (Eire).
Israel.
Italy.
Ivory Coast, Republic of.
Jamaica.
Japan.
Kenya.
Korea.
Kuwait.
Latvia.
Lebanon.
Liberia.
Libya.
Luxembourg.
Malaysia.
Malta.
Marshall Islands, Republic of.
Mauritius.
Mexico.
Monaco.
Morocco.
Nauru, Republic of.
Netherlands.
Netherlands Antilles.
New Zealand.
Nicaragua.
Nigeria.
Norway.
Oman.
Pakistan.
Panama.
Papua New Guinea.
Paraguay.
People's Republic of China.
Peru.
Philippines.
Poland.
Portugal.
Qatar.
Rumania.
Saudi Arabia.
Senegal.
Singapore, Republic.
Somali, Republic.
Spain.
Sri Lanka.
St. Vincent and The Grenadines.
Surinam, Republic of.
Sweden.

[[Page 27]]

Switzerland.
Syrian Arab Republic.
Taiwan.
Thailand.
Togo.
Tonga.
Tunisia.
Turkey.
Tuvalu.
Union of South Africa.
Union of Soviet Socialist Republics.
United Arab Emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, 
Sharjah, and Umm Al Qaiwain).
Uruguay.
Vanuatu, Republic of.
Venezuela.
Yugoslavia.
Zaire.

[28 FR 14596, Dec. 31, 1963]

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



Sec. 4.23  Certificate of payment and cash receipt.

    Upon each payment of tonnage tax or light money, the master of the 
vessel shall be given a certificate on Customs Form 1002 on which the 
control number of the cash receipt (Customs Form 368 or 368A) upon which 
payment was recorded shall be written. This certificate shall constitute 
the official evidence of such payment and shall be presented upon each 
entry during the tonnage year to establish the date of commencement of 
the tonnage year and to insure against overpayment. In the absence of 
the certificate, evidence of payment of tonnage tax shall be obtained 
from the port director to whom the payment was made.

[T.D. 85-71, 50 FR 15415, Apr. 18, 1985, as amended by T.D. 92-56, 57 FR 
24943, June 12, 1992]



Sec. 4.24  Application for refund of tonnage tax.

    (a) The authority to make refunds in accordance with section 26 of 
the Act of June 26, 1884 (46 U.S.C. 8) of regular tonnage taxes 
described in Sec. 4.20(a) is delegated to the Directors of the ports 
where the collections were made. If any doubt exists, the case shall 
first be referred to Headquarters, U.S. Customs Service for advice.
    (b) Each application for refund of regular or special tonnage tax or 
light money prepared in accordance with this section shall be filed with 
the Customs officer to whom payment was made. After verification of the 
pertinent facts asserted in the claim, the application shall be 
forwarded with any necessary report or recommendation to the appropriate 
port director. Applications for refund of special tonnage tax and light 
money (see Sec. 4.20(c)) with the reports and recommendations submitted 
therewith shall be forwarded by the port director to the Commissioner of 
Customs for decision. Any refund authorized by the Port Director under 
paragraph (a) of this section or any refund of special tonnae tax or 
light money authorized by the Commissioner of Customs shall be made by 
the appropriate Customs officer. The records of tonnage tax shall be 
clearly noted to show each refund authorized.
    (c) The application shall be a direct request for the refund of a 
definite sum, showing concisely the reasons therefor, the nationality 
and name of the vessel, and the date, place, and amount of each payment 
for which refund is requested. The application shall be made within 1 
year from date of the payment. A protest against a payment shall not be 
accepted as an application for its refund.
    (d) When the application is based upon a claim that more than five 
payments of regular tax at either the 2-cent or the 6-cent rate have 
been made during a tonnage year, the application shall be supported by a 
statement from the appropriate Customs officer at the port where the 
application is submitted and from the appropriate Customs officer at 
each port at which any claimed payment was made verifying the facts and 
showing in each case whether refunds have been authorized.
    (e) The application shall include a certificate by the owner or by 
the owner's agent that payment of tonnage tax at the applicable rate has 
been or will be made for each entry of the vessel on a voyage on which 
that rate is applicable before the end of the current tonnage year, 
exclusive of any payment which has been refunded or which may be 
refunded as a result of such application.

[[Page 28]]

    (f) The owner or operator of the vessel involved, or other party in 
interest, may file with the port Director a petition addressed to the 
Commissioner of Customs for a review of the port director's decision on 
an application for refund of regular tonnage tax. Such petition shall be 
filed in duplicate within 30 days from the date of notice of the initial 
decision, shall completely identify the case, and shall set forth in 
detail the exceptions to the decision.

[T.D. 71-274, 36 FR 21025, Nov. 3, 1971, as amended by T.D. 95-77, 60 FR 
50010, Sept. 27, 1995]

                      Landing and Delivery of Cargo



Sec. 4.30  Permits and special licenses for unlading and lading.

    (a) Except as prescribed in paragraph (f), (g), or (k) of this 
section or in Sec. 123.8 of this chapter, and except in the case of a 
vessel exempt from entry or clearance fees under 19 U.S.C. 288, no 
passengers, cargo, baggage, or other article shall be unladen from a 
vessel which arrives directly or indirectly from any port or place 
outside the Customs territory of the U.S., including the adjacent waters 
(see Sec. 4.6 of this part), or from a vessel which transits the Panama 
Canal and no cargo, baggage, or other article shall be laden on a vessel 
destined to a port or place outside the Customs territory of the U.S., 
including the adjacent waters (see Sec. 4.6 of this part) if Customs 
supervision of such lading is required, until the port director shall 
have issued a permit or special license therefore on Customs Form 3171 
or electronically pursuant to an authorized electronic data interchange 
system or other means of communication approved by the Customs Service.
    (1) U.S. and foreign vessels arriving at a U.S. port directly from a 
foreign port or place are required to make entry, whether it be formal 
or, as provided in Sec. 4.8, preliminary, before the port director may 
issue a permit or special license to lade or unlade.
    (2) U.S. vessels arriving at a U.S. port from another U.S. port at 
which formal entry was made may be issued a permit or special license to 
lade or unlade without having to make either preliminary or formal entry 
at the second and subsequent ports. Foreign vessels arriving at a U.S. 
port from another U.S. port at which formal entry was made may be issued 
a permit or special license to lade or unlade at the second and 
subsequent ports prior to formal entry without the necessity of making 
preliminary entry. In these circumstances, after the master has reported 
arrival of the vessel, the port director may issue the permit or special 
license or may, in his discretion, require the vessel to be boarded, the 
master to make an oath or affirmation to the truth of the statements 
contained in the vessel's manifest to the Customs officer who boards the 
vessel, and require delivery of the manifest prior to issuing the 
permit.
    (b) Application for a permit or special license will be made by the 
master, owner, or agent of the vessel on Customs Form 3171, or 
electronically pursuant to an authorized electronic data interchange 
system or other means of communication approved by the Customs Service, 
and will specifically indicate the type of service desired at that time, 
unless a term permit or term special license has been issued. Vessels 
that arrive in a Customs port with more than one vessel carrier sharing 
or leasing space on board the vessel (such as under a vessel sharing or 
slot charter arrangement) are required to indicate on the CF 3171 all 
carriers on board the vessel and indicate whether each carrier is 
transmitting its cargo declaration electronically or is presenting it on 
the Customs Form 1302. In the case of a term permit or term special 
license, upon entry of each vessel, a copy of the term permit or special 
license must be submitted to Customs during official hours in advance of 
the rendering of services so as to update the nature of the services 
desired and the exact times they will be needed. Permits must also be 
updated to reflect any other needed changes including those in the name 
of the vessel as well as the slot charter or vessel sharing parties. An 
agent of a vessel may limit his application to operations involved in 
the entry and unlading of the vessel or to operations involved in its 
lading and clearance. Such limitation will be specifically noted on the 
application.

[[Page 29]]

    (c) The request for a permit or a special license shall not be 
approved (previously issued term permits or special licenses shall be 
revoked) unless the carrier complies with the provisions of paragraphs 
(l) and (m) of this section regarding terminal facilities and employee 
lists, and the required cash deposit or bond has been filed on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.64 of 
this chapter relating to international carriers. \62\ When a carrier has 
on file a bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.63 of this chapter relating to basic custodial bond 
conditions, no further bond shall be required solely by reason of the 
unlading or lading at night or on a Sunday or holiday of merchandise or 
baggage covered by bonded transportation entries. Separate bonds shall 
be required if overtime services are requested by different principals.
---------------------------------------------------------------------------

    \62\ ``Before any such special license to unlade shall be granted, 
the master, owner, or agent of such vessel or vehicle, or the person in 
charge of such vehicle, shall be required to deposit sufficient money to 
pay, or to give a bond in an amount to be fixed by the Secretary 
conditioned to pay, the compensation and expenses of the customs 
officers and employees assigned to duty in connection with such unlading 
at night or on Sunday or a holiday, in accordance with the provisions of 
section 5 of the act of February 13, 1911, as amended (U.S.C. 1952 
edition, title 19 sec. 267). In lieu of such deposit or bond the owner 
or agent of any vessel or vehicle or line of vessels or vehicles may 
execute a bond in an amount to be fixed by the Secretary of the Treasury 
to cover and include the issuance of special licenses for the unlading 
of such vessels or vehicles for a period not to exceed one year. * * *'' 
(Tariff Act of 1930, section 451, as amended, 19 U.S.C. 1451)
    63-66 [Reserved]
---------------------------------------------------------------------------

    (d) Except as prescribed in paragraph (f) or (g) of this section, a 
separate application for a permit or special license shall be filed in 
the case of each arrival.
    (e) Stevedoring companies and others concerned in lading or unlading 
merchandise, or in removing or otherwise securing it, shall ascertain 
that the applicable preliminary Customs requirements have been complied 
with before commencing such operation, since performance in the absence 
of such compliance render them severally liable to the penalties 
prescribed in section 453, Tariff Act of 1930, even though they may not 
be responsible for taking the action necessary to secure compliance.
    (f) The port director may issue a term permit on Customs Form 3171, 
which will remain in effect until revoked by the port director, 
terminated by the carrier, or automatically cancelled by termination of 
the supporting continuous bond, to unlade merchandise, passengers, or 
baggage, or to lade merchandise or baggage during official hours.
    (g) The port director may issue a term special license on Customs 
Form 3171, which will remain in effect until revoked by the port 
director, terminated by the carrier, or automatically cancelled by 
termination of the supporting continuous bond, to unlade merchandise, 
passengers, or baggage, or to lade merchandise or baggage during 
overtime hours or on a Sunday or holiday when Customs supervision is 
required. (See Sec. 24.16 of this chapter regarding pleasure vessels.)
    (h) A special license for the unlading or lading of a vessel at 
night or on a Sunday or holiday shall be refused by the port director if 
the character of the merchandise or the conditions or facilities at the 
place of unlading or lading render the issuance of such special license 
dangerous to the revenue. In no case shall a special license for 
unlading or lading at night or on a Sunday or holiday be granted except 
on the ground of commercial necessity.
    (i) The port director shall not issue a permit or special license to 
unlade cargo or equipment of vessels arriving directly or indirectly 
from any port or place outside the United States, except on compliance 
with one or more of the following conditions:
    (1) The merchandise shall have been duly entered and permits issued; 
or
    (2) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.64 of this chapter relating to international carriers, 
or cash deposit shall have been given; or
    (3) The merchandise is to be discharged into the custody of the port 
director as provided for in section 490(b), Tariff Act of 1930.

[[Page 30]]

    (j) Bonds are not required under this section for vessels owned by 
the United States and operated for its account.
    (k) In the case of vessels of 5 net tons or over which are used 
exclusively as pleasure vessels and which arrive from any country, the 
port director in his discretion and under such conditions as he deems 
advisable may allow the required application for unlading passengers and 
baggage to be made orally, and may authorize his inspectors to grant 
oral permission for unlading at any time, and to grant requests on 
Customs Form 3171 for overtime services.
    (l) A permit to unlade pursuant to this part 4 or part 122 of this 
chapter shall not be granted unless the port director determines that 
the applicant provides or the terminal at which the applicant will 
unlade the cargo provides (1) sufficient space, capable of being locked, 
sealed, or otherwise secured, for the storage immediately upon unlading 
of cargo whose weight-to-value ratio renders it susceptible to theft or 
pilferage and of packages which have been broken prior to or in the 
course of unlading; and (2) an adequate number of vehicles, capable of 
being locked, sealed, or otherwise secured, for the transportation of 
such cargo or packages between the point of unlading and the point of 
storage. A term permit to unlade shall be revoked if the port director 
determines subsequent to such issuance that the requirements of this 
paragraph have not been met.
    (m) A permit to unlade pursuant to this part 4 or part 122 of this 
chapter shall not be granted to an importing carrier, and a term permit 
to unlade previously granted to such a carrier shall be revoked, (1) if 
such carrier, within 30 days after the date of receipt of a written 
demand by the port director, does not furnish a written list of the 
names, addresses, social security numbers, and dates and places of birth 
of persons it employs in connection with the unlading, storage and 
delivery of imported merchandise; or (2) if, having furnished such a 
list, the carrier does not advise the port director in writing of the 
names, addresses, social security numbers, and dates and places of birth 
of any new personnel employed in connection with the unlading, storage 
and delivery of imported merchandise within 10 days after such 
employment. If the employment of any such person is terminated, the 
carrier shall promptly advise the port director. For the purposes of 
this part, a person shall not be deemed to be employed by a carrier if 
he is an officer or employee of an independent contractor engaged by a 
carrier to load, unload, transport or otherwise handle cargo.

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



Sec. 4.31  Unlading or transshipment due to casualty.

    (a) When any cargo or stores of a vessel have been unladen or 
transshipped at any place in the United States or its Customs waters 
other than a port of entry because of accident, stress of weather, or 
other necessity, no penalty shall be imposed under section 453 or 
586(a), Tariff Act of 1930, if due notice is given to the director of 
the port at which the vessel thereafter first arrives and satisfactory 
proof is submitted to him as provided for in section 586(f), Tariff Act 
of 1930, as amended, regarding such accident, stress of weather, or 
other necessity. The port director may accept the certificates of the 
master and two or more officers or members of the crew of the vessel, of 
whom the person next to the master in command shall be one, as proof 
that the unlading or transshipment was necessary by reason of 
unavoidable cause.
    (b) The port director may then permit entry of the vessel and its 
cargo and permit the unlading of the cargo in such place at the port as 
he may deem proper. Unless its transportation has been in violation of 
the coastwise laws, the cargo may be cleared through Customs at the port 
where it is discharged or forwarded to the port of original

[[Page 31]]

destination under an entry for immediate transportation or for 
transportation and exportation, as the case may be. All regulations 
shall apply in such cases as if the unlading and delivery took place at 
the port of original destination.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 95-77, 60 FR 50010, 
Sept. 27, 1995]



Sec. 4.32  Vessels in distress; landing of cargo.

    (a) When a vessel from a foreign port arrives in distress at a port 
other than that to which it is destined, a permit to land merchandise or 
baggage may be issued if such action is necessary. Merchandise and 
baggage so unladen shall be taken into Customs custody and, if it has 
not been transported in violation of the coastwise laws, may be entered 
and disposed of in the same manner as any other imported merchandise or 
may be reladen without entry to be carried to its destination on the 
vessel from which it was unladen, subject only to charges for storage 
and safekeeping.
    (b) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.64 of this chapter relating to international carriers 
shall be given in an amount to be determined by the port director to 
insure the proper disposition of the cargo, whether such cargo be 
dutiable or free.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41164, 
Oct. 19, 1984]



Sec. 4.33  Diversion of cargo.

    (a) Unlading at other than original port of destination. A vessel 
may unlade cargo or baggage at an alternative port of entry to the port 
of original destination if:
    (1) It is compelled by any cause to put into the alternative port 
and the director of that port issues a permit for the unlading of cargo 
or baggage; or
    (2) As a result of an emergency existing at the port of destination, 
the port director authorizes the vessel to proceed in accordance with 
the residue cargo bond procedure to the alternative port. The owner or 
agent of the vessel shall apply for such authorization in writing, 
stating the reasons and agreeing to hold the port director and the 
Government harmless for the diversion.
    (b) Disposition of cargo or baggage at emergency port. Cargo and 
baggage unladen at the alternative port under the circumstances set 
forth in paragraph (a) of this section may be:
    (1) Entered in the same manner as other imported cargo or baggage;
    (2) Treated as unclaimed and stored at the risk and expense of its 
owner; or
    (3) Reladen upon the same vessel without entry, for transportation 
to its original destination.
    (c) Substitution of ports of discharge on manifest. After entry, the 
Cargo Declaration, Customs Form 1302, of a vessel may be changed at any 
time to permit discharge of manifested cargo at any domestic port in 
lieu of any other port shown on the Cargo Declaration, if:
    (1) A written application for the diversion is made on the amended 
Cargo Declaration by the master, owner, or agent of the vessel to the 
director of the port where the vessel is located, after entry of the 
vessel at that port;
    (2) An amended Cargo Declaration, under oath, covering the cargo, 
which it is desired to divert, is furnished in support of the 
application and is filed in such number of copies as the port director 
shall require for local Customs purposes; and
    (3) The certified traveling manifest is not altered or added to in 
any way by the master, owner, or agent of the vessel. When an 
application under paragraph (c)(1) of this section is approved, the port 
director shall securely attach an approved copy of the amended manifest 
to the traveling manifest and shall send one copy of the amended Cargo 
Declaration to the director of the port where the vessel's bond was 
filed.
    (d) Retention of cargo on board for later return to the United 
States. If, as the result of a strike or other emergency at a United 
States port for which inward foreign cargo is manifested, it is desired 
to retain the cargo on board the vessel for discharge at a foreign port 
but with the purpose of having the cargo returned to the United States, 
an application may be made by the master, owner, or agent of the vessel 
to amend the vessel's Cargo Declaration, Customs Form 1302, under a 
procedure

[[Page 32]]

similar to that described in paragraph (c) of this section, except that 
a foreign port shall be substituted for the domestic port of discharge. 
If the application is approved, it shall be handled in the same manner 
as an application filed under paragraph (c) of this section. However, 
before approving the application, the port director is authorized to 
require such bond as he deems necessary to insure that export control 
laws and regulations are not circumvented.

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



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

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

    \67\ See Sec. 141.69(c) of this chapter for the conditions under 
which such merchandise and goods removed from a port of intended entry 
under these or certain other circumstances may subsequently be cleared 
under a consumption entry which had been filed therefore before the 
merchandise was removed from the port of intended entry.
    68-69 [Reserved]
---------------------------------------------------------------------------

    (c) Inaccessibly stowed cargo. Cargo so stowed as to be inaccessible 
upon arrival at destination may be retained on board, carried forward to 
another domestic port or ports, and returned to the port of destination 
in the importing vessel or in another vessel owned or chartered by the 
owner of the importing vessel in the same manner as other overcarried 
cargo.
    (d) Application for forwarding cargo. When it is desired that 
prematurely landed cargo, overcarried cargo, or cargo so stowed as to be 
inaccessible, be forwarded to its destination by the importing vessel or 
by another vessel owned or chartered by the owner of the importing 
vessel in accordance with paragraph (a), (b), or (c) of this section, 
the required application shall be filed with the local director of the 
port of premature landing or overcarriage by the owner or agent of the 
vessel. The application shall be supported by a Cargo Declaration, 
Customs Form 1302, in such number of copies as the port director may 
require. Whenever practicable, the application shall be made on the face 
of the Cargo Declaration below the description of the merchandise. The 
application shall specify the vessel on which the cargo was imported, 
even though the forwarding to destination is by another vessel owned or 
chartered by the owner of the importing vessel, and all ports of 
departure and dates of sailing of the importing vessel. The application 
shall be stamped and signed to show that it has been approved.
    (e) Manifesting prematurely landed or overcarried cargo. One copy of 
the Cargo

[[Page 33]]

Declaration, Customs Form 1302, shall be certified by Customs for use as 
a substitute traveling manifest for the prematurely landed or 
overcarried cargo being forwarded as residue cargo, whether or not the 
forwarding vessel is also carrying other residue cargo. If the 
application for forwarding is made on the Cargo Declaration, the new 
substitute traveling manifest shall be stamped to show the approval of 
the application. If the application is on a separate document, a copy 
thereof, stamped to show its approval, shall be attached to the 
substitute traveling manifest. An appropriate cross-reference shall be 
placed on the original traveling manifest to show that the vessel has 
one or more substitute traveling manifests. A permit to proceed endorsed 
on a Vessel Entrance or Clearance Statement, Customs Form 1300, issued 
to the vessel transporting the prematurely landed or overcarried cargo 
to its destination shall make reference to the nature of such cargo, 
identifying it with the importing vessel.
    (f) Residue cargo procedure. A vessel with prematurely landed or 
overcarried cargo on board shall comply upon arrival at all domestic 
ports of call with all the requirements of part 4 relating to foreign 
residue cargo for domestic ports. The substitute traveling manifest, 
carried forward from port to port by the oncarrying vessel, shall be 
finally surrendered at the port where the last portion of the 
prematurely landed or overcarried cargo is discharged.
    (g) Cargo undelivered at foreign port and returned to the U.S. 
Merchandise shipped from a domestic port, but undelivered at the foreign 
destination and returned, shall be manifested as ``Undelivered-to be 
returned to original foreign destination,'' if such a return is 
intended. The port director may issue a permit to retain the merchandise 
on board, or he may, upon written application of the steamship company, 
issue a permit on a Delivery Ticket, Customs Form 6043, allowing the 
merchandise to be transferred to another vessel for return to the 
original foreign destination. No charge shall be made against the bond 
on Customs Form 301, containing the bond conditions relating to 
international carriers set forth in Sec. 113.64 of this chapter. The 
items shall be remanifested outward and an explanatory reference of the 
attending circumstances and compliance with export requirements noted.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77-255, 42 FR 56321, 
Oct. 25, 1977; T.D. 85-123, 50 FR 29952, July 23, 1985; T.D. 95-77, 60 
FR 50010, Sept. 27, 1995; T.D. 00-22, 65 FR 16515, Mar. 29, 2000]



Sec. 4.35  Unlading outside port of entry.

    (a) Upon written application from the interested party, the port 
director concerned, if he considers it necessary, may permit any vessel 
laden with merchandise in bulk to proceed, after entry, to any place 
outside the port where the vessel entered which such port director may 
designate for the purpose of unlading such cargo.
    (b) In such case a deposit of a sum sufficient to reimburse the 
Government for the compensation, travel, and subsistence expenses of the 
officers detailed to supervise the unlading and delivery of the cargo 
may be required by the port director.

[28 FR 14596, Dec. 31, 1963, as amended at T.D. 95-77, 60 FR 50010, 
Sept. 27, 1995]



Sec. 4.36  Delayed discharge of cargo.

    (a) When pursuant to section 457, Tariff Act of 1930, customs 
officers are placed on a vessel which has retained merchandise on board 
more than 25 days after the date of the vessel's arrival, their 
compensation and subsistence expenses shall be reimbursed to the 
Government by the owner or master.
    (b) The compensation of all Customs officers and employees assigned 
to supervise the discharge of a cargo within the purview of section 458, 
Tariff Act of 1930,70 after the expiration of 25 days

[[Page 34]]

after the date of the vessel's entry shall be reimbursed to the 
Government by the owner or master of the vessel.
---------------------------------------------------------------------------

    \70\ ``The limitation of time for unlading shall not extend to 
vessels laden exclusively with merchandise in bulk consigned to one 
consignee and arriving at a port for orders, but if the master of such 
vessel requests a longer time to discharge its cargo, the compensation 
of the inspectors or other customs officers whose services are required 
in connection with the unlading shall, for every day consumed in 
unlading in excess of twenty-five (25) days from the date of the 
vessel's entry, be reimbursed by the master or owner of such vessel.'' 
(Tariff Act of 1930, sec. 458; 19 U.S.C. 1458)
    71-75 [Reserved]
---------------------------------------------------------------------------

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

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 95-77, 60 FR 50010, 
Sept. 27, 1995; T.D. 98-74, 63 FR 51287, Sept. 25, 1998]



Sec. 4.37  General order.

    (a) Any merchandise or baggage regularly landed but not covered by a 
permit for its release shall be allowed to remain at the place of 
unlading until the fifteenth calendar day after landing. No later than 
20 calendar days after landing, the master or owner of the vessel or the 
agent thereof shall notify Customs of any such merchandise or baggage 
for which entry has not been made. Such notification shall be provided 
in writing or by any appropriate Customs-authorized electronic data 
interchange system. Failure to provide such notification may result in 
assessment of a monetary penalty of up to $1,000 per bill of lading 
against the master or owner of the vessel or the agent thereof. If the 
value of the merchandise on the bill is less than $1,000, the penalty 
shall be equal to the value of such merchandise.
    (b) Any merchandise or baggage that is taken into custody from an 
arriving carrier by any party under a Customs-authorized permit to 
transfer or in-bond entry may remain in the custody of that party for 15 
calendar days after receipt under such permit to transfer or 15 calendar 
days after arrival at the port of destination. No later than 20 calendar 
days after receipt under the permit to transfer or 20 calendar days 
after arrival under bond at the port of destination, the party shall 
notify Customs of any such merchandise or baggage for which entry has 
not been made. Such notification shall be provided in writing or by any 
appropriate Customs-authorized electronic data interchange system. If 
the party fails to notify Customs of the unentered merchandise or 
baggage in the allotted time, he may be liable for the payment of 
liquidated damages under the terms and conditions of his custodial bond 
(see Sec. 113.63(c)(4) of this chapter).
    (c) In addition to the notification to Customs required under 
paragraphs (a) and (b) of this section, the carrier (or any other party 
to whom custody of the unentered merchandise has been transferred by a 
Customs authorized permit to transfer or in-bond entry) shall provide 
notification of the presence of such unreleased and unentered 
merchandise or baggage to a bonded warehouse certified by the port 
director as qualified to receive general order merchandise. Such 
notification shall be provided in writing or by any appropriate Customs-
authorized electronic data interchange system and shall be provided 
within the applicable 20-day period specified in paragraph (a) or (b) of 
this section. It shall then be the responsibility of the bonded 
warehouse proprietor to arrange for the transportation and storage of 
the merchandise or baggage at the risk and expense of the consignee. Any 
unentered merchandise or baggage shall remain the responsibility of the 
carrier, master, or person in charge of the importing vessel or the 
agent thereof or party to whom the merchandise has been transferred 
under a Customs authorized permit to transfer or in-bond entry, until it 
is properly transferred from his control in accordance with this 
paragraph. If the party to whom custody of the unentered merchandise or 
baggage has been transferred by a Customs-authorized permit to transfer 
or in-bond entry fails to notify a Customs-approved bonded warehouse of 
such merchandise or baggage within the applicable 20-calendar-day 
period, he may be liable for the payment of liquidated damages of $1,000 
per bill of lading under the terms and conditions of his international 
carrier or custodial bond (see Secs. 113.63(b), 113.63(c) and 113.64(b) 
of this chapter).
    (d) If the bonded warehouse operator fails to take possession of 
unentered

[[Page 35]]

and unreleased merchandise or baggage within five calendar days after 
receipt of notification of the presence of such merchandise or baggage 
under this section, he may be liable for the payment of liquidated 
damages under the terms and conditions of his custodial bond (see 
Sec. 113.63(a)(1) of this chapter).
    (e) In ports where there is no bonded warehouse authorized to accept 
general order merchandise or if merchandise requires specialized storage 
facilities which are unavailable in a bonded facility, the port 
director, after having received notice of the presence of unentered 
merchandise or baggage in accordance with the provisions of this 
section, shall direct the storage of the merchandise by the carrier or 
by any other appropriate means.
    (f) Whenever merchandise remains on board any vessel from a foreign 
port more than 25 days after the date on which report of arrival of such 
vessel was made, the port director, as prescribed in section 457, Tariff 
Act of 1930, as amended (19 U.S.C. 1457), may take possession of such 
merchandise and cause it to be unladen at the expense and risk of the 
owners of the merchandise. Any merchandise so unladen shall be sent 
forthwith by the port director to a general order warehouse and stored 
at the risk and expense of the owners of the merchandise.
    (g) Merchandise taken into the custody of the port director pursuant 
to section 490(b), Tariff Act of 1930, as amended (19 U.S.C. 1490(b)), 
shall be sent to a general order warehouse after 1 day after the day the 
vessel was entered, to be held there at the risk and expense of the 
consignee.

[T.D. 98-74, 63 FR 51287, Sept. 25, 1998]



Sec. 4.38  Release of cargo.

    (a) No imported merchandise shall be released from Customs custody 
until a permit to release such merchandise has been granted. Such permit 
shall be issued by the port director only after the merchandise has been 
entered and, except as provided for in Sec. 141.102(d) or part 142 of 
this chapter, the duties thereon, if any, have been estimated and paid. 
Generally, the permit shall consist of a document authorizing delivery 
of a particular shipment or an electronic equivalent. Alternatively, the 
permit may consist of a report which lists those shipments which have 
been authorized for release. This alternative cargo release notification 
may be used when the manifest is not filed by the carrier through the 
Automated Manifest System, the entry has been filed through the 
Automated Broker Interface, and Customs has approved the cargo for 
release without submission of paper documents after reviewing the entry 
data submitted electronically through ABI and its selectivity criteria 
(see Sec. 143.34). The report shall be posted in a conspicuous area to 
which the public has access in the customhouse at the port of entry 
where the cargo was imported.
    (1) Where the cargo arrives by vessel, the report shall consist of 
the following data elements:
    (i) Vessel name or code, if transmitted by the entry filer;
    (ii) Carrier code;
    (iii) Voyage number, if transmitted by the entry filer;
    (iv) Bill of lading number;
    (v) Quantity released; and
    (vi) Entry number (including filer code).
    (2) Where the cargo arrives by air, the report shall consist of the 
following data elements:
    (i) Air waybill number;
    (ii) Quantity released;
    (iii) Entry number (including filer code);
    (iv) Carrier code; and
    (v) Flight number, if transmitted by the entry filer.
    (3) In the case of merchandise traveling via in-bond movement, the 
report will contain the following data elements:
    (i) Immediate transportation bond number;
    (ii) Carrier code;
    (iii) Quantity released; and
    (iv) Entry number (including filer code).

When merchandise is released without proper permit before entry has been 
made, the port director shall issue a written demand for redelivery. The 
carrier or facility operator shall redeliver the merchandise to Customs 
within 30 days after the demand is made. The

[[Page 36]]

port director may authorize unentered merchandise brought in by one 
carrier for the account of another carrier to be transferred within the 
port to the latter carrier's facility. Upon receipt of the merchandise 
the latter carrier assumes liability for the merchandise to the same 
extent as though the merchandise had arrived on its own vessel.
    (b) When packages of merchandise bear marks or numbers which differ 
from those appearing on the Cargo Declaration, Customs Form 1302, of the 
importing vessel for the same packages and the importer or a receiving 
bonded carrier, with the concurrence of the importing carrier, makes 
application for their release under such marks or numbers, either for 
consumption or for transportation in bond under an entry filed therefor 
at the port of discharge from the importing vessel, the port director 
may approve the application upon condition that (1) the contents of the 
packages be identified with an invoice or transportation entry as set 
forth below and (2) the applicant furnish at his own expense any bonded 
cartage or lighterage service which the granting of the application may 
require. The application shall be in writing in such number of copies as 
may be required for local Customs purposes. Before permitting delivery 
of packages under such an application, the port director shall cause 
such examination thereof to be made as will reasonably identify the 
contents with the invoice filed with the consumption entry. If the 
merchandise is entered for transportation in bond without the filing of 
an invoice, such examination shall be made as will reasonably identify 
the contents of the packages with the transportation entry.
    (c) If the port director determines that, in a port or portion of a 
port, the volume of cargo handled, the incidence of theft or pilferage, 
or any other factor related to the protection of merchandise in Customs 
custody requires such measures, he shall require as a condition to the 
granting of a permit to release imported merchandise that the importer 
or his agent present to the carrier or his agent a fully executed pickup 
order in substantially the following format, in triplicate, to obtain 
delivery of any imported merchandise:
[GRAPHIC] [TIFF OMITTED] TC14NO91.167


The pickup order shall contain a duly authenticated customhouse broker's 
signature, unless it is presented by a

[[Page 37]]

person properly identified as an employee or agent of the ultimate 
consignee. When delivered quantities are verified by a Customs officer, 
he shall certify all copies of the pickup order, returning one to the 
importer or his agent and two to the carrier making delivery.
    (d) When the provisions of paragraph (c) of this section are invoked 
by the port director and verification of delivered quantities by Customs 
is required, a permit to release merchandise shall be effective as a 
release from Customs custody at the time that the delivery of the 
merchandise covered by the pickup order into the physical possession of 
a subsequent carrier or an importer or the agent of either is completed 
under the supervision of a Customs officer, and only to the extent of 
the actual delivery of merchandise described in such pickup order as 
verified by such Customs officer.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71-39, 36 FR 1892, Feb. 
3, 1971; T.D. 77-255, 42 FR 56321, Oct. 25, 1977; T.D. 91-46, 56 FR 
22330, May 15, 1991; 56 FR 27559, June 14, 1991]



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

    (a) The provisions of Sec. 4.30 relating to unlading under a permit 
on Customs Form 3171 are applicable to the unlading of articles, other 
than cargo or baggage, which have been laden on a vessel outside the 
Customs territory of the United States, regardless of the trade in which 
the vessel may be engaged at the time of unlading, except that such 
provisions do not apply to such articles which have already been 
entered.
    (b) Any articles other than cargo or baggage landed for delivery for 
consumption in the United States shall be treated in the same manner as 
other imported articles. A notation as to the landing of such articles, 
together with the number of the entry made therefor, shall be made on 
the vessel's store list, but such notation shall not subject the 
articles to the requirement of being included in a post entry to the 
manifest.
    (c) Bags or dunnage constituting equipment of a vessel may be landed 
temporarily and reladen on such vessel under Customs supervision without 
entry.
    (d) Articles claimed to be sea or ships' stores which are in excess 
of the reasonable requirements of the vessel on which they are found 
shall be treated as cargo of such vessel.
    (e) Under section 446, Tariff Act of 1930, port directors may permit 
narcotic drugs, except smoking opium, in reasonable quantities and 
properly listed as medical stores to remain on board vessels if 
satisfied that such drugs are adequately safeguarded and used only as 
medical supplies.
    (f) Application for permission to transfer bunkers, stores or 
equipment as provided for in the proviso to section 446, Tariff Act of 
1930, shall be made and the permit therefor granted on Customs Form 
3171.
    (g) Equipment of a vessel arriving either directly or indirectly 
from a foreign port or place, if in need of repairs in the United 
States, may be unladen from and reladen upon the same vessel under the 
procedures set forth in Sec. 4.30 relating to the granting of permits 
and special licenses on Customs Form 3171 (CF 3171). Adequate protection 
of the revenue is insured under the appropriate International Carrier 
Bond during the period that equipment is temporarily landed for repairs 
(see Sec. 113.64(b) of this chapter), and so resort to the procedures 
established for the temporary importation of merchandise under bond is 
unnecessary. Once equipment which has been unladen under the terms of a 
CF 3171 has been reladen on the same vessel, potential liability for 
that transaction existing under the bond will be extinguished.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 93-66, 58 FR 44130, Aug. 
19, 1993; T.D. 00-61, 65 FR 56790, Sept. 20, 2000]



Sec. 4.40  Equipment, etc., from wrecked or dismantled vessels.

    Ship's or sea stores, supplies, and equipment of a vessel wrecked 
either in the waters of the United States or outside such waters, on 
being recovered and brought into a United States port, and like articles 
landed from a vessel dismantled in a United States port shall be subject 
to the same Customs treatment as would apply if the articles were landed 
from a vessel arriving

[[Page 38]]

in the ordinary course of trade. Parts of the hull and fittings 
recovered from a vessel which arrived in the United States in the course 
of navigation and was wrecked in the waters of the United States or was 
dismantled in this country are free of duties and import taxes, but if 
such articles are recovered from vessels outside the waters of the 
United States and brought into a United States port, they shall be 
treated as imported merchandise.



Sec. 4.41  Cargo of wrecked vessel.

    (a) Any cargo landed from a vessel wrecked in the waters of the 
United States or on the high seas shall be subject at the port of entry 
to the same entry requirements and privileges as the cargo of a vessel 
regularly arriving in the foreign trade. In lieu of a Cargo Declaration, 
Customs Form 1302, to cover such cargo, the owner, underwriter (if the 
merchandise has been abandoned to him), or the salvor of the merchandise 
shall make entry on Customs Form 7501, and any such applicant shall be 
regarded as the consignee of the merchandise for Customs 
purposes.76
---------------------------------------------------------------------------

    \76\ ``* * * The underwriters of abandoned merchandise and the 
salvors of merchandise saved from a wreck at sea or on or along a coast 
of the United States may be regarded as the consignees.''* * * (Tariff 
Act of 1930, sec. 483; 19 U.S.C. 1483)
---------------------------------------------------------------------------

    (b) All such merchandise shall be taken into possession by the 
director of the port where it shall first arrive and be retained in his 
custody pending entry. If it is not entered by the person entitled to 
make entry, or is not disposed of pursuant to court order, it shall be 
subject to sale as unclaimed merchandise.
    (c) If such merchandise is from a vessel which has been sunk in 
waters of the United States for 2 years or more and has been abandoned 
by the owner, any person who has salvaged the cargo shall be permitted 
to enter the merchandise at the port where the vessel was wrecked free 
of duty upon the facts being established to the satisfaction of the 
director of the port of entry.77 Any other such merchandise 
is subject to the same tariff classification as like merchandise 
regularly imported in the ordinary course of trade.
---------------------------------------------------------------------------

    \77\ ``Whenever any vessel laden with merchandise, in whole or in 
part subject to duty, has been sunk in any river, harbor, bay, or waters 
subject to the jurisdiction of the United States, and within its limits, 
for the period of two years and is abandoned by the owner thereof, any 
person who may raise such vessel shall be permitted to bring any 
merchandise recovered therefrom into the port nearest to the place where 
such vessel was so raised free from the payment of any duty thereupon, 
but under such regulations as the Secretary of the Treasury may 
prescribe.'' (Tariff Act of 1930, sec. 310; 19 U.S.C. 1310)
---------------------------------------------------------------------------

    (d) If the merchandise is libeled for salvage,78 the port 
director shall notify the United States attorney of the claim of the 
United States for duties, and request him to intervene for such duties.
---------------------------------------------------------------------------

    \78 \Salvors have an uncertain interest in the goods salved, 
dependent upon the decree of a competent tribunal, and have a 
presumptive right without such decree to possession of merchandise 
salved by them from abandoned wrecks. The salvors are entitled in either 
case to make entry of derelict or wrecked goods.
    79-96 [Reserved]

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77-255, 42 FR 56321, 
Oct. 25, 1977; T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 95-77, 60 FR 
50010, Sept. 27, 1995; T.D. 99-27, 64 FR 13675, Mar. 22, 1999]

                          Passengers on Vessels



Sec. 4.50  Passenger lists.

    (a) The master of every vessel arriving at a port of the United 
States from a port or place outside the Customs territory (see Sec. 4.6 
of this part) and required to make entry, except a vessel arriving from 
Canada, otherwise than by sea, at a port on the Great Lakes, or their 
connections or tributary waters, shall submit passenger and crew lists, 
as required by Sec. 4.7(a) of this part. If the vessel is arriving from 
noncontiguous foreign territory and is carrying steerage passengers, the 
additional information respecting such passengers required by Customs 
and Immigration Form I-418 shall be included therein.
    (b) A passenger within the meaning of this part is any person 
carried on a vessel who is not connected with the

[[Page 39]]

operation of such vessel, her navigation, ownership, or business.

[28 FR 14596, Dec. 31, 1963 as amended by T.D. 71-169, 36 FR 12603, July 
2, 1971; T.D. 82-145, 47 FR 35475, Aug. 16, 1982; T.D. 93-96, 58 FR 
67316, Dec. 21, 1993]



Sec. 4.51  Reporting requirements for individuals arriving by vessel.

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

[T.D. 93-96, 58 FR 67316, Dec. 21, 1993]



Sec. 4.52  Penalties applicable to individuals.

    Individuals violating any of the reporting requirements of Sec. 4.51 
of this part or who present any forged, altered, or false document or 
paper to Customs in connection with this section, may be liable for 
certain civil penalties, as provided under 19 U.S.C. 1459, in addition 
to other penalties applicable under other provisions of law. Further, if 
the violation of these reporting requirements is intentional, upon 
conviction, additional criminal penalties may be applicable, as provided 
by under 19 U.S.C. 1459, in addition to other penalties applicable under 
other provisions of law.

[T.D. 93-96, 58 FR 67317, Dec. 21, 1993; 59 FR 1918, Jan. 13, 1994]

                           Foreign Clearances



Sec. 4.60  Vessels required to clear.

    (a) Unless specifically excepted by law, the following vessels must 
obtain clearance from the Customs Service before departing from a port 
or place in the United States:
    (1) All vessels departing for a foreign port or place;
    (2) All foreign vessels departing for another port or place in the 
United States;
    (3) All American vessels departing for another port or place in the 
United States that have merchandise on board that is being transported 
in-bond (not including bonded ship's stores or supplies), or foreign 
merchandise for which entry has not been made; and
    (4) All vessels departing for points outside the territorial sea to 
visit a hovering vessel or to receive merchandise or passengers while 
outside the territorial sea, as well as foreign vessels delivering 
merchandise or passengers while outside the territorial sea.
    (b) The following vessels are not required to clear:
    (1) A documented vessel with a pleasure license endorsement or an 
undocumented American pleasure vessel (i.e., an undocumented vessel 
wholly owned by a United States citizen or citizens, whether or not it 
has a certificate of number issued by the State in which the vessel is 
principally used under 46 U.S.C. 1466-1467 and not engaged in trade nor 
violating the Customs or navigation laws of the United States and not 
having visited any hovering vessel (see 19 U.S.C. 1709(d)).
    (2) Any documented vessel with a Great Lakes license endorsement 
which during a voyage on the Great Lakes will touch at a foreign port 
only for taking on bunker fuel. (see Sec. 4.82).
    (3) A vessel exempted from entry by section 441, Tariff Act of 1930. 
(See Sec. 4.5.)
    (4) A vessel of less than 5 net tons which departs from the United 
States to proceed to a contiguous country otherwise than by sea.
    (c) Vessels which will merely transit the Panama Canal without 
transacting

[[Page 40]]

any business there shall not be required to be cleared because of such 
transit.
    (d) In the event that departure is delayed beyond the second day 
after clearance, the delay shall be reported within 72 hours after 
clearance to the port director who shall note the fact of detention on 
the certificate of clearance and on the official record of clearance. 
When the proposed voyage is canceled after clearance, the reason 
therefor shall be reported in writing within 24 hours after such 
cancellation and the certificate of clearance and related papers shall 
be surrendered.
    (e) No vessel shall be cleared for the high seas except, a vessel 
bound to another vessel on the high seas to--
    (1) Transship export merchandise which it has transported from the 
U.S. to the vessel on the high seas; or
    (2) Receive import merchandise from the vessel on the high seas and 
transport the merchandise to the U.S.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 79-276, 44 FR 61956, 
Oct. 29, 1979; T.D. 83-214, 48 FR 46512, Oct. 13, 1983; T.D. 85-91, 50 
FR 21429, May 24, 1985; T.D. 94-24, 59 FR 13200, Mar. 21, 1994; T.D. 95-
77, 60 FR 50010, Sept. 27, 1995; T.D. 00-4, 65 FR 2873, Jan. 19, 2000]



Sec. 4.61  Requirements for clearance.

    (a) Application for clearance. A clearance application for a vessel 
intending to depart for a foreign port must be made by filing Customs 
Form 1300 (Vessel Entrance or Clearance Statement) executed by the 
vessel master or other proper officer. The master, licensed deck 
officer, or purser may appear in person to clear the vessel, or the 
properly executed Customs Form 1300 may be delivered to the customhouse 
by the vessel agent or other personal representative of the master. 
Necessary information may also be transmitted electronically pursuant to 
a system authorized by Customs. Clearance will be granted by Customs 
either on the Customs Form 1300 or by approved electronic means. Customs 
port directors may permit the clearance of vessels at locations other 
than the customhouse, and at times outside of normal business hours. 
Customs may take local resources into consideration in allowing 
clearance to be transacted on board vessels themselves or at other 
mutually convenient sites and times either within or outside of port 
limits. Customs must be satisfied that the place designated for 
clearance is sufficiently under Customs control at the time of 
clearance, and that the expenses incurred by Customs will be reimbursed 
as authorized. Customs may require that advance notice of vessel 
departure be given prior to granting requests for optional clearance 
locations.
    (b) When clearance required. Under certain circumstances, American 
vessels departing from ports of the United States directly for other 
United States ports must obtain Customs clearance. The clearance of such 
vessels is required when they have merchandise aboard which is being 
transported in-bond, or when they have unentered foreign merchandise 
aboard. For the purposes of the vessel clearance requirements, 
merchandise transported in-bond does not include bonded ship's stores or 
supplies. While American vessels transporting unentered foreign 
merchandise must fully comply with usual clearance procedures, American 
vessels carrying no unentered foreign merchandise but that have in-bond 
merchandise aboard may satisfy vessel clearance requirements by 
reporting intended departure within 72 hours prior thereto by any means 
of communication that is satisfactory to the local Customs port 
director, and by presenting a completed Customs Form 1300 (Vessel 
Entrance or Clearance Statement). Also, the Customs officer may require 
the production of any documents or papers deemed necessary for the 
proper inspection/examination of the vessel, cargo, passenger, or crew. 
Report of departure together with providing information to Customs as 
specified in this paragraph satisfies all clearance requirements for the 
subject vessels.
    (c) Verification of compliance. Before clearance is granted to a 
vessel bound to a foreign port as provided in Sec. 4.60 and this 
section, the port director will verify compliance with respect to the 
following matters:
    (1) Accounting for inward cargo (see Sec. 4.62).
    (2) Outward Cargo Declarations; shippers export declarations (see 
Sec. 4.63).
    (3) Documentation (see Sec. 4.0(c)).

[[Page 41]]

    (4) Verification of nationality and tonnage (see Sec. 4.65).
    (5) Verification of inspection (see Sec. 4.66).
    (6) Inspection under State laws (46 U.S.C. App. 97).
    (7) Closed ports or places (see Sec. 4.67).
    (8) Passengers (see Sec. 4.68).
    (9) Shipping articles and enforcement of Seamen's Act (see 
Sec. 4.69).
    (10) Medicine and slop chests.
    (11) Load line regulations (see Sec. 4.65a).
    (12) Carriage of United States securities, etc. (46 U.S.C. App. 98).
    (13) Carriage of mail.
    (14) Public Health regulations (see Sec. 4.70).
    (15) Inspection of vessels carrying livestock (see Sec. 4.71).
    (16) Inspection of meat, meat-food products, and inedible fats (see 
Sec. 4.72).
    (17) Neutrality exportation of arms and munitions (see Sec. 4.73).
    (18) Payment of State and Federal fees and fees due the Government 
of the Virgin Islands of the United States (46 U.S.C. App. 100).
    (19) Orders restricting shipping (see Sec. 4.74).
    (20) Estimated duties deposited or a bond given to cover duties on 
foreign repairs and equipment for vessels of the United States (see 
Sec. 4.14).
    (21) Illegal discharge of oil (see Sec. 4.66a).
    (22) Attached or arrested vessel.
    (23) Immigration laws.
    (d) Vessel built for foreign account. A new vessel built in the 
United States for foreign account will be cleared under a certificate of 
record, Coast Guard Form 1316, in lieu of a marine document.
    (e) Clearance not granted. Clearance will not be granted to any 
foreign vessel using the flag of the United States or any distinctive 
signs or markings indicating that the vessel is an American vessel (22 
U.S.C. 454a).
    (f) Clearance in order of itinerary. Unless otherwise provided in 
this section, every vessel bound for a foreign port or ports will be 
cleared for a definite port or ports in the order of its itinerary, but 
an application to clear for a port or place for orders, that is, for 
instructions to masters as to destination of the vessel, may be accepted 
if the vessel is in ballast or if any cargo on board is to be discharged 
in a port of the same country as the port for which clearance is sought.

[T.D. 00-4, 65 FR 2874, Jan. 19, 2000; T.D. 00-22, 65 FR 16515, Mar. 29, 
2000]
    \97-103\ [Reserved]



Sec. 4.62  Accounting for inward cargo.

    Inward cargo discrepancies shall be accounted for and adjusted by 
correction of the Cargo Declaration Outward With Commercial Forms, 
Customs Form 1302-A, but the vessel may be cleared and the adjustment 
deferred if the discharging officer's report has not been received. (See 
Sec. 4.12.)

[T.D. 77-255, 42 FR 56322, Oct. 25, 1977, as amended by T.D. 84-193, 49 
FR 35485, Sept. 10, 1984]



Sec. 4.63  Outward cargo declaration; shippers' export declarations.

    (a) No vessel shall be cleared directly for a foreign port, or for a 
foreign port by way of another domestic port or other domestic ports 
(see Sec. 4.87(b)), unless there has been filed with the appropriate 
Customs officer at the port from which clearance is being sought:
    (1) A Cargo Declaration Outward With Commercial Forms, Customs Form 
1302-A. Copies of bills of lading or equivalent commercial documents 
relating to all cargo encompassed by the manifest must be attached in 
such manner as to constitute one document, together with a Vessel 
Entrance or Clearance Statement, Customs Form 1300, and export 
declarations as are required by pertinent regulations of the Bureau of 
the Census, Department of Commerce; or
    (2) An incomplete Cargo Declaration as provided for in Sec. 4.75.
    (b) Except as hereafter stated, the number of the export declaration 
covering each shipment for which an authenticated export declaration is 
required shall be shown on the Cargo Declaration Outward With Commercial 
Forms, Customs Form 1302-A, in the marginal column headed ``B/L No.'' If 
an export declaration is not required for a shipment, a notation shall 
be made on the Cargo Declaration Outward With Commercial Forms (Customs 
Form 1302-A) describing the basis for the exemption with a reference to

[[Page 42]]

the number of the section in the Census Regulations (see 15 CFR 30.39, 
30.50 through 30.57) where the particular exemption is provided. If 
shipments are exempt on the basis of value and destination, the 
appearance of the value and destination on a bill of lading or other 
commercial documents is acceptable as evidence of the exemption and 
reference to the applicable section in the Census Regulations is not 
required.
    (c) The following minimal information shall be included on the Cargo 
Declaration Outward With Commercial Forms, Customs Form 1302-A (other 
information required to be on a Customs Form 1302-A as shown on the form 
itself must also be included thereon) or on attached copies of bills of 
lading or equivalent commercial documents:
    (1) Name and address of shipper;
    (2) Description of the cargo (see paragraph (d) of this section);
    (3) Number of packages and gross weight (see paragraph (d) of this 
section);
    (4) Name of vessel or carrier;
    (5) Port of exit (this shall be the port where the merchandise is 
loaded on the vessel); and
    (6) Port of destination (this shall be the foreign port of discharge 
of the merchandise).
    (d) If the bills of lading or equivalent commercial documents 
attached to the Customs Form 1302-A show on their face the cargo 
information required by columns 6, 7, and either column 8 or 9, of the 
Customs Form 1302-A, that information need not be shown again on the 
Customs Form 1302-A. However, in that case, the cargo information must 
be incorporated by a suitable reference on the face of the Customs Form 
1302-A such as ``Cargo as per attached commercial documents.''
    (e) For each shipment to be exported under an entry or withdrawal 
for exportation or for transportation and exportation, the Cargo 
Declaration Outward With Commercial Forms, Customs Form 1302-A, or 
commercial document attached to the Cargo Declaration and made a part 
thereof in accordance with paragraph (a)(1) of this section, shall 
clearly show for such shipment the number, date, and class of such 
Customs entry or withdrawal (i.e., T. & E., Wd. T. & E., I. E., Wd. Ex., 
or Wd. T., as applicable) and the name of the port where the merchandise 
is laden for exportation.
    (f) Customs officers shall accept a Cargo Declaration Outward With 
Commercial Forms, Customs Form 1302-A, covering containerized or 
palletized cargo which indicates by the use of appropriate words of 
qualification (see Sec. 4.7a(c)(3)) that the declaration has been 
prepared on the basis of information furnished by the shipper.

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



Sec. 4.64  [Reserved]



Sec. 4.65  Verification of nationality and tonnage.

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



Sec. 4.65a  Load lines.

    (a) If a port director is notified by an officer of the United 
States Coast Guard that a detention order has been issued against a 
vessel engaged in the foreign trade under the International Voyage Load 
Line Act of 1973, clearance shall not be granted until the order is 
withdrawn.
    (b) If a port director issues a detention order under the Coastwise 
Load Line Act, 1935, as amended, or is notified by an officer of the 
United States Coast Guard that a detention order has been issued against 
a vessel under the aforesaid Act, clearance shall not be granted until 
the order is withdrawn.

[T.D. 75-133, 40 FR 24518, June 9, 1975]



Sec. 4.66  Verification of inspection.

    (a) No clearance shall be granted unless the port director is 
satisfied that a proper certificate of inspection is in force and the 
vessel is in compliance with such certificate, if the vessel is:
    (1) A vessel of the United States required to be inspected as 
specified in Title 46, Code of Federal Regulations.
    (2) A foreign vessel carrying passengers from the United States.

[[Page 43]]

    (b) In the case of vessels of foreign nations which are signatories 
of the International Convention for the Safety of Life at Sea, 1948, 
carrying passengers from the United States, an unexpired Certificate of 
Examination for Foreign Passenger Vessel, Form CG-989, or an unexpired 
Certificate for Foreign Vessel to Carry Persons in Addition to Crew, 
Form CG-3463, issued by the United States Coast Guard, may be accepted 
as evidence that a proper certificate of inspection is in force and the 
vessel is in compliance with such certificate.
    (c) In the case of vessels of the United States subject to 
inspection proceeding to another port for repairs, a valid Permit to 
Proceed to Another Port for Repairs, Form CG-948, issued by the United 
States Coast Guard, shall be accepted in lieu of the certificate of 
inspection required by this section.

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



Sec. 4.66a  Illegal discharge of oil and hazardous substances.

    If a port director receives a request from an officer of the U.S. 
Coast Guard to withhold clearance of a vessel whose owner or operator is 
subject to a civil penalty for discharging oil or a hazardous substance 
into or upon the navigable waters of the United States, adjoining 
shorelines, or into or upon the waters of the contiguous zone in 
quantities determined to be harmful by appropriate authorities, such 
clearance shall not be granted until the port director is informed that 
a bond or other surety satisfactory to the Coast Guard has been filed.

[T.D. 82-28, 47 FR 5226, Feb. 4, 1982]



Sec. 4.66b  Pollution of coastal and navigable waters.

    (a) If any Customs officer has reason to believe that any refuse 
matter is being or has been deposited in navigable waters or any 
tributary of any navigable waters in violation of section 13 of the Act 
of March 3, 1899 (30 Stat. 1152; 33 U.S.C. 407), or oil or a hazardous 
substance is being or has been discharged into or upon the navigable 
waters of the United States, adjoining shorelines, or into or upon the 
waters of the contiguous zone in violation of the Federal Water 
Pollution Control Act, as amended (33 U.S.C. 1251, 1321), he shall 
promptly furnish to the port director a full report of the incident, 
together with the names of witnesses and, when practicable, a sample of 
the material discharged from the vessel in question.
    (b) The port director shall forward this report immediately, without 
recommendation, to the district commander of the Coast Guard district 
concerned and a copy of such report shall be furnished to Headquarters, 
U.S. Customs Service.

[T.D. 73-18, 38 FR 1587, Jan. 16, 1973, as amended by T.D. 82-28, 47 FR 
5226, Feb. 4, 1982]



Sec. 4.66c  Oil pollution by oceangoing vessels.

    (a) If a port director receives a request from a Coast Guard officer 
to refuse or revoke the clearance or permit to proceed of a vessel 
because the vessel, its owner, operator, or person in charge, is liable 
for a fine or civil penalty, or reasonable cause exists to believe that 
they may be subject to a fine or civil penalty under the provisions of 
33 U.S.C. 1908 for violating the Protocol of 1978 Relating to the 
International Convention for the Prevention of Pollution from Ships, 
1973 (MARPOL Protocol), the Act to Prevent Pollution from Ships, 1980 
(33 U.S.C. 1901-1911), or regulations issued thereunder, such clearance 
or a permit to proceed shall be refused or revoked. Clearance or a 
permit to proceed may be granted when the port director is informed that 
a bond or other security satisfactory to the Coast Guard has been filed.
    (b) If a port director receives a notification from a Coast Guard 
officer that an order has been issued to detain a vessel required to 
have an International Oil Pollution Prevention (IOPP) Certificate which 
does not have a valid certificate on board, or whose condition or whose 
equipment's condition does not substantially agree with the particulars 
of the certificate on board, or which presents an unreasonable threat of 
harm to the marine environment, the port director shall refuse or revoke 
the clearance or permit to

[[Page 44]]

proceed of the vessel if requested to do so by a Coast Guard officer. 
The port director shall not grant clearance or issue a permit to proceed 
to the vessel until notified by a Coast Guard officer that detention of 
the vessel is no longer required.
    (c) If a port director receives a notification from a Coast Guard 
officer to detain a vessel operated under the authority of a country not 
a party to the MARPOL Protocol which does not have a valid certificate 
on board showing that the vessel has been surveyed in accordance with 
and complies with the requirements of the MARPOL Protocol, or whose 
condition or whose equipment's condition does not substantially agree 
with the particulars of the certificate on board, or which presents an 
unreasonable threat of harm to the marine environment, the port director 
shall refuse or revoke the clearance or permit to proceed of the vessel 
if requested to do so by a Coast Guard officer. The port director shall 
not grant clearance or issue a permit to proceed to the vessel until 
notified by a Coast Guard officer that detention of the vessel is no 
longer required.

[T.D. 81-148, 49 FR 28695, July 16, 1984]



Sec. 4.67  Closed ports or places.

    No foreign vessel shall be granted a clearance or permit to proceed 
to any port or place from which such vessels are excluded by orders or 
regulations of the United States Navy Department except with the prior 
approval of that Department.



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

    No vessel having berth or stateroom accommodations for 50 or more 
passengers and embarking passengers at U.S. ports will be granted a 
clearance at the port or place of departure from the United States 
unless it is established that the vessel has valid certificates issued 
by the Federal Maritime Commission.

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



Sec. 4.69  Shipping articles.

    No vessel of the U.S. on a voyage between a U.S. port and a foreign 
port (except a port in Canada, Mexico, or the West Indies), or if of at 
least 75 gross tons, on a voyage between a U.S. port on the Atlantic 
Ocean and a U.S. port on the Pacific Ocean, shall be granted clearance 
before presentation, to the appropriate Customs officer, of the shipping 
articles agreements, including any seaman's allotment agreement, 
required by 46 U.S.C. chapter 103, in the form provided for in 46 CFR 
14.05-1.

[T.D. 92-52, 57 FR 23945, June 5, 1992]



Sec. 4.70  Public Health Service requirements.

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

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



Sec. 4.71  Inspection of livestock.

    A proper export inspection certificate issued by the Veterinary 
Services, Animal and Plant Health Inspection Service, Department of 
Agriculture, shall be filed before the clearance of a vessel carrying 
horses, mules, asses, cattle, sheep, swine, or goats (9 CFR part 91)

[T.D. 79-32, 44 FR 5650, Jan. 29, 1979]



Sec. 4.72  Inspection of meat, meat-food products, and inedible fats.

    (a) No clearance shall be granted to any vessel carrying meat or 
meat-food products, as defined and classified by the U.S. Department of 
Agriculture, Food Safety and Inspection Service, Meat and Poultry 
Inspection until there have been filed with the port director such 
copies of export certificates concerning such meat or meat-food products 
as are required by the pertinent regulations of the U.S. Department of 
Agriculture, Food Safety and Inspection Service, Meat and Poultry 
Inspection (9 CFR part 322). If such certificate has been obtained but 
is unavailable at the scheduled time of a vessel's departure, the vessel 
may be cleared on the basis of the receipt of a statement, under the 
shipper's or shipper's agent's letterhead, certifying the number of 
boxes, the number of pounds, the product name and the U.S.

[[Page 45]]

Department of Agriculture export certificate number that covers the 
shipment of the product. If such statement has been used as the basis 
for obtaining vessel clearance, the duplicate of the certificate must be 
filed with Customs within the time period prescribed by Sec. 4.75.
    (b) No clearance shall be granted to any vessel carrying tallow, 
stearin, oleo oil, or other rendered fat derived from cattle, sheep, 
swine, or goats for export from the United States, which has not been 
inspected, passed, and marked by the United States Department of 
Agriculture, unless the port director is furnished with a certificate by 
the exporter that the article is inedible.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13059, Mar. 
29, 1978; T.D. 91-77, 56 FR 46114, Sept. 10, 1991;T.D. 95-54, 60 FR 
35838, July 12, 1995]



Sec. 4.73  Neutrality; exportation of arms and munitions.

    (a) Clearance shall not be granted to any vessel if the port 
director has reason to believe that her departure or intended voyage 
would be in violation of any provision of the Neutrality Act of 1939 or 
other neutrality law of the United States,104 or of any 
regulation or instruction issued pursuant to any such law.
---------------------------------------------------------------------------

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

    (b) The port director shall refuse clearance for and detain any 
vessel manifestly built for warlike purposes and about to depart from 
the United States with a cargo consisting principally of arms and 
munitions of war 105 when the number of men intending to sail 
or other circumstances render it probable that the vessel is intended to 
commit hostilities against the subjects, citizens, or property or any 
foreign country, with which the United States is at peace, until the 
decision of the President thereon is received, or until the owners shall 
have given bond or security in double the value of the vessel and its 
cargo that she will not be so employed.
---------------------------------------------------------------------------

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

    (c) A port director shall promptly communicate all the facts to 
Headquarters, U.S. Customs Service, if he learns while the United States 
is at peace that any vessel of a belligerent power which has arrived as 
a merchant vessel is altering, or will attempt to alter, her status as a 
merchant vessel so as to become an armed vessel or an auxiliary to armed 
vessels of a foreign power.
    (d) If a port director has reason to believe during the existence of 
a war to which the United States is not a party that any vessel at his 
port is about to carry arms, munitions, supplies, dispatches, 
information, or men to any warship or tender or supply ship of a 
belligerent nation, he shall withhold the clearance of such vessel and 
report the facts promptly to Headquarters, U.S. Customs Service.



Sec. 4.74  Transportation orders.

    Clearance shall not be granted to any vessel if the port director 
has reason to believe that her departure or intended voyage would be in 
violation of any provision of any transportation order, regulation, or 
restriction issued under authority of the Defense Production Act of 1950 
(50 U.S.C. App. 2061-2066).



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

    (a) Pro forma manifest. Except as provided for in Sec. 4.75(c), if a 
master desiring to clear his vessel for a foreign port does not have 
available for filing with the port director a complete Cargo Declaration 
Outward with Commercial Forms, Customs Form 1302-A (see Sec. 4.63) in 
accordance with 46 U.S.C. 91, or all required shipper's export 
declarations (see 15 CFR 30.24), the port director may accept in lieu 
thereof an incomplete manifest (referred to as a pro forma manifest) on 
the Vessel Entrance or Clearance Statement, Customs Form 1300, if there 
is on file in his office a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.64 of this chapter relating to 
international carriers, executed by the vessel owner or other person as 
attorney in fact of the vessel owner. The ``Incomplete Manifest for 
Export'' box

[[Page 46]]

in item 17 of the Vessel Entrance or Clearance Statement form must be 
checked.
    (b) Time in which to file complete manifest and export declarations. 
Not later than the fourth business day after clearance from each port in 
the vessel's itinerary, the master, or the vessel's agent on behalf of 
the master, shall deliver to the director of each port a complete Cargo 
Declaration Outward with Commercial Forms, Customs Form 1302-A, in 
accordance with Sec. 4.63, of the cargo laden at such port together with 
duplicate copies of all required shipper's export declarations for such 
cargo and a Vessel Entrance or Clearance Statement, Customs Form 1300. 
The statutory grace period of 4 days for filing the complete manifest 
and missing export declarations begins to run on the first day 
(exclusive of any day on which the customhouse is not open for marine 
business) following the date on which clearance is granted.
    (c) Countries for which vessels may not be cleared until complete 
manifests and shipper's export declarations are filed. To aid the 
Customs Service in the enforcement of export laws and regulations, no 
vessel shall be cleared for any port in the following countries until a 
complete outward foreign manifest and all required shipper's export 
declarations have been filed with the port director:

Albania
Bulgaria
Cambodia
China, People's Republic of
Cuba
Czechoslovakia
Estonia
German Democratic Republic (Soviet Zone of Germany and Soviet Zone 
sector of Berlin)
Hungary
Iran
Iraq
Laos
Latvia
Libya
Lithuania
Mongolian People's Republic
North Korea
Polish People's Republic (Including Danzig)
Rumania
South Yemen
Union of Soviet Socialist Republics
Viet Nam

[T.D. 87-1, 52 FR 255, Jan. 5, 1987, as amended by T.D. 91-60, 56 FR 
32085, July 15, 1991; T.D. 00-22, 65 FR 16515, Mar. 29, 2000]



Sec. 4.76  Procedures and responsibilities of carriers filing outbound vessel manifest information via the AES.

    (a) The sea carrier's module. The Sea Carrier's Module is a 
component of the Automated Export System (AES) (see, part 192, subpart 
B, of this chapter) that allows for the filing of outbound vessel 
manifest information electronically (see, 15 CFR part 30). All sea 
carriers are eligible to apply for participation in the Sea Carrier's 
Module. Application and certification procedures for AES are found at 15 
CFR 30.60. A sea carrier certified to use the module that adheres to the 
procedures set forth in this section and the Census Regulations (15 CFR 
part 30) concerning the electronic submission of an outbound vessel 
manifest information meets the outward cargo declaration filing 
requirements (CF 1302-A) of Secs. 4.63 and 4.75, except as otherwise 
provided in Secs. 4.75 and 4.84.
    (b) Responsibilities. The performance requirements and operational 
standards and procedures for electronic submission of outbound vessel 
manifest information are detailed in the AES Trade Interface 
Requirements handbook (available on the Customs internet web site 
(www.customs.gov)). Carriers and their agents are responsible for 
reporting accurate and timely information and for responding to all 
notifications concerning the status of their transmissions and the 
detention and release of freight in accordance with the procedures set 
forth in the AES Trade Interface Requirements handbook. Customs will 
send messages to participant carriers regarding the accuracy of their 
transmissions. AES participants are required to comply with the 
recordkeeping requirements contained at Sec. 30.66 of the Census 
Regulations (15 CFR 30.66) and any other applicable recordkeeping 
requirements. Where paper SEDs have been submitted by exporters prior to 
departure, participant carriers will be responsible for submitting those 
SEDs to Customs within four (4) business days after the departure of the 
vessel from each port, unless a different time requirement is specified 
by Secs. 4.75 or 4.84. Upon written agreement with participant sea 
carriers, Customs and Census can provide for an alternative to the 
location filing requirement for paper SEDs set forth in Sec. 4.75(b) by 
which the participant carriers are otherwise bound.

[[Page 47]]

    (c) Messages required to be filed within the sea carrier's module. 
Participant carriers will be responsible for transmitting and responding 
to the following messages:
    (1) Booking. Booking information identifies all the freight that is 
scheduled for export. Booking information will be transmitted to Customs 
via AES for each shipment as far in advance of departure as practical, 
but no later than seventy-two hours prior to departure for all 
information available at that time. Bookings received within seventy-two 
hours of departure will be transmitted to Customs via AES as received;
    (2) Receipt of booking. When the carrier receives the cargo or 
portion of the cargo that was booked, the carrier will inform Customs so 
that Customs can determine if an examination of the cargo is necessary. 
Customs will notify the carrier of shipments designated for examination. 
Customs will also notify the carrier when the shipment designated for 
inspection is released and may be loaded on the vessel;
    (3) Departure. No later than the first calendar day following the 
actual departure of the vessel, the carrier will notify Customs of the 
date and time of departure; and
    (4) Manifest. Within ten (10) calendar days after the departure of 
the vessel from each port, the carrier will submit the manifest 
information to Customs via AES for each booking loaded on the departed 
vessel. However, if the destination of the vessel is a foreign port 
listed in Sec. 4.75(c), the carrier must transmit complete manifest 
information before vessel departure. Time requirements for transmission 
of complete manifest information for carriers destined to Puerto Rico 
and U.S. possessions are the same as the requirement for the submission 
of the complete manifest as found in Sec. 4.84.
    (d) All penalties and liquidated damages that apply to the 
submission of paper manifests (see, applicable provisions in this part) 
apply to the electronic submission of outbound vessel manifest 
information through the Sea Carrier's Module.

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

                           Coastwise Procedure



Sec. 4.80  Vessels entitled to engage in coastwise trade.

    (a) No vessel shall transport, either directly or by way of a 
foreign port, any passenger or merchandise between points in the United 
States embraced within the coastwise laws, including points within a 
harbor, or merchandise for any part of the transportation between such 
points, unless it is:
    (1) Owned by a citizen and is so documented under the laws of the 
United States as to permit it to engage in the coastwise trade;
    (2) Owned by a citizen, is exempt from documentation, and is 
entitled to or, except for its tonnage, would be entitled to be 
documented with a coastwise license or, where appropriate, a Great Lakes 
license endorsement.
    (3) Owned by a partnership or association in which at least a 75 
percent interest is owned by such a citizen, is exempt from 
documentation and is entitled to or, except for its tonnage, or 
citizenship of its owner, or both, would be entitled to be documented 
for the coastwise trade. The term ``citizen'' for vessel documentation 
purposes, whether for an individual, partnership, or corporation owner, 
is defined in 46 CFR 67.3.
    (b) Penalties for violating coastwise laws. (1) The penalty imposed 
for the illegal transportation of merchandise between coastwise points 
is forfeiture of the merchandise or, in the discretion of the port 
director, forfeiture of a monetary amount up to the value of the 
merchandise to be recovered from the consignor, seller, owner, importer, 
consignee, agent, or other person or persons so transporting or causing 
the merchandise to be transported (46 U.S.C. 883).
    (2) The penalty imposed for the unlawful transportation of 
passengers between coastwise points is $200 for each passenger so 
transported and landed (46 U.S.C. 289).
    (c) Any vessel of the United States, whether or not entitled under 
paragraph (a) of this section to engage in the coastwise trade, and any 
foreign vessel may proceed between points in the United States embraced 
within the coastwise laws to discharge cargo or

[[Page 48]]

passengers laden at a foreign port, to lade cargo or passengers for a 
foreign port, in ballast, or to transport certain articles in accordance 
with Sec. 4.93. Cargo laden at a foreign port may be retained onboard 
during such movements. Furthermore, certain barges of United States or 
foreign flag may transport transferred merchandise between points in the 
United States embraced within the coastwise laws, excluding 
transportation between the continental United States and a noncontiguous 
point in the United States embraced within the coastwise laws, in 
accordance with Sec. 4.81a.
    (d) No vessel owned by a corporation which is a citizen of the 
United States under the Act of September 2, 1958 (46 U.S.C. 883-1) shall 
be used in any trade other than the coastwise trade and shall not be 
used in that trade unless it is properly documented for such use or is 
exempt from documentation and is entitled to or, except for its tonnage, 
would be entitled to a coastwise license, or where appropriate, a Great 
Lakes license endorsement. Such a vessel shall not be documented for nor 
engage in the foreign trade or the fisheries and shall not transport 
merchandise or passengers coastwise for hire except as a service for a 
parent or a subsidiary corporation as defined in the aforesaid Act or 
while under demise or bareboat charter at prevailing rates for use 
otherwise than in trade with noncontiguous territory of the United 
States to a common or contract carrier subject to Part III of the 
Interstate Commerce Act, as amended (49 U.S.C. 901 through 923), which 
otherwise qualifies as a citizen of the United States under section 2 of 
the Shipping Act, 1916, as amended (46 U.S.C. 802), and which is not 
connected, directly or indirectly, by way of ownership or control with 
such owning corporation.
    (e) No vessel which has acquired the lawful right to engage in the 
coastwise trade, by virtue of having been built in or documented under 
the laws of the United States, shall have the right to engage in such 
trade if it thereafter has been sold or transferred foreign in whole or 
in part or placed under foreign registry, or, if of more than 500 gross 
tons, has been rebuilt unless the entire rebuilding, including the 
construction of any major components of the hull or superstructure of 
the vessel, was effected within the United States, its Territories (not 
including trust territories), or its possessions. However, no rebuilt 
vessel shall be deemed to have lost its coastwise privileges within the 
meaning of the above if rebuilt within the United States, its 
Territories (not including trust territories), or its possessions under 
a contract executed before July 5, 1960, if the work of rebuilding 
commenced not later than 24 months after such date.
    (f) No foreign-built vessel owned and documented as a vessel of the 
United States prior to February 1, 1920, by a citizen nor one owned by 
the United States on June 5, 1920, and sold to and owned by a citizen, 
shall engage in the American fisheries, but it is otherwise unlimited as 
to trade so long as it continues in such ownership (section 22, Merchant 
Marine Act, of June 5, 1920; 46 U.S.C. 13). No foreign-built vessel 
which is owned by a citizen, but which was not so owned and documented 
on February 1, 1920, or which was not owned by the United States on June 
5, 1920, shall engage in the coastwise trade or the American fisheries. 
No foreign-built vessel which has been sold, leased, or chartered by the 
Secretary of Commerce to any citizen, shall engage in the American 
fisheries, but it is otherwise unlimited as to trade so long as it 
continues in such ownership, lease, or charter (section 9 of the Act of 
Sept. 7, 1916, as amended, 46 U.S.C. 808). A vessel engaged in taking 
out fishing parties for hire, unless it intends to proceed to a foreign 
port, is considered to be engaged in the coastwise trade and not the 
fisheries.
    (g) Certain vessels not documented under the laws of the United 
States which are acquired by or made available to the Secretary of 
Commerce may be documented under section 3 of the Act of August 9, 1954 
(50 U.S.C. 198). Such vessels shall not engage in the coastwise trade 
unless in possession of a valid unexpired permit to engage in that trade 
issued by the Secretary of Commerce under authority of section 3(c) of 
the said Act.
    (h) A vessel which is at least 50 percent owned by a citizen as 
defined in 46 CFR subpart 68.05, and which, except

[[Page 49]]

for citizenship requirements, is otherwise entitled to be documented 
with a coastwise endorsement, may be documented with a limited coastwise 
endorsement, provided the vessel is owned by a not-for-profit oil spill 
response cooperative or by one or more members of such a cooperative who 
dedicate the vessel to the use of the cooperative (46 U.S.C. 12106(d)). 
Notwithstanding 46 U.S.C. App. 883, a vessel may be documented with such 
a limited endorsement even if formerly owned by a not-for-profit oil 
spill response cooperative or by one or more members thereof, as long as 
the citizenship criteria of 46 CFR subpart 68.05 are met. A vessel so 
documented may operate on the navigable waters of the United States or 
in the Exclusive Economic Zone only for the purpose of training for oil 
spill cleanup operations; deploying equipment, supplies and personnel 
for cleanup operations; and recovering and/or transporting oil 
discharged in a spill. Such vessel may also engage in any other 
employment for which a registry, fishery, or Great Lakes endorsement is 
not required, and may qualify to operate for other purposes by meeting 
the applicable requirements of 46 CFR part 67.
    (i) Any vessel, entitled to be documented and not so documented, 
employed in a trade for which a Certificate of Documentation is issued 
under the vessel documentation laws (see Sec. 4.0(c)), other than a 
trade covered by a registry, is liable to a civil penalty of $500 for 
each port at which it arrives without the proper Certificate of 
Documentation. If such a vessel has on board any foreign merchandise 
(sea stores excepted), or any domestic taxable alcoholic beverages, on 
which the duty and taxes have not been paid or secured to be paid, the 
vessel and its cargo are subject to seizure and forfeiture.

[T.D. 69-266, 34 FR 20422, Dec. 31, 1969, as amended by T.D. 79-160, 44 
FR 31956, June 4, 1979; T.D. 83-214, 48 FR 46512, Oct. 13, 1983; T.D. 
93-78, 58 FR 50257, Sept. 27, 1993; T.D. 97-82, 62 FR 51769, Oct. 3, 
1997]



Sec. 4.80a  Coastwise transportation of passengers.

    (a) For the purposes of this section, the following terms will have 
the meaning set forth below:
    (1) Coastwise port means a port in the U.S., its territories, or 
possessions embraced within the coastwise laws.
    (2) Nearby foreign port means any foreign port in North America, 
Central America, the Bermuda Islands, or the West Indies (including the 
Bahama Islands, but not including the Leeward Islands of the Netherlands 
Antilles, i.e., Aruba, Bonaire, and Curacao). A port in the U.S. Virgin 
Islands shall be treated as a nearby foreign port.
    (3) Distant foreign port means any foreign port that is not a nearby 
port.
    (4) Embark means a passenger boarding a vessel for the duration of a 
specific voyage and disembark means a passenger leaving a vessel at the 
conclusion of a specific voyage. The terms embark and disembark are not 
applicable to a passenger going ashore temporarily at a coastwise port 
who reboards the vessel and departs with it on sailing from the port.
    (5) Passenger has the meaning defined in Sec. 4.50(b).
    (b) The applicability of the coastwise law (46 U.S.C. 289) to a 
vessel not qualified to engage in the coastwise trade (i.e., either a 
foreign-flag vessel or a U.S.-flag vessel that is foreign-built or at 
one time has been under foreign-flag) which embarks a passenger at a 
coastwise port is as follows:
    (1) If the passenger is on a voyage solely to one or more coastwise 
ports and the passenger disembarks or goes ashore temporarily at a 
coastwise port, there is a violation of the coastwise law.
    (2) If the passenger is on a voyage to one or more coastwise ports 
and a nearby foreign port or ports (but at no other foreign port) and 
the passenger disembarks at a coastwise port other than the port of 
embarkation, there is a violation of the coastwise law.
    (3) If the passenger is on a voyage to one or more coastwise ports 
and a distant foreign port or ports (whether or

[[Page 50]]

not the voyage includes a nearby foreign port or ports) and the 
passenger disembarks at a coastwise port, there is no violation of the 
coastwise law provided the passenger has proceeded with the vessel to a 
distant foreign port.
    (c) An exception to the prohibition in this section is the 
transportation of passengers between ports in Puerto Rico and other 
ports in the U.S. on passenger vessels not qualified to engage in the 
coastwise trade. Such transportation is permitted until there is a 
finding under 46 U.S.C. 289c that a qualified U.S.-flag passenger vessel 
is available for such service.
    (d) The owner or charterer of a foreign vessel or any other 
interested person may request from Headquarters, U.S. Customs Service, 
Attention: Entry Procedures and Carriers Branch, an advisory ruling as 
to whether a contemplated voyage would be considered to be coastwise 
transportation in violation of 46 U.S.C. 289. Such a request shall be 
filed in accordance with the provisions of part 177, Customs Regulations 
(19 CFR part 177).

[T.D. 85-109, 50 FR 26984, July 1, 1985, as amended by T.D. 85-109, 50 
FR 37519, Sept. 16, 1985; T.D. 99-27, 64 FR 13675, Mar. 22, 1999]



Sec. 4.80b  Coastwise transportation of merchandise.

    (a) Effect of manufacturing or processing at intermediate port or 
place. A coastwise transportation of merchandise takes place, within the 
meaning of the coastwise laws, when merchandise laden at a point 
embraced within the coastwise laws (``coastwise point'') is unladen at 
another coastwise point, regardless of the origin or ultimate 
destination of the merchandise. However, merchandise is not transported 
coastwise if at an intermediate port or place other than a coastwise 
point (that is at a foreign port or place, or at a port or place in a 
territory or possession of the United States not subject to the 
coastwise laws), it is manufactured or processed into a new and 
different product, and the new and different product thereafter is 
transported to a coastwise point.
    (b) Request for ruling. Interested parties may request an advisory 
ruling from Headquarters, United States Customs Service, Attention: 
Entry Procedures and Carriers Branch, as to whether a specific action 
taken or to be taken with respect to merchandise at the intermediate 
port or place will result in its becoming a new and different product 
for purposes of this section. The request shall be filed in accordance 
with the provisions of part 177 of this chapter.

[T.D. 79-193, 44 FR 42178, July 19, 1979, as amended by T.D. 91-77, 56 
FR 46114, Sept. 10, 1991; 56 FR 47268, Sept. 18, 1991; T.D. 99-27, 64 FR 
13675, Mar. 22, 1999]



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

    (a) No vessel which is documented with a coastwise license or 
registry endorsement or is owned by a citizen and exempt from 
documentation, and which is in ballast or laden only with domestic 
products or passengers being carried only between points in the United 
States shall be required to report arrival or to enter when coming into 
one port of the United States from any other such port, except as 
provided for in sections 4.83 and 4.84, nor to obtain a clearance, 
permit to proceed, or permission to depart when going from one port in 
the United States to any other such port except when transporting 
merchandise to a port in noncontinguous territory.111
---------------------------------------------------------------------------

    \111\ See Sec. 4.84.
---------------------------------------------------------------------------

    (b) When the facts are as above stated except that the vessel is 
carrying bonded merchandise, the master shall report its arrival as 
provided for in Sec. 4.2.
    (c) [Reserved]
    (d) The traveling Crew's Effects Declaration, Customs Form 1304, or 
Customs and Immigration Form I-418 with attached Customs Form 5129, 
referred to in Sec. 4.85 (b), (c), and (e) shall be deposited with the 
port director upon arrival at each port in the United States and finally 
surrendered to the appropriate Customs officer or director of the port 
where the vessel first departs directly for a foreign port.
    (e) Before any foreign vessel departs in ballast, or solely with 
articles to be transported in accordance with Sec. 4.93, from any port 
in the United States for any other such port, the master must

[[Page 51]]

apply to the port director for a permit to proceed by filing a Vessel 
Entrance or Clearance Statement, Customs Form 1300, in duplicate. If a 
vessel is proceeding in ballast and therefore the Cargo Declaration 
(Customs Form 1302) is omitted, the words ``No merchandise on board'' 
shall be inserted in item 16 of the Vessel Entrance or Clearance 
Statement. However, articles to be transported in accordance with 
Sec. 4.93 must be manifested on the Cargo Declaration, as required by 
Sec. 4.93(c). Three copies of the Cargo Declaration must be filed with 
the port director. When the port director grants the permit by making an 
appropriate endorsement on the Vessel Entrance or Clearance Statement 
(see Sec. 4.85(b)), the duplicate copy, together with two copies of the 
Cargo Declaration covering articles to be transported in accordance with 
Sec. 4.93, must be returned to the master. The traveling Crew's Effects 
Declaration, Customs Form 1304, and all unused crewmembers' declarations 
on Customs Form 5129 will be placed in a sealed envelope addressed to 
the appropriate Customs officer at the next intended domestic port and 
returned to the master for delivery. The master must execute a receipt 
for all unused crewmembers' declarations which are returned to him. 
Immediately upon arrival at the next United States port the master must 
report his arrival to the port director. He must make entry within 48 
hours by filing with the port director the permit to proceed on the 
Vessel Entrance or Clearance Statement received at the previous port, a 
newly executed Vessel Entrance or Clearance Statement, a Crew's Effects 
Declaration of all unentered articles acquired abroad by crewmembers 
which are still on board, a Ship's Stores Declaration, Customs Form 
1303, in duplicate of the stores remaining on board, both copies of the 
Cargo Declaration covering articles transported in accordance with 
Sec. 4.93, and the document of the vessel. The traveling Crew's Effects 
Declaration and all unused crewmembers' declarations on Customs Form 
5129 returned at the prior port to the master must be delivered by him 
to the appropriate Customs officer.
    (f) The master, licensed deck officer, or purser who enters or 
clears a vessel, or who obtains permission for a vessel to depart, when 
required under the provisions of this section or of Secs. 4.82, 4.84, 
4.85, 4.87, 4.89, or 4.91 of the regulations of this part, may appear in 
person at the customhouse for that purpose, or any required oaths, 
related documents, and other papers properly executed by the master or 
other proper officer may be delivered at the customhouse by the vessel 
agent or other personal representative of the master.
    (g) In lieu of the procedures stated in Secs. 4.85 and 4.87 and at 
the option of the owner or operator, unmanned non-self-propelled barges 
specifically designed for carriage aboard a vessel and regularly carried 
aboard a vessel in the foreign trade, hereinafter referred to as LASH-
type barges, may move under a simplified permit-to-proceed procedure as 
follows:
    (1) At the port where a LASH-type barge begins a coastwise movement 
with inward foreign cargo, a permit to proceed on the Vessel Entrance or 
Clearance Statement, Customs Form 1300, must be obtained. A single 
permit to proceed may be used for all the barges proceeding to the same 
port of unlading in the same town. An inward foreign manifest of the 
cargo in each barge, destined to the port of unlading shown on the 
permit to proceed, must be attached to each permit. At the port of 
unlading of the barge, report of arrival and entry must be made 
immediately upon arrival to the appropriate Customs officer by 
presentation of the permit to proceed, manifests, and a new Vessel 
Entrance or Clearance Statement, Customs Form 1300. If only part of the 
inward foreign cargo is unladen, a new permit to proceed must be 
obtained and the inward foreign manifests must be attached to it.
    (2) At the port where a LASH-type barge begins a coastwise movement 
with export cargo, a permit to proceed on the Vessel Entrance or 
Clearance Statement, Customs Form 1300, must be presented to the 
appropriate Customs officer. A single permit to proceed may be presented 
for all the barges proceeding from the same port of lading in the same 
tow. Required shipper's export declarations for

[[Page 52]]

LASH-type barges must be filed at the port where the barges will be 
taken aboard a barge-carrying vessel. At the next port, a report of 
arrival must be made immediately upon arrival and entry must be made 
within 48 hours by presentation of the permit to proceed received upon 
departure from the prior port and a newly executed Vessel Entrance or 
Clearance Statement, Customs Form 1300.
    (3) When foreign LASH-type barges are proceeding between ports of 
the United States under paragraph (e) of this section, a single permit 
to proceed may be used for all the barges proceeding to the same port in 
the same tow.
    (4) In lieu of the master of the towing vessel executing and 
delivering documents required under permit-to-proceed procedures (see 
Sec. 4.81(f)) at the port where a LASH-type barge begins a coastwise 
movement, the master of the towing vessel may designate in writing the 
owner or operator of the barges as his representative with authority to 
execute and deliver such documents at the customhouse. The owner or 
operator of the barges may designate representatives to perform such 
functions at ports or places where permit-to-proceed documents must be 
delivered. Documents obtained from Customs officers at one place by such 
a representative may be forwarded by any suitable means to the 
representative who must present them to Customs officers at another 
place, the only requirement being that the forms are properly completed 
and are presented within the prescribed time periods. Moreover, instead 
of a written designation from each master of a towing vessel, a blanket 
designation in writing from the owner or operator of one or more towing 
vessels on behalf of masters of their towing vessels, designating the 
owner or operator of the barges to be the representative of the master 
for purposes of executing and delivering permit-to-proceed documents, is 
authorized.
    (5) [Reserved]
    (6) When a LASH-type barge is proceeding to a place in the United 
States that is not a port of entry, Sec. 101.4(a) and (b) of this 
chapter are applicable. No merchandise shall be unladen from a LASH-type 
barge until a permit or special license therefor is obtained in 
accordance with Sec. 4.30 except that a single permit to unlade may be 
used for all barges that arrived at the port of unlading in the same 
tow.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71-169, 36 FR 12604, 
July 2, 1971; T.D. 74-63, 39 FR 6108, Feb. 19, 1974; T.D. 74-284, 39 FR 
39718, Nov. 11, 1974; T.D. 75-315, 40 FR 58852, Dec. 19, 1975; T.D. 77-
241, 42 FR 54936, Oct. 12, 1977; T.D. 77-255, 42 FR 56322, Oct. 25, 
1977; T.D. 83-214, 48 FR 46512, Oct. 13, 1983; T.D. 92-74, 57 FR 35752, 
Aug. 11, 1992; T.D. 93-96, 58 FR 67317, Dec. 21, 1993; T.D. 00-22, 65 FR 
16515, Mar. 29, 2000]



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

    (a) A LASH-type barge (as defined in Sec. 4.81(g)) documented as a 
vessel of the United States but not qualified to engage in the coastwise 
trade or a LASH-type barge of a nation found to grant reciprocal 
privileges to United States-flag LASH-type barges may transport inward 
foreign and export cargo between points embraced within the coastwise 
laws of the United States after the merchandise has been transferred to 
it from another LASH-type barge owned or leased by the same owner or 
operator. This section is not applicable to transportation between the 
continental United States and noncontiguous States, districts, 
territories, and possessions embraced within the coastwise laws. The 
permit to proceed shall include a statement that the unqualified LASH-
type barge is owned or leased by the owner or operator of the LASH-type 
barge from which the merchandise was transferred.
    (b) The following nations have been found to extend privileges 
reciprocal to those provided in paragraph (a) of this section to LASH-
type barges of the United States:

Federal Republic of Germany.
Netherlands.
Sweden.
Union of Soviet Socialist Republics.

[T.D. 74-63, 39 FR 6108, Feb. 19, 1974, as amended by T.D. 74-292, 39 FR 
41360, Nov. 27, 1974; T.D. 75-7, 39 FR 44660, Dec. 26, 1974; T.D. 75-
315, 40 FR 58852, Dec. 19, 1975; T.D. 78-492, 43 FR 58814, Dec. 18, 
1978]

[[Page 53]]



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

    (a) A United States documented vessel with a registry or, coastwise 
endorsement, or both which, during a voyage between ports in the United 
States, touches at one or more foreign ports and there discharges or 
takes on merchandise, passengers, baggages, or mail shall obtain a 
permit to proceed or clearance at each port of lading in the United 
States for the foreign port or ports at which it is intended to touch. 
The Cargo Declaration Outward With Commercial Forms, Customs Form 1302-A 
(see Sec. 4.63), shall show only the cargo for foreign destination. (See 
Secs. 4.61 and 4.87.)
    (b) The master shall also present to the port director a coastwise 
Cargo Declaration in triplicate of the merchandise to be transported via 
the foreign port or ports to the subsequent ports in the United States. 
It shall describe the merchandise and show the marks and numbers of the 
packages, the names of the shippers and consignees, and the 
destinations. The port director shall certify the two copies and return 
them to the master. Merchandise carried by the vessel in bond under a 
transportation entry and manifest, Customs Form 7512, shall not be shown 
on the coastwise Cargo Declaration.
    (c) Upon arrival from the foreign port or ports at the subsequent 
port in the United States, a report of arrival and entry of the vessel 
shall be made, and tonnage taxes shall be paid unless the vessel is 
properly operating under a document with Great Lakes license 
endorsement. The master shall present Cargo Declaration in accordance 
with Sec. 4.7 and the certified copies of the coastwise Cargo 
Declaration, Customs Form 1302.
    (d) All merchandise on the vessel upon its arrival at the subsequent 
port in the United States is subject to such Customs examination and 
treatment as may be necessary to protect the revenue. Any article on 
board which is not identified to the satisfaction of the port director, 
by the coastwise Cargo Declaration, Customs Form 1302, or otherwise, as 
part of the coastwise cargo, shall be treated as imported merchandise.
---------------------------------------------------------------------------

    \112-114\ [Reserved]

[T.D. 77-255, 42 FR 56322, Oct. 25, 1977, as amended by T.D. 83-214, 48 
FR 46513, Oct. 13, 1983; T.D. 84-193, 49 FR 35485, Sept. 10, 1984; T.D. 
99-64, 64 FR 43265, Aug. 10, 1999]



Sec. 4.83  Trade between United States ports on the Great Lakes and other ports of the United States.

    (a) If a vessel proceeding from or to a port of the United States on 
the Great Lakes to or from any other port of the United States via the 
St. Lawrence River is intended to touch at any foreign port and does so 
touch, it will be subject to the usual requirements for manifesting, 
clearing, report of arrival, entry, payment of fees for entry and 
clearance, and tonnage taxes. Vessels which are boarded on the St. 
Lawrence River by Canadian authorities for the purposes of inspecting 
the vessel and taking a passing report are not deemed to have touched at 
a foreign port, provided that no ship's stores are landed or taken 
aboard and no other business is transacted at the port or place of 
boarding.
    (b) A vessel in the coastwise trade only, which is proceeding from a 
port of the United States on the Great Lakes via the Hudson River and 
otherwise than by sea, may operate under a document with a Great Lakes 
license endorsement and shall not be subject to the requirements for 
clearance, report of arrival, or entry.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 69-266, 34 FR 20423, 
Dec. 31, 1969; T.D. 83-214, 48 FR 46513, Oct. 13, 1983]



Sec. 4.84  Trade with noncontiguous territory.

    (a) No foreign vessel shall depart from a port in noncontiguous 
territory of the United States for any other port in noncontiguous 
territory or for any port in any State or the District of Columbia, nor 
from any port in any State or the District of Columbia for any port in 
noncontiguous territory, until a clearance for the vessel has been 
granted. Such a clearance shall be granted in accordance with the 
applicable provisions of Sec. 4.61 of the regulations of this part, 
including clearance of a vessel simultaneously engaged in one or more of 
the transactions listed

[[Page 54]]

in Sec. 4.90(a)(4), (5), or (6) of this part. When merchandise is laden 
on a foreign vessel in noncontiguous territory other than Puerto Rico, 
for transportation on that vessel to a port in any State, the District 
of Columbia, or noncontiguous territory, and when this transportation is 
not forbidden by the coastwise laws, the merchandise may be laden and 
shipped without shipper's export declarations.
    (b) The master of every foreign vessel arriving at a port in any 
State or the District of Columbia or in noncontiguous territory of the 
United States from a port in noncontiguous territory to which the 
coastwise laws do not apply (e.g., Virgin Islands and American Samoa), 
or arriving at any port in noncontiguous territory to which the 
coastwise laws do not apply from any place embraced within the coastwise 
laws, shall immediately report its arrival and make entry for the vessel 
within 48 hours after its arrival.
    (c)(1) A vessel which is not required to clear but which is 
transporting merchandise from a port in any State or the District of 
Columbia to any noncontiguous territory of the United States (excluding 
Puerto Rico), or from Puerto Rico to any State or the District of 
Columbia, or any other noncontiguous territory, shall not be permitted 
to depart without filing a complete manifest, when required by 
regulations of the Bureau of the Census (15 CFR part 30), and all 
required Shipper's Export Declarations, unless before the vessel departs 
an approved bond is filed for the timely production of the required 
documents, as specified in 15 CFR 30.24. Requests for permission to 
depart may be written or oral and permission to depart shall be granted 
orally by the appropriate Customs officer. However, if the request is to 
depart prior to the filing of the required manifest and export 
declarations, permission shall not be granted unless the appropriate 
bond is on file. In the latter case, the Customs officer shall keep a 
simplified record of the necessary information in order to assure that 
the manifest and export declarations are filed within the required time 
period. The Vessel Entrance or Clearance Statement, Customs Form 1300 
(see Sec. 4.63(a)), required at the time of clearance is not required to 
be taken to obtain permission to depart.
    (2) A vessel which is not required to clear but which is 
transporting merchandise from a port in any State or the District of 
Columbia to Puerto Rico shall file a complete manifest, when required by 
the regulations of the Bureau of the Census (15 CFR part 30), and all 
required Shipper's Export Declarations within one business day after 
arrival, as defined in Sec. 4.2(b) of this part, with the appropriate 
Customs officer in Puerto Rico. If the complete manifest and all 
required Shipper's Export Declarations are not filed with the 
appropriate Customs officer within that time frame, an appropriate bond 
shall be filed with the Customs officer for the timely production of the 
required documents as specified in 15 CFR 30.24. In these instances when 
a bond is filed, the Customs officer shall keep a simplified record of 
the necessary information in order to ensure that the manifest and 
export declarations are filed not later than the seventh business day 
after arrival in Puerto Rico.
    (d) Upon arrival of a vessel of the United States at a port in any 
State, the District of Columbia, or Puerto Rico from a port in 
noncontiguous territory other than Puerto Rico, the master shall 
immediately report its arrival and shall prepare, produce, and file a 
Cargo Declaration in the form and manner and at the times specified in 
Secs. 4.7 and 4.9 but shall not be required to make entry. If the vessel 
proceeds directly to another port in any State, the District of 
Columbia, or Puerto Rico, the master shall prepare, produce, and file a 
Cargo Declaration in the form and manner and at the times specified in 
Sec. 4.85 but no permit to proceed on the Vessel Entrance or Clearance 
Statement, Customs Form 1300, shall be required for the purposes of this 
paragraph. No cargo shall be unladen from any such vessel until Cargo 
Declarations have been filed and a permit to unlade has been issued in 
accordance with the procedure specified in Sec. 4.30.
    (e) No vessel shall bring guano to the United States from a guano 
island appertaining to the United States (see 48

[[Page 55]]

U.S.C. 1411) unless such a vessel is entitled to engage in the coastwide 
trade.
    (f) No vessel owned by a corporation which qualifies as a citizen 
under the Act of September 2, 1958 (46 U.S.C. 883-1) shall, while under 
demise or bareboat charter from such corporation, be granted clearance 
or permitted to depart in trade with noncontiguous territory.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 69-266, 34 FR 20423, 
Dec. 31, 1969: T.D. 71-169, 36 FR 12604, July 2, 1971; T.D. 77-255, 42 
FR 56323, Oct. 25, 1977; T.D. 79-276, 44 FR 61956, Oct. 29, 1979; T.D. 
93-61, 58 FR 41425, Aug. 4, 1993; T.D. 93-96, 58 FR 67317, Dec. 21, 
1993; T.D. 00-22, 65 FR 16516, Mar. 29, 2000]



Sec. 4.85  Vessels with residue cargo for domestic ports.

    (a) Any foreign vessel or documented vessel with a registry or, 
where appropriate, a Great Lakes license endorsement, arriving from a 
foreign port with cargo or passengers manifested for ports in the United 
States other than the port of first arrival, may proceed with such cargo 
or passengers from port to port, provided a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.64 of this chapter 
relating to international carriers in a suitable amount is on file with 
the director of the port of first entry.115 No additional 
bond shall be required at subsequent ports of entry. Before the vessel 
departs from the port of first arrival, the master shall obtain from the 
port director a certified copy of the complete inward foreign manifest 
(hereinafter referred to as the traveling manifest). The certified copy 
shall have a legend similar to the following endorsed on the Vessel 
Entrance or Clearance Statement, Customs Form 1300:
---------------------------------------------------------------------------

    \115\ ``* * * Any vessel arriving from a foreign port or place 
having on board merchandise shown by the manifest to be destined to a 
port or ports in the United States other than the port of entry at which 
such vessel first arrived and made entry may proceed with such 
merchandise from port to lading thereof.'' (Tariff Act of 1930, sec. 
442; 19 U.S.C. 1442)
    116-118 [Reserved]

________________________________________________________________________
Port Date
    Certified to be a true copy of the original inward foreign manifest.

________________________________________________________________________
                                                     Signature and title

    (b)(1) Before a vessel proceeds from one domestic port to another 
with cargo or passengers on board as described in paragraph (a) of this 
section, the master must present to the director of such port of 
departure an application in triplicate on Customs Form 1300 for a permit 
to proceed to the next port. When a port director grants the permit on 
Customs Form 1300, the following legend must be endorsed on the form:

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

    (2) The duplicate must be attached to the traveling manifest and the 
triplicate (the permit to proceed to be delivered at the next port) must 
be returned to the master, together with the traveling manifest and the 
vessel's document, if on deposit. If no inward foreign cargo or 
passengers are to be discharged at the next port, that fact must be 
indicated on Customs Form 1300 by inserting ``To load only'' in 
parentheses after the name of the port to which the vessel is to 
proceed. The traveling Crew's Effects Declaration covering articles 
acquired abroad by officers and members of the crew, together with the 
unused crewmembers' declarations prepared for such articles, will be 
placed in a sealed envelope addressed to the appropriate Customs officer 
at the next port and given to the master for delivery.
    (c)(1) Upon the arrival of a vessel at the next and each succeeding 
domestic port with inward foreign cargo or passengers still on board, 
the master must immediately report its arrival and make entry within 48 
hours. To make such entry, he must deliver to the port director the 
vessel's document, the permit to proceed (Customs Form 1300 endorsed in 
accordance with paragraph (b) of this section), the traveling manifest, 
and the traveling Crew's Effects

[[Page 56]]

Declaration (Customs Form 1304), together with the crewmembers' 
declarations received on departure from the previous port. The master 
must also present an abstract manifest consisting of a newly executed 
Vessel Entrance or Clearance Statement, Customs Form 1300, a Cargo 
Declaration, Customs Form 1302, and a Passenger List, Customs and 
Immigration Form I-418, in such number of copies as may be required for 
local Customs purposes, of any cargo or passengers on board manifested 
for discharge at that port, a Crew's Effects Declaration in duplicate of 
all unentered articles acquired abroad by officers and crewmembers which 
are still on board, a Ship's Stores Declaration, Customs Form 1303, in 
duplicate of the sea or ship's stores remaining on board, and if 
applicable, the Cargo Declaration required by Sec. 4.86. If no inward 
foreign cargo or passengers are to be discharged, the Cargo Declaration 
or Passenger List may be omitted from the abstract manifest, and the 
following legend must be placed in item 15 of the Vessel Entrance or 
Clearance Statement:

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

    (2) The traveling manifest, together with a copy of the newly 
executed Vessel Entrance or Clearance Statement, will serve the purpose 
of a copy of an abstract manifest at the port where it is finally 
surrendered.
    (d) If boarding is required before the port director will issue a 
permit or special license to lade or unlade, the abstract manifest 
described in paragraph (c) of this section shall be ready for 
presentation to the boarding officer.
    (e) The traveling manifest shall be surrendered to the director of 
the final domestic port of discharge of the cargo, except that if 
residue foreign cargo remains on board for discharge at a foreign port 
or ports, the traveling manifest shall be surrendered at the final port 
of departure from the United States. However, it shall not be 
surrendered at the port from which the vessel departs for another United 
States port, via an intermediate foreign port, under Sec. 4.89 if 
residue foreign cargo remains on board for discharge at a subsequent 
U.S. port. The traveling Crew's Effects Declaration shall be finally 
surrendered to the director of any port from which the vessel will 
depart directly for a foreign port.

[T.D. 71-169, 36 FR 12604, July 2, 1971, as amended by T.D. 77-255, 42 
FR 56323, Oct. 25, 1977; T.D. 83-214, 48 FR 46513, Oct. 13, 1983; T.D. 
84-213, 49 FR 41164, Oct. 19, 1984; T.D. 92-74, 57 FR 35752, Aug. 11, 
1992; T.D. 93-96, 58 FR 67317, Dec. 21, 1993; T.D. 94-24, 59 FR 13200, 
Mar. 21, 1994; T.D. 00-22, 65 FR 16516, Mar. 29, 2000]



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

    (a) When a vessel arrives at an Atlantic or Pacific coast port from 
a foreign port or ports with residue cargo for delivery at a port or 
ports on the opposite coast or on the Great Lakes, or where such arrival 
is at a port on the Great Lakes, with residue cargo for delivery at a 
port or ports on the Atlantic or Pacific coasts, or both, and the 
master, owner, or agent is unable at that time to designate the specific 
port or ports of discharge of that residue cargo, the Cargo Declaration, 
Customs Form 1302, filed on entry in accordance with Sec. 4.7(b) shall 
show such cargo as destined for ``optional ports, Atlantic coast,'' or 
``optional ports, Pacific coast,'' or ``optional ports, Great Lakes 
coast,'' as the case may be. The traveling manifest shall be similarly 
noted. Upon arrival of the vessel at the first port on the next coast, 
the master, owner, or agent must designate the port or ports of 
discharge of residue cargo as required by section 431, Tariff Act of 
1930.
    (b) For this purpose, the master shall furnish with the other papers 
required upon entry a Cargo Declaration, Customs Form 1302 in original 
only of inward foreign cargo remaining on board for discharge at 
optional ports on that coast, and the Cargo Declaration, must designate 
the specific ports of intended discharge for that cargo. The traveling 
manifest shall be amended to agree with that Cargo Declaration so as to 
show the newly designated ports of discharge on that coast and shall be 
used to verify the abstract Cargo Declarations surrendered at subsequent 
ports on that coast.

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

[[Page 57]]



Sec. 4.87  Vessels proceeding foreign via domestic ports.

    (a) Any foreign vessel or documented vessel with a registry or, 
where appropriate, a Great Lakes license endorsement may proceed from 
port to port in the United States to lade cargo or passengers for 
foreign ports.
    (b) When applying for a clearance from the first and each succeeding 
port of lading, the master must present to the port director a Vessel 
Entrance or Clearance Statement, Customs Form 1300, in duplicate and a 
Cargo Declaration Outward With Commercial Forms, Customs Form 1302-A, in 
accordance with Sec. 4.63(a), of all the cargo laden for export at that 
port. The Vessel Entrance or Clearance Statement must clearly indicate 
all previous ports of lading.
    (c) Upon compliance with the applicable provisions of Sec. 4.61, the 
port director will grant the permit to proceed by making the endorsement 
prescribed by Sec. 4.85(b) on the Vessel Entrance or Clearance 
Statement, Customs Form 1300. One copy will be returned to the master, 
together with the vessel's document if on deposit. The traveling Crew's 
Effects Declaration, Customs Form 1304, together with any unused 
crewmembers' declarations, will be placed in a sealed envelope addressed 
to the appropriate Customs officer at the next domestic port and 
returned to the master.
    (d) On arrival at the next and each succeeding domestic port, the 
master must immediately report arrival. He must also make entry within 
48 hours by presenting the vessel's document, the permit to proceed on 
the Vessel Entrance or Clearance Statement, Customs Form 1300, received 
by him upon departure from the last port, a Crew's Effects Declaration, 
Customs Form 1304, in duplicate listing all unentered articles acquired 
aboard by officers and crew of the vessel which are still retained on 
board, and a Ship's Stores Declaration, Customs Form 1303, in duplicate 
of the stores remaining aboard. The master must also execute a Vessel 
Entrance or Clearance Statement. The traveling Crew's Effects 
Declaration, together with any unused crewmembers' declarations returned 
to the master at the prior port, will be delivered by him to the port 
director.
    (e) Clearance shall be granted at the final port of departure from 
the United States in accordance with Sec. 4.61.
    (f) If a complete Cargo Declaration Outward With Commercial Forms, 
Customs Form 1302-A (see Sec. 4.63), and all required shipper's export 
declarations are not available for filing before departure of a vessel 
from any port, clearance on the Vessel Entrance or Clearance Statement, 
Customs Form 1300, may be granted in accordance with Sec. 4.75, subject 
to the limitation specified in Sec. 4.75(c).
    (g) When the procedure outlined in paragraph (f) of this section is 
followed at any port, the owner or agent of the vessel must deliver to 
the director of that port within 4 business days after the vessel's 
clearance a Cargo Declaration Outward With Commercial Forms, Customs 
Form 1302-A (see Sec. 4.63), and the export declarations to cover the 
cargo laden for export at that port.

[T.D. 77-255, 42 FR 56324, Oct. 25 1977, as amended by T.D. 83-214, 48 
FR 46513, Oct. 13, 1983; T.D. 84-193, 49 FR 35485, Sept. 10, 1984; T.D. 
92-74, 57 FR 35752, Aug. 11, 1992; T.D. 93-96, 58 FR 67317, Dec. 21, 
1993; T.D. 00-22, 65 FR 16517, Mar. 29, 2000]



Sec. 4.88  Vessels with residue cargo for foreign ports.

    (a) Any foreign vessel or documented vessel with a registry or, 
where appropriate, a Great Lakes license endorsement which arrives at a 
port in the United States from a foreign port shall not be required to 
unlade any merchandise manifested for a foreign destination provided a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.64 of this chapter relating to international carriers in a 
suitable amount is on file with the director of the port of first 
entry.119
---------------------------------------------------------------------------

    \119\ ``Any vessel having on board merchandise shown by the manifest 
to be destined to a foreign port or place may, after the report and 
entry of such vessel under the provisions of this Act, proceed to such 
foreign port of destination with the cargo so destined therefor, without 
unlading the same and without the payment of duty thereon. * * *'' 
(Tariff Act of 1930, sec. 442; 19 U.S.C. 1442)
---------------------------------------------------------------------------

    (b) The port director shall designate the items of such merchandise, 
if any,

[[Page 58]]

for which foreign landing certificates 120 will be required.
---------------------------------------------------------------------------

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

    (c) If the vessel clears directly foreign from the first port of 
arrival, cargo brought in from foreign ports and retained on board may 
be declared on the Cargo Declaration Outward With Commercial Forms, 
Customs Form 1302-A (see Sec. 4.63), by the insertion of the following 
statement:

    All cargo declared on entry in this port as cargo for discharge at 
foreign ports and so shown on the Cargo Declaration filed upon entry has 
been and is retained on board.


If any such cargo has been landed, the Cargo Declaration shall describe 
each item of the cargo from a foreign port which has been retained on 
board (see Sec. 4.63(a).
    (d) If the vessel is proceeding to other ports in the United States 
with foreign residue cargo on board manifested for discharge at a 
foreign port or ports, a procedure like that set forth in Sec. 4.85 
shall be followed with respect thereto.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77-255, 42 FR 56324, 
Oct. 25, 1977; T.D. 83-214, 48 FR 46513, Oct. 13, 1983; T.D. 84-193, 49 
FR 35485, Sept. 10, 1984; 49 FR 41164, Oct. 19, 1984]



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

    (a) A vessel proceeding from port to port in the United States in 
accordance with Secs. 4.85, 4.86, or 4.87 may touch at an intermediate 
foreign port or ports to lade or discharge cargo or passengers. In such 
a case the vessel shall obtain clearance from the last port of departure 
in the United States before proceeding to the intermediate foreign port 
or ports at which it is intended to touch. The Cargo Declaration Outward 
With Commercial Forms, Customs Form 1302-A (see Sec. 4.63), shall show 
the cargo for such foreign destination in the manner provided in 
Sec. 4.88(c).
    (b) The master shall also present to the port director the Cargo 
Declaration or Cargo Declarations required by Secs. 4.85, 4.86, or 4.87, 
and obtain a permit to proceed on the Vessel Entrance or Clearance 
Statement, Customs Form 1300, to the next port in the United States at 
which the vessel will touch.
    (c) Upon arrival at the next port in the United States after 
touching at a foreign port or ports a report of arrival and entry shall 
be made. The Cargo Declaration, Customs Form 1302, filed at time of 
entry shall list the cargo laden at the intermediate foreign port or 
ports.
    (d) The master shall also present to the port director the permit to 
proceed on the Vessel Entrance or Clearance Statement, Customs Form 
1300, and the Cargo Declaration from the last previous port in the 
United States as provided for in Secs. 4.85, 4.86, or 4.87.

[T.D. 77-255, 42 FR 56324, Oct. 25, 1977, as amended by T.D. 84-193, 49 
FR 35485, Sept. 10, 1984; T.D. 00-22, 65 FR 16517, Mar. 29, 2000]



Sec. 4.90  Simultaneous vessel transactions.

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

    \121\ For the purposes of this part, an inward foreign voyage is 
completed at the port of final discharge of inbound passengers or cargo, 
and an outward foreign voyage begins at the port where cargo or 
passengers are first laden for carriage to a foreign destination.
---------------------------------------------------------------------------

    (1) Coastwise trade (Sec. 4.80).
    (2) Touching at a foreign port while in coastwise trade (Sec. 4.82).
    (3) Trade with noncontiguous territory of the United States 
(Sec. 4.84).
    (4) Carriage of residue cargo or passengers from foreign ports 
(Secs. 4.85-4.86).
    (5) Carriage of cargo or passengers laden for foreign ports 
(Sec. 4.87).
    (6) Carriage of residue cargo for foreign ports (Sec. 4.88).
    (b) When a vessel is engaged simultaneously in two or more such 
transactions, the master shall indicate each type of transaction in 
which the vessel

[[Page 59]]

is engaged in his application for clearance on Customs Form 1300. The 
master shall conform simultaneously to all requirements of these 
regulations with respect to each transaction in which the vessel is 
engaged.
    (c) A foreign vessel is not authorized by this section to engage in 
the coastwise trade, including trade with noncontiguous territory 
embraced within the coastwise laws.
    (d) A documented vessel may engage in transactions (2), (4), (5), or 
(6) only if the vessel's document has a registry or, where appropriate, 
a Great Lakes license endorsement. Such a vessel shall not engage in 
transactions (1) or (3) unless permitted by the endorsement on its 
Certificate of Documentation to do so.
    (e) When a single entry bond, containing the bond conditions set 
forth in Sec. 113.64, relating to international carriers, is filed at 
any port and it is applicable to the current voyage of the vessel, it 
shall cover all other transactions engaged in on that voyage of a like 
nature and another bond containing the international carrier bond 
conditions need not be filed.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71-169, 36 FR 12605, 
July 2, 1971; T.D. 83-214, 48 FR 46513, Oct. 13, 1983; T.D. 84-213, 49 
FR 41164, Oct. 19, 1984; T.D. 00-22, 65 FR 16517, Mar. 29, 2000]



Sec. 4.91  Diversion of vessel; transshipment of cargo.

    (a) If any vessel granted a permit to proceed from one port in the 
United States for another such port as provided for in Secs. 4.81(e), 
4.85, 4.87, or 4.88, is, while en route, diverted to a port in the 
United States other than the one specified in the permit to proceed 
(Customs Form 1300),122 the owner or agent of the vessel 
immediately shall give notice of the diversion to the port director who 
granted the permit, informing him of the new destination of the vessel 
and requesting him to notify the director of the latter port. Such 
notification by the port director shall constitute an amendment of the 
permit previously granted, shall authorize the vessel to proceed to the 
new destination, and shall be filed by the director of the latter port 
with the Form 1300 submitted on entry of the vessel.
---------------------------------------------------------------------------

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

    (b) If any vessel cleared from a port in the United States for a 
foreign port as provided for in Sec. 4.60 is diverted, while en route, 
to a port in the United States other than that from which it was 
cleared, the owner or agent of the vessel immediately shall give notice 
of the diversion to the port director who granted the clearance, 
informing him of the new destination of the vessel and requesting him to 
notify the director of the latter port. Such notification by the port 
director shall constitute a permit to proceed coastwise, and shall 
authorize the vessel to proceed to the new destination. On arrival at 
the new destination, the master shall immediately report arrival. He 
shall also make entry within 48 hours by presenting (1) the vessel's 
document, (2) the foreign clearance on Form 1300 granted by the director 
of the port of departure, (3) a certificate that when the vessel was 
cleared from the last previous port in the United States there were on 
board cargo and/or passengers for the ports named in the foreign 
clearance certificate only and that additional cargo or passengers 
(have) (have not) been taken on board or discharged since such clearance 
was granted (specifying the particulars if any passengers or cargo were 
taken on board or discharged), (4) a Crew's Effects Declaration in 
duplicate of all unentered articles acquired abroad by the officers and 
crew of the vessel which are still retained on board, and (5) a Ship's 
Stores Declaration in duplicate of the stores on board.
    (c) In a case of necessity, a port director may grant an application 
on Customs Form 3171 of the owner or agent of an established line for 
permission to transship 123 all cargo and passengers from one 
vessel of the United States to another such vessel under Customs 
supervision, if the first vessel is transporting residue cargo for 
domestic or foreign ports or is on an outward foreign voyage or a voyage 
to noncontiguous territory of the United States, and is following the 
procedure prescribed in Secs. 4.85, 4.87, or 4.88. When

[[Page 60]]

inward foreign cargo or passengers are so transshipped to another 
vessel, a separate traveling manifest (Cargo Declaration, Customs Form 
1302, or Passenger List, Customs and Immigration Form I-418) shall be 
used for the transshipped cargo or passengers, whether or not the 
forwarding vessel is also carrying other residue cargo or passengers. An 
appropriate cross-reference shall be made on the separate traveling 
manifest to show whether any other traveling manifest is being carried 
forward on the same vessel.
---------------------------------------------------------------------------

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

[T.D. 71-169, 36 FR 12605, July 2, 1971, as amended by T.D. 77-255, 42 
FR 56324, Oct. 25, 1977; T.D. 93-96, 58 FR 67317, Dec. 21, 1993; T.D. 
00-22, 65 FR 16517, Mar. 29, 2000]



Sec. 4.92  Towing.

    No vessel other than a vessel documented for the coastwise or Great 
Lakes trade, or which would be entitled to be so documented except for 
its tonnage (see Sec. 4.80), may tow a vessel other than a vessel in 
distress between points in the U.S. embraced within the coastwise laws, 
or for any part of such towing (46 U.S.C. App. 316(a)). The penalties 
for violation of this prohibition are a fine of from $250 to $1000 
against the owner or master of the towing vessel and a further penalty 
against the towing vessel of $50 per ton of the towed vessel.

[T.D. 93-12, 58 FR 13197, Mar. 10, 1993]



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

    (a) Vessels of the United States prohibited from engaging in the 
coastwise trade and vessels of nations found to grant reciprocal 
privileges to vessels of the United States may transport the following 
articles between points embraced within the coastwise laws of the United 
States:
    (1) Empty cargo vans, empty lift vans, and empty shipping tanks; 
equipment for use with cargo vans, lift vans, or shipping tanks; empty 
barges specifically designed for carriage aboard a vessel and equipment, 
excluding propulsion equipment, for use with such barges; and empty 
instruments of international traffic exempted from application of the 
Customs laws by the Secretary of the Treasury pursuant to the provisions 
of section 322(a), Tariff Act of 1930 (19 U.S.C. 1322(a)), if such 
articles are owned or leased by the owner or operator of the 
transporting vessel and are transported for his use in handling his 
cargo in foreign trade.
    (2) Stevedoring equipment and material, if such equipment and 
material is owned or leased by the owner or operator of the transporting 
vessel, or is owned or leased by the stevedoring company contracting for 
the lading or unlading of that vessel, and is transported without charge 
for use in the handling of cargo in foreign trade.125
---------------------------------------------------------------------------

    \125\ ``* * * Provided further, That upon such terms and conditions 
as the Secretary of the Treasury by regulation may prescribe, and, if 
the transporting vessel is of foreign registry, upon a finding by the 
Secretary of the Treasury, pursuant to information obtained and 
furnished by the Secretary of State, that the government of the nation 
of registry extends reciprocal privileges to vessels of the United 
States, this section shall not apply to the transportation by vessels of 
the United States not qualified to engage in the coastwise trade, or by 
vessels of foreign registry, of (a) empty cargo vans, empty lift vans, 
and empty shipping tanks, (b) equipment for use with cargo vans, lift 
vans, or shipping tanks, (c) empty barges specifically designed for 
carriage aboard a vessel, and (d) any empty instrument for international 
traffic exempted from application of the customs laws by the Secretary 
of the Treasury pursuant to the provisions of section 322(a), Tariff Act 
of 1930 (19 U.S.C. 1322(a)), if the articles described in clauses (a) 
through (d) are owned or leased by the owner or operator of the 
transporting vessel and are transported for his use in handling his 
cargo in foreign trade; and (e) stevedoring equipment and material, if 
such equipment and material is owned or leased by the owner or operator 
of the transported vessel, or is owned or leased by the stevedoring 
company contracting for the lading or unlading of that vessel, and is 
transported without charge for use in the handling of cargo in foreign 
trade.'' (46 U.S.C. 883).
    126-130 [Reserved]
---------------------------------------------------------------------------

    (b)(1) The following nations have been found to extend privileges 
reciprocal to those provided in paragraph (a) of this section for empty 
cargo vans, empty lift vans, and empty shipping tanks to vessels of the 
United States:


[[Page 61]]


Antigua and Barbuda.
Australia.
Austria.
Bahamas, The.
Bahrain
Belgium.
Bermuda.
Brazil.
Canada.
Chile.
China*.
Colombia.
Cyprus.
Denmark.
Ecuador.
Finland.
France.
Guatemala.
Germany, Federal Republic of.
Greece.
Iceland.
India.
Iran.
Ireland.
Israel.
Italy.
Ivory Coast.
Japan.
Kuwait.
Liberia.
Luxembourg.
Malta.
Marshall Islands, Republic of the.
Mexico.
Netherlands.
Netherlands Antilles.
Norway.
Pakistan.
Philippines.
Polish People's Republic.
Portugal.
Republic of Korea.
Republic of Panama.
Republic of Singapore.
Republic of Zaire.
St. Vincent and the Grenadines.
Saudi Arabia.
South Africa.
Spain.
Sweden.
Taiwan.
Union of Soviet Socialist Republics.
United Arab Emirates.
United Kingdom (including The Cayman Islands and Hong Kong).
Vanuatu, Republic of.
Yugoslavia, Socialist Federal Republic of.

*See also Taiwan.

    (2) The following nations have been found to extend similar 
reciprocal privileges in respect to the other articles mentioned in 
paragraph (a) of this section:

Antigua and Barbuda.
Australia.
Austria.
Bahamas, The.
Bahrain
Belgium.
Bermuda.
Brazil.
Chile.
Colombia.
Denmark.
Federal Republic of Germany.
Finland.
France.
Greece.
Guatemala.
Iceland.
India.
Ireland.
Israel.
Italy.
Ivory Coast.
Kuwait.
Liberia.
Luxembourg.
Malta.
Mexico.
Netherlands.
Netherlands Antilles.
Norway.
Polish People's Republic.
Portugal.
Republic of Korea.
Republic of Panama.
Republic of Singapore.
Republic of Zaire.
St. Vincent and the Grenadines.
South Africa.
Spain.
Sweden.
Taiwan.
Union of Soviet Socialist Republics.
United Arab Emirates.
United Kingdom (including The Cayman Islands and Hong Kong).
Vanuatu, Republic of.

    (c) Any Cargo Declaration, Customs Form 1302, required to be filed 
under this part by any foreign vessel shall describe any article 
mentioned in paragraph (a) of this section laden aboard and transported 
from one United States port to another, giving its identifying number or 
symbol, if any, or such other identifying data as may be appropriate, 
the names of the shipper and consignee, and the destination. The Cargo 
Declaration shall also include a statement (1) that the articles 
specified in paragraph (a)(1) of this section are owned or leased by the 
owner or operator of the transporting vessel and are transported for his 
use in handing his cargo in foreign trade; or (2) that the stevedoring 
equipment and material specified in paragraph (a)(2) of

[[Page 62]]

this section is owned or leased by the owner or operator of the 
transporting vessel, or is owned or leased by the stevedoring company 
contracting for the lading or unlading of that vessel, and is 
transported without charge for his use in handling his cargo in foreign 
trade. If the director of the port of lading is satisfied that there 
will be sufficient control over the coastwise transportation of the 
article without identifying it by number or symbol or such other 
identifying data on the Cargo Declaration, he may permit the use of a 
Cargo Declaration that does not include such information provided the 
Cargo Declaration includes a statement, that the director of the port of 
unlading will be presented with a statement at the time of entry of the 
vessel that will list the identifying number or symbol or other 
appropriate identifying data for the article to be unladen at that port. 
Applicable penalties under section 584, Tariff Act of 1930, as amended 
(19 U.S.C. 1584), shall be assessed for violation of this paragraph.

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

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

                                 General



Sec. 4.94  Yacht privileges and obligations.

    (a) Any documented vessel with a pleasure license endorsement, as 
well as any undocumented American pleasure vessel, shall be used 
exclusively for pleasure and shall not transport merchandise nor carry 
passengers for pay. Such a vessel which is not engaged in any trade nor 
in any way violating the Customs or navigation laws of the U.S. may 
proceed from port to port in the U.S. or to foreign ports without 
clearing and is not subject to entry upon its arrival in a port of the 
U.S., provided it has not visited a hovering vessel, received 
merchandise while in the customs waters beyond the territorial sea, or 
received merchandise while on the high seas. Such a vessel shall 
immediately report arrival to Customs when arriving in any port or place 
within the U.S., including the U.S. Virgin Islands, from a foreign port 
or place.
    (b) A cruising license may be issued to a yacht of a foreign country 
only if it has been made to appear to the satisfaction of the Secretary 
of the Treasury that yachts of the United States are allowed to arrive 
at and depart from ports in such foreign country and to cruise in the 
waters of such ports without entering or clearing at the customhouse 
thereof and without the payment of any charges for entering or clearing, 
dues, duty per ton, tonnage, taxes, or charges for cruising licenses. It 
has been made to appear to the satisfaction of the Secretary of the 
Treasury that yachts of the United States are granted such privileges in 
the following countries:

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

    (c) In order to obtain a cruising license for a yacht of any country 
listed in paragraph (b) of this section, there shall be filed with the 
port director an application therefor executed by either the yacht owner 
or the master which shall set forth the owner's name and address and 
identify the vessel by flag, rig, name, and such other matters as are 
usually descriptive of a vessel. The application shall also include a 
description of the waters in which the yacht will cruise, and a 
statement of the probable time it will remain in such

[[Page 63]]

waters. Upon approval of the application, the port director will issue a 
cruising license in the form prescribed by paragraph (d) of this section 
permitting the yacht, for a stated period not to exceed one year, to 
arrive and depart from the United States and to cruise in specified 
waters of the United States without entering and clearing, without 
filing manifests and obtaining or delivering permits to proceed, and 
without the payment of entrance and clearance fees, or fees for 
receiving manifests and granting permits to proceed, duty on tonnage, 
tonnage tax, or light money. The license shall be granted subject to the 
condition that the vessel shall not engage in trade or violate the laws 
of the United States in any respect. Upon the vessel's arrival at any 
port or place within the U.S. or the U.S. Virgin Islands, the master 
shall comply with 19 U.S.C. 1433 by immediately reporting arrival at the 
nearest Customs facility or other place designated by the port director. 
Individuals shall remain on board until directed otherwise by the 
appropriate Customs officer, as provided in 19 U.S.C. 1459.
    (d) Cruising licenses shall be in the following form:

          License To Cruise in the Waters of the United States

To Port Directors:
    For a period of -------- from --------(Date) the --------(Flag) ----
---- (Rig) yacht --------(Name) belonging to ---------------- of 
(Owner's name) ----------------(Address) shall be permitted to arrive at 
and depart from the United States and to cruise in the waters of the 
Customs port of
________________________________________________________________________
 (Name of port or ports)
without entering and clearing, without filing manifests and obtaining or 
delivering permits to proceed, and without the payment of entry and 
clearance fees, or fees for receiving manifests and granting permits to 
proceed, duty on tonnage, tonnage tax, or light money.
    This license is granted subject to the condition that the yacht 
named herein shall not engage in trade or violate the laws of the United 
States in any respect. Upon arrival at each port or place in the United 
States, the master shall report the fact of arrival to the Customs 
officer at the nearest customhouse. Such report shall be immediately 
made.
    Issued this ---- day of --------, 19--
________________________________________________________________________
                                              (Port Director of Customs)
    Warning: This vessel is dutiable:
    (1) If owned by a resident of the United States (including Puerto 
Rico), or brought into the United States (including Puerto Rico), for 
sale or charter to a resident thereof, or
    (2) If brought into the United States (including Puerto Rico) by a 
nonresident free of duty as part of personal effects and sold or 
chartered within one year from date of entry.
    Any offer to sell or charter (for example, a listing with yacht 
brokers or agents) is considered evidence that the vessel was brought in 
for sale or charter to a resident or, if made within one year of entry 
of a vessel brought in free of duty as personal effects, that the vessel 
no longer is for the personal use of the non-resident.
    If the vessel is sold or chartered, or offered for sale or charter, 
in the circumstances described, without the owner first having filed a 
consumption entry and having paid duty, the vessel may be subject to 
seizure or to a monetary claim equal to the value of the vessel. See 
Chapter 89, Additional U.S. Note 1, HTSUS, and subheadings 8903.10, 
8903.91, 8903.92, 8903.99.10, 8903.99.20, and 8903.99.90, HTSUS.
    (e) A foreign-flag yacht which is not in possession of a cruising 
license shall be required to comply with the laws applicable to foreign 
vessels arriving at, departing from, and proceeding between ports of the 
United States.

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

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



Sec. 4.95  Records of entry and clearance of vessels.

    Permanent records shall be prepared at each customhouse of all 
entries of vessels on Customs Form 1400 and of all clearances and 
permits to proceed on Customs Form 1401. Whenever a vessel is diverted, 
as provided for in Sec. 4.91 (a) or (b), Customs Form 1401 shall be 
amended to show the new destination. These records shall be open to 
public inspection.

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



Sec. 4.96  Fisheries.

    (a) As used in this section:
    (1) The term ``convention vessel'' means a Canadian fishing vessel 
which, at the time of its arrival in the United States, is engaged only 
in the North

[[Page 64]]

Pacific halibut fishery and which is therefore entitled to the 
privileges provided for by the Halibut Fishing Vessels Convention 
between the United States and Canada signed at Ottawa, Canada, on March 
24, 1950 (T.D. 52862);
    (2) The term ``nonconvention fishing vessel'' means any vessel other 
than a convention vessel which is employed in whole or in part in 
fishing at the time of its arrival in the United States and
    (i) Which is documented under the laws of a foreign county,
    (ii) Which is undocumented, of 5 net tons or over, and owned in 
whole or in part by a person other than a citizen of the United States, 
or
    (iii) Which is undocumented, of less than 5 net tons, and owned in 
whole or in part by a person who is neither a citizen nor a resident of 
the United States;
    (3) The term ``nonconvention cargo vessel'' means any vessel which 
is not employed in fishing at the time of its arrival in the United 
States, but which is engaged in whole or in part in the transportation 
of fish or fish products 131a and
---------------------------------------------------------------------------

    \131a\ Except as otherwise provided by treaty or convention to which 
the United States is a party, no foreign-flag vessel shall, whether 
documented as a cargo vessel or otherwise, land in a port of the United 
States its catch of fish taken on board such vessels on the high seas or 
fish products processed therefrom, or any fish or fish products taken on 
board such vessel on the high seas from a vessel engaged in fishing 
operations or in the processing of fish or fish products.'' (46 U.S.C. 
251)
    132 [Reserved]
---------------------------------------------------------------------------

    (i) Which is documented under the laws of a foreign country or
    (ii) Which is undocumented and owned by a person other than a 
citizen of the United States;
    (4) The term ``treaty vessel'' means a Canadian fishing vessel which 
at the time of its arrival in the United States is engaged in the 
albacore tuna fishery and which is therefore entitled to the privileges 
provided for by the treaty with Canada on Pacific Coast Albacore Tuna 
Vessels and Port Privileges, entered into force at Ottawa, Canada, on 
July 29, 1981 (T.D. 81-227); and
    (5) The term ``fishing'' means the planting, cultivation, or taking 
of fish, shell fish, marine animals, pearls, shells, or marine 
vegetation, or the transportation of any of those marine products to the 
United States by the taking vessel or another vessel under the complete 
control and management of a common owner or bareboat charterer.
    (b) Except as otherwise provided by treaty or convention to which 
the United States is a party (see paragraphs (d) and (g) of this 
section), no foreign-flag vessel shall, whether documented as a cargo 
vessel or otherwise, land in a port of the United States its catch of 
fish taken on board such vessel on the high seas or fish products 
processed therefrom, or any fish or fish products taken on board such 
vessel on the high seas from a vessel engaged in fishing operations or 
in the processing of fish or fish products. (46 U.S.C. 251). This 
prohibition applies regardless of the intended ultimate disposition of 
the fish or fish products (e.g., it applies to transshipments from the 
foreign vessel to another vessel in United States territorial waters; it 
applies to landing for transshipment in bond to Canada or Mexico; it 
applies to landing for exportation under bond; and it applies to landing 
in a Foreign Trade Zone). However, the prohibition is limited to fish, 
or fish products processed therefrom, taken on board the foreign vessel 
on the high seas.
    (c) A vessel of the United States to be employed in the fisheries 
must have a Certificate of Documentation endorsed with a fishery 
license. ``Fisheries'' includes processing, storing, transporting 
(except in foreign commerce), planting, cultivating, catching, taking, 
or harvesting fish, shellfish, marine animals, pearls, shells, or marine 
vegetation in the navigable waters of the United States or the exclusive 
economic zone.
    (d) A convention vessel may come into a port of entry on the Pacific 
coast of the United States, including Alaska, to land its catch of 
halibut and incidentally-caught sable fish, or to secure supplies, 
equipment, or repairs. Such a vessel may come into any other port of 
entry or, if properly authorized to do so under Sec. 101.4(b) of this 
chapter, into any place other than a port of entry, for the purpose of 
securing supplies, equipment, or repairs only, but shall not land its 
catch. A convention

[[Page 65]]

vessel which comes into the United States as provided for in this 
paragraph shall comply with the usual requirements applicable to foreign 
vessels arriving at and departing from ports of the United States.
    (e) A nonconvention fishing vessel, other than a treaty vessel, may 
come into a port of entry in the United States or, if granted permission 
under Sec. 101.4(b) of this chapter, into a place other than a port of 
entry for the purpose of securing supplies, equipment, or repairs, but 
shall not land its catch. A nonconvention fishing vessel which comes 
into the United States as provided for in this paragraph shall comply 
with the usual requirements applicable to foreign vessels arriving at 
and departing from ports of the United States.
    (f) A nonconvention cargo vessel, although not prohibited by law 
from coming into the United States, shall not be permitted to land in 
the United States its catch of fish taken on the high seas or any fish 
or fish products taken on board on the high seas from a vessel employed 
in fishing or in the processing of fish or fish products, but may land 
fish taken on board at any place other than the high seas upon 
compliance with the usual requirements. Before any such fish may be 
landed the master shall satisfy the port director that the fish were not 
taken on board on the high seas by presenting declarations of the master 
and two or more officers or members of the crew of the vessel, of whom 
the person next in authority to the master shall be one, or other 
evidence acceptable to the port director which establishes the place of 
lading to his satisfaction.
    (g) A treaty vessel may come into a port or place of the United 
States named in Annex B of the Treaty with Canada on Pacific Coast 
Albacore Tuna Vessels and Port Privileges to land its catch of albacore 
tuna, or to secure fuel, supplies, equipment and repairs. Such a vessel 
may come into any other port of entry or, if properly authorized to do 
so under Sec. 101.4(b) of this chapter, into any place other than a port 
of entry, for the purpose of securing supplies, equipment, or repairs 
only, but shall not land its catch. A treaty vessel which comes into the 
United States as provided for in this paragraph shall comply with the 
usual requirements applicable to foreign vessels arriving at and 
departing from ports of the United States.
    (h) A convention vessel, a nonconvention fishing vessel, a 
nonconvention cargo vessel, or a treaty vessel, which arrives in the 
United States in distress shall be subject to the usual requirements 
applicable to foreign vessels arriving in distress. While in the United 
States, supplies, equipment, or repairs may be secured, but, except as 
specified in the next sentence, fish shall not be landed unless the 
vessel's master, or other authorized representative of the owner, shows 
to the satisfaction of the port director that it will not be possible, 
by the exercise of due diligence, for the vessel to transport its catch 
to a foreign port without spoilage, in which event the port director may 
allow the vessel upon compliance with all applicable requirements, to 
land, transship, or otherwise dispose of its catch. Nothing herein shall 
prevent, upon compliance with normal Customs procedures, a convention 
vessel arriving in distress from landing its catch of halibut and 
incidentally-caught sable fish at a port of entry on the Pacific coast, 
including Alaska; a foreign cargo vessel arriving in distress from 
landing its cargo of fish taken on board at any place not on the high 
seas; or a treaty vessel arriving in distress from landing its catch of 
albacore tuna at a port of entry on the Pacific coast, including Alaska.

[T.D. 82-144, 47 FR 35182, Aug. 13, 1982, as amended by T.D. 83-214, 48 
FR 46513, Oct. 13, 1983; T.D. 83-214, 48 FR 50075, Oct. 31, 1983; T.D. 
93-12, 58 FR 13197, Mar. 10, 1993]



Sec. 4.97  Salvage vessels.

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

[[Page 66]]

a completely described operation has been granted.133
---------------------------------------------------------------------------

    \133\ ``No foreign vessel shall, under penalty of forfeiture, engage 
in salvaging operations on the Atlantic or Pacific coast of the United 
States, in any portion of the Great Lakes or their connecting or 
tributary waters, including any portion of the Saint Lawrence River 
through which the international boundary line extends, or in territorial 
waters of the United States on the Gulf of Mexico, except when 
authorized by a treaty or in accordance with the provisions of section 
725 of this title: Provided, however, That if, on investigation, the 
Secretary of the Treasury is satisfied that no suitable vessel wholly 
owned by a person who is a citizen of the United States and documented 
under the laws of the United States or numbered pursuant to section 288 
of this title, is available in any particular locality he may authorize 
the use of a foreign vessel or vessels in salvaging operations in that 
locality and no penalty shall be incurred for such authorized use.'' (46 
U.S.C. 316(d))
    ``Nothing in this section shall be held or construed to prohibit or 
restrict any assistance to vessels or salvage operations authorized by 
Article II of the treaty between the United States and Great Britain 
`concerning reciprocal rights for United States and Canada in the 
conveyance of prisoners and wrecking and salvage' signed at Washington, 
May 18, 1908 (35 Stat. 2036), or by the treaty between the United States 
and Mexico `to facilitate assistance to and salvage of vessels in 
territorial waters,' signed at Mexico City, June 13, 1935 (49 Stat. 
3359).'' (46 U.S.C. 316(e))
---------------------------------------------------------------------------

    (b) Upon receipt of such an application, the Commissioner of Customs 
will cause an investigation to be made immediately to determine whether 
a suitable vessel of the United States or a suitable numbered motorboat 
owned by a citizen is available for the operation. If he finds that no 
such vessel is available and that the facts otherwise warrant favorable 
action, he will grant the application.
    (c) If the application is granted, the applicant shall make a full 
report of the operation as soon as possible to the director of the port 
nearest the place where the operation was conducted.
    (d) A Canadian vessel may engage in salvage operations on any vessel 
in any territorial waters of the United States in which Canadian vessels 
are permitted to conduct such operations by article II of the treaty 
between the United States and Great Britain signed on May 18, 
1908,134 or by section 725, title 46, United States 
Code.135 If any such vessel engages in a salvage operation in 
territorial waters of the United States, the owner or master of the 
vessel shall make a full report of the operation as soon as possible to 
the director of the port nearest the place where the operation was 
conducted.
---------------------------------------------------------------------------

    \134\ ``The High Contracting Parties agree that vessels and wrecking 
appliances, either from the United States or from the Dominion of 
Canada, may salve any property wrecked and may render aid and assistance 
to any vessels wrecked, disabled or in distress in the waters or on the 
shores of the other country in that portion of the St. Lawrence River 
through which the International Boundary line extends, and, in Lake 
Ontario, Lake Erie, Lake St. Clair, Lake Huron, and Lake Superior, and 
in the Rivers Niagara, Detroit, St. Clair, and Ste. Marie, and the 
Canals at Sault Ste. Marie, and on the shores and in the waters of the 
other country along the Atlantic and Pacific Coasts within a distance of 
thirty miles from the International Boundary on such Coasts.
    ``It is further agreed that such reciprocal wrecking and salvage 
privileges shall include all necessary towing incident thereto, and that 
nothing in the Customs, Coasting or other laws or regulations of either 
country shall restrict in any manner the salving operations of such 
vessels or wrecking appliances.
    ``Vessels from either country employed in salving in the waters of 
the other shall, as soon as practicable afterwards, make full report at 
the nearest custom house of the country in whose waters such salving 
takes place.'' (35 Stat. 2036)
    \135\ ``Canadian vessels and wrecking appurtenance may render aid 
and assistance to Canadian or other vessels and property wrecked, 
disabled, or in distress in the waters of the United States contiguous 
to the Dominion of Canada.
    ``This section shall be construed to apply to the canal and 
improvement of the waters between Lake Erie and Lake Huron, and to the 
waters of the Saint Mary's River and Canal: * * *.'' (46 U.S.C. 725)
    The waters of Lake Michigan are not contiguous to the Dominion of 
Canada within the meaning of this statute.
---------------------------------------------------------------------------

    (e) A Mexican vessel may engage in a salvage operation on a Mexican 
vessel in any territorial waters of the United States in which Mexican 
vessels are permitted to conduct such operations by the treaty between 
the United

[[Page 67]]

States and Mexico signed on June 13, 1935.136
---------------------------------------------------------------------------

    \136\ ``The High Contracting Parties agree that vessels and rescue 
apparatus, public or private, of either country, may aid or assist 
vessels of their own nationality, including the passengers and crews 
thereof, which may be disabled or in distress on the shores or within 
the territorial waters of the other country within a radius of seven 
hundred and twenty nautical miles of the intersection of the 
International Boundary Line and the coast of the Pacific Ocean, or 
within a radius of two hundred nautical miles of the intersection of the 
International Boundary Line and the coast of the Gulf of Mexico.'' (49 
Stat. 3360)

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



Sec. 4.98  Navigation fees.

    (a)(1) The Customs Service shall publish a General Notice in the 
Federal Register and Customs Bulletin periodically, setting forth a 
revised schedule of navigation fees for the following services:

                   Fee No. and description of services

1 Entry of vessel, including American, from foreign port:
    (a) Less than 100 net tons.
    (b) 100 net tons and over.
2 Clearance of vessel, including American, to foreign port:
    (a) Less than 100 net tons.
    (b) 100 net tons or over.
3 Issuing permit to foreign vessel to proceed from port to port, and 
          receiving manifest.
4 Receiving manifest of foreign vessel on arrival from another port, and 
          granting a permit to unlade.
5 Receiving post entry.
6 [Reserved]
7 Certifying payment of tonnage tax for foreign vessels only.
8 Furnishing copy of official document, including certified outward 
          foreign manifest, and others not elsewhere enumerated.


The published revised fee schedule shall remain in effect until changed.
    (2) The fees shall be calculated in accordance with Sec. 24.17(d) 
Customs Regulations (19 CFR 24.17(d)), and be based upon the amount of 
time the average service requires of a Customs officer in the fifth step 
of GS-9.
    (3) The party requesting a vessel service described in paragraph 
(a)(1) of this section for which reimbursable overtime compensation is 
payable under 19 U.S.C. 267 or 19 U.S.C. 1451 and Sec. 24.16 of this 
chapter shall pay only the applicable overtime charge, and not both the 
overtime charge and the fee specified in the fee schedule.
    (4) The revised fee schedule shall be made available to the public 
in Customs offices.
    (5) The respective fees shall be designated in correspondence and 
reports by the applicable fee number.
    (b) Fee 1 shall be collected at the first port of entry only. It 
shall not be collected from a vessel entering directly from a port in 
noncontiguous territory of the United States nor from one entering at a 
port on a northern, northeastern, or northwestern frontier otherwise 
than by sea.
    (c) Fee 2 shall be collected at the final port of departure from the 
United States. It shall be collected from a yacht or public vessel which 
obtains a clearance, but shall not be collected from a vessel clearing 
directly for a port in noncontiguous territory of the United States nor 
from one clearing from a port on the northern, northeastern, or 
northwestern frontier otherwise than by sea. It shall be collected only 
upon the first clearance each year of a vessel making regular daily 
trips between a port of the United States and a port in Canada wholly 
upon interior waters not navigable to the ocean.
    (d) Fee 3 shall be collected for granting a permit to a foreign 
vessel to proceed to another Customs port. It shall be collected from a 
foreign vessel clearing directly for a port in noncontiguous territory 
of the United States outside its Customs territory. This fee shall not 
be collected in the case of a foreign vessel proceeding on a voyage by 
sea from one port in the United States to another port via a foreign 
port. Only one fee shall be collected in case of simultaneous vessel 
transactions.
    (e) Fee 4 shall be collected for receiving the manifest of a foreign 
vessel arriving from another Customs port. It shall be collected from a 
foreign vessel entering directly from a port in noncontiguous territory 
of the United States outside its Customs territory. This fee shall not 
be collected in the

[[Page 68]]

case of a foreign vessel which arrives at one port in the United States 
from another port on a voyage by sea via a foreign port. Only one fee 
shall be collected in the case of simultaneous vessel transactions.
    (e-1) Fee 5 shall be collected from a foreign or American vessel at 
each port where the vessel is required to file a post entry in 
accordance with the provisions of Sec. 4.12(a)(3). An original post 
entry may be supplemented by additional post entries in instances where 
items were omitted from the original post entry. A separate fee shall be 
collected for each supplemental post entry made to the original post 
entry.
    (f) [Reserved]
    (g) Fee 7 shall be collected from foreign vessels only.
    (h) Fee 8 shall be collected for each copy of any official document, 
whether certified or not, furnished to any person other than a 
Government officer.
    (i) Private and commercial vessels, and passengers aboard commercial 
vessels, may be subject to the payment of fees for services provided in 
connection with their arrival as set forth in Sec. 24.22 of this 
chapter.
    (j) The loading or unloading of merchandise or passengers from a 
commercial vessel at a U.S. port may cause the harbor maintenance fee 
set forth in Sec. 24.24 of this chapter to be assessed.

[T.D. 69-266, 34 FR 20423, Dec. 31, 1969, as amended by T.D. 74-194, 39 
FR 26153, July 17, 1974; T.D. 80-25, 45 FR 3572, Jan. 18, 1980; T.D. 82-
224, 47 FR 53727, Nov. 29, 1982; T.D. 84-149, 49 FR 28698, July 16, 
1984; T.D. 86-109, 51 FR 21155, June 11, 1986; T.D. 87-44, 52 FR 10211, 
Mar. 30, 1987; T.D. 93-85, 58 FR 54282, Oct. 21, 1993]



Sec. 4.99  Forms; substitution.

    (a) Customs Forms 1300, 1302, 1302-A, 1303, and 1304 printed by 
private parties or foreign governments shall be accepted provided the 
forms so printed:
    (1) Conform to the official Customs forms in wording arrangement, 
style, size of type, and paper specifications;
    (2) Conform to the official Customs forms in size, except that:
    (i) Each form may be printed on metric A4 size paper, 210 by 297 
millimeters (approximately 8\1/4\ by 11\2/3\ inches).
    (ii) The vertical format of Customs Forms 1300, 1302-A, 1303, and 
1304 may be increased in size up to a maximum of 14 inches.
    (iii) Customs Form 1302 may be reduced in size to not less than 
either 8\1/2\ by 11 inches or 210 by 297 millimeters (metric A4 size). 
If Customs Form 1302 is reduced in size, the size of type used may be 
reduced proportionately.
    (b) If instructions are printed on the reverse side of the official 
Customs form, the instructions may be omitted from the privately printed 
forms, but the instructions shall be followed.
    (c) The port director, in his discretion, may accept a computer 
printout instead of Customs Form 1302 for use at a specific port. 
However, to ensure that computer printouts may be used at all ports, the 
private party or foreign government first must obtain specific approval 
from Headquarters, U.S. Customs Service.
    (d) Forms which do not comply with the requirements of this section 
are not acceptable without the specific approval of the Commissioner of 
Customs.

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



Sec. 4.100  Licensing of vessels of less than 30 net tons.

    (a) The application for a license to import merchandise in a vessel 
of less than 30 net tons in accordance with section 6, Anti-Smuggling 
Act of August 5, 1935, shall be addressed to the Secretary of the 
Treasury and delivered to the directors of the ports where foreign 
merchandise is to be imported in such vessel.
    (b) The application shall contain the following information:
    (1) Name of the vessel, rig, motive power, and home port.
    (2) Name and address of the owner.
    (3) Name and address of the master.
    (4) Net tonnage of the vessel.
    (5) Kind of merchandise to be imported.
    (6) Country or countries of exportation.
    (7) Ports of the United States where the merchandise will be 
imported.
    (8) Whether the vessel will be used to transport and import 
merchandise from a hovering vessel.
    (9) Kind of document under which the vessel is operating.

[[Page 69]]

    (c) If the port director finds that the applicant is a reputable 
person and that the revenue would not be jeopardized by the issuance of 
a license, he may issue the license for a period not to exceed 12 
months, incorporating therein any special conditions he believes to be 
necessary or desirable, and deliver it to the licensee.
    (d) The master or owner shall keep the license on board the vessel 
at all times and exhibit it upon demand of any duly authorized officer 
of the United States. This license is personal to the licensee and is 
not transferable.
    (e) The Secretary of the Treasury or the port director at whose 
office the license was issued may revoke the license if any of its terms 
have been willfully or intentionally violated or for any other cause 
which may be considered prejudicial to the revenue or otherwise against 
the interest of the United States.

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



Sec. 4.101  Prohibitions against Customs officers and employees.

    No Customs officer or employee shall:
    (a) Own, in whole or in part, any vessel except a yacht or other 
pleasure boat;
    (b) Act as agent, attorney, or consignee for the owner or owners of 
any vessel, or of any cargo or lading on board the vessel; or
    (c) Import or be concerned directly or indirectly in the importation 
of any merchandise for sale into the United States

[T.D. 78-394, 43 FR 49787, Oct. 25, 1978]



PART 7--CUSTOMS RELATIONS WITH INSULAR POSSESSIONS AND GUANTANAMO BAY NAVAL STATION--Table of Contents




Sec.
7.1 Puerto Rico; spirits and wines withdrawn from warehouse for shipment 
          to; duty on foreign-grown coffee.
7.2 Insular possessions of the United States other than Puerto Rico.
7.3 Duty-free treatment of goods imported from insular possessions of 
          the United States other than Puerto Rico.
7.4 Watches and watch movements from U.S. insular possessions.
7.11 Guantanamo Bay Naval Station.

    Authority: 19 U.S.C. 66, 1202 (General Note 23, Harmonized Tariff 
Schedule of the United States), 1623, 1624; 48 U.S.C. 1406i.



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

    (a) When spirits and wines are withdrawn from a bonded manufacturing 
warehouse for shipment in bond to Puerto Rico pursuant to section 311, 
Tariff Act of 1930, as amended,\1 2\ the warehouse withdrawal shall 
contain on the face thereof a statement of the kind and quantity of all 
imported merchandise (in its condition as imported) and imported 
containers used in the manufacture and putting up of such spirits and 
wines. The duty assessed on the imported merchandise and containers so 
used, and their classification and value, shall be shown on the 
withdrawal in accordance with Sec. 144.41 of this chapter. If no 
imported merchandise or containers have been used, the warehouse 
withdrawal shall bear an endorsement to that effect. (See Secs. 191.105 
and 191.106 of this chapter.)
---------------------------------------------------------------------------

    \1\ [Reserved]
    \2\ ``* * * Distilled spirits and wines which are rectified in 
bonded manufacturing warehouses, class six, and distilled spirits which 
are reduced in proof and bottled in such warehouses, shall be deemed to 
have been manufactured within the meaning of this section and may be 
withdrawn as hereinbefore provided, and likewise for shipment in bond to 
Puerto Rico, subject to the provisions of this section, and under such 
regulations as the Secretary of the Treasury may prescribe, there to be 
withdrawn for consumption or be rewarehoused and subsequently withdrawn 
for consumption: Provided, That upon withdrawal in Puerto Rico for 
consumption, the duties imposed by the customs laws of the United States 
shall be collected on all imported merchandise (in its condition as 
imported) and imported containers used in the manufacture and putting up 
of such spirits and wines in such warehouses: Provided further, That no 
internal-revenue tax shall be imposed on distilled spirits and wines 
rectified in class six warehouses if such distilled spirits and wines 
are exported or shipped in accordance with the provisions of this 
section, * * *.'' (Tariff Act of 1930, sec. 311, as amended; 19 U.S.C. 
1311)
---------------------------------------------------------------------------

    (b) The spirits and wines shall be forwarded in accordance with the 
general

[[Page 70]]

provisions of the regulations governing the transportation of 
merchandise in bond, part 18 of this chapter.
    (c) A regular entry shall be made for all foreign-grown coffee 
shipped to Puerto Rico from the United States, but special Customs 
invoices shall not be required for such shipments. \3\
---------------------------------------------------------------------------

    \3\ Section 319, Tariff Act of 1930, authorizes the Legislature of 
Puerto Rico to impose a duty on coffee imported into Puerto Rico, 
including coffee grown in a foreign country coming into Puerto Rico from 
the United States, and the Legislature of Puerto Rico has imposed such a 
duty.

(Secs. 311, 319, 484(a), 46 Stat. 691, as amended, 696, 722, as amended; 
19 U.S.C. 1311, 1319, 1484(a); R.S. 251, as amended, sec. 624, 46 Stat. 
---------------------------------------------------------------------------
759 (19 U.S.C. 66, 1624))

[28 FR 14636, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17445, 
July 2, 1973; T.D. 83-212, 48 FR 46770, Oct. 14, 1983; T.D. 98--16, 63 
FR 11004, Mar. 5, 1998]



Sec. 7.2  Insular possessions of the United States other than Puerto Rico.

    (a) Insular possessions of the United States other than Puerto Rico 
are also American territory but, because those insular possessions are 
outside the customs territory of the United States, goods imported 
therefrom are subject to the rates of duty set forth in column 1 of the 
Harmonized Tariff Schedule of the United States (HTSUS) except as 
otherwise provided in Sec. 7.3 or in part 148 of this chapter. The 
principal such insular possessions are the U.S. Virgin Islands, Guam, 
American Samoa, Wake Island, Midway Islands, and Johnston Atoll. 
Pursuant to section 603(c) of the Covenant to Establish a Commonwealth 
of the Northern Mariana Islands in Political Union With the United 
States of America, Public Law 94-241, 90 Stat. 263, 270, goods imported 
from the Commonwealth of the Northern Mariana Islands are entitled to 
the same tariff treatment as imports from Guam and thus are also subject 
to the provisions of Sec. 7.3 and of part 148 of this chapter.
    (b) Importations into Guam, American Samoa, Wake Island, Midway 
Islands, Johnston Atoll, and the Commonwealth of the Northern Mariana 
Islands are not governed by the Tariff Act of 1930, as amended, or the 
regulations contained in this chapter. The customs administration of 
Guam is under the Government of Guam. The customs administration of 
American Samoa is under the Government of American Samoa. The customs 
administration of Wake Island is under the jurisdiction of the 
Department of the Air Force (General Counsel). The customs 
administration of Midway Islands is under the jurisdiction of the 
Department of the Navy. There is no customs authority on Johnston Atoll, 
which is under the operational control of the Defense Nuclear Agency. 
The customs administration of the Commonwealth of the Northern Mariana 
Islands is under the Government of the Commonwealth.
    (c) The Secretary of the Treasury administers the customs laws of 
the U.S. Virgin Islands through the United States Customs Service. The 
importation of goods into the U.S. Virgin Islands is governed by Virgin 
Islands law; however, in situations where there is no applicable Virgin 
Islands law or no U.S. law specifically made applicable to the Virgin 
Islands, U.S. laws and regulations shall be used as a guide and be 
complied with as nearly as possible. Tariff classification of, and rates 
of duty applicable to, goods imported into the U.S. Virgin Islands are 
established by the Virgin Islands legislature.

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



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

    (a) General. Under the provisions of General Note 3(a)(iv), 
Harmonized Tariff Schedule of the United States (HTSUS), the following 
goods may be eligible for duty-free treatment when imported into the 
customs territory of the United States from an insular possession of the 
United States:
    (1) Except as provided in Additional U.S. Note 5 to Chapter 91, 
HTSUS, and except as provided in Additional U.S. Note 2 to Chapter 96, 
HTSUS, and except as provided in section 423 of the Tax Reform Act of 
1986, as amended (19 U.S.C. 2703 note), goods which are the growth or 
product of any such insular possession, and goods which were 
manufactured or produced in any such insular possession from materials 
that were

[[Page 71]]

the growth, product or manufacture of any such insular possession or of 
the customs territory of the United States, or of both, provided that 
such goods:
    (i) Do not contain foreign materials valued at either more than 70 
percent of the total value of the goods or, in the case of goods 
described in section 213(b) of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2703(b)), more than 50 percent of the total value of the 
goods; and
    (ii) Come to the customs territory of the United States directly 
from any such insular possession; and
    (2) Goods previously imported into the customs territory of the 
United States with payment of all applicable duties and taxes imposed 
upon or by reason of importation, provided that:
    (i) The goods were shipped from the United States directly to the 
insular possession and are returned from the insular possession to the 
United States by direct shipment; and
    (ii) There was no remission, refund or drawback of such duties or 
taxes in connection with the shipment of the goods from the United 
States to the insular possession.
    (b) Origin of goods. For purposes of this section, goods shall be 
considered to be the growth or product of, or manufactured or produced 
in, an insular possession if:
    (1) The goods are wholly the growth or product of the insular 
possession; or
    (2) The goods became a new and different article of commerce as a 
result of production or manufacture performed in the insular possession.
    (c) Foreign materials. For purposes of this section, the term 
``foreign materials'' covers any material incorporated in goods 
described in paragraph (b)(2) of this section other than:
    (1) A material which was wholly the growth or product of an insular 
possession or of the customs territory of the United States;
    (2) A material which was substantially transformed in an insular 
possession or in the customs territory of the United States into a new 
and different article of commerce which was then used in an insular 
possession in the production or manufacture of a new and different 
article which is shipped directly to the United States; or
    (3) A material which may be imported into the customs territory of 
the United States from a foreign country and entered free of duty 
either:
    (i) At the time the goods which incorporate the material are 
entered; or
    (ii) At the time the material is imported into the insular 
possession, provided that the material was incorporated into the goods 
during the 18-month period after the date on which the material was 
imported into the insular possession.
    (d) Foreign materials value limitation. For purposes of this 
section, the determination of whether goods contain foreign materials 
valued at more than 70 or 50 percent of the total value of the goods 
shall be made based on a comparison between:
    (1) The landed cost of the foreign materials, consisting of:
    (i) The manufacturer's actual cost for the materials or, where a 
material is provided to the manufacturer without charge or at less than 
fair market value, the sum of all expenses incurred in the growth, 
production, or manufacture of the material, including general expenses, 
plus an amount for profit; and
    (ii) The cost of transporting those materials to the insular 
possession, but excluding any duties or taxes assessed on the materials 
by the insular possession and any charges which may accrue after 
landing; and
    (2) The final appraised value of the goods imported into the customs 
territory of the United States, as determined in accordance with section 
402 of the Tariff Act of 1930, as amended (19 U.S.C. 1401a).
    (e) Direct shipment--(1) General. For purposes of this section, 
goods shall be considered to come to the United States directly from an 
insular possession, or to be shipped from the United States directly to 
an insular possession and returned from the insular possession to the 
United States by direct shipment, only if:
    (i) The goods proceed directly to or from the insular possession 
without passing through any foreign territory or country;
    (ii) The goods proceed to or from the insular possession through a 
foreign territory or country, the goods do not

[[Page 72]]

enter into the commerce of the foreign territory or country while en 
route to the insular possession or the United States, and the invoices, 
bills of lading, and other shipping documents show the insular 
possession or the United States as the final destination; or
    (iii) The goods proceed to or from the insular possession through a 
foreign territory or country, the invoices and other shipping documents 
do not show the insular possession or the United States as the final 
destination, and the goods:
    (A) Remained under the control of the customs authority of the 
foreign territory or country;
    (B) Did not enter into the commerce of the foreign territory or 
country except for the purpose of sale other than at retail, and the 
port director is satisfied that the importation into the insular 
possession or the United States results from the original commercial 
transaction between the importer and the producer or the latter's sales 
agent; and
    (C) Were not subjected to operations in the foreign territory or 
country other than loading and unloading and other activities necessary 
to preserve the goods in good condition.
    (2) Evidence of direct shipment. The port director may require that 
appropriate shipping papers, invoices, or other documents be submitted 
within 60 days of the date of entry as evidence that the goods were 
shipped to the United States directly from an insular possession or 
shipped from the United States directly to an insular possession and 
returned from the insular possession to the United States by direct 
shipment within the meaning of paragraph (e)(1) of this section, and 
such evidence of direct shipment shall be subject to such verification 
as deemed necessary by the port director. Evidence of direct shipment 
shall not be required when the port director is otherwise satisfied, 
taking into consideration the kind and value of the merchandise, that 
the goods qualify for duty-free treatment under General Note 3(a)(iv), 
HTSUS, and paragraph (a) of this section.
    (f) Documentation. (1) When goods are sought to be admitted free of 
duty as provided in paragraph (a)(1) of this section, there shall be 
filed with the entry/entry summary a properly completed certificate of 
origin on Customs Form 3229, signed by the chief or assistant chief 
customs officer or other official responsible for customs administration 
at the port of shipment, showing that the goods comply with the 
requirements for duty-free entry set forth in paragraph (a)(1) of this 
section. Except in the case of goods which incorporate a material 
described in paragraph (c)(3)(ii) of this section, a certificate of 
origin shall not be required for any shipment eligible for informal 
entry under Sec. 143.21 of this chapter or in any case where the port 
director is otherwise satisfied that the goods qualify for duty-free 
treatment under paragraph (a)(1) of this section.
    (2) When goods in a shipment not eligible for informal entry under 
Sec. 143.21 of this chapter are sought to be admitted free of duty as 
provided in paragraph (a)(2) of this section, the following declarations 
shall be filed with the entry/entry summary unless the port director is 
satisfied by reason of the nature of the goods or otherwise that the 
goods qualify for such duty-free entry:
    (i) A declaration by the shipper in the insular possession in 
substantially the following form:

    I, -------------------- (name) of -------------------- 
(organization) do hereby declare that to the best of my knowledge and 
belief the goods identified below were sent directly from the United 
States on ------------, 19----, to -------------------- (name) of ------
-------------- (organization) on -------------------- (insular 
possession) via the -------------------- (name of carrier) and that the 
goods remained in said insular possession until shipped by me directly 
to the United States via the -------------------- (name of carrier) on 
------------, 19----.

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

[[Page 73]]

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

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

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

    I, -------------------- (name), of -------------------- 
(organization) declare that the (above) (attached) declaration by the 
shipper in the insular possession is true and correct to the best of my 
knowledge and belief, that the goods in question were previously 
imported into the customs territory of the United States and were 
shipped to the insular possession from the United States without 
remission, refund or drawback of any duties or taxes paid in connection 
with that prior importation, and that the goods arrived in the United 
States directly from the insular possession via the -------------------- 
(name of carrier) on ------------, 19----.

________________________________________________________________________
(Date)

________________________________________________________________________
(Signature)

    (g) Warehouse withdrawals; drawback. Merchandise may be withdrawn 
from a bonded warehouse under section 557 of the Tariff Act of 1930, as 
amended (19 U.S.C. 1557), for shipment to any insular possession of the 
United States other than Puerto Rico without payment of duty, or with a 
refund of duty if the duties have been paid, in like manner as for 
exportation to foreign countries. No drawback may be allowed under 
section 313 of the Tariff Act of 1930, as amended (19 U.S.C. 1313), on 
goods manufactured or produced in the United States and shipped to any 
insular possession. No drawback of internal-revenue tax is allowable 
under 19 U.S.C. 1313 on goods manufactured or produced in the United 
States with the use of domestic tax-paid alcohol and shipped to Wake 
Island, Midway Islands or Johnston Atoll.

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



Sec. 7.4  Watches and watch movements from U.S. insular possessions.

    (a) The issuance of an International Trade Administration Form ITA-
360, Certificate of Entitlement to Secure the Refund of Duties on 
Watches and Watch Movements, by the Department of Commerce, authorizes a 
producer of watches in the U.S. insular possessions to file requests 
with Customs for the refund of duties paid on imports of watches, watch 
movements (including solid state watches and watch movements), and watch 
parts (excepting separate watch cases and any articles containing any 
materials to which rates of duty set forth in Column 2, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202) apply). The amount 
of the refund requested may be up to the value specified in the 
certificate, provided that the articles for which refunds are requested 
were entered during a 3-year period beginning 2 years before the date of 
issuance of the Form ITA-360 certificate from the Department of 
Commerce.
    (b) The Form ITA-360 may not be used to secure refunds. To secure a 
refund, the party requesting the refund of duties (claimant) must 
present to Customs Form ITA-361, Request for Refund of Duties on Watches 
and Watch Movements, properly executed, and authenticated by the 
Department of Commerce.
    (c) By completing Form ITA-361, the insular producer may either:
    (1) Transfer its entitlement, in whole or in part, to any other 
party for any consideration agreed to by the insular producer and the 
transferee, or
    (2) Request the refund of duties to itself.
    (d) A claimant must file Form ITA-361 with Customs at the same port 
where the watch import entry was originally filed and duties paid. The 
documentation accompanying Form ITA-361 shall include a copy of the 
import entry, providing proof that duty was paid on the watches and 
watch movements.
    (e) When requesting the refund of duties on Form ITA-361, the 
claimant

[[Page 74]]

also must complete and submit to Customs the declaration on the form 
which reads as follows:

    I declare that the information given above is true and correct to 
the best of my knowledge and belief; that no notices of exportation of 
articles with benefit of drawback were filed upon exportation of this 
merchandise from the United States; that no liquidated refunds on the 
articles relating to the present claim have been paid; and that no 
protest or request for litigation for refund of duties paid and herewith 
claimed has been made.

    (f) A fee of 1 percent will be deducted from each refund request as 
reimbursement to salaries and expenses of those Customs personnel 
processing the request.
    (g) Form ITA-360 expires 1 year from its date of issuance. Any 
refund request on Form ITA-361 made by either the insular producer 
itself or any transferee named on Form ITA-360 must be filed within this 
1-year period. This expiration date applies equally to all refund 
requests, whether a single request for the entire amount specified in 
the Form ITA-361 certificate or multiple requests for partial amounts. 
Refund requests will be accepted until either the amount specified in 
the certificate is depleted or until the certificate expires 1 year from 
its date of issuance.
    (h) Customs will process only those refund requests made in 
accordance with the joint rules of the Departments of Commerce and the 
Interior governing the issuance and handling of certificates and the 
transfer of entitlements as contained in 15 CFR part 303.

[T.D. 84-16, 49 FR 1481, Jan. 12, 1984, as amended by T.D. 84-211, 49 FR 
39044, Oct. 3, 1984; T.D. 89-1, 53 FR 51252, Dec. 21, 1988. Redesignated 
and amended by T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 7.11  Guantanamo Bay Naval Station.

    Articles of foreign origin may enter the area (both land and water) 
of the Guantanamo Bay Naval Station free of duty, but such articles 
shall be subject to duty upon their subsequent entry into the United 
States.

[28 FR 14636, Dec. 31, 1963]



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




                     Articles Exported and Returned

Sec.
10.1 Domestic products; requirements on entry.
10.3 Drawback; internal-revenue tax.
10.4 Internal-revenue marks; erasure.
10.5 Shooks and staves; cloth boards; port director's account.
10.6 Shooks and staves; claim for duty exemption.
10.7 Substantial containers or holders.
10.8 Articles exported for repairs or alterations.
10.8a Imported articles exported and reimported.
10.9 Articles exported for processing.
10.10 [Reserved]

         Articles Assembled Abroad With United States Components

10.11 General.
10.12 Definitions.
10.13 Statutory provision: Subheading 9802.00.80, Harmonized Tariff 
          Schedule of the United States (19 U.S.C. 1202).
10.14 Fabricated components subject to the exemption.
10.15 Fabricated components not subject to the exemption.
10.16 Assembly abroad.
10.17 Valuation of exempted components.
10.18 Valuation of assembled articles.
10.19--10.20 [Reserved]
10.21 Updating cost data and other information.
10.23 Standards, quotas, and visas.
10.24 Documentation.
10.25 Textile components cut to shape in the United States and assembled 
          abroad.
10.26 Articles assembled or processed in a beneficiary country in whole 
          of U.S. components or ingredients; articles assembled in a 
          beneficiary country from textile components cut to shape in 
          the United States.

     Free Entry--Articles for the Use of Foreign Military Personnel

10.30c [Reserved]

                    Temporary Importations Under Bond

10.31 Entry; bond.
10.33 Theatrical effects.
10.35 Models of women's wearing apparel.
10.36 Commercial travelers' samples; professional equipment and tools of 
          trade; theatrical effects and other articles.
10.36a Vehicles, pleasure boats and aircraft brought in for repair or 
          alteration.
10.37 Extension of time for exportation.

[[Page 75]]

10.38 Exportation.
10.39 Cancellation of bond charges.
10.40 Refund of cash deposits.

                          International Traffic

10.41 Instruments; exceptions.
10.41a Lift vans, cargo vans, shipping tanks, skids, pallets, and 
          similar instruments of international traffic; repair 
          components.
10.41b Clearance of serially numbered substantial holders or outer 
          containers.

                        Articles for Institutions

10.43 Duty-free status.
10.46 Articles for the United States.
10.47 [Reserved]

                              Works of Art

10.48 Engravings, sculptures, etc.
10.49 Articles for exhibition; requirements on entry.
10.50 [Reserved]
10.52 Painted, colored or stained glass windows for religious 
          institutions.
10.53 Antiques.
10.54 Gobelin and other hand-woven tapestries.

                             Vegetable Oils

10.56 Vegetable oils, denaturing; release.

                        Potatoes, Corn, or Maize

10.57 Certified seed potatoes, and seed corn or maize.

                             Bolting Cloths

10.58 Bolting cloths; marking.

            Withdrawal of Supplies and Equipment for Vessels

10.59 Exemption from customs duties and internal-revenue tax.
10.60 Forms of withdrawals; bond.
10.61 Withdrawal permit.
10.62 Bunker fuel oil.
10.62a Blanket withdrawals for certain merchandise.
10.62b Aircraft turbine fuel.
10.63 Landing of supplies and stores from receiving vessel in the United 
          States.
10.64 Crediting or cancellation of bonds.
10.64a [Reserved]
10.65 Cigars and cigarettes.

                 Articles Exported for Exhibition, Etc.

10.66 Articles exported for temporary exhibition and returned; horses 
          exported for horse racing and returned; procedure on entry.
10.67 Articles exported for scientific or educational purposes and 
          returned; procedure on entry.

Theatrical Effects, Motion-Picture Films, Commercial Travelers' Samples, 
                           and Tools of Trade

10.68 Procedure.
10.69 Samples to Great Britain and Ireland under reciprocal agreement.

                            Animals and Birds

10.70 Purebred animals for breeding purposes; certificate.
10.71 Purebred animals; bond for production of evidence; deposit of 
          estimated duties; stipulation.
10.72--10.73 [Reserved]
10.74 Animals straying across boundary for pasturage; offspring.
10.75 Wild animals and birds; zoological collections.
10.76 Game animals and birds.
10.77 [Reserved]

                     Products of American Fisheries

10.78 Entry.
10.79 [Reserved]

                          Salt for Curing Fish

10.80 Remission of duty; withdrawal; bond.
10.81 Use in any port.
10.82 [Reserved]
10.83 Bond; cancellation; extension.

                           Automotive Products

10.84 Automotive vehicles and articles for use as original equipment in 
          the manufacture of automotive vehicles.

                   Master Records, and Metal Matrices

10.90 Master records and metal matrices.
10.91--10.97 [Reserved]

                            Fluxing Material

10.98 Copper-bearing fluxing material.

                              Ethyl Alcohol

10.99 Importation of ethyl alcohol for nonbeverage purposes.

                  United States Government Importations

10.100 Entry, examination, and tariff status.
10.101 Immediate delivery.
10.102 Duty-free entries.
10.103 American goods returned.
10.104 Temporary importation entries for United States Government 
          agencies.

                                  Wheat

10.106 [Reserved]

                         Rescue and Relief Work

10.107 Equipment and supplies; admission.

[[Page 76]]

              Products Exported Under Lease and Reimported

10.108 Entry of reimported articles exported under lease.

           Strategic Materials Obtained by Barter or Exchange

10.110 [Reserved]

          Late Filing of Free Entry and Reduced Duty Documents

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

  Instruments and Apparatus for Educational and Scientific Institutions

10.114 General provisions.
10.115--10.119 [Reserved]

                      Visual or Auditory Materials

10.121 Visual or auditory materials of an educational, scientific, or 
          cultural character.

                 Rate of Duty Dependent Upon Actual Use

10.131 Circumstances in which applicable.
10.132 [Reserved]
10.133 Conditions required to be met.
10.134 Declaration of intent.
10.135 Deposit of duties.
10.136 Suspension of liquidation.
10.137 Records of use.
10.138 Proof of use.
10.139 Liquidation.

             Importations Not Over $200 And Bona Fide Gifts

10.151 Importations not over $200.
10.152 Bona-fide gifts.
10.153 Conditions for exemption.

                    Generalized System of Preferences

10.171 General.
10.172 Claim for exemption from duty under the Generalized System of 
          Preferences.
10.173 Evidence of country of origin.
10.174 Evidence of direct shipment.
10.175 Imported directly defined.
10.176 Country of origin criteria.
10.177 Cost or value of materials produced in the beneficiary developing 
          country.
10.178 Direct costs of processing operations performed in the 
          beneficiary developing country.
10.178a Special duty-free treatment for sub-Saharan African countries.

                        Canadian Crude Petroleum

10.179 Canadian crude petroleum subject to a commercial exchange 
          agreement between United States and Canadian refiners.

                 Certain Fresh, Chilled, or Frozen Beef

10.180 Certification.

        Watches and Watch Movements From U.S. Insular Possessions

10.181-10.182 [Reserved]

                             Civil Aircraft

10.183 Civil aircraft, flight simulators, parts for civil aircraft, and 
          parts for flight simulators.

                            Wool Duty Refunds

10.184 Refund of duties on certain wool imports.

                       Caribbean Basin Initiative

10.191 General.
10.192 Claim for exemption from duty under the CBI.
10.193 Imported directly.
10.194 Evidence of direct shipment.
10.195 Country of origin criteria.
10.196 Cost or value of materials produced in a beneficiary country or 
          countries.
10.197 Direct costs of processing operations performed in a beneficiary 
          country or countries.
10.198 Evidence of country of origin.
10.198a Duty reduction for certain leather-related articles.
10.198b Products of Puerto Rico processed in a beneficiary country.
10.199 Duty-free entry for certain beverages produced in Canada from 
          Caribbean rum.

                         Andean Trade Preference

10.201 Applicability.
10.202 Definitions.
10.203 Eligibility criteria in general.
10.204 Imported directly.
10.205 Country of origin criteria.
10.206 Value content requirement.
10.207 Procedures for filing duty-free treatment claim and submitting 
          supporting documentation.
10.208 Duty reductions for certain products.

 Textile and Apparel Articles Under the African Growth and Opportunity 
                                   Act

10.211 Applicability.
10.212 Definitions.
10.213 Articles eligible for preferential treatment.
10.214 Certificate of Origin.
10.215 Filing of claim for preferential treatment.
10.216 Maintenance of records and submission of Certificate by importer.
10.217 Verification and justification of claim for preferential 
          treatment.

[[Page 77]]

  Textile and Apparel Articles Under the United States-Caribbean Basin 
                          Trade Partnership Act

10.221 Applicability.
10.222 Definitions.
10.223 Articles eligible for preferential treatment.
10.224 Certificate of Origin.
10.225 Filing of claim for preferential treatment.
10.226 Maintenance of records and submission of Certificate by importer.
10.227 Verification and justification of claim for preferential 
          treatment.
10.228 Additional requirements for preferential treatment of brassieres.

   Non-Textile Articles Under the United States-Caribbean Basin Trade 
                             Partnership Act

10.231 Applicability.
10.232 Definitions.
10.233 Articles eligible for preferential tariff treatment.
10.234 Certificate of Origin.
10.235 Filing of claim for preferential tariff treatment.
10.236 Maintenance of records and submission of Certificate by importer.
10.237 Verification and justification of claim for preferential tariff 
          treatment.

                United States-Canada Free Trade Agreement

10.301 Scope and applicability.
10.302 Eligibility criteria in general.
10.303 Originating goods.
10.304 Exclusions.
10.305 Value content requirement.
10.306 Direct shipment to the United States.
10.307 Documentation.
10.308 Records retention.
10.309 Verification of documentation.
10.310 Election to average for motor vehicles.
10.311 Documentation for election to average for motor vehicles.

    Authority: 19 U.S.C. 66, 1202 (General Note 23, Harmonized Tariff 
Schedule of the United States (HTSUS)), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314;
    Section 10.17 also issued under 19 U.S.C. 1401a, 1402;
    Sections 10.25 and 10.26 also issued under 19 U.S.C. 3592;
    Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322;
    Section 10.41b also issued under 19 U.S.C. 1202 (Chapter 98, 
Subchapter III, U.S. Note 3, HTSUS);
    Section 10.53 also issued under 16 U.S.C. 1521, et seq.;
    Section 10.59 also issued under 19 U.S.C. 1309, 1317;
    Sections 10.61, 10.62, 10.63, 10.64, 10.64a also issued under 19 
U.S.C. 1309;
    Sections 10.62a, 10.65 also issued under 19 U.S.C. 1309, 1317, 1555, 
1556, 1557, 1646a;
    Sec. 10.62b also issued under 19 U.S.C. 1557;
    Sections 10.70, 10.71 also issued under 19 U.S.C. 1486;
    Sections 10.80, 10.81, 10.82, 10.83 also issued under 19 U.S.C. 1313 
(e) and (i);
    Sections 10.171 through 10.178a also issued under 19 U.S.C. 2461 et 
seq.;
    Section 10.184 is also issued under Sec. 505, Pub. L. 106-200, 114 
Stat. 251;
    Sections 10.191 through 10.199 also issued under 19 U.S.C. 2701 et 
seq.;
    Sections 10.201 through 10.207 also issued under 10 U.S.C. 3203.
    Sections 10.211 through 10.217 also issued under 19 U.S.C. 3721;
    Sections 10.221 through 10.228 and Secs. 10.231 through 10.237 also 
issued under 19 U.S.C. 2701 et seq.

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

                     Articles Exported and Returned



Sec. 10.1  Domestic products; requirements on entry.

    (a) Except as otherwise provided for in paragraph (g), (h), (i) or 
(j) of this section or elsewhere in this part or in Sec. 145.35 of this 
chapter, the following documents shall be filed in connection with the 
entry of articles in a shipment valued over $2,000 and claimed to be 
free of duty under subheading 9801.00.10 or 9802.00.20, Harmonized 
Tariff Schedule of the United States (HTSUS):
    (1) A declaration by the foreign shipper in substantially the 
following form:
    I, ----------------------,
declare that to the best of my knowledge and belief the articles herein 
specified were exported from the United States, from the port of ------
---------- on or about ----------------, 19------, and that they are 
returned without having been advanced in value or improved in condition 
by any process of manufacture or other means.

----------------------------------------------------------------------------------------------------------------
      Marks              Number            Quantity              Description              Value, in U.S. coin
----------------------------------------------------------------------------------------------------------------
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................

[[Page 78]]

 
                           (Date)     .................  ...........................              (Signature)
                   .................  .................  ...........................  ..........................
                        (Address)     .................  ...........................               (Capacity)
----------------------------------------------------------------------------------------------------------------

    (2) A declaration by the owner, importer, consignee, or agent having 
knowledge of the facts regarding the claim for free entry. If the owner 
or ultimate consignee is a corporation, such declaration may be signed 
by the president, vice president, secretary, or treasurer of the 
corporation, or may be signed by any employee or agent of the 
corporation who holds a power of attorney executed under the conditions 
outlined in subpart C, part 141 of this chapter and a certification by 
the corporation that such employee or other agent has or will have 
knowledge of the pertinent facts. This declaration shall be in 
substantially the following form:

    I, --------------,
declare that the (above) (attached) declaration by the foreign shipper 
is true and correct to the best of my knowledge and belief, that the 
articles were manufactured by ---------------- (name of manufacturer) 
located in ---------------- (city and state), that the articles were not 
manufactured or produced in the United States under subheading 
9813.00.05, HTSUS, and that the articles were exported from the United 
States without benefit of drawback.

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (b) In any case in which the value of the returned articles exceeds 
$2,000 and the articles are not clearly marked with the name and address 
of the U.S. manufacturer, the port director may require, in addition to 
the declarations required in paragraph (a) of this section, such other 
documentation or evidence as may be necessary to substantiate the claim 
for duty-free treatment. Such other documentation or evidence may 
include a statement from the U.S. manufacturer verifying that the 
articles were made in the United States, or a U.S. export invoice, bill 
of lading or airway bill evidencing the U.S. origin of the articles and/
or the reason for the exportation of the articles.
    (c) A certificate from the master of a vessel stating that products 
of the United States are returned without having been unladen from the 
exporting vessel may be accepted in lieu of the declaration of the 
foreign shipper required by paragraph (a)(1) of this section.
    (d) If the port director is reasonably satisfied, because of the 
nature of the articles or production of other evidence, that the 
articles are imported in circumstances meeting the requirements of 
subheading 9801.00.10 or 9802.00.20, HTSUS, and related section and 
additional U.S. notes, he may waive the requirements for producing the 
documents specified in paragraph (a) of this section.
    (e) No evidence relative to the conditions of subheading 9801.00.10, 
HTSUS, shall be required in the case of articles the product of the U.S. 
in use at the time of importation as the usual coverings or containers 
of merchandise not subject to an ad valorem rate of duty unless such 
articles would be dutiable if not products of the U.S. under General 
Rule of Interpretation 5, HTSUS.
    (f) In the case of photographic films and dry plates manufactured in 
the United States (except motion picture films to be used for commercial 
purposes) exposed abroad and entered under subheading 9802.00.20, HTSUS, 
the requirements of paragraphs (a) and (c) of this section are 
applicable except that the declaration by the foreign shipper provided 
for in paragraph (a)(1) to the effect that the articles ``are returned 
without having been advanced in value or improved in condition by any 
process of manufacture or other means'' shall be crossed out, and the 
entrant shall show on the declaration provided for in paragraph (a)(2) 
that the subject articles when exported were of U.S. manufacture and are 
returned after having been exposed, or exposed

[[Page 79]]

and developed, and, in the case of motion picture films, that they will 
not be used for commercial purposes.
    (g) Aircraft and aircraft parts and equipment. (1) In the case of 
aircraft and aircraft parts and equipment returned to the United States 
under subheading 9801.00.10, HTSUS, by or for the account of an aircraft 
owner or operator and intended for use in his own aircraft operations, 
within or outside the United States, the entry summary may be made on 
Customs Form 3311. The entry summary on Customs Form 3311 shall be 
executed by the entrant and supported by the entry documentation 
required by Sec. 142.3 of this chapter. If the Customs officer is 
satisfied that the articles are products of the United States, that they 
have not been improved in condition or advanced in value while abroad, 
and that no drawback has been or will be paid, the other documents 
described in this section shall not be required, and no bond need be 
filed for their production.
    (2) The entrant shall show on Customs Form 3311:
    (i) The name and address of the aircraft owner or operator by whom 
or for whose account the articles are returned to the United States, in 
the block headed ``Articles Returned To (Name and Address)'',
    (ii) The name of the importing vessel or conveyance,
    (iii) The date of its arrival,
    (iv) A description of the articles,
    (v) The value of the articles, and
    (vi) That the articles are intended for use by the aircraft owner or 
operator in his own aircraft operations.
    (3) If Customs Form 3311 is filed at time of entry, it shall serve 
as both the entry and the entry summary.
    (h) Nonconsumable vessel stores and equipment. (1) In the case of 
nonconsumable vessel stores and equipment returned to the United States 
under subheading 9801.00.10, HTSUS, the entry summary may be made on 
Customs Form 3311. The entry summary on Customs Form 3311 shall be 
executed in duplicate by the entrant and supported by the entry 
documentation required by Sec. 142.3 of this chapter. Before an entry 
summary on Customs Form 3311 may be accepted for nonconsumable vessel 
stores and equipment, the Customs officer shall be satisfied that:
    (i) The articles are products of the United States.
    (ii) The articles have not been improved in condition or advanced in 
value while abroad.
    (iii) No drawback has been or will be paid, and
    (iv) No duty equal to an internal revenue tax is payable under 
subheading 9801.00.80, HTSUS.
    (2) The documentation described in paragraph (a) of this section 
shall not be required in connection with an entry for nonconsumable 
vessel stores and equipment on Customs Form 3311.
    (3) To satisfy the Customs officer that no drawback has been or will 
be paid on the articles in connection with their removal from the United 
States, the master of the vessel or other person having knowledge of the 
facts shall furnish a written declaration which may be made on the 
reverse side of Customs Form 3311 showing that the articles were:
    (i) Exported as stores or equipment on a United States vessel or a 
vessel operated by the United States Government,
    (ii) Not landed in a foreign country, except for any needed repairs, 
adjustments, or refilling and return to the vessel from which landed or,
    (iii) For transshipment as stores or equipment to another vessel.
    (4) The entrant also shall show:
    (i) The name of the importing vessel,
    (ii) The date of its arrival,
    (iii) A description of the articles, and
    (iv) The value of the articles.
    (5) If Customs Form 3311 is filed at time of entry, it shall serve 
as both the entry and the entry summary.
    (i) When the total value of articles of claimed American origin 
contained in any shipment does not exceed $250 and such articles are 
found to be unquestionably products of the United States and do not 
appear to have been advanced in value or improved in condition while 
abroad and no quota is involved, free entry thereof may be made under 
subheading 9801.00.10 on Customs Form 3311, executed by the owner, 
importer, consignee, or agent and filed in duplicate, without regard to 
the requirement of filing the documentation

[[Page 80]]

provided for in paragraph (a) of this section, unless the Customs 
officer has reason to believe that Customs drawback or exemption from 
internal revenue tax, or both, were probably allowed on exportation of 
the articles or that they are otherwise subject to duty. The entrant 
shall show on Customs Form 3311 the name of the importing conveyance, 
the date of its arrival, the name of the country from which the articles 
were returned to the United States, and the value of the articles. The 
entrant shall also produce evidence of his right to make entry (except 
as provided in Sec. 141.11(b) of this chapter). If the Customs officer 
is not entirely certain that the articles to be entered under this 
paragraph by a nominal consignee are products of the United States, the 
actual owner or ultimate consignee thereof may be required to execute a 
Customs Form 3311.
    (j) In the case of products of the United States, when the aggregate 
value of the shipment does not exceed $10,000 and the products are 
imported--
    (1) For the purposes of repair or alteration, prior to 
reexportation, or
    (2) After having been either rejected or returned by the foreign 
purchaser to the United States for credit, free entry thereof may be 
made under subheading 9801.00.10, HTSUS, on Customs Form 3311 (a Customs 
Form 7501 must be submitted as well for such articles as provided in 
Sec. 143.23(h) of this chapter), executed by the owner, importer, 
consignee, or agent and filed in duplicate, without regard to the 
requirement of filing the documentation provided for in paragraph (a) of 
this section, unless the Customs officer has reason to believe that 
Customs drawback or exemption from internal revenue tax, or both, were 
probably allowed on exportation of the articles or that they are 
otherwise subject to duty. The person making entry shall show on Customs 
Form 3311 the name of the importing conveyance, the date of its arrival, 
the name of the country from which the articles were returned to the 
United States, and the value of the articles. The person making entry 
shall also produce evidence of his right to make entry (except as 
provided in Sec. 141.11(b) of this chapter). If the Customs officer is 
not entirely certain that the articles to be entered under this 
paragraph by a nominal consignee are products of the United States, the 
actual owner or ultimate consignee thereof may be required to execute a 
Customs Form 3311.

[T.D. 72-119, 37 FR 8867, May 2, 1972 as amended by T.D. 78-99, 43 FR 
13060, Mar. 29, 1978; 43 FR 20003, May 10, 1978; T.D. 79-221, 44 FR 
46812, Aug. 9, 1979; T.D. 83-82, 48 FR 14596, Apr. 5, 1983; T.D. 89-1, 
53 FR 51246, Dec. 21, 1988; T.D. 94-47, 59 FR 25566, May 17, 1994; T.D. 
97-82, 62 FR 51769, Oct. 3, 1997; T.D. 98-28, 63 FR 16416, Apr. 3, 1998]



Sec. 10.3  Drawback; internal-revenue tax.

    (a) Except as prescribed in Sec. 10.1(f) or in paragraphs (c) and 
(f) of this section, no free entry shall be allowed under Chapter 98, 
Subchapter 1, Harmonized Tariff Schedule of the United States (HTSUS), 
in the final liquidation of an entry unless the port director is 
satisfied by the certificate of exportation or other evidence or 
information that no drawback was allowed in connection with the 
exportation from the United States, and unless no internal-revenue tax 
is imposed on the importation of like articles not previously exported 
from the United States or, if such tax is being imposed at the time of 
entry for consumption or withdrawal from warehouse for consumption, the 
port director is satisfied that an internal-revenue tax on production or 
importation was paid in respect of the imported article before it was 
exported from the United States and was not refunded. Except as provided 
for in Sec. 10.1(f), when it is impracticable, because of the 
destruction of Customs records or other circumstances, to determine 
whether drawback was allowed, or the amount of drawback allowed, with 
respect to an article established to be a returned product of the United 
States which has not been advanced in value or improved in condition 
while abroad, there shall be assessed on the returned article an amount 
of duty determined as follows:
    (1) If there is any likelihood that drawback was allowable on the 
exportation of like articles at any time when the imported article may 
have been exported from the United States, the estimated amount of any 
drawback which would have been allowable if

[[Page 81]]

duty had been paid on any foreign merchandise likely to have been used 
in the manufacture of the returned article at the rate or rates 
applicable to such foreign merchandise on the date of importation of the 
returned article (see paragraph (b) of this section), and
    (2) If there is any likelihood that a refund or remission of tax was 
allowed on the exportation of the returned article, the amount of any 
internal-revenue tax which would be payable at the time of importation 
if the returned article were wholly of foreign origin, but in no such 
case shall there be assessed more than an amount equal to the duty and 
tax that would apply if the returned article were wholly of foreign 
origin and originally imported. (See Sec. 10.7(a).) Except as provided 
for in Sec. 10.1(f), if the imported article is of a kind which would be 
subject to an internal-revenue tax if of foreign origin and payment of 
an internal-revenue tax before exportation without refund thereof is not 
established, duty shall be assessed on the imported article in an amount 
equal to the internal-revenue tax imposed at the time of entry for 
consumption or withdrawal from warehouse for consumption on like 
articles of foreign origin, plus the amount of any drawback allowed on 
the exportation of the article from the United States; but if no 
drawback was allowed, the duty equal to internal-revenue tax shall be 
the total duty to be assessed. If an allowance of drawback on the 
exportation from the United States of the imported article is 
established, duty shall be assessed in an amount equal to such drawback, 
plus an amount equal to any internal-revenue tax which may be assessable 
in accordance with this paragraph; but in no case shall duty equal to 
drawback, or to drawback and internal-revenue tax, be assessed in an 
amount in excess of the ordinary Customs duty and internal-revenue tax 
applicable to like articles of foreign origin. In any case, where 
payment of internal-revenue tax before exportation without refund 
thereof is established, no duty equal to an internal-revenue tax 
currently in force shall be assessed.
    (b) In the absence of satisfactory evidence as to the nonallowance 
of drawback or the amount thereof allowed on the following articles of 
American manufacture or production, duty shall be assessed thereon in 
the amounts respectively indicated, the amount shown in each case being 
considered the fair average amount of drawback allowed on such articles:

------------------------------------------------------------------------
                    Article                          Duty assessment
------------------------------------------------------------------------
Drums, metal (when not exempted from duty in    24 cents each.
 accordance with sec. 10.3(c)).
Hosiery, nylon................................  45 cents per dozen.
Lead compound, tetraethyl.....................  $0.003 per kilogram.
Lithopone.....................................  $0.00065 per kilogram.
Oxide, zinc...................................  $0.0029 per kilogram.
Piece goods, cotton:
  Bleached....................................  $0.03199 per square
                                                 meter.
  Dyed........................................  $0.03454 per square
                                                 meter.
  Printed.....................................  $0.03226 per square
                                                 meter.
Piece goods, nylon: Dyed                        $0.29086 per square
                                                 meter.
Piece goods, rayon:
  Printed.....................................  $0.04867 per square
                                                 meter.
  Other than printed (white, piece dyed or      $0.08478 per square
   yarn dyed).                                   meter.
Tallow, refined, inedible.....................  $0.003 per kilogram.
------------------------------------------------------------------------

    (c) The following articles shall be admitted free of duty, even 
though exported from the United States with benefit of drawback:
    (1) Any article of a kind which would be admitted free of duty 
otherwise than under Chapter 98, Subchapter 1, HTSUS, if of foreign 
origin;
    (2) Substantial containers or holders of domestic manufacture, 
including shooks and staves when returned as boxes or barrels, when in 
use at the time of importation as the usual containers of merchandise;
    (3) Any article provided for in subheadings 9801.00.70 or 
9801.00.80, HTSUS, with respect to which the port director has 
determined that the collection of duty under such subheadings 9801.00.70 
or 9801.00.80, HTSUS, would involve an

[[Page 82]]

expense and inconvenience to the Government disproportionate to the 
probable amount of such duty; and
    (4) Other articles of domestic manufacture which are in use at the 
time of importation as the usual coverings or containers of merchandise 
not subject to an ad valorem rate of duty, and which have not been 
advanced in value or improved in condition while abroad by any process 
of manufacture or other means.
    (d) Articles manufactured or produced in the United States in a 
Customs bonded warehouse and exported shall be subject on reimportation 
to a duty equal to the total duty and internal-revenue tax, if any, 
imposed at the time of entry for consumption or withdrawal from 
warehouse for consumption with respect to the importation of like 
articles not previously exported from the United States.
    (e) Animals straying across the border or driven across the border 
for pasturage purposes or for feeding to improve them for the market and 
not returned within 8 months are excluded from free entry as domestic 
products returned.
    (f) Tobacco products and cigarette papers and tubes classifiable 
under subheading 9801.00.80, HTSUS, may be released from customs custody 
without the payment of that part of the duty attributable to the 
internal-revenue tax for return to internal-revenue bond as provided by 
section 5704(d) of the Internal Revenue Code of 1954.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 68-104, 33 FR 5616, Apr. 
11, 1968; T.D. 83-240, 48 FR 53098, Nov. 25, 1983; T.D. 89-1, 53 FR 
51246, Dec. 21, 1988; T.D. 93-66, 58 FR 44130, Aug. 19, 1993]



Sec. 10.4  Internal-revenue marks; erasure.

    Internal-revenue brands or marks on casks or other containers 
previously exported from the United States must be erased at the 
importer's expense under Customs supervision before their delivery from 
Customs custody.



Sec. 10.5  Shooks and staves; cloth boards; port director's account.

    (a) Shooks and staves produced in the United States and returned in 
the form of complete boxes or barrels in use as the usual containers of 
merchandise are exempt from any duties imposed by the tariff laws upon 
similar containers made of foreign shooks or staves, provided their 
identity is established under the regulations in this part.
    (b) The term ``shook'' embraces only shooks which at the time of 
exportation from this country are ready to be assembled into boxes or 
barrels without further cutting to size; except that box shooks may be 
exported in double lengths and cut abroad. The number of boxes made from 
such shooks which may be imported into this country free of duty cannot 
exceed the number of complete sets of shooks exported.
    (c) [Reserved]
    (d) An exporter of shooks or staves in respect of which free entry 
is to be claimed when returned as boxes or barrels shall file in 
triplicate with the director of the port of exportation, at least 6 
hours before the landing of the articles on the exporting vessel, a 
Certificate of Registration, Customs Form 4455.
    (e) The Certificate of Registration, CF 4455, shall be completed in 
triplicate by the port director after verification from the manifest of 
the exporting vessel and the return of the lading officer. The original 
shall be forwarded by the port director to the consignee. The duplicate 
copy shall be given to the exporter and the triplicate copy shall be 
retained.
    (f) Whenever boxes or barrels alleged to have been manufactured from 
American shooks or staves are shipped to the United States from a person 
abroad other than the one to whom they were exported from the United 
States, the importer shall be required to obtain from the foreign 
consignee to whom the shooks or staves were originally exported from 
this country the certificate or certificates, Customs Form 4455, 
covering the exportation of the shooks or staves from the United States, 
or an extract therefrom signed by such consignee, showing the number of 
shooks or staves covered by such certificate or certificates, together 
with the number of superficial feet of such shooks or staves. Such Form 
4455, or extract therefrom, shall be filed by the importer in connection 
with the entry of the boxes or barrels.

[[Page 83]]

    (g) Accounts shall be kept by the director of the port of 
exportation of the shooks and staves as to each exportation thereof and 
as to the returns thereof in boxes, barrels, etc. Notifications of such 
returns shall be given to the port of exportation by the director of the 
port of importation. When returns in the form of boxes, barrels, etc., 
entirely account for the shooks and staves exported as shown on the 
appropriate Customs Form 4455, the port director maintaining the account 
shall so inform the port director making inquiry about the merchandise 
being imported and alleged to contain shooks or staves covered by the 
particular exportation.
    (h) A record of cloth boards of domestic manufacture exported to be 
wrapped with foreign textiles shall be kept by the port director in a 
similar manner as for shooks and staves. Cloth boards of domestic 
manufacture are conditionally free of duty under Chapter 98, subchapter 
1, Harmonized Tariff Schedule of the United States (HTSUS). If such 
boards are advanced in value or improved in condition while abroad, free 
entry shall be denied on importation.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 89-1, 53 FR 51247, Dec. 21, 1988; T.D. 98-52, 63 FR 
29954, June 2, 1998]



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

    An importer, seeking an exemption from duty on account of boxes or 
barrels made from American shooks or staves, must make such a claim on 
Customs Form 4455 at the time of filing the entry. Upon receipt, from 
the director of the port of exportation of the shooks and staves, of 
corroboration that the records of exportation do not conflict materially 
with such a claim, the exemption may be allowed. If the claim for an 
exemption is disallowed in full or in part, the importer may file a 
request within 15 days of the date of the port director's notice to him 
of any disallowance, for referral of the question to the Commissioner of 
Customs for review.

[T.D. 87-75, 52 FR 20066, May 29, 1987, as amended by T.D. 98-52, 63 FR 
29954, June 2, 1998]



Sec. 10.7  Substantial containers or holders.

    (a) Substantial containers or holders, which are products of the 
United States, which are of the usual and ordinary types used in the 
shipment or transportation of goods, which are reusable for such 
purposes, and which are imported containing or holding merchandise, 
shall be entered under the general regulations governing the free entry 
of domestic products exported and returned. When such containers or 
holders are imported not containing or holding merchandise they may be 
admitted without entry if readily identifiable as products of the United 
States.
    (b) Substantial containers or holders, which are of foreign 
production and previously imported duty paid, which are of the usual or 
ordinary types used in the shipment or transportation of goods, which 
are reusable for such purpose, and which are imported containing or 
holding merchandise, shall be exempt from duty if (1) exported in 
accordance with the regulations contained in Sec. 10.5 (d) and (e), and 
(2) there is filed in connection with the entry a certificate of the 
foreign shipper in the form prescribed by paragraph (c) of this section.
    (c) The certificate to be furnished by the foreign shipper for the 
use of the director of the port of entry shall be in the following form:

    I, ----------------, of ----------------, do hereby certify that to 
the best of my knowledge and belief the substantial containers and 
holders mentioned in (the annexed invoice) (invoice No. -------- of ----
----, 19--) * are of the manufacture of ---------------- and were 
exported from the United States at the port of ------------, per S.S. --
-------------- on ----------, 19--, and that the same are being returned 
to the United States (empty) filled with --------) (holdings ----------
----).*
---------------------------------------------------------------------------

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

________________________________________________________________________
                                                                 Shipper

    (d) The port director, after verification of the foreign shipper's 
certificate with the records of the director of the port of exportation 
in this country, shall allow free entry to the extent the basis for such 
allowance is

[[Page 84]]

verified. The procedure in the last two sentences of Sec. 10.6 shall be 
applicable.
    (e) If claim for exemption from duty for such containers or holders 
of foreign production previously imported duty paid is made at the time 
of entry, the certificate of the foreign shipper may be accepted if 
produced at any time prior to the liquidation of the entry.
    (f) When such containers or holders of foreign production previously 
imported duty paid are reimported empty, they may be admitted without 
entry if readily identifiable as having been previously imported duty 
paid.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35475, 
Aug. 16, 1982; T.D. 86-118, 51 FR 22515, June 20, 1986; T.D. 97-82, 62 
FR 51769, Oct. 3, 1997]



Sec. 10.8  Articles exported for repairs or alterations.

    (a) Except as otherwise provided for in this section and except in 
the case of goods covered by Sec. 181.64 of this chapter, the following 
documents shall be filed in connection with the entry of articles which 
are returned after having been exported for repairs or alterations and 
which are claimed to be subject to duty only on the value of the repairs 
or alterations performed abroad under subheading 9802.00.40 or 
9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS):
    (1) A declaration from the person who performed such repairs or 
alterations, in substantially the following form:

    I,----------------, declare that the articles herein specified are 
the articles which, in the condition in which they were exported from 
the United States, were received by me (us) on ----------------, 19----
------------, from---------------- (name and address of owner or 
exporter in the United States); that they were received by me (us) for 
the sole purpose of being repaired or altered; that only the repairs or 
alterations described below were performed by me (us); that the full 
cost or (when no charge is made) value of such repairs or alterations 
are correctly stated below; and that no substitution whatever has been 
made to replace any of the articles originally received by me (us) from 
the owner or exporter thereof mentioned above.

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

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

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

     I, ----------,
declare that the (above) (attached) declaration by the person who 
performed the repairs or alterations abroad is true and correct to the 
best of my knowledge and belief; that the articles were not manufactured 
or produced in the United States under subheading 9813.00.05, HTSUS; 
that such articles were exported from the United States for repairs or 
alterations and without benefit of drawback from ---------------- (port) 
on ----------------, 19----------------; and that the articles entered 
in their repaired or altered condition are the same articles that were 
exported on the above date and that are identified in the (above) 
(attached) declaration.

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (b) The port director may require such additional documentation as 
is deemed necessary to prove actual exportation of the articles from the 
United States for repairs or alterations, such as a foreign customs 
entry, foreign customs invoice, foreign landing certificate, bill of 
lading, or an airway bill.

[[Page 85]]

    (c) If the port director concerned is satisfied, because of the 
nature of the articles or production of other evidence, that the 
articles are imported under circumstances meeting the requirements of 
subheading 9802.00.40 or 9802.00.50, HTSUS, and related section and 
additional U.S. notes, he may waive submission of the declarations 
provided for in paragraph (a) of this section.
    (d) The port director shall require at the time of entry a deposit 
of estimated duties based upon the full cost or value of the repairs or 
alterations. The cost or value of the repairs or alterations outside the 
United States, which is to be set forth in the invoice and entry papers 
as the basis for the assessment of duty under subheading 9802.00.40 or 
9802.00.50, HTSUS, shall be limited to the cost or value of the repairs 
or alterations actually performed abroad, which will include all 
domestic and foreign articles furnished for the repairs or alterations 
but shall not include any of the expenses incurred in this country 
whether by way of engineering costs, preparation of plans or 
specifications, furnishing of tools or equipment for doing the repairs 
or alterations abroad, or otherwise.

[T.D. 94-47, 59 FR 25567, May 17, 1994, as amended by T.D. 95-68, 60 FR 
46361, Sept. 6, 1995]



Sec. 10.8a  Imported articles exported and reimported.

    (a) In addition to regular entry procedures, supplementary 
documentation is required in connection with duty-free entries under 
subheading 9801.00.25, Harmonized Tariff Schedule of the United States 
(19 U.S.C. 1202), of articles which were originally entered duty paid, 
removed from Customs custody, and subsequently exported, if:
    (1) The articles were exported within 3 years after the date of the 
previous importation.
    (2) The articles were not advanced in value or improved in condition 
by any process of manufacture or other means while abroad.
    (3) The articles did not conform to sample or specifications abroad.
    (4) The articles are reimported by or for the account of the person 
who imported them into and exported them from the United States.
    (b) The following supplementary documents shall be filed in 
connection with the entry of articles claimed to be free of duty under 
subheading 9801.00.25, Harmonized Tariff Schedule of the United States:
    (1) A declaration by the person abroad who received and is returning 
the merchandise to the United States, in substantially the following 
form:

    I declare that the--------------------------(Description of 
articles) were received by me from ---------------------------------- 
(Name and address of U.S. exporter), that they have not been advanced in 
value or improved in condition by any process of manufacture or other 
means and are being returned to --------------------------------(Name 
and address of consignee in the United States) because they do not 
conform to sample or specifications for the following reasons:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(Date) (Signature)
________________________________________________________________________
(Address) (Title)

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

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

    (c) If the port director concerned is reasonably satisfied because 
of the nature of the articles or production of other evidence that the 
requirements of subheading 9801.00.25, Harmonized Tariff Schedule of the 
United States, and the related section and additional

[[Page 86]]

U.S. notes have been met, he may waive the production of the documents 
provided for in paragraph (b) of this section.

[T.D. 72-221, 37 FR 17469, Aug. 29, 1972, as amended by T.D. 89-1, 53 FR 
51247, Dec. 21, 1988]



Sec. 10.9  Articles exported for processing.

    (a) Except as otherwise provided for in this section, the following 
documents shall be filed in connection with the entry of articles which 
are returned after having been exported for further processing and which 
are claimed to be subject to duty only on the value of the processing 
performed abroad under subheading 9802.00.60, Harmonized Tariff Schedule 
of the United States (HTSUS):
    (1) A declaration by the person who performed the processing abroad, 
in substantially the following form:

     I, ----------, declare that the articles herein specified are the 
articles which, in the condition in which they were exported from the 
United States, were received by me (us) on ------------, 19 ------, from 
---------------- (name and address of owner or exporter in the United 
States); that they were received by me (us) for the sole purpose of 
being processed; that only the processing described below was effected 
by me (us); that the full cost or (when no charge is made) value of such 
processing and the value of the articles after processing are correctly 
stated below; and that no substitution whatever has been made to replace 
any of the articles originally received by me (us) from the owner or 
exporter thereof mentioned above.

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

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

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

 I, ----------, declare that the (above) (attached) declaration by the 
person who performed the processing abroad is true and correct to the 
best of my knowledge and belief; that the articles were manufactured in 
the United States by ---------------- (name and address) or, if of 
foreign origin, were subjected to ---------------- (show processes of 
manufacture, such as molding, casting, machining) in the United States 
by ---------------- (name and address); that the articles were not 
manufactured or produced in the United States under subheading 
9813.00.05, HTSUS; that the articles were exported for processing and 
without benefit of drawback from ---------------- (port) on ------------
, 19 ------; that the articles entered in their processed condition are 
otherwise the same articles that were exported on the above date and 
that are identified in the (above) (attached) declaration; and that the 
returned articles will be subjected to ---------------- (describe 
processing to be performed in the United States) by ---------------- 
(name and address of U.S. processor).___________________________________

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (b) The port director may require such additional documentation as 
is deemed necessary to prove actual exportation of the articles from the 
United States for processing, such as a foreign customs entry, foreign 
customs invoice, foreign landing certificate, bill of lading, or an 
airway bill.
    (c) If the port director concerned is satisfied, because of the 
nature of the articles or production of other evidence, that the 
articles are imported under circumstances meeting the requirements of 
subheading 9802.00.60, HTSUS, and related section and additional U.S. 
notes, he may waive submission of the declarations provided for in 
paragraph (a) of this section.
    (d) The port director shall require at the time of entry a deposit 
of estimated duties based upon the full cost or value of the processing. 
The cost or

[[Page 87]]

value of the processing outside the United States, which is to be set 
forth in the invoice and entry papers as the basis for the assessment of 
duty under subheading 9802.00.60, HTSUS, shall be limited to the cost or 
value of the processing actually performed abroad, which will include 
all domestic and foreign articles used in the processing but shall not 
include the exported United States metal article or any of the expenses 
incurred in this country whether by way of engineering costs, 
preparation of plans or specifications, furnishing of tools or equipment 
for doing the processing abroad, or otherwise.

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



Sec. 10.10  [Reserved]

         Articles Assembled Abroad With United States Components



Sec. 10.11  General.

    (a) Sections 10.12 through 10.23 set forth definitions and 
interpretative regulations adopted by the Commissioner of Customs 
pertaining to the construction of subheading 9802.00.80, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202) and related 
provisions of law. These provisions concern claims for the exemption 
from duty provided by subheading 9802.00.80, Harmonized Tariff Schedule 
of the United States (19 U.S.C. 1202), for American-made fabricated 
components which are returned to the United States as parts of articles 
assembled abroad. The examples included in these sections describe 
specific situations in which the exemption may or may not be applicable. 
The definitions and regulations that follow are promulgated to inform 
the public of the constructions and interpretations that the United 
States Customs Service shall give to relevant statutory terms and to 
assure the impartial and uniform assessment of duties upon merchandise 
claimed to be partially exempt from duty under subheading 9802.00.80, 
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), at the 
various ports of entry. Nothing in these regulations purports or is 
intended to restrict the legal right of importers or others to a 
judicial review of the matters contained therein.
    (b) Section 10.24 sets forth the documentary requirements applicable 
to the entry of assembled articles claimed to be subject to the 
exemption provided under subheading 9802.00.80, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202). Allowance of an 
importer's claim is dependent upon meeting the statutory requirements 
for the exemption under subheading 9802.00.80, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202) and his complying with 
the documentary requirements set forth in Sec. 10.24.

[T.D. 75-230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89-1, 53 
FR 51247, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997]



Sec. 10.12  Definitions.

    As used in Secs. 10.11 through 10.24, the following terms shall have 
the meanings indicated:
    (a) American-made. The term ``American-made'' is used to refer to a 
product of the United States as defined in paragraph (e) of this 
section.
    (b) Assembly. ``Assembly'' means the fitting or joining together of 
fabricated components.
    (c) Exemption. ``Exemption'' means the deduction of the cost or 
value of products of the United States which were assembled abroad in 
accordance with the requirements of subheading 9802.00.80, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), from the full 
value of the assembled article.
    (d) Fabricated component. ``Fabricated component'' means a 
manufactured article ready for assembly in the condition as exported 
except for operations incidental to the assembly.
    (e) Product of the United States. A ``product of the United States'' 
is an article manufactured within the Customs territory of the United 
States and may consist wholly of United States components or materials, 
of United States and foreign components or materials, or wholly of 
foreign components or materials. If the article consists wholly or 
partially of foreign components or materials, the manufacturing process 
must be such that the foreign components or materials have been 
substantially transformed into a new and different article, or have been

[[Page 88]]

merged into a new and different article.

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



Sec. 10.13  Statutory provision: Subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).

    Subheading 9802.00.80, Harmonized Tariff Schedule of the United 
States (HTSUS), (19 U.S.C. 1202), provides that articles assembled 
abroad in whole or in part of fabricated components, the product of the 
United States, which (a) were exported in condition ready for assembly 
without further fabrication, (b) have not lost their physical identity 
in such articles by change in form, shape, or otherwise, and (c) have 
not been advanced in value or improved in condition abroad except by 
being assembled and except by operations incidental to the assembly 
process such as cleaning, lubricating, and painting, are subject to a 
duty upon the full value of the imported article, less the cost or, if 
no charge is made, the value of such products of the United States. The 
rate of duty which is assessed upon the dutiable portion of the imported 
article is that which is applicable to the imported article as a whole 
under the appropriate provision of the HTSUS (19 U.S.C. 1202) for such 
article. If that provision requires a specific or compound rate of duty, 
the total duties assessed on the imported article are reduced in such 
proportion as the cost or value of the returned United States components 
which qualify for the exemption bears to the full value of the assembled 
article.

    Example 1. A transistor radio is assembled abroad from foreign-made 
components and American-made transistors. Upon importation, the 
transistor radio is subject to the ad valorem rate of duty applicable to 
transistor radios upon the value of the radio less the cost or value of 
the American-made transistors assembled therein.
    Example 2. A solid-state watch movement is assembled abroad from 
foreign-made components and an American-made integrated circuit. If the 
movement in question is subject to the specific rate of duty of 75 cents 
if the value of the assembled movement is $30, and if the value of the 
American-made integrated circuit is $10, then the value of the 
integrated circuit represents one third of the total value of the 
assembled article and the duty on the assembled article will be reduced 
by one third ($.25). Therefore, the duty on the assembled movement is 50 
cents.

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



Sec. 10.14  Fabricated components subject to the exemption.

    (a) Fabricated components, the product of the United States. Except 
as provided in Sec. 10.15, the exemption provided under subheading 
9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS) (19 
U.S.C. 1202), applies to fabricated components, the product of the 
United States. The components must be in condition ready for assembly 
without further fabrication at the time of their exportation from the 
United States to qualify for the exemption. Components will not lose 
their entitlement to the exemption by being subjected to operations 
incidental to the assembly either before, during, or after their 
assembly with other components. Materials undefined in final dimensions 
and shapes, which are cut into specific shapes or patterns abroad are 
not considered fabricated components.

    Example 1. Articles identifiable in their exported condition as 
components or parts of the article into which they will be assembled, 
such as transistors, diodes, integrated circuits, machinery parts, or 
precut parts of wearing apparel, are regarded as fabricated components.
    Example 2. Prestamped metal lead frames for semiconductor devices 
exported in multiple unit strips in which the individual frame units are 
connected to each other, or integrated circuit wafers containing 
individual integrated circuit dice which have been scribed or scored in 
the United States, are regarded as fabricated components. The separation 
of the individual frames by cutting, or the segmentation of the wafer 
into individual dice by flexing and breaking along scribed or scored 
lines, is regarded as an operation incidental to the assembly process.
    Example 3. Wires of various type, electrical conductors, metal 
foils, insulating tapes, ribbons, findings used in dressmaking, and 
similar products, which are in a finished state when exported from the 
United States, and are ready for use in the assembly of the imported 
article, are regarded as fabricated components if they are only cut to 
length or subjected to operations incidental to the assembly process 
while abroad.

[[Page 89]]

    Example 4. Uncut textile fabrics exported in bolts from which 
wearing apparel components will be cut according to a pattern are not 
regarded as fabricated components. Similarly, other materials, such as 
lumber, leather, sheet metal, plastic sheeting, exported in basic shapes 
and forms to be fabricated into components for assembly, are not 
eligible for treatment as fabricated components.

    (b) Substantial transformation of foreign-made articles or 
materials. Foreign-made articles or materials may become products of the 
United States if they undergo a process of manufacture in the United 
States which results in their substantial transformation. Substantial 
transformation occurs when, as a result of manufacturing processes, a 
new and different article emerges, having a distinctive name, character, 
or use, which is different from that originally possessed by the article 
or material before being subject to the manufacturing process. The mere 
finishing or modification of a partially or nearly complete foreign 
product in the United States will not result in the substantial 
transformation of such product and it remains the product of a foreign 
country.

    Example 1. A cast metal housing for a valve is made in the United 
States from imported copper ingots, the product of a foreign country. 
The housing is a product of the United States because the manufacturing 
operations performed in the United States to produce the housing 
resulted in a substantial transformation of the foreign copper ingots.
    Example 2. An integrated circuit device is assembled in a foreign 
country and imported into the United States where its leads are formed 
by bending them to a specified angle. It is then tested and marked. The 
imported article does not become a product of the United States because 
the operations performed in the United States do not result in a 
substantial transformation of the foreign integrated circuit device.
    Example 3. A circuit board assembly for a computer is assembled in 
the United States by soldering American-made and foreign-made components 
onto an American-made printed circuit board. The finished circuit board 
assembly has a distinct electronic function and is ready for 
incorporation into the computer. The foreign-made components have 
undergone a substantial transformation by becoming permanent parts of 
the circuit board assembly. The circuit board assembly, including all of 
its parts is regarded as a fabricated component, the product of the 
United States, for purposes of subheading 9802.00.80, HTSUS (19 U.S.C. 
1202).

[T.D. 75-230, 40 FR 43022, Sept. 18, 1975, as amended by T.D. 89-1, 53 
FR 51247, Dec. 21, 1988]



Sec. 10.15  Fabricated components not subject to the exemption.

    Fabricated components which are not products of the United States 
are excluded from the exemption. In addition, the exemption is not 
applicable to any component exported from the Customs territory of the 
United States:
    (a) From continuous Customs custody with remission, abatement, or 
refund of duty;
    (b) With benefit of drawback;
    (c) To comply with any law of the United States or regulation of any 
Federal agency requiring exportation; or
    (d) After manufacture or production in the United States under 
subheading 9813.00.05, HTSUS (19 U.S.C. 1202).

    Example. Partially completed components of an electric motor are 
imported in several separate shipments and are entered under a temporary 
importation bond to be manufactured into finished motors under the 
provisions of subheading 9813.00.05, HTSUS (19 U.S.C. 1202). The 
components are completed and assembled into finished electric motors. 
The finished motors are exported and are assembled abroad into electric 
fans which are subsequently imported into the United States. 
Irrespective of the fact that the assembly of the motors might involve 
such a substantial change that the motor could be considered a product 
of the United States, no exemption may be given for the value of the 
electric motors, since they were exported after manufacture or 
production in the United States under the provision of subheading 
9813.00.05, HTSUS (19 U.S.C. 1202).

[T.D. 75-230, 40 FR 43023, Sept. 18, 1975, as amended by T.D. 89-1, 53 
FR 51247, Dec. 21, 1988]



Sec. 10.16  Assembly abroad.

    (a) Assembly operations. The assembly operations performed abroad 
may consist of any method used to join or fit together solid components, 
such as welding, soldering, riveting, force fitting, gluing, laminating, 
sewing, or the use of fasteners, and may be preceded, accompanied, or 
followed by operations incidental to the assembly as illustrated in 
paragraph (b) of this section. The mixing or combining of liquids, 
gases, chemicals, food ingredients, and

[[Page 90]]

amorphous solids with each other or with solid components is not 
regarded as an assembly.

    Example 1. A television yoke is assembled abroad from American-made 
magnet wire. In the foreign assembly plant the wire is despooled and 
wound into a coil, the wire cut from the spool, and the coil united with 
other components, including a terminal panel and housing which are also 
American-made. The completed article upon importation would be subject 
to the ad valorem rate of duty applicable to television parts upon the 
value of the yoke less the cost or value of the American-made wire, 
terminal panel and housing, assembled therein. The winding and cutting 
of the wire are either assembly steps or steps incidental to assembly.
    Example 2. An aluminum electrolytic capacitor is assembled abroad 
from American-made aluminum foil, paper, tape, and Mylar film. In the 
foreign assembly plant the aluminum foil is trimmed to the desired 
width, cut to the desired length, interleaved with paper, which may or 
may not be cut to length or despooled from a continuous length, and 
rolled into a cylinder wherein the foil and paper are cut and a section 
of sealing tape fastened to the surface to prevent these components from 
unwinding. Wire or other electric connectors are bonded at appropriate 
intervals to the aluminum foil of the cylinder which is then inserted 
into a metal can, and the ends closed with a protective washer. As 
imported, the capacitor is subject to the ad valorem rate of duty 
applicable to capacitors upon the value less the cost or value of the 
American-made foil, paper, tape, and Mylar film. The operations 
performed on these components are all either assembly steps or steps 
incidental to assembly.
    Example 3. The manufacture abroad of cloth on a loom using thread or 
yarn exported from the United States on spools, cops, or pirns is not 
considered an assembly but a weaving operation, and the thread or yarn 
does not qualify for the exemption. However, American-made thread used 
to sew buttons or garment components is qualified for the exemption 
because it is used in an operation involving the assembly of solid 
components.

    (b) Operations incidental to the assembly process. Operations 
incidental to the assembly process whether performed before, during, or 
after assembly, do not constitute further fabrication, and shall not 
preclude the application of the exemption. The following are examples of 
operations which are incidental to the assembly process:
    (1) Cleaning;
    (2) Removal of rust, grease, paint, or other preservative coating;
    (3) Application of preservative paint or coating, including 
preservative metallic coating, lubricants, or protective encapsulation;
    (4) Trimming, filing, or cutting off of small amounts of excess 
materials;
    (5) Adjustments in the shape or form of a component to the extent 
required by the assembly being performed abroad;
    (6) Cutting to length of wire, thread, tape, foil, and similar 
products exported in continuous length; separation by cutting of 
finished components, such as prestamped integrated circuit lead frames 
exported in multiple unit strips; and
    (7) Final calibration, testing, marking, sorting, pressing, and 
folding of assembled articles.
    (c) Operations not incidental to the assembly process. Any 
significant process, operation, or treatment other than assembly whose 
primary purpose is the fabrication, completion, physical or chemical 
improvement of a component, or which is not related to the assembly 
process, whether or not it effects a substantial transformation of the 
article, shall not be regarded as incidental to the assembly and shall 
preclude the application of the exemption to such article. The following 
are examples of operations not considered incidental to the assembly as 
provided under subheading 9802.00.80, Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202):
    (1) Melting of exported ingots and pouring of the metal into molds 
to produce cast metal parts;
    (2) Cutting of garment parts according to pattern from exported 
material;
    (3) Painting primarily intended to enhance the appearance of an 
article or to impart distinctive features or characteristics;
    (4) Chemical treatment of components or assembled articles to impart 
new characteristics, such as showerproofing, permapressing, sanforizing, 
dying or bleaching of textiles;
    (5) Machining, polishing, burnishing, peening, plating (other than 
plating incidental to the assembly), embossing, pressing, stamping, 
extruding, drawing,

[[Page 91]]

annealing, tempering, case hardening, and any other operation, treatment 
or process which imparts significant new characteristics or qualities to 
the article affected.
    (d) Joining of American-made and foreign-made components. An 
assembly operation may involve the use of American-made components and 
foreign-made components. The various requirements for establishing 
entitlement to the exemption apply only to the American-made components 
of the assembly.

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

    (e) Subassembly. An assembly operation may involve the joining or 
fitting of American-made components into a part or subassembly of an 
article, followed by the installation of the part or subassembly into 
the complete article.

    Example. Rolls of foil and rolls of paper are exported and cut to 
specific length abroad and interleaved and rolled to form the electrodes 
and dielectric of a capacitor. Following this procedure, the rolls are 
assembled with cans and other parts to form a complete capacitor. The 
foil and paper are entitled to the exemption.

    (f) Packing. The packing abroad of merchandise into containers does 
not in itself qualify either the containers or their contents for the 
exemption. However, assembled articles which otherwise qualify for the 
exemption and which are packaged abroad following their assembly will 
not be disqualified from the exemption by reason of their having been so 
packaged, whether for retail sale or for bulk shipment. The tariff 
status of the packing materials or containers will be determined in 
accordance with General Rule of Interpretation 5, HTSUS (19 U.S.C. 
1202).

[T.D. 75-230, 40 FR 43023, Sept. 18, 1975, as amended by T.D. 89-1, 53 
FR 51248, Dec. 21, 1988]



Sec. 10.17  Valuation of exempted components.

    The value of fabricated components to be subtracted from the full 
value of the assembled article is the cost of the components when last 
purchased, f.o.b. United States port of exportation or point of border 
crossing as set out in the invoice and entry papers, or, if no purchase 
was made, the value of the components at the time of their shipment for 
exportation, f.o.b. United States port of exportation or point of border 
crossing, as set out in the invoice and entry papers. However, if the 
appraising officer concludes that the cost or value of the fabricated 
components so ascertained does not represent a reasonable cost or value, 
then the value of the components shall be determined in accordance with 
section 402 or section 402a, Tariff Act of 1930, as amended (19 U.S.C. 
1401a, 1402).

[T.D. 75-230, 40 FR 43024, Sept. 18, 1975]



Sec. 10.18  Valuation of assembled articles.

    As in the case of the appraisement of any other import merchandise 
(see subpart C of part 152 of this chapter), the full value of assembled 
articles imported under subheading 9802.00.80, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), is determined in 
accordance with 19 CFR 152.100 et seq.

[T.D. 87-89, 52 FR 24445, July 1, 1987, as amended by T.D. 89-1, 53 FR 
51248, Dec. 21, 1988]



Secs. 10.19-10.20  [Reserved]



Sec. 10.21  Updating cost data and other information.

    When a claim for the exemption is predicated on estimated cost data 
furnished either in advance of or at the

[[Page 92]]

time of entry, this fact should be clearly stated in writing at the time 
of entry, and suspension of liquidation may be requested by the importer 
or his agent pending the furnishing of actual cost data. Actual cost 
data must be submitted as soon as accounting procedures permit. To 
insure that information used for Customs purposes is reasonably current, 
the importer shall ordinarily be required to furnish updated cost and 
assembly data at least every six months, regardless of whether he 
considers that significant changes have occurred. The 6-month period for 
the submission of updated cost or other data may be extended by the port 
director if such extension is appropriate for the type of merchandise 
involved, or because of the accounting period normally used in the 
trade, or because of other relevant circumstances.

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



Sec. 10.23  Standards, quotas, and visas.

    All requirements and restrictions applicable to imported 
merchandise, such as labeling, radiation standards, flame-retarding 
properties, quotas, and visas, apply to assembled articles eligible for 
the exemption in the same manner as they would apply to all other 
imported merchandise.

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



Sec. 10.24  Documentation.

    (a) Documents required. The following documents shall be filed in 
connection with the entry of assembled articles claimed to be subject to 
the exemption under subheading 9802.00.80, Harmonized Tariff Schedule of 
the United States (HTSUS) (19 U.S.C. 1202).
    (1) Declaration by the assembler. A declaration by the person who 
performed the assembly operations abroad shall be filed in substantially 
the following form:

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

----------------------------------------------------------------------------------------------------------------
                                                             Unit value at
       Marks of                                             time and place   Port and date of
   identification,       Description of       Quantity      of export from      export from     Name and address
       numbers             component                         United States     United States    of manufacturer
                                                                  \1\
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------
 \1\ In accordance with U.S. Note 4 to Subchapter II of Chapter 98, Harmonized Tariff Schedule of the United
  States (19 U.S.C. 1202).
Description of the operations performed abroad on the exported components (in sufficient detail to enable
  Customs officers to determine whether the operations performed are within the preview of subheading
  9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) (attach supplemental sheet if
  more space is required)):

________________________________________________________________________
Date Signature
________________________________________________________________________
Address Capacity

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

    I declare that to the best of my knowledge and belief the (above), 
(attached) declaration, and any other information submitted herewith, or 
otherwise supplied or referred to, is correct in every respect and there 
has been compliance with all pertinent legal notes to the Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202).
________________________________________________________________________
Date Signature

________________________________________________________________________
Address Capacity

    (b) Revision of format. In specific cases, the port director may 
revise the format of either of the documents specified in paragraph (a) 
of this section and may make such changes as conditions warrant, 
provided the data and information required to be supplied in these 
documents are presented. For example, if the components were furnished 
by the importer, the information on components may be supplied as part 
of the importer's endorsement, rather than as part of the assembler's 
declaration.
    (c) Reference to previously filed documents. In lieu of filing 
duplicate lists of

[[Page 93]]

components and descriptions of assembly operations with each entry, the 
documents specified in paragraph (a) of this section may refer to 
assembly descriptions and lists of components previously filed with and 
approved by the port director, or to records showing costs, names of 
manufacturers, and other necessary data on components, provided the 
importer has arranged with the port director to maintain such records 
and keep them available for examination by authorized Customs officers.
    (d) Waiver of specific details for each entry. There are cases where 
large quantities of United States components are purchased from various 
sources or exported at various ports and dates on a continuing basis, so 
that it is impractical to identify the exact source, port and date of 
export for each particular component included in an entry of merchandise 
claimed to be subject to the exemption under subheading 9802.00.80, 
HTSUS (19 U.S.C. 1202). In these cases, specific details such as the 
port and date of export and the name of the manufacturer of the United 
States components may be waived if the port director is satisfied that 
the importer and assembler have established reliable controls to insure 
that all components for which the exemption is claimed are in fact 
products of the United States. These controls shall include strict 
physical segregation of United States and foreign components, as well as 
records of United States components showing quantities, sources, costs, 
dates shipped abroad, and other necessary information. These records 
shall be maintained by the importer and assembler for 5 years from the 
date of the released entry in a manner so that they are readily 
available for audit, inspection, copying, reproduction or other official 
use by authorized Customs officers.
    (e) Waiver of documents. When the port director is satisfied that 
unusual circumstances make the production of either or both of the 
documents specified in paragraph (a) of this section, or of any of the 
information set forth therein, impractical and is further satisfied that 
the requirements of subheading 9802.00.80, HTSUS, and related legal 
notes have been met, he may waive the production of such document(s) or 
information.
    (f) Unavailability of documents at time of entry. If either or both 
of the documents specified in paragraph (a) of this section are not 
available at the time of entry, a bond on Customs Form 301 containing 
the bond conditions set forth in Sec. 113.62 of this chapter for the 
production of the document(s) may be given pursuant to Secs. 113.41--
113.46 and 141.66 of this chapter.
    (g) Responsibility of correctness. Subject to the civil and criminal 
sanctions provided by law for false or fraudulent entries, the importer 
has the ultimate responsibility for supplying all information needed by 
the Customs Service to process an entry, and for the completeness and 
truthfulness of such information. If certain information cannot be 
supplied by the assembler, it must be provided by the importer.

[T.D. 75-230, 40 FR 43025, Sept. 18, 1975, as amended by T.D. 79-159, 44 
FR 31967, June 4, 1979; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 
89-1, 53 FR 51248, Dec. 21, 1988]



Sec. 10.25  Textile components cut to shape in the United States and assembled abroad.

    Where a textile component is cut to shape (but not to length, width, 
or both) in the United States from foreign fabric and exported to 
another country, territory, or insular possession for assembly into an 
article that is then returned to the United States and entered, or 
withdrawn from warehouse, for consumption on or after July 1, 1996, the 
value of the textile component shall not be included in the dutiable 
value of the article. For purposes of determining whether a reduction in 
the dutiable value of an imported article may be allowed under this 
section:
    (a) The terms ``textile component'' and ``fabric'' have reference 
only to goods covered by the definition of ``textile or apparel 
product'' set forth in Sec. 102.21(b)(5) of this chapter;
    (b) The operations performed abroad on the textile component shall 
conform to the requirements and examples set forth in Sec. 10.16 insofar 
as they may be applicable to a textile component; and

[[Page 94]]

    (c) The valuation and documentation provisions of Secs. 10.17, 
10.18, 10.21 and 10.24 shall apply.

[T.D. 95-69, 60 FR 46196, Sept. 5, 1995; T.D. 95-69, 60 FR 55995, Nov. 
6, 1995]



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

    (a) No article (except a textile article, apparel article, or 
petroleum, or any product derived from petroleum, provided for in 
heading 2709 or 2710, Harmonized Tariff Schedule of the United States 
(HTSUS)) shall be treated as a foreign article or as subject to duty:
    (1) If the article is assembled or processed in a beneficiary 
country in whole of fabricated components that are a product of the 
United States; or
    (2) If the article is processed in a beneficiary country in whole of 
ingredients (other than water) that are a product of the United States; 
and
    (3) Neither the fabricated components, materials or ingredients 
after their exportation from the United States, nor the article before 
its importation into the United States, enters into the commerce of any 
foreign country other than a beneficiary country.
    (b) No article (except a textile or apparel product) entered, or 
withdrawn from warehouse, for consumption on or after July 1, 1996, 
shall be treated as a foreign article or as subject to duty:
    (1) If the article is assembled in a beneficiary country in whole of 
textile components cut to shape (but not to length, width, or both) in 
the United States from foreign fabric; or
    (2) If the article is assembled in a beneficiary country in whole of 
both textile components described in paragraph (b)(1) of this section 
and components that are products of the United States; and
    (3) Neither the components after their exportation from the United 
States, nor the article before its importation into the United States, 
enters into the commerce of any foreign country other than a beneficiary 
country.
    (c) For purposes of this section:
    (1) The terms ``textile article'', ``apparel article'', and 
``textile or apparel product'' cover all articles, other than footwear 
and parts of footwear, that are classifiable in an HTSUS subheading 
which carries a textile and apparel category number designation;
    (2) The term ``beneficiary country'' has the meaning set forth in 
Sec. 10.191(b)(1); and
    (3) A component, material, ingredient, or article shall be deemed to 
have not entered into the commerce of any foreign country other than a 
beneficiary country if:
    (i) The component, material, or ingredient was shipped directly from 
the United States to a beneficiary country, or the article was shipped 
directly to the United States from a beneficiary country, without 
passing through the territory of any non-beneficiary country; or
    (ii) Where the component, material, ingredient, or article passed 
through the territory of a non-beneficiary country while en route to a 
beneficiary country or the United States:
    (A) The invoices, bills of lading, and other shipping documents 
pertaining to the component, material, ingredient, or article show a 
beneficiary country or the United States as the final destination and 
the component, material, ingredient, or article was neither sold at 
wholesale or retail nor subjected to any processing or other operation 
in the non-beneficiary country; or
    (B) The component, material, ingredient, or article remained under 
the control of the customs authority of the non-beneficiary country and 
was not subjected to operations in that non-beneficiary country other 
than loading and unloading and activities necessary to preserve the 
component, material, ingredient, or article in good condition.

[T.D. 95-69, 60 FR 46197, Sept. 5, 1995]

     Free Entry--Articles for the Use of Foreign Military Personnel



Sec. 10.30c  [Reserved]

                    Temporary Importations Under Bond



Sec. 10.31  Entry; bond.

    (a)(1) Entry of articles brought into the United States temporarily 
and

[[Page 95]]

claimed to be exempt from duty under Chapter 98, Subchapter XIII, 
Harmonized Tariff Schedule of the United States (HTSUS), unless covered 
by an A.T.A. carnet or a TECRO/AIT carnet as provided in part 114 of 
this chapter, shall be made on Customs Form 3461 or 7533, supported by 
the documentation required by Sec. 142.3 of this chapter. However, when 
Sec. 10.36 or Sec. 10.36a is applicable, or the aggregate value of the 
article is not over $250, the form prescribed for the informal entry of 
importations by mail, in baggage, or by other means, may be used. When 
entry is made on Customs Form 3461 or 7533, an entry summary, Customs 
Form 7501, shall be filed within 10 days after time of entry, in 
accordance with subpart B, part 142 of this chapter.
    (2) If Customs Form 7501 is filed at time of entry, it shall serve 
as both the entry and entry summary, and Customs Form 3461 or 7533 shall 
not be required. Customs Form 7501 shall be in original only, except for 
entries under subheading 9813.00.05, HTSUS, which require a duplicate 
copy for statistical purposes. When articles are entered under an A.T.A. 
carnet or a TECRO/AIT carnet, the importation voucher of the carnet 
shall serve as the entry.
    (3) In addition to the data usually shown on a regular consumption 
entry summary, each temporary importation bond entry summary shall 
include:
    (i) The HTSUS subheading number under which entry is claimed.
    (ii) A statement of the use to be made of the articles in sufficient 
detail to enable the port director to determine whether they are 
entitled to entry as claimed, and
    (iii) A declaration that the articles are not to be put to any other 
use and that they are not imported for sale or sale on approval.
    (b) The port director, if he is satisfied as to the importer's 
identity and good faith, may admit a vehicle or craft brought in by a 
nonresident to take part in a race or other specific contest for which 
no money purse is awarded, under the provisions of subheading 
9813.00.35, HTSUS, without formal entry or security for exportation. If 
at the time of arrival it appears that the article is likely to remain 
in the United States beyond 90 days, formal entry and bond shall be 
taken.
    (c) When any article has been admitted without formal entry or 
security for exportation and the importer thereafter desires to prolong 
his stay beyond 90 days, an entry covering the article and security for 
its exportation shall be accepted at any port where the article may be 
presented for entry. The time during which the imported article may 
remain in the United States under the entry shall be computed from the 
date of its original arrival in the United States. The estimated duties 
for the purpose of fixing the amount of any bond required by paragraph 
(f) of this section shall be the estimated duties which would have been 
required to be deposited had the article been entered under an ordinary 
consumption entry on the date of the original arrival.
    (d) [Reserved]
    (e) The entry or invoice shall: (1) Describe each article in detail; 
(2) set forth the value of each article; and (3) set forth any marks or 
numbers thereon or other distinguishing features thereof. In the case of 
a vehicle, aircraft, or pleasure boat entered under subheading 
9813.00.05, HTSUS and Sec. 10.36a, the registration number, and engine 
or motor number, and the body number (if available) shall also be shown 
on the entry. Examination of the imported articles shall be made 
whenever the circumstances warrant, and occasionally in any event to an 
extent which will enable the Customs officer to determine that the 
importation is in agreement with the invoice or entry as to identity and 
quantity and for the purpose of accepting the entry under the applicable 
provisions of Chapter 98, Subchapter XIII, HTSUS. No examination for the 
purpose of appraisement and no appraisement of the articles shall be 
made.
    (f) With the exceptions stated herein, a bond shall be given on 
Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter, in an amount equal to double the duties, 
including fees, which it is estimated would accrue (or such larger 
amount as the port director shall state in writing or by the electronic 
equivalent to the entrant is necessary to protect the revenue) had all 
the articles covered by

[[Page 96]]

the entry been entered under an ordinary consumption entry. In the case 
of samples solely for use in taking orders entered under subheading 
9813.00.20, HTSUS, motion-picture advertising films entered under 
subheading 9813.00.25, HTSUS, and professional equipment, tools of trade 
and repair components for such equipment or tools entered under 
subheading 9813.00.50, HTSUS, the bond required to be given shall be in 
an amount equal to 110 percent of the estimated duties, including fees, 
determined at the time of entry. If appropriate a carnet, under the 
provisions of part 114 of this chapter, may be filed in lieu of a bond 
on Customs Form 301 (containing the bond conditions set forth in 
Sec. 113.62 of this chapter). Cash deposits in the amount of the bond 
may be accepted in lieu of sureties. When the articles are entered under 
subheading 9813.00.05, 9813.00.20, or 9813.00.50, HTSUS without formal 
entry, as provided for in Secs. 10.36 and 10.36a, or the amount of the 
bond taken under any subheading of Chapter 98, Subchapter XIII, HTSUS, 
is less than $25, the bond shall be without surety or cash deposit, and 
the bond shall be modified to so indicate. In addition, notwithstanding 
any other provision of this paragraph, in the case of professional 
equipment necessary for carrying out the business activity, trade or 
profession of a business person, equipment for the press or for sound or 
television broadcasting, cinematographic equipment, articles imported 
for sports purposes and articles intended for display or demonstration, 
if brought into the United States by a resident of Canada or Mexico and 
entered under Chapter 98, Subchapter XIII, HTSUS, no bond or other 
security shall be required if the entered article is a good originating 
in Canada or Mexico within the meaning of General Note 12, HTSUS.
    (g) Claim for free entry under Chapter 98, Subchapter XIII, HTSUS 
may be made for articles of any character described therein which have 
been previously entered under any other provision of law and the entry 
amended accordingly upon compliance with the requirements of this 
section, provided the articles have not been released from Customs 
custody, or even though released from Customs custody if it is 
established that the original entry was made on the basis of a clerical 
error, mistake of fact, or other inadvertence within the meaning of 
section 520(c)(1), Tariff Act of 1930, as amended, and was brought to 
the attention of the Customs Service within the time limits of that 
section. If an entry is so amended, the period of time during which the 
merchandise may remain in the Customs territory of the United States 
under bond shall be computed from the date of importation. In the case 
of articles covered by an informal mail entry, such a claim may be made 
within a reasonable time either before or after the articles have been 
released from Customs custody.
    (h) After the entry and bond have been accepted, the articles may be 
released to the importer. The entry shall not be liquidated as the 
transaction does not involve liquidated duties. However, a TIB importer 
may be required to file an entry for consumption and pay duties, or pay 
liquidated damages under its bond for a failure to do so, in the case of 
merchandise imported under subheading 9813.00.05, HTSUS, and 
subsequently exported to Canada or Mexico (see Sec. 181.53 of this 
chapter).

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 66-39, 31 FR 2817, Feb. 
17, 1966; T.D. 69-146, 34 FR 9798, June 25, 1969; T.D. 70-89, 35 FR 
6002, Apr. 11, 1970; T.D. 79-221, 44 FR 46813, Aug. 9, 1979; 44 FR 
51567, Sept. 4, 1979; T.D. 80-26, 45 FR 3901, Jan. 21, 1980; T.D. 84-
213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51248, Dec. 21, 1988; 
T.D. 94-1, 58 FR 69470, Dec. 30, 1993; T.D. 95-22, 60 FR 14632, Mar. 20, 
1995; T.D. 96-14, 61 FR 2910, Jan. 30, 1996; T.D. 98-10, 63 FR 4167, 
Jan. 28, 1998; T.D. 01-14, 66 FR 8767, Feb. 2, 2001]



Sec. 10.33  Theatrical effects.

    For purposes of the entry of theatrical scenery, properties and 
apparel under subheading 9813.00.65, Harmonized Tariff Schedule of the 
United States:
    (a) Animals imported for use or exhibition in theaters or menageries 
may be classified as theatrical properties; and
    (b) The term ``theatrical scenery, properties and apparel'' shall 
not be construed to include motion-picture films.

[[Page 97]]


For provisions relating to the return without formal entry of theatrical 
effects taken from the United States, see Sec. 10.68 of this part.

[T.D. 92-85, 57 FR 40605, Sept. 4, 1992]



Sec. 10.35  Models of women's wearing apparel.

    (a) Models of women's wearing apparel admitted under subheading 
9813.00.10, Harmonized Tariff Schedule of the United States (HTSUS), 
shall not be removed from the importer's establishment for reproducing, 
copying, painting, sketching, or for any other use by others, nor be 
used in the importer's establishment for such purposes except by the 
importer or his employees.
    (b) Invoices covering models of women's wearing apparel entered 
under subheading 9813.00.10 or 9813.00.25, HTSUS shall state the kind 
and color of the principal material from which the apparel is made, and 
shall contain a description of the lining and the trimming, stating 
whether composed of fur, lace, embroidery, or other material. Invoices 
shall also contain a statement as to how the trimming is applied, that 
is, whether on the cuffs, collar, sleeves, or elsewhere, and the total 
value of each completed garment or article.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20066, May 
29, 1987; T.D. 89-1, 53 FR 51248, Dec. 21, 1988]



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

    (a) Samples accompanying a commercial traveler who presents an 
adequate descriptive list or a special Customs invoice, and professional 
equipment, tools of trade, and repair components for such equipment or 
tools imported in his baggage for his own use by a nonresident 
sojourning temporarily in the United States may be entered on the 
importer's baggage declaration in lieu of formal entry and examination 
and may be passed under subheadings 9813.00.20 or 9813.00.50, Harmonized 
Tariff Schedule of the United States, (HTSUS), at the place of arrival 
in the same manner as other passengers' baggage. The examination may be 
made by an inspector who is qualified, in the opinion of the port 
director, to determine the amount of the bond required by Sec. 10.31(c) 
to be filed in support of the entry. If the articles are a commercial 
traveler's samples and exceed $500 in value, a special Customs invoice 
or a descriptive list shall be furnished.
    (b) When the proprietor or manager of a theatrical exhibition 
arriving from abroad who has entered his scenery, properties, and 
apparel under subheading 9813.00.65, HTSUS, contemplates side trips to a 
contiguous country with the exhibition within the period of time during 
which the merchandise may remain in the Customs territory of the United 
States under bond, including any lawful extension, a copy of the entry 
covering the effects and a copy of a descriptive list of such effects or 
invoice furnished by him may be certified by the examining officer and 
returned to the proprietor or manager for use in registering the effects 
with the Customs officers at the port of exit, and in clearing them 
through Customs on his return. Cancellation of the bond shall be 
effected by exportation in accordance with the provisions of Sec. 10.38 
at the time the theatrical effects are finally taken out of the United 
States before the expiration of the period of time during which the 
merchandise may remain in the Customs territory of the United States 
under bond, including any lawful extension. Similar treatment may be 
accorded articles entered under other subheadings in chapter 98, 
subchapter XIII, HTSUS, upon approval by Headquarters, U.S. Customs 
Service.
    (c) When a commercial traveler contemplates side trips to a 
contiguous country within the period of time during which the 
merchandise may remain in the Customs territory of the United States 
under bond, including any lawful extension, a copy of his baggage 
declaration and a copy of the descriptive list or special Customs 
invoice furnished by him may be certified by the examining officer and 
returned to the traveler for use in registering the samples with Customs 
officers at the port of exit, and in clearing them through Customs upon 
his return. Cancellation

[[Page 98]]

of the bond shall be effected by exportation in accordance with the 
provisions of Sec. 10.38 at the time the samples are finally taken out 
of the United States before the expiration of the period of time during 
which the merchandise may remain in the Customs territory of the United 
States under bond, including any lawful extension.
    (d) The privilege of clearance of commercial travelers' samples or 
professional equipment, tools of trade, and repair components for such 
equipment or tools imported for his own use by a nonresident sojourning 
temporarily in the United States on a baggage declaration under bond 
without surety or cash deposit shall not be accorded to a commercial 
traveler or such nonresident who, through fraud or culpable negligence, 
has failed to comply with the provisions of such a bond in connection 
with a prior arrival.

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

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9799, June 
25, 1969; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 
51248, Dec. 21, 1988]



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

    (a) A vehicle (such as an automobile, truck, bus, motorcycle, 
tractor, trailer), pleasure boat, or aircraft brought into the United 
States by an operator of such vehicle, pleasure boat, or aircraft for 
repair or alteration (as defined in Secs. 10.8 and 181.64 of this 
chapter) may be entered on the operator's baggage declaration, in lieu 
of formal entry and examination, and may be passed under subheading 
9813.00.05, Harmonized Tariff Schedule of the United States (HTSUS), at 
the place of arrival in the same manner as passengers' baggage. When the 
vehicle, aircraft, or pleasure boat to be entered is being towed by or 
transported on another vehicle, the operator of the towing or 
transporting vehicle may make entry for the vehicle, aircraft or 
pleasure boat to be repaired or altered. The bond, prescribed by 
Sec. 10.31(f), filed to support entry under this section shall be 
without surety or cash deposit except as provided by this paragraph and 
paragraph (d) of this section. The examination may be made by an 
inspector who is qualified to determine the amount of such bond to be 
filed in support of the entry. The privilege accorded by this paragraph 
shall not apply when two or more vehicles, pleasure boats, or aircraft 
are to be entered by the same importer under subheading 9813.00.05, 
HTSUS, at the same time. In that event, the importer must file a formal 
entry supported by bond with surety or cash deposit in lieu of surety.
    (b) Each vehicle, pleasure boat, or aircraft to which paragraph (a) 
of this section is applicable shall be identified on the operator's 
baggage declaration, which must include the data prescribed in 
paragraphs (a) and (e) of Sec. 10.31.
    (c) Exportation shall be effected in accordance with the provisions 
of Sec. 10.38.
    (d) The privilege of clearance of a vehicle, pleasure boat, or 
aircraft brought in by the operator of such vehicle, pleasure boat, or 
aircraft, for repair or alteration on his baggage declaration under bond 
without surety or cash deposit shall not be granted to an individual who 
has failed to comply with the provisions of such a bond in connection 
with any prior arrival. Such individual shall be required to file a 
formal entry under subheading 9813.00.05, HTSUS, with a bond supported 
by a surety or cash deposit in lieu of surety.

[T.D. 66-39, 31 FR 2817, Feb. 17, 1966, as amended by T.D. 84-213, 49 FR 
41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51248, Dec. 21, 1988; T.D. 94-1, 
58 FR 69470, Dec. 30, 1993]



Sec. 10.37  Extension of time for exportation.

    The period of time during which merchandise entered under bond under 
chapter 98, subchapter XIII, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), may remain in the Customs territory of the 
United States, may be extended for not more than two further periods of 
1 year each, or such shorter period as may be appropriate. Extensions 
may be granted by the director of the port where the

[[Page 99]]

entry was filed upon written application on Customs Form 3173, provided 
the articles have not been exported or destroyed before the receipt of 
the application, and liquidated damages have not been assessed under the 
bond before receipt of the application. Any untimely request for an 
extension of time for exportation shall be referred to the Director, 
Commercial Rulings Division, Customs Headquarters, for disposition. Any 
request for relief from a liquidated damage assessment in excess of a 
Fines, Penalties, and Forfeitures Officer's delegated authority shall be 
referred to the Director, International Trade Compliance Division, 
Customs Headquarters, for disposition. No extension of the period for 
which a carnet is valid shall be granted.

[T.D. 69-146, 34 FR 9799, June 25, 1969, as amended by T.D. 84-213, 49 
FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 91-
77, 56 FR 46114, Sept. 10, 1991; T.D. 99-27, 64 FR 13675, Mar. 22, 1999]



Sec. 10.38  Exportation.

    (a) Articles entered under chapter 98, subchapter XIII, Harmonized 
Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202) may be 
exported at the port of entry or at another port. An application on 
Customs Form 3495 shall be filed in duplicate with the port director a 
sufficient length of time in advance of exportation to permit the 
examination and identification of the articles if circumstances warrant 
such action and, in such event, the applicant shall be notified on a 
copy of Customs Form 3495 where the articles are to be sent for 
identification. If a carnet was used for entry purposes, the 
reexportation voucher of the carnet shall be filed, in addition to 
Customs Form 3495, and the carnet shall be presented for certification.
    (b) All expenses in connection with the delivery of the articles for 
examination, the cording and sealing of such articles, and their 
transfer for exportation shall be paid by the parties in interest.
    (c) If exportation is to be made at a port other than the one at 
which the merchandise was entered, the application on Customs Form 3495 
shall be filed in triplicate. There shall also be filed with the 
application a certified copy of the import entry or a certified copy of 
the invoice used on entry.
    (d) If the goods are examined at one port and are to be exported 
from another port, they shall be forwarded to the port of exportation 
under a transportation and exportation entry. In such cases Customs Form 
3495 shall be filed in triplicate. Articles entered under a carnet shall 
not be examined elsewhere than at the port from which they are to be 
exported.
    (e) If the articles are to be exported by mail or parcel post, the 
package containing the articles must be mailed under Customs supervision 
after examination. Waiver of the right to withdraw the package from the 
mails shall be endorsed on each package to be so exported and signed by 
the exporter.
    (f) Whenever the circumstances warrant, and occasionally in any 
event, port directors shall cause the fact of exportation to be verified 
by the Office of Enforcement in harmony with the procedures provided for 
in Secs. 18.7 and 191.61 of this chapter.
    (g) Upon the presentation of satisfactory evidence to the director 
of the port at which samples were entered under subheading 9813.00.20, 
HTSUS, or professional equipment or tools of trade were entered under 
subheading 9813.00.50, HTSUS, that such articles cannot be exported for 
the reason that they have been seized (other than by seizure at the suit 
of private persons), the requirement of exportation shall be suspended 
for the duration of the seizure. The articles shall be exported promptly 
after release from seizure.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9799, June 
25, 1969; T.D. 83-212, 48 FR 46771, Oct. 14, 1983; T.D. 84-213, 49 FR 
41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 91-77, 
56 FR 46114, Sept. 10, 1991; T.D. 98-16, 63 FR 11004, Mar. 5, 1998]



Sec. 10.39  Cancellation of bond charges.

    (a) Charges against bonds taken pursuant to Chapter 98, Subchapter 
XIII, Harmonized Tariff Schedule of the United States, (HTSUS), may be 
canceled in the manner prescribed in Sec. 113.55 of this chapter. A 
completed reexportation counterfoil on a carnet establishes that the 
articles covered by the carnet have been exported, and no claim shall be 
brought against the

[[Page 100]]

guaranteeing association under the carnet for failure to export, except 
under the provisions of Sec. 114.26 of this chapter. In the case of 
articles entered under subheading 9813.00.30, HTSUS, which are destroyed 
because of their use for the purposes of importation, the bond charge 
shall not be canceled unless there is submitted to the port director a 
certificate of the importer that the articles were destroyed during the 
course of a specifically described use, and the port director is 
satisfied that the articles were so destroyed as articles of commerce 
within the period of time during which the articles may remain in the 
Customs territory of the United States under bond (including any lawful 
extension). Bonds covering articles entered under other provisions of 
law shall not be canceled upon proof of destruction, except as provided 
for in paragraph (c) of this section, unless the articles are destroyed 
under Customs supervision in accordance with section 557, Tariff Act of 
1930, as amended, and Sec. 158.43 of this chapter.
    (b) Where exportation has been made at a port other than the port of 
entry, the bond may be canceled upon the certificate of lading received 
from the port of exportation, showing that such exportation was made 
within the period of time during which the articles may remain in the 
Customs territory of the United States under bond. In addition, the port 
director may require the production of a landing certificate signed by a 
revenue officer of the country to which the merchandise is exported.
    (c) When articles entered temporarily free of duty under bond are 
destroyed within the bond period by death, accidental fire, or other 
casualty, petition for relief from liability under the bond shall be 
made to the United States Customs Service. The petition shall be 
accompanied by a statement of the importer, or other person having 
knowledge of the facts, setting forth the circumstances of the 
destruction of the articles.
    (d)(1) If any article entered under Chapter 98, subchapter XIII, 
HTSUS, except those entered under a carnet, has not been exported or 
destroyed in accordance with the regulations in this part within the 
period of time during which the articles may remain in the Customs 
territory of the United States under bond (including any lawful 
extension), the Fines, Penalties, and Forfeitures Officer shall make a 
demand in writing under the bond for the payment of liquidated damages 
equal to double the estimated duties applicable to such entry, unless a 
different amount is prescribed by Sec. 10.31(f). The demand shall 
include a statement that a written petition for relief from the payment 
of the full liquidated damages may be filed with the Fines, Penalties, 
and Forfeitures Officer within 60 days after the date of the demand. For 
purposes of this section, the term estimated duties shall include any 
merchandise processing fees applicable to such entry.
    (2) If articles entered under a carnet have not been exported or 
destroyed in accordance with the regulations in this part within the 
carnet period, the port director shall promptly after expiration of that 
period make demand in writing upon the importer and guaranteeing 
association for the payment of liquidated damages in the amount of 110 
percent of the estimated duties on the articles not exported or 
destroyed. The guaranteeing association shall have a period of 6 months 
from the date of claim in which to furnish proof of the exportation or 
destruction of the articles under conditions set forth in the Convention 
or Agreement under which the carnet is issued. If such proof is not 
furnished within the 6-month period, the guaranteeing association shall 
forthwith pay the liquidated damages provided for above. The payment 
shall be refunded if the guaranteeing association within 3 months from 
the date of payment furnishes the proof referred to above. No claim for 
payment under a carnet covering a temporary importation may be made 
against the guaranteeing association more than 1 year after the 
expiration of the period for which the carnet was valid.
    (3) Demand for return to Customs custody. When the demand for return 
to Customs custody is made in the case of merchandise entered under 
Chapter 98, subchapter XIII, HTSUS (19 U.S.C. 1202), liquidated damages 
in an amount equal to double the estimated duties on

[[Page 101]]

the merchandise not returned shall be demanded, except that in the case 
of samples solely for use in taking orders, motion-picture advertising 
films, professional equipment, tools of trade, and repair components for 
professional equipment and tools of trade, the liquidated damages 
demanded shall be in an amount equal to 110 percent of the estimated 
duties.
    (e) If there has been a default with respect to any or all of the 
articles covered by the bond and a written petition for relief is filed 
as provided in part 172 of this chapter, it will be reviewed by the 
Fines, Penalties, and Forfeitures Officer having jurisdiction in the 
port where the entry was filed. If the Fines, Penalties, and Forfeitures 
Officer is satisfied that the importation was properly entered under 
Chapter 98, subchapter XIII, and that there was no intent to defraud the 
revenue or delay the payment of duty, the Fines, Penalties, and 
Forfeitures Officer may cancel the liability for the payment of 
liquidated damages in any case in his or her delegated authority as 
follows:
    (1) If evidence is furnished which satisfies the Fines, Penalties, 
and Forfeitures Officer that the article would have been entitled to 
free entry as domestic products exported and returned had the evidence 
been furnished at the time of entry, without the collection of 
liquidated damages.
    (2) If the article has been exported or destroyed under Customs 
supervision but not within the period of time during which the articles 
may remain in the Customs territory of the United States under bond, 
upon the payment of such lesser amount as the port director may deem 
appropriate under the law and in view of the circumstances, or without 
the collection of liquidated damages if the Fines, Penalties, and 
Forfeitures Officer is satisfied that the delay in exportation or 
destruction was for the benefit of the United States or was occasioned 
wholly by circumstances reasonably beyond the control of the parties 
concerned and which could not have been anticipated by a reasonably 
prudent person.
    (3) If the article was exported or destroyed within the period of 
time during which the articles may remain in the Customs territory of 
the United States under bond but not under Customs supervision and 
satisfactory documentary evidence of actual exportation, such as a 
foreign landing certificate, or of death or other complete destruction, 
such as a veterinarian's certificate or certificates of two 
disinterested witnesses, are furnished together with a complete 
explanation by the applicant of the failure to obtain Customs 
supervision, upon the payment of such lesser amount as the Fines, 
Penalties, and Forfeitures Officer may deem appropriate under the law 
and in view of the circumstances, or without the collection of 
liquidated damages if the port director is satisfied that the 
merchandise was destroyed under circumstances which precluded any 
arrangement to obtain Customs supervision. Satisfactory documentary 
evidence of exportation, in the case of carnets, would include the 
particulars regarding importation or reimportation entered in the carnet 
by the Customs authorities of another contracting party, or a 
certificate with respect to importation or reimportation issued by those 
authorities, based on the particulars shown on a voucher which was 
detached from the carnet on importation or reimportation into their 
territory, provided it is shown that the importation or reimportation 
took place after the exportation which it is intended to establish.
    (4) Upon the payment of an amount equal to double the duty which 
would have accrued on the articles had they been entered under an 
ordinary consumption entry, or equal to 110 percent of such duties where 
that percentage is prescribed in Sec. 10.31(f), if such amount is 
determined to be less than the full amount of the bond.
    (f) Anticipatory breach. If an importer anticipates that the 
merchandise entered under a Temporary Importation Bond will not be 
exported or destroyed in accordance with the terms of the bond, the 
importer may indicate to Customs in writing before the bond period has 
expired of the anticipatory breach. At the time of written notification 
of the breach, the importer shall pay to Customs the full amount of 
liquidated damages that would be assessed at the time of breach of the 
bond, and the entry will be closed. The

[[Page 102]]

importer shall notify the surety in writing of the breach and payment. 
By this payment, the importer waives his right to receive a notice of 
claim for liquidated damages as required by Sec. 172.1(a) of this 
chapter.
    (g) If the petitioner is not satisfied with the port director's 
action under this section and submits a supplemental petition, both the 
original and the supplemental petitions shall be transmitted to the 
designated Headquarters official with a full report on the case.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9799, June 
25, 1969; T.D. 70-249, 35 FR 18265, Dec. 1, 1970; T.D. 71-70, 36 FR 
4485, Mar. 6, 1971; T.D. 73-308, 38 FR 30549, Nov. 6, 1973; T.D. 74-227, 
39 FR 32015, Sept. 4, 1974; T.D. 75-36, 40 FR 5146, Feb. 4, 1975; T.D. 
84-213, 49 FR 41165, Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 
1988; T.D. 91-71, 56 FR 40779, Aug. 16, 1991; T.D. 95-22, 60 FR 14632, 
Mar. 20, 1995; T.D. 98-10, 63 FR 4167, Jan. 28, 1998; T.D. 99-27, 64 FR 
13675, Mar. 22, 1999; T.D. 00-57, 65 FR 53574, Sept. 5, 2000]



Sec. 10.40  Refund of cash deposits.

    (a) When a cash deposit is made in lieu of surety, it shall be 
refunded to the person in whose name the entry is made upon exportation 
in compliance with Sec. 10.38.
    (b) If any article entered under Chapter 98, subchapter XIII, 
Harmonized Tariff Schedule of the United States, is not exported or 
destroyed within the period of time during which articles may remain in 
the Customs territory of the United States under bond (including any 
lawful extension), the port director shall notify the importer in 
writing that the entire cash deposit will be transferred to the regular 
account as liquidated damages unless a written application for relief 
from the payment of the full liquidated damages is filed with the port 
director within 60 days after the date of the notice. If such an 
application is timely filed, the transfer of the cash deposit to the 
regular account as liquidated damages shall be deferred pending the 
decision of the Headquarters, U.S. Customs Service or, in appropriate 
cases, the port director on the application.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41165, 
Oct. 19, 1984; T.D. 89-1, 53 FR 41249, Dec. 21, 1988]

                          International Traffic



Sec. 10.41  Instruments; exceptions.

    (a) Locomotives and other railroad equipment, trucks, buses, 
taxicabs, and other vehicles used in international traffic shall be 
subject to the treatment provided for in part 123 of this chapter.
    (b) [Reserved]
    (c) Foreign-owned aircraft arriving in the United States shall be 
subject to the treatment provided for in part 122 of this chapter, 
unless entered under the provisions of Secs. 10.31, 10.183, or paragraph 
(d) of this section.
    (d) Any foreign-owned locomotive or other railroad equipment, truck, 
bus, taxicab, or other vehicle, aircraft, or undocumented boat brought 
into the United States for the purpose of carrying merchandise or 
passengers between points in the United States for hire or as an element 
of a commercial transaction, except as provided at Secs. 123.12 (a) and 
(b), 123.14(c), and 141.4(b)(4), is subject to treatment as an 
importation of merchandise from a foreign country and a regular entry 
for such vehicle, aircraft or boat will be made. The use of any such 
vehicle, aircraft, or boat without a proper entry having been made may 
result in liabilities being incurred under section 592, Tariff Act of 
1930, as amended (19 U.S.C. 1592).
    (e) [Reserved]
    (f) Material for the maintenance or repair of international cables 
under the high seas, if requiring storage in special tanks for 
preservation, may be placed in tanks specially bonded for the purpose 
and withdrawn therefrom for high-seas installation without the payment 
of duty and without limitation of the storage period to the usual 3-year 
warehousing period. International cables laid under the territorial 
waters of the United States but not brought on shore in the United 
States shall be admitted without entry or the payment of duty. With 
respect to international cables laid under the territorial waters of the 
United States but brought on shore in the United States, only that part 
of the cable in the United States between the point of entry into the 
territorial waters of the United States and the first point of

[[Page 103]]

support on land in the United States shall be admitted without the 
payment of duty.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 70-121, 35 FR 8222, May 
26, 1970; T.D. 79-160, 44 FR 31956, June 4, 1979; T.D. 84-109, 49 FR 
19450, May 8, 1984; T.D. 88-12, 53 FR 9315, Mar. 22, 1988; T.D. 93-66, 
58 FR 44130, Aug. 19, 1993; T.D. 99-79, 64 FR 61205, Nov. 10, 1999]



Sec. 10.41a  Lift vans, cargo vans, shipping tanks, skids, pallets, and similar instruments of international traffic; repair components.

    (a)(1) Lift vans, cargo vans, shipping tanks, skids, pallets, caul 
boards, and cores for textile fabrics, arriving (whether loaded or 
empty) in use or to be used in the shipment of merchandise in 
international traffic are hereby designated as ``instruments of 
international traffic'' within the meaning of section 322(a), Tariff Act 
of 1930, as amended. The Commissioner of Customs is authorized to 
designate as instruments of international traffic, in decisions to be 
published in the weekly Customs Bulletin, such additional articles or 
classes of articles as he shall find should be so designated. Such 
instruments may be released without entry or the payment of duty, 
subject to the provisions of this section.
    (2) Repair components, accessories, and equipment for any container 
of foreign production which is an instrument of international traffic 
may be entered or withdrawn from warehouse for consumption without the 
deposit of duty if the person making the entry or withdrawal from 
warehouse files a declaration that the repair component was imported to 
be used in the repair of a container of foreign production which is an 
instrument of international traffic, or that the accessory or equipment 
is for a container of foreign production which is an instrument of 
international traffic. The port director must be satisfied that the 
importer of the repair component, accessory, or equipment had the 
declared intention at the time of importation.
    (3) As used in this section, ``instruments of international 
traffic'' includes the normal accessories and equipment imported with 
any such instrument which is a ``container'' as defined in Article 1 of 
the Customs Convention on Containers.
    (b) The reexportation of a container, as defined in Article 1 of the 
Customs Convention on Containers, which has become badly damaged, shall 
not be required in the case of a duly authenticated accident if the 
container (1) is subjected to applicable import duties and import taxes, 
or (2) is abandoned free of all expense to the Government or destroyed 
under Customs supervision at the expense of the parties concerned, 
following the procedure outlined in Sec. 158.43(c) of this chapter. Any 
salvaged parts and materials shall be subjected to applicable import 
duties and import taxes. Replaced parts which are not reexported shall 
be subjected to import duties and import taxes except where abandoned 
free of expense to the Government or destroyed under Customs supervision 
at the expense of the parties concerned.
    (c) The instruments of international traffic designated in paragraph 
(a) of this section may be released in accordance with the provisions of 
that paragraph only after the applicant for such release has filed a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.66 of this chapter. The required application may be filed at 
the port of arrival or at a subsequent port to which an instrument shall 
have been transported in bond or to which a container shall have been 
moved under cover of a TIR carnet (see part 114 of this chapter) showing 
the characteristics and value of the container on the Goods Manifest of 
the carnet. If the container is listed on the Goods Manifest of the 
carnet, the application may be filed at the port of arrival or at the 
subsequent port. If the container is not listed on the Goods Manifest, 
the application shall be filed at the port of arrival. When the 
application is filed at a port other than the port at which the bond is 
on file, the following procedure applies:
    (1) When the application is filed before the fact of approval of the 
applicant's bond has been established, the applicant must submit with 
the application, or the Customs officer to whom the application is made 
must obtain, evidence that a current bond is on file at another port. 
That evidence may consist of a certified copy of the bond,

[[Page 104]]

or any other evidence which will satisfy the Customs officer to whom the 
application is made that a current bond is on file at another port.
    (2) If the application is filed after the fact of approval of the 
applicant's bond has been established, a certified copy of that bond 
need not be filed at the port of release. Upon determination by the 
appropriate Customs officer that the fact of approval of the applicant's 
bond has been established, and the bond has not been subsequently 
discontinued, the instruments of international traffic will be released 
as provided for in paragraph (a) of this section.
    (3) Upon the request of the applicant, the appropriate Customs 
officer at the port at which the instruments of international traffic 
are to be released will determine whether or not the fact of approval of 
the applicant's bond has been established. If the approval has not been 
established, the Customs officer with whom the application has been 
filed will advise the applicant of the nature of the evidence required 
to establish the fact that a current bond is on file at another port.
    (d) If an instrument of foreign origin, or of United States origin 
which has been increased in value or improved in condition by a process 
of manufacture or other means while abroad, is released under this 
section and is subsequently diverted to point-to-point local traffic 
within the United States, or is otherwise withdrawn in the United States 
from its use as an instrument of international traffic, it becomes 
subject to entry and the payment of any applicable duties. An instrument 
of United States origin which has not been increased in value or 
improved in condition by a process of manufacture or other means while 
abroad and which is released under this section shall not be subject to 
entry or the payment of duty if it is so diverted or otherwise 
withdrawn.
    (e) The person who filed the application for release under paragraph 
(a)(1) of this section shall promptly notify a director of a port of 
entry in the United States as defined in Section 401(k), Tariff Act of 
1930, as amended, (1) that the container is to be abandoned or 
destroyed, as described in paragraph (b) of this section, or (2) that 
the instrument is the subject of a diversion or withdrawal as described 
in paragraph (d) of this section, in which event he shall file with the 
port director a consumption entry for the instrument and pay all import 
duties and import taxes due on the container or instrument at the rate 
or rates in effect and in its condition on the date of such diversion or 
withdrawal.
    (f)(1) Except as provided in paragraph (j) of this section, an 
instrument of international traffic (other than a container as defined 
in Article 1 of the Customs Convention on Containers that is governed by 
paragraphs (g) (1)-(3) of this section) may be used as follows in point-
to-point traffic, provided such traffic is incidental to the efficient 
and economical utilization of the instrument in the course of its use in 
international traffic:
    (i) Picking up and delivering loads at intervening points in the 
United States while en route between the port of arrival and the point 
of destination of its imported cargo; or
    (ii) Picking up and delivering loads at intervening points in the 
United States while en route from the point of destination of imported 
cargo to a point where export cargo is to be loaded or to an exterior 
port of departure by a reasonably direct route to, or nearer to, the 
place of such loading or departure.
    (2) Neither use as enumerated in paragraph (f)(1)(i) or (ii) of this 
section constitutes a diversion to unpermitted point-to-point local 
traffic within the United States or a withdrawal of an instrument in the 
United States from its use as an instrument of international traffic 
under this section.
    (g)(1) Except as provided in paragraph (j) of this section, a 
container (as defined in Article 1 of the Customs Convention on 
Containers) that is designated as an instrument of international traffic 
is deemed to remain in international traffic provided that the container 
exits the U.S. within 365 days of the date on that it was admitted under 
this section. An exit from the U.S. in this context means a movement 
across the border of the United States into a foreign country where 
either:

[[Page 105]]

    (i) All merchandise is unladen from the container; or
    (ii) Merchandise is laden aboard the container (if the container is 
empty).
    (2) The person who filed the application for release under paragraph 
(a)(1) of this section is responsible for keeping and maintaining such 
records, otherwise generated and retained in the ordinary course of 
business, as may be necessary to establish the international movements 
of the containers. Such records shall be made available for inspection 
by Customs officials upon reasonable notice.
    (3) If the container does not exit the U.S. within 365 days of the 
date on which it is admitted under this section, such container shall be 
considered to have been removed from international traffic, and entry 
for consumption must be made within 10 business days after the end of 
the month in which the container is deemed removed from international 
traffic. When entry is required under this section, any containers 
considered removed from international traffic in the same month may be 
listed on one entry. Such entry may be made at any port of entry. Under 
19 U.S.C. 1484(a)(1)(B), the importer of record is required, using 
reasonable care, to complete the entry by filing with Customs the 
declared value, classification and rate of duty applicable to the 
merchandise. The importer of record must use the value of the container 
as determined in accordance with section 402, Tariff Act of 1930 (19 
U.S.C. 1401a), as amended by the Trade Agreements Act of 1979 (TAA).
    (h) For failure promptly to report the diversion or withdrawal or 
promptly to make the required entry and pay the duties due, the 
applicant shall be liable for the payment of liquidated damages equal to 
the domestic value of the instrument established in accordance with 
Section 606, Tariff Act of 1930.
    (i) When an instrument of international traffic, as provided in 
paragraph (a) of this section, is returned to the United States and 
released in accordance with the provisions of that paragraph, any 
repairs which may have been made to the instrument while it was abroad 
are not subject to entry or the payment of duty whether the instrument 
is of foreign or domestic manufacture, whether it left the United States 
empty or loaded, and whether or not the repairs made abroad were in 
contemplation when the instrument left the United States.
    (j) Containers and other articles designated as instruments of 
international traffic in accordance with this section are nevertheless 
subject to the application of the coastwise laws of the United States, 
with particular reference to Section 883, Title 46, United States Code 
(see Sec. 4.93 of this chapter).

[28 FR 14663, Dec. 31, 1963]

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



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

    (a) The holders and containers described in this section may be 
released without entry or the payment of duty, subject to the provisions 
of this section.
    (b) Subject to the approval of a port director pursuant to the 
procedures described in this paragraph, certain foreign- or U.S.-made 
shipping devices arriving from Canada or Mexico, including racks, 
holders, pallets, totes, boxes and cans, need not be serially numbered 
or marked if they are always transported on or within either intermodal 
and similar containers or containers which are themselves vehicles or 
vehicle appurtenances and accessories such as twenty and forty foot 
containers of general use and ``igloo'' air freight containers. The 
following or similar notation shall appear on the vehicle or vessel 
manifest in relation to such shipping devices which are exempt from 
serial numbering or marking requirements pursuant to this paragraph: 
``The shipping devices transported herein, which are not serially 
numbered or marked, have been exempted from such requirement pursuant to 
an application approved under 19 CFR 10.41b(b).'' Also, pallets and 
other solid wood shipping devices must

[[Page 106]]

be accompanied by an importer document, to the extent that this is 
required by the U.S. Department of Agriculture, Animal and Plant Health 
Inspection Service, attesting to the admissibility of such devices as 
regards plant pest risk, as provided for in 7 CFR 319.40-3.
    (1) An importer or his agent, regardless of whether the importer is 
the owner of the foreign- or U.S.-manufactured shipping devices, may 
apply to a port director of Customs at one of the importer's chiefly 
utilized Customs ports or the port within which the importer's or 
agent's recordkeeping center is located for permission to have such 
shipping devices arriving from Canada or Mexico released without entry 
and payment of duty at the time of arrival and without the devices being 
serially numbered or marked. Application may be filed in only one port. 
Although no particular format is specified for the application, it must 
contain the information enumerated in paragraph (b)(2) of this section. 
Any duty which may be due on these shipping devices shall be tendered 
and paid cumulatively at the time specified in an approved application, 
which may be either before or after the arrival of the shipping devices 
in the U.S. (such as, at the time a contract, purchase order or lease 
agreement is issued).
    (2) The application shall:
    (i) Describe the types of shipping devices covered, their 
classification under the Harmonized Tariff Schedule of the U.S. (HTSUS), 
their countries of origin, and whether and to whom required duty was 
paid for them or when it will be paid for them, including duties for 
repair and modifications to such shipping devices while outside the 
U.S.;
    (ii) Identify the intended ports where it is anticipated the 
shipping devices will be arriving and departing the U.S., as well as the 
particular movements and conveyances in which they are intended to be 
utilized;
    (iii) Describe the applicant's proposed program for accounting for 
and reporting these shipping devices;
    (iv) Identify the reporting period (which shall in no event be less 
frequent than annual), as well as the payment period within which 
applicable duty and fees must be tendered (which shall in no event 
exceed 90 days following the close of the related reporting period);
    (v) Describe the type of inventory control and recordkeeping, 
including the specific records, to be maintained to support the reports 
of the shipping devices; and
    (vi) Provide the location in the United States, including the name 
and address, where the records supporting the reports will be retained 
by law and will be made available for inspection and audit upon 
reasonable notice. (The records supporting the reports of the shipping 
devices must be kept for a period of at least 3 years from the date such 
reports are filed with the port director.)
    (3) The application shall be filed along with a continuous bond 
containing the conditions set forth in Sec. 113.66(c) of this chapter. 
If the application is approved by the port director and the conditions 
set forth in the application or of the bond are violated, the port 
director may issue a claim for liquidated damages equal to the domestic 
value of the container. If the domestic value exceeds the amount of the 
bond, the claim for liquidated damages will be equal to the amount of 
the bond.
    (4) The port director receiving the application shall evaluate the 
program proposed to account for, report and maintain records of the 
shipping devices. The port director may suggest amendments to the 
applicant's proposal. The port director shall notify the applicant in 
writing of his decision on the application within 90 days of its 
receipt, unless this period is extended for good cause and the applicant 
is so informed in writing. Approval of the application by the port 
director with whom it is filed shall be binding on all Customs ports 
nationwide.
    (5) If the decision is to deny the application, in whole or in part, 
the port director shall specify the reason for the denial in a written 
reply, and inform the applicant that such denial may be appealed to the 
Assistant Commissioner, Office of Field Operations, Customs 
Headquarters, within 21 days of its date. The Assistant Commissioner's 
decision shall be issued, in writing,

[[Page 107]]

within 30 days of the receipt of the appeal, and shall constitute the 
final Customs determination concerning the application.
    (6) If the application is approved, an importer may later apply to 
amend his application to add or delete particular types of shipping 
devices listed in the application in which the procedures set forth in 
the application may be utilized. If a requested amendment to an approved 
application should be denied, or if an approved application should be 
revoked, in whole or in part, by the port director, the procedures 
described in paragraph (b)(5) of this section shall apply.
    (7) Application for and approval of a reporting program shall not 
limit or restrict the use of other alternative means for obtaining the 
release of holders, containers and shipping devices.
    (c) In the case of serially numbered holders or containers of United 
States manufacture for which free clearance under subheading 9801.00.10, 
Harmonized Tariff Schedule of the United States, is claimed, the owner 
shall place thereon the following markings:
    (1) 9801.00.10, unless the holder or container has permanently 
attached thereto the manufacturer's metal tag or plate showing, among 
other things, the name and address of the manufacturer who is located in 
the United States.
    (2) The name of the owner, either positioned as indicated in the 
example below, or elsewhere conspicuously shown on the holder or 
container.
    (3) The serial number assigned by the owner, which shall be one of 
consecutive numbers and not to be duplicated. For example: 9801.00.10 * 
* * Zenda * * * 2468.
    (d)(1) In the case of serially numbered holders or containers of 
foreign manufacture, other than those provided for in paragraph (d)(2) 
of this section, for which free clearance under the second provision in 
subheading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, the owner 
shall place thereon the following markings:
    (i) 9803.00.50.
    (ii) The district and port code numbers of the port of entry, the 
entry number, and the last two digits of the fiscal year of entry 
covering the importation of the holders and containers on which duty was 
paid.
    (iii) The name of the owner, either positioned as indicated in the 
example below, or elsewhere conspicuously shown on the holder or 
container.
    (iv) The serial number assigned by the owner, which shall be one of 
consecutive numbers and not to be duplicated. For example: 9803.00.50 * 
* * 10-1-366-63 * * * Zenda * * * 2468.
    (2) In the case of substantial holders or containers of either U.S. 
or foreign manufacture, specially designed and equipped to facilitate 
the carriage of goods by one or more modes of transport without 
intermediate reloading, each having a gross mass rating of at least 
18,120 kilograms, for which duty-free entry is requested under either 
the first or the second proviso in subheading 9803.00.50, HTSUS (19 
U.S.C. 1202), is claimed, only the following clear, conspicuous and 
durable markings are required to be on the container:
    (i) The identity of the owner or operator of the container.
    (ii) The serial number assigned by the owner or operator of the 
container, which shall be one of consecutive numbers and shall not be 
duplicated.
    (e) The prescribed markings shall be clear and conspicuous, that is, 
they shall appear on an exposed side of the holder or container in 
letters and figures of such size as to be readily discernible. The 
markings will be stricken out or removed when the holders or containers 
are taken out of service or when ownership is transferred, except that 
appropriate changes may be made if a new owner wishes to use the holders 
and containers under this procedure.
    (f) The owner shall keep adequate records open to inspection by 
Customs officers, which shall show the current status of the serially 
numbered holders and containers in service and the disposition made of 
such holders and containers taken out of service.
    (g) Nothing in this procedure shall be deemed to affect:
    (1) The requirements for outward or inward manifesting of such 
holders or containers. The manifests will show for each holder or 
container its markings as provided for herein.

[[Page 108]]

    (2) The requirements of the Department of Commerce on exportation 
with respect to the filing of ``Shipper's Export Declaration,'' Form 
7525-V.
    (3) The treatment of articles covered herein under the coastwise 
laws of the United States, with particular reference to section 883, 
Title 46, United States Code.
    (h) If the holder or container and its contents are to move in bond 
or under cover of a TIR carnet (see part 114 of this chapter) from the 
port of arrival intact, the holder or container shall appear on the 
inward foreign manifest so as to be related to the cargo contained 
therein and will be released under this procedure at a subsequent port. 
If the holder or container is to move in bond or under cover of a TIR 
carnet from the port of arrival not intact with its contents, the holder 
or container may appear on the inward foreign manifest separate from and 
not related to the cargo contained therein and will be released under 
this procedure at the port of arrival before it moves forward and will 
not appear on the in-bond document.
    (i) A continuous bond containing the conditions set forth in 
Sec. 113.66 of this chapter shall be filed with the port director. If 
the conditions are violated the port director shall issue a claim for 
liquidated damages equal to the domestic value of the holder or 
container established in accordance with section 606, Tariff Act of 
1930, as amended (19 U.S.C. 1606). If the domestic value exceeds the 
amount of the bond the claim for liquidated damages will be equal to the 
amount of the bond.

[T.D. 56542, 30 FR 15143, Dec. 8, 1965, as amended by T.D. 71-70, 36 FR 
4485, Mar. 6, 1971; T.D. 84-213, 49 FR 41165, Oct. 19, 1984; T.D. 86-13, 
51 FR 4164, Feb. 3, 1986; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 
96-20, 61 FR 7989, Mar. 1, 1996; T.D. 97-82, 62 FR 51769, Oct. 3, 1997; 
T.D. 99-64, 64 FR 43265, Aug. 10, 1999]

                        Articles for Institutions



Sec. 10.43  Duty-free status.

    (a) The port director may, at his discretion, require appropriate 
proof of duty-free status for articles for institutions claimed to be 
exempt from duty under subheadings 9810.00.05, 9810.00.15, 9810.00.25, 
9810.00.30, 9810.00.40, 9810.00.45, 9810.00.50, 9810.00.55, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202).
    (b) Appropriate proof may be a copy of the charter or other evidence 
of the character of the institution for the use of which the articles 
are imported.

[T.D. 85-123, 50 FR 29953, July 23, 1985, as amended by T.D. 89-1, 53 FR 
51249, Dec. 21, 1988]



Sec. 10.46  Articles for the United States.

    Pursuant to subheadings 9808.00.10 and 9808.00.20, books, 
engravings, and other articles therein enumerated, which are imported by 
authority or for the use of the United States or for the use of the 
Library of Congress, shall be admitted free of duty upon the written 
request of the head of the bureau or executive department concerned.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 67-108, 32 FR 6392, Apr. 
25, 1967; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 97-82, 62 FR 
51769, Oct. 3, 1997]



Sec. 10.47  [Reserved]

                              Works of Art



Sec. 10.48  Engravings, sculptures, etc.

    (a) Invoices covering works of art claimed to be free of duty under 
subheadings 9702.00.00 and 9703.00.00, HTSUS, shall show whether they 
are originals, replicas, reproductions, or copies, and also the name of 
the artist who produced them, unless upon examination the Customs 
officer is satisfied that such statement is not necessary to a proper 
determination of the facts.
    (b) The following evidence shall be filed in connection with the 
entry: A declaration in the following form by the artist who produced 
the article, or by the seller, shipper or importer, showing whether it 
is original, or in the case of sculpture, the original work or model, or 
one of the first twelve castings, replicas, or reproductions made from 
the original work or model; and in the case of etchings, engravings, 
woodcuts, lithographs, or prints made by other hand-transfer processes, 
that they were printed by hand from hand-etched, hand-drawn, or hand-
engraved plates, stones, or blocks:

    I, --------, do hereby declare that I am the producer, seller, 
shipper or importer of certain works of art, namely -------- covered by

[[Page 109]]

the annexed invoice dated --------; that any sculptures or statuary 
included in that invoice are the original works or models or one of the 
first twelve castings, replicas, or reproductions made from the 
sculptor's original work or model; and that any etchings, engravings, 
woodcuts, lithographs, or prints made by other hand-transfer processes 
included in that invoice were printed by hand from hand-etched, hand-
drawn, or hand-engraved plates, stones, or blocks.

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

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



Sec. 10.49  Articles for exhibition; requirements on entry.

    (a) There shall be filed in connection with the entry of works of 
art and other articles claimed to be free of duty under Chapter 98, 
Subchapter XII, Harmonized Tariff Schedule of the United States (HTSUS), 
a declaration by a qualified officer of the institution in sufficient 
detail to demonstrate entitlement to entry as claimed, and a bond on 
Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter. Claim for free entry under Chapter 98, 
Subchapter XII may be made for articles of the character described 
therein which have been previously entered under any other provision of 
law and the entry amended accordingly upon compliance with the 
requirements of this section, provided the articles have not been 
released from Customs custody.
    (b) The port director may require a copy of the charter or other 
evidence of the character of the institution for which the articles are 
imported, and may also require the production of the original of any 
order given by such society or institution to any importing agent or 
dealer for such articles. The society or institution shall file, within 
6 months after the date of filing the entry, any document or proof 
demanded by the port director in connection with the entry.
    (c) Articles entered under subheading 9812.00.20, HTSUS, may be 
transferred from one institution to another upon an application in 
writing in the case of each transfer describing the articles and stating 
the name of the institution to which transfer is to be made, provided 
the sureties to the bond assent in writing under seal or a new bond is 
filed. No entry or withdrawal shall be required for such a transfer.
    (d) If any of the articles accorded free entry under Chapter 98, 
Subchapter XII shall be sold, offered or exposed for sale, transferred, 
or used in any manner contrary to the provisions of the regulations in 
this part, within 5 years after the date of entry under such part, the 
amount of the duties shall be collected immediately by the director of 
the port of entry and deposited as duties. If the articles are exported 
or destroyed under Customs supervision within such 5-year period, the 
liability under the bond shall be treated as terminated.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, 
Oct. 19, 1984; T.D. 89-1, 53 FR 51249, Dec. 21, 1988; T.D. 92-85, 57 FR 
40605, Sept. 4, 1992]



Sec. 10.50  [Reserved]



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

    When painted, colored, or stained glass windows or parts thereof, 
are claimed free of duty under subheading 9810.00.10, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202), the port director may, 
at his discretion, require appropriate proof that the importation was 
designed by, and produced by or under the direction of, a professional 
artist, and that it is for the use of an institution established solely 
for religious purposes.

[T.D. 85-123, 50 FR 29953, July 23, 1985, as amended by T.D. 89-1, 53 FR 
51250, Dec. 21, 1988]



Sec. 10.53  Antiques.

    (a) Articles accompanying a passenger and entitled to entry under 
the passenger's declaration and entry, or

[[Page 110]]

articles entered under an informal entry which are claimed to be free of 
duty under subheading 9706.00.00, Harmonized Tariff Schedule of the 
United States (HTSUS), may be admitted free of duty upon the execution 
of a declaration on the face of the entry provided that the passenger or 
person filing the informal entry is the owner of the articles and that 
they are for his personal use and not for sale or other commercial use 
and provided the Customs officer concerned is satisfied that the 
articles are of the requisite age.
    (b) Antiques of the age prescribed by subheading 9706.00.00, HTSUS, 
or admitted under the provisions of paragraph (e) of this section, shall 
be admitted free of duty though repaired or renovated. If, however, an 
antique has been repaired with a substantial amount of additional 
material, without changing the original form or shape, the original and 
added portions shall be appraised and reported as separate entities and 
the basis for such report shall be plainly indicated on the invoice by 
the appraiser. In such cases duty shall be assessed on the portion 
added. If the repairs consist of an addition to an article of a feature 
which changes it substantially from the article originally produced, or 
if the antique portion has otherwise been so changed as to lose its 
identity as the article which was in existence prior to the time 
prescribed in subheading 9706.00.00, HTSUS, the entire article shall be 
excluded from free entry under subheading 9706.00.00, HTSUS.
    (c) Except for furniture admitted under the provisions of paragraph 
(e) of this section, furniture claimed to be free of duty under 
subheading 9706.00.00, Harmonized Tariff Schedule of the United States 
(HTSUS) may be entered for consumption at any port of entry within the 
customs territory of the United States. Furniture as used in this 
section of the regulations is defined as `movable articles of 
convenience or decoration for use in furnishing a house, apartment, 
place of business or accommodation'. This definition embraces most 
articles claimed to be free of duty as antiques.
    (d) A claim for the free entry of an article under subheading 
9706.00.00, HTSUS on the basis of antiquity may be made on the entry, or 
filed after entry at any time prior to liquidation of the entry, 
provided the article has not been released from Customs custody or it 
has been found upon examination before such release to be described in 
subheading 9706.00.00, HTSUS.
    (e) Antique articles otherwise prohibited entry by the Endangered 
Species Act of 1973 (16 U.S.C. 1521, et seq.) may be entered if:
    (1) The article is composed in whole or in part of any endangered or 
threatened species listed in 50 CFR 17.11 or 17.12,
    (2) The article is not less than 100 years of age,
    (3) The article has not been repaired or modified with any part of 
any such endangered or threatened species, on or after December 28, 
1973,
    (4) The article is entered at a port designated in Sec. 12.26 of 
this chapter,
    (5) A Declaration for Importation or Exportation of Fish or Wildlife 
(USFWS Form 3-177) is filed at the time of entry with the port director 
who will forward the form to the U.S. Fish and Wildlife Service, and
    (6) The importer meets the requirements of paragraph (a) of this 
section.
    (f) The additional duty imposed by additional U.S. Note 2, Chapter 
97, HTSUS, shall apply to any article which is imported for sale and 
claimed, either at the time of entry or at a later date, to be free of 
duty under subheading 9706.00.00, HTSUS, if such article is later found 
to be unauthentic in respect of the antiquity claimed as a basis for 
such free entry, unless the claim under subheading 9706.00.00, HTSUS, is 
withdrawn in writing before the examination of the article for the 
purpose of appraisement or classification has begun.
    (g) The additional duty provided for in additional U.S. Note 2, 
Chapter 97, HTSUS shall not be assessed if the importer established by 
evidence satisfactory to the port director that the article was not 
imported for sale. In the case of any article imported in a passenger's 
baggage or entered under an informal entry, the Customs officer 
concerned may accept the statement of

[[Page 111]]

the owner that the article was not imported for sale if he is satisfied 
of the truth of such statement.

[28 FR 14663, Dec. 31, 1963]

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



Sec. 10.54  Gobelin and other hand-woven tapestries.

    Pursuant to subheading 5805.00.10, Harmonized Tariff Schedule of the 
United States, Gobelin tapestries produced in the Manufacture Nationale 
des Gobelins factories at Paris and Beauvais under the direction and 
control of the French Government, and other hand-woven tapestries, shall 
be accorded free entry if of a kind fit only for use as wall hangings, 
and valued over $215 per square meter.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20066, May 
29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988]

                             Vegetable Oils



Sec. 10.56  Vegetable oils, denaturing; release.

    (a) Olive, palm-kernel, rapeseed, sunflower, and sesame oil shall be 
classifiable under subheadings 1509.10.20, 1509.10.40, 1509.90.20, 
1509.90.40, 1510.00.20, 1512.19.20, 1513.29.00, 1514.90.10, 1514.90.50, 
1515.50.00, Harmonized Tariff Schedule of the United States, if 
denatured abroad or under Customs supervision after importation but 
before release from Customs custody, at the request and expense of the 
importer, by a formula prescribed by Headquarters, U.S. Customs Service, 
or if by their method of production abroad they are rendered unfit for 
use as food or for any but mechanical or manufacturing purposes.
    (b) Each cask or package of oil claimed to have been before 
importation denatured or otherwise rendered unfit for use as food or for 
any but mechanical or manufacturing purposes shall be sampled and tested 
by an appraising officer.
    (c) Formulas prescribed by Headquarters, U.S. Customs Service, 
except proprietary mixtures, will be circulated to all Customs officers 
and will appear as abstracts of United States Customs Service decisions 
published in the weekly Customs Bulletins. Proprietary mixtures approved 
by the Commissioner of Customs will not be published but appropriate 
notice of their approval will be given to all Customs officers.
    (d) The Headquarters, U.S. Customs Service, will from time to time 
prescribe additional formulas, and will consider any formula for special 
denaturing that may be submitted.
    (e) The port director may, if he deems it advisable, require an 
importer requesting permission to use any authorized denaturant to 
submit to the appraiser an adequate sample of such denaturant, in order 
that the appraiser may report to the port director whether or not such 
denaturant is suitable for rendering the oil unfit for use as food or 
for any but mechanical or manufacturing purposes.
    (f) No such oil shall be released free of duty until the appraiser 
shall have made a special report that it has been properly denatured.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 66-182, 31 FR 11416, 
Aug. 30, 1966; T.D. 87-75, 52 FR 20066, May 29, 1987; T.D. 89-1, 53 FR 
51250, Dec. 21, 1988]

                        Potatoes, Corn, or Maize



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

    Claim for classification as seed potatoes under subheading 
0701.10.00, as seed corn (maize) under subheading 1005.10., HTSUS, shall 
be made at the time of entry. Such classification shall be allowed only 
if the articles are white or Irish potatoes, or maize or corn, imported 
in containers and if, at the time of importation, there is firmly 
affixed to each container an official tag supplied by the government of 
the country in which the contents were grown, or an agency of such 
government. The tag shall bear a certificate to the effect that the 
specified contents of the container were grown, and have been approved, 
especially for use as seed. The tag shall also bear a number or other 
symbol identifying the potatoes or corn in the container with an

[[Page 112]]

inspection record of the foreign government or its agency on the basis 
of which the certificate was issued.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51250, Dec. 
21, 1988]

                             Bolting Cloths



Sec. 10.58  Bolting cloths; marking.

    (a) As a prerequisite to the free entry of bolting cloth for milling 
purposes under subheading 5911.20.20, Harmonized Tariff Schedule of the 
United States, the cloth shall be indelibly marked from selvage to 
selvage at intervals of not more then 10.16 centimeters with ``bolting 
cloth expressly for milling purposes'' in block letters 7.62 centimeters 
in height. Bolting cloths composed of silk imported expressly for 
milling purposes shall be considered only such cloths as are suitable 
for and are used in the act or process of grading, screening, bolting, 
separating, classifying, or sifting dry materials, or dry materials 
mixed with water, if the water is merely a carrying medium.
    (b) Bolting cloths not marked in the manner above indicated at the 
time of importation may be so marked by the importers in public stores 
under the supervision of customs officers.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20066, May 
29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988]

            Withdrawal of Supplies and Equipment for Vessels



Sec. 10.59  Exemption from customs duties and internal-revenue tax.

    (a) A vessel shall not be considered to be actually engaged in the 
foreign trade, or in trade between the Atlantic and Pacific ports of the 
United States, or between the United States and its possessions, or 
between Hawaii and any other part of the United States or between Alaska 
and any other part of the United States, as the case may be, for the 
purpose of withdrawing supplies free of duty and internal-revenue tax 
pursuant to section 309(a), Tariff Act of 1930, as amended, unless it 
is--
    (1) Operating on a regular schedule in a class of trade which 
entitles it to the privilege;
    (2) Actually transporting passengers or merchandise to or from a 
foreign port, a port on the opposite coast of the United States, or 
between a port in a possession of the United States and a port in the 
United States or in another of its possessions, or between Hawaii and 
any other part of the United States or between Alaska and any other part 
of the United States;
    (3) Departing in ballast (without cargo or passengers) from one port 
for another, domestic or foreign, for the purpose of lading passengers 
or cargo at the port of destination for carriage in a class of trade 
specified in section 309(a), Tariff Act of 1930, as amended, for which 
class of trade the vessel is suitable and substantially ready for 
service with necessary fittings, outfit, and equipment already installed 
on its departure in ballast, and from which it is not diverted prior to 
carriage of passengers or cargo in such trade. A written declaration of 
the owner or agent of the vessel may be required in connection with the 
withdrawal, certifying to the vessel's suitableness and substantial 
readiness with necessary fittings, outfit, and equipment already 
installed on its departure in ballast for service in a class of trade 
specified in section 309 and agreeing to notify the port director if it 
is laid up or diverted from such class of trade prior to the carriage of 
cargo or passengers in such trade.
    (b) A withdrawal of articles may not be made under section 309, 
Tariff Act of 1930, as amended, for use on a trial or test trip of a 
vessel preparatory to its actually engaging in trades.
    (c) The classes of articles which may be withdrawn as provided for 
by section 309, Tariff Act of 1930, as amended, include the containers 
in which the articles are withdrawn and laden even though for tariff 
purposes the containers are classifiable separately from their contents, 
except unusual containers within the purview of General Rule of 
Interpretation 5, Harmonized Tariff Schedule of the United States 
(HTSUS).
    (d) For the purpose of allowing the privileges of section 309, 
Tariff Act of 1930, as amended, to aircraft as provided for therein, an 
aircraft shall be

[[Page 113]]

deemed to be a vessel within the meaning of each provision of this 
section and of Secs. 10.60 through 10.64 which may be applied to 
aircraft.
    (e) A documented vessel with a fisheries license endorsement and 
foreign fishing vessels of 5 net tons or over may be allowed to withdraw 
distilled spirits (including alcohol), wines, and beer conditionally 
free under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309), 
if the port director is satisfied from the quantity requested, in the 
light of (1) whether the vessel is employed in substantially continuous 
fishing activities, and (2) the vessel's complement, that none of the 
withdrawn articles is intended to be removed from the vessel in, or 
otherwise returned to, the United States without the payment of duty or 
tax. Such withdrawal shall be permitted only after the approval by the 
port director of a special written application, in triplicate, on 
Customs Form 5125, of the withdrawer, supported by a bond on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter executed by the withdrawer. Such application shall be filed 
with Customs Form 7501 or 7512, as the case may be. The original and the 
triplicate copy of the application, after approval, shall be stamped 
with the withdrawal number and date thereof and shall be returned to the 
withdrawer for use as prescribed below. Approval of each such 
application shall be subject to the condition that the original and the 
triplicate copy shall be presented thereafter by the withdrawer or the 
vessel's master to the port director within 24 hours (excluding 
Saturday, Sunday, and holidays) after each subsequent arrival of the 
vessel at a Customs port or station and that an accounting shall be made 
at the time of such presentation of the disposition of the articles 
until the port director is satisfied that all of them have been consumed 
on board, or landed under Custom's supervision, and takes up the 
original application. (The withdrawer shall retain the triplicate copy 
as evidence of consumption on board or landing under Customs 
supervision.) The approval shall be subject to the further conditions 
that any such withdrawn article remaining on board while the vessel is 
in port shall be safeguarded in the manner and to such extent as the 
district director for the port or place of arrival shall deem necessary 
and that failure to comply with the conditions upon which a 
conditionally free withdrawal is approved shall subject the total 
quantity of withdrawn articles to the assessment and collection of an 
amount equal to the duties and taxes that would have been assessed on 
the entire quantity of supplies withdrawn had such supplies been 
regularly entered, or withdrawn, for consumption.
    Exemption from internal-revenue tax on distilled spirits, alcohol, 
wines, and beer removed from any internal-revenue bonded warehouse, 
industrial alcohol premises, bonded wine cellar, or brewery; and 
drawback on taxpaid distilled spirits or wines removed from an export 
storage room, or on taxpaid beer removed from a brewery (or place of 
storage elsewhere), for use as supplies on vessels under section 309, 
Tariff Act of 1930, as amended, are governed by regulations of the 
Internal Revenue Service.
    (f) Pursuant to section 309(d) of the Tariff Act of 1930, as 
amended, the Department of Commerce has found and advised the Secretary 
of the Treasury of the foreign countries which allow privileges to 
aircraft registered in the United States substantially reciprocal to 
those described in sections 309 and 317 of the Tariff Act of 1930, as 
amended. Advices also have been received of changes and limitations of 
privileges allowed. In accordance with these advices, Treasury decisions 
are issued extending to the aircraft of foreign countries free 
withdrawal privileges reciprocal to those found by the Secretary of 
Commerce to be extended by those countries to aircraft registered in the 
United States or making changes in such privileges on the basis of new 
findings. Listed below by countries are the Treasury decisions issued 
pursuant to such findings which are currently in effect:

------------------------------------------------------------------------
                                       Treasury    Exceptions if any, as
              Country                Decision(s)          noted--
------------------------------------------------------------------------
Abu Dhabi..........................        95-45
Argentina..........................    54925 (1)  Applicable only as to
                                           92-20   aircraft equipment,
                                                   spare parts, and
                                                   supplies.
Australia..........................    54747 (1)  Not applicable to
                                                   ground equipment.

[[Page 114]]

 
Austria............................        80-68
Bahamas............................    52798 (3)
Bahrain............................        95-45
Belgium............................    52846 (2)
Benin..............................   71-215,93-
Bermuda............................    49944 (4)
Brazil.............................    53281 (2)
Canada.............................       69-149  Not applicable to
                                          69-245   ground equipment
                                                   during period May 1
                                                   to September 16,
                                                   1969, inclusive.
Chile..............................   66-128 (2)
China*.............................        82-91
Colombia...........................   70-107 (1)
Costa Rica.........................    53658 (1)
Cuba...............................       81-198  Applicable only as to
                                                   aircraft supplies.
Czechoslovakia.....................   70-107 (1)
Denmark............................    51966 (3)
Dominican Republic.................    54522 (1)
Ecuador............................    52510 (4)
Egypt..............................         74-3
                                          85-141
El Salvador........................    54675 (1)
Finland............................   69-120 (2)
France.............................    67-96 (1)  Not applicable to
                                                   tobacco products
                                                   under section 317 of
                                                   the tariff act. Not
                                                   applicable to ground
                                                   equipment.
Federal Republic of Germany........       69-150  Not applicable to
                                                   ground equipment.
Greece.............................    54847 (1)
Guyana.............................        78-28
Honduras...........................       71-154
Iceland............................   67-265 (1)
India..............................    55155 (1)
Indonesia..........................        90-61  Applicable only as to
                                                   aviation fuels and
                                                   lubricants.
Iran...............................       75-254
Ireland............................    55291 (1)
Israel.............................    52831 (3)
Italy..............................       69-223  Not applicable to
                                                   ground equipment.
Ivory Coast........................       71-215
Jamaica............................       70-250
Japan..............................   53550 (1),  Not applicable to
                                           88-45   ground support
                                                   equipment as of
                                                   August 1, 1986
Jordan.............................       74-102
Kenya..............................       71-102  Applicable only as to
                                                   aircraft fuels and
                                                   lubricants.
Lebanon............................    53902 (1)
Luxembourg.........................        89-77  Applicable only as to
                                                   aviation fuels.
Mexico.............................    54506 (5)
Morocco............................       75-254
Netherlands........................    52494 (2)
Netherlands Antilles...............       71-211
New Zealand........................        73-52  Not applicable to
                                                   ground equipment.
Nicaragua..........................    54640 (1)
Norway.............................    51966 (3)
Oman...............................        95-45
Pakistan...........................    55416 (1)
Panama.............................    55453 (1)
Peru...............................    52911 (2)
Poland.............................       72-153
Portugal...........................   68-107 (1)  Not applicable to
                                                   ground equipment.
Qatar..............................        95-45
Republic of Korea..................       71-140
Republic of the Philippines........       71-197
Romania............................        75-35
Saudi Arabia.......................  73-307, 92-
                                              68
Senegal............................       71-215
Singapore..........................        93-25
South Africa.......................       69-162  Not applicable to
                                                   ground equipment.
Spain..............................    54522 (2)
Sweden.............................    51966 (3)
Switzerland........................        56047
Taiwan.............................  70-107 (1),  Not applicable to
                                           82-91   ground equipment.
Tanzania...........................       71-102  Applicable only as to
                                                   aircraft fuels and
                                                   lubricants.
Thailand...........................  71-138, 89-
                                               6
Trinidad and Tobago................    56441 (1)
Turkey.............................         89-7
Uganda.............................       71-102  Applicable only as to
                                                   aircraft fuels and
                                                   lubricants.
Union of Soviet Socialist Republics   67-123 (1)
United Kingdom.....................       69-176  Not applicable to
                                                   ground equipment.
Venezuela..........................    55425 (1)
Yugoslavia.........................       71-138
Zambia.............................         89-5
 
------------------------------------------------------------------------

*See also Taiwan

[28 FR 14663, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 10.59, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 10.60  Forms of withdrawals; bond.

    (a) Withdrawals from warehouse shall be made on Customs Form 7501. 
Each withdrawal shall contain the statement prescribed for withdrawals 
in Sec. 144.32 of this chapter and all of the statistical information as 
provided in Sec. 141.61(e) of this chapter. Withdrawals from continuous 
Customs custody elsewhere than in a bonded warehouse shall be made on 
Customs Form 7512, except as provided for by paragraph (h) of this 
section. When a withdrawal of supplies or other articles is made which 
may be used on a vessel while it is proceeding in ballast to another 
port as provided for by Sec. 10.59(a)(3), a notation of this fact shall 
be made on the withdrawal and the name of the other port given if known.

[[Page 115]]

    (b) If the withdrawal is made by other than the principal on the 
warehouse or rewarehouse entry, as the case may be, the assent of such 
principal shall be endorsed on the withdrawal, unless the principal has 
otherwise authorized such withdrawal in writing.
    (c) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter shall be taken when the withdrawal 
from warehouse is made by a person other than the principal on the 
warehouse or rewarehouse entry, as provided for in paragraph (b) of this 
section.
    (d) Except as otherwise provided in Sec. 10.62b, relating to 
withdrawals from warehouse of aircraft turbine fuel to be used within 30 
days of such withdrawal as supplies on aircraft under Sec. 309, Tariff 
Act of 1930, as amended, when the supplies are to be laden at a port 
other than the port of withdrawal from warehouse, they shall be 
withdrawn for transportation in bond to the port of lading. Three copies 
of the manifest on Customs Form 7512, in addition to six copies of the 
withdrawal on Customs Form 7501, shall be required. The procedure shall 
be the same as that prescribed in Sec. 144.37 of this chapter (the six 
copies of Customs Form 7501 taking the place of the entry copies of 
Customs Form 7512).
    (e) No bond shall be required in the case of war vessels.
    (f) Unless transfer is permitted under the provisions of paragraph 
(h) of this section, when articles are withdrawn from continuous Customs 
custody elsewhere than in a bonded warehouse for lading at the port of 
withdrawal, the procedure provided for in Sec. 18.25 of this chapter 
shall be followed, except that the bond required shall be on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter. Unless transfer is permitted under the provisions of 
paragraph (h) of this section, when articles are withdrawn from 
continuous Customs custody elsewhere than in a bonded warehouse for 
lading at another port, the procedure set forth in Sec. 18.26 of this 
chapter shall be followed, except that the withdrawal when filed shall 
be supported by a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter. There shall be such 
examination of the articles as may be necessary to satisfy the port 
director that they are subject to the privileges of section 309, Tariff 
Act of 1930, as amended, and that the value and quantity declared for 
them are correct.
    (g) A withdrawal under Sec. 10.59(e) shall be supported by a bond on 
Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter.
    (h) If a request is made for permission to transfer supplies or 
stores from one vessel to another which would be entitled to withdraw 
them free of duty and tax under section 309 or 317, Tariff Act of 1930, 
as amended, the port director in his discretion may permit the articles 
to be so transferred under Customs supervision under a permit on Customs 
Form 3171 in lieu of a formal withdrawal under the pertinent statute. In 
such a case, the pertinent statute shall be indicated by an endorsement 
made on the permit by the port director.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17445, 
July 2, 1973; T.D. 73-312, 38 FR 30882, Nov. 8, 1973; T.D. 84-213, 49 FR 
41166, Oct. 19, 1984; T.D. 95-81, 60 FR 52295, Oct. 6, 1995; T.D. 96-18, 
61 FR 6777, Feb. 22, 1996]



Sec. 10.61  Withdrawal permit.

    Upon the filing of the withdrawal and the execution of the bond, 
when required, the port director shall issue a permit on Customs Form 
7501 or 7512.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 95-81, 60 FR 52295, Oct. 
6, 1995]



Sec. 10.62  Bunker fuel oil.

    (a) Withdrawal under section 309, Tariff Act of 1930, as amended (19 
U.S.C. 1309). Except as otherwise provided in Sec. 10.62b, relating to 
withdrawals from warehouse of aircraft turbine fuel to be used within 30 
days of such withdrawal as supplies on aircraft under section 309, 
Tariff Act of 1930, as amended (19 U.S.C. 1309), when all the bunker 
fuel oil in a Customs bonded tank is intended only for lading duty free 
as supplies on vessels under section 309 at the port where the tank is 
located, delivery of the oil, by Customs bonded carrier, cartman, or 
lighterman (including bonded pipelines), under withdrawals

[[Page 116]]

on Customs Form 7501, either single or blanket, may be made without the 
presence of a Customs officer. When a blanket withdrawal is filed and a 
partial release takes place, the partial release procedure set forth in 
Sec. 19.6(d) of this chapter shall be followed for each partial release. 
However, each abstract copy of Customs Form 7501 shall include the 
following additional information:
    (1) Type of oil withdrawn.
    (2) Number or other identification of sales order therefor.
    (3) Name of bonded carrier, date it received oil.
    (4) Receipt signed by master or other person in charge of delivering 
conveyance identified by number, or name, and if Customs bonded 
lighterman or cartman, by the carrier's license number.
    (5) Name and location of vessel obtaining oil.
    (6) Quantity and identification of each type of oil received with 
date, and signature and title of receiving officer. If all the oil is 
laden on the receiving vessel at the port of withdrawal via pipeline 
from the bonded storage tank, paragraphs (a) (3) and (4) of this section 
shall be deemed to be inapplicable.
    (b) If a blanket free withdrawal of bunker fuel oil is filed, to 
comply with Bureau of the Census requirements the withdrawal on Customs 
Form 7501 shall be endorsed ``Estimated Withdrawals'' and limited to the 
aggregate quantity and value of fuel oil which it is estimated will be 
physically removed from Customs bond during the calendar month in which 
the withdrawal is filed for lading on vessels entitled to duty-free 
vessel supplies under section 309 of the Tariff Act of 1930, as amended.
    (c)(1) As an incident of the delivery of fuel oils classifiable at 
different rates of duty to a vessel or vessels under section 309 of the 
tariff act, the port director may, when necessary to enable a supplier 
to meet fuel specifications, permit the blending of the oils in the 
delivering conveyance or in other suitable facilities after withdrawal 
from the bonded tanks, upon the condition that, to the extent of the 
amount of oil withdrawn classifiable at the higher rate, duty at the 
higher rate will be paid on any portion of the blended fuel oil not 
delivered within a reasonable time to a qualified vessel. The withdrawer 
shall be required to file a withdrawal for consumption for the excess 
quantity withdrawn. For example, if the quantity withdrawn consists of 
1,500 barrels of bunker C fuel oil classifiable at the rate of one-
eighth cent per gallon and 500 barrels of diesel oil classifiable at the 
rate of one-fourth cent per gallon but only 1,400 barrels of the blended 
oil are actually laden as fuel supplies on qualified vessels, 
withdrawals for consumption are required for 500 barrels of diesel oil 
at the higher rate and for 100 barrels of bunker C fuel oil at the lower 
rate.
    (2) Delivering transferer receipt. The receipt of the delivering 
carrier on a copy of Customs Form 7501 for fuel oil which has been 
blended under paragraph (c)(1) of this section with components 
classifiable at different rates of duty shall show, for each warehouse 
entry number and withdrawal number involved, the types and quantity of 
oil received.
    (d) Fuel oil withdrawn as vessel supplies at one port may be laden 
at another port on a vessel or vessels entitled to the free withdrawal 
privileges of section 309 of the tariff act, under procedures prescribed 
in this section, provided the movement to the receiving vessel or 
vessels is under the bond of a qualified carrier as described in 
Sec. 18.1(a) of this chapter. In such cases, the provisions of 
Sec. 10.60(d) of this chapter shall be deemed inapplicable.
    (e) If a vessel not entitled to duty-free withdrawal of supplies 
from Customs bonded warehouses under section 309 of the Tariff Act of 
1930, as amended, should be supplied with fuel oil from a Customs bonded 
tank described in paragraph (a) of this section because of an emergency, 
a duty paid withdrawal therefor shall be filed on the first day that the 
customhouse is open for the general transaction of business after the 
day on which the oil is laden on the using vessel. If there should be 
willful or repeated instances of late filing of a duty-paid withdrawal 
in such cases, the port director shall require a duty-paid withdrawal to 
be filed prior to the removal of fuel oil from the bonded tank.

[[Page 117]]

    (f) When the procedures prescribed in this section are followed, 
representatives of the port director will from time to time verify 
various withdrawals against all pertinent records, including financial 
records, of the withdrawers, deliverers, and receivers of the oil. The 
withdrawer shall maintain all pertinent records relating to the 
withdrawal, delivery, or receipt of the fuel oil for 5 years from the 
date of liquidation of the related fuel oil entry.

[T.D. 69-99, 34 FR 6520, Apr. 16, 1969, as amended by T.D. 79-159, 44 FR 
31967, June 4, 1979; T.D. 82-204, 47 FR 49367, Nov. 1, 1982; T.D. 95-81, 
60 FR 52295, Oct. 6, 1995; T.D. 96-18, 61 FR 6777, Feb. 22, 1996; T.D. 
96-51, 61 FR 31395, June 20, 1996; T.D. 99-33, 64 FR 16347, Apr. 5, 
1999]



Sec. 10.62a  Blanket withdrawals for certain merchandise.

    (a) Generally. Under this section, a blanket withdrawal on Customs 
Form 7501 may be filed for all or part of any merchandise withdrawn from 
warehouse except fuel oil covered under Sec. 10.62, for use on qualified 
vessels. Such a withdrawal shall be made only for lading on board 
vessels at the port where the warehouse is located. The procedure for 
the blanket withdrawal and partial releases after the initial release 
are the same as those provided in Sec. 19.6(d) of this chapter, except 
as noted in paragraph (b).
    (b) Partial release. A partial release on Customs Form 7501, in 
duplicate, or in triplicate if an extra copy is required by the port 
director, shall be presented to the warehouse proprietor and placed in 
the proprietor's permit file folder under the partial release procedure 
set forth in Sec. 19.6(d) of this chapter, as merchandise is needed for 
delivery to a using vessel. The original of the partial release document 
shall accompany the merchandise for delivery to the Customs officer who 
will supervise lading, or if a Customs officer does not physically 
supervise lading, to the master of the vessel. The original shall be 
returned to the proprietor for record purposes after the Customs officer 
or master of the vessel, as appropriate, has certified lading of the 
goods described in the document.

[T.D. 82-204, 47 FR 49367, Nov. 1, 1982, as amended by T.D. 95-81, 60 FR 
52295, Oct. 6, 1995]



Sec. 10.62b  Aircraft turbine fuel.

    (a) General. Unless otherwise provided, aircraft turbine fuel 
withdrawn from a Customs bonded warehouse for use under section 309, 
Tariff Act of 1930, as amended (19 U.S.C. 1309), may be commingled with 
domestic or other aircraft turbine fuel after such withdrawal only if 
such commingling is approved by the appropriate Customs official for the 
port where the commingling occurs. The appropriate Customs official may 
approve such commingling if the fueling system in which the commingling 
will occur contains adequate physical safeguards to prevent the possible 
unauthorized entry into the Customs territory of the bonded fuel. Such 
commingled fuel must be accounted for in the same 24-hour period in 
which it was commingled and must be--
    (1) Exported within that 24-hour period;
    (2) Used under section 309 within that 24-hour period; or
    (3) Entered or withdrawn for consumption, with duty deposited, as 
required under the applicable regulations (see part 144 of this 
chapter).
    (b) Duty-free withdrawal from warehouse of aircraft turbine fuel 
under section 557(a), Tariff Act of 1930, as amended (19 U.S.C. 
1557(a)). Turbine fuel intended for use as supplies on aircraft under 
section 309, Tariff Act of 1930, as amended, and withdrawn from a 
Customs bonded warehouse shall be entitled to the privileges provided 
for in section 309 if an amount equal to or exceeding the quantity of 
such fuel is established, as provided for in paragraph (c) of this 
section, to have been used on aircraft qualifying for the privileges 
provided for in section 309 within 30 days after the withdrawal of the 
fuel from the Customs bonded warehouse. Withdrawal of aircraft turbine 
fuel under this paragraph shall be in accordance with the procedures in 
Secs. 10.59 through 10.64, unless otherwise provided in this section. 
Withdrawals

[[Page 118]]

under this paragraph shall be annotated with the term ``Withdrawal under 
19 CFR 10.62b(b)''.
    (c) Establishment of use of fuel by qualifying aircraft. (1) The 
person withdrawing aircraft turbine fuel under paragraph (b) of this 
section must establish that an aircraft qualifying for the privileges 
provided for in section 309, Tariff Act of 1930, as amended, used fuel 
in an amount equal to or exceeding the quantity of the fuel withdrawn 
that is not entered and upon which duties are not paid by submitting to 
Customs, at the port where the bonded warehouse entry was filed, within 
the time provided in paragraph (d) of this section, either--
    (i) Records prepared in the normal course of business effecting the 
transfer to identified (e.g., by aircraft company name, flight number, 
flight origin and destination, and date of flight) aircraft of fuel in 
an amount equal to or exceeding the quantity of the fuel withdrawn which 
is not entered and on which duties are not paid and objective evidence 
that the aircraft to which the fuel was transferred were actually used 
in trade qualifying for the privileges provided in section 309, Tariff 
Act of 1930, as amended; or
    (ii) A certification (documentary or electronic) that:
    (A) All of the fuel withdrawn was intended for use on aircraft 
entitled to the privileges provided for in section 309;
    (B) Within 30 days of the date of withdrawal from warehouse, an 
amount of fuel equal to or exceeding the quantity of the fuel withdrawn 
which is not entered and on which duties are not paid was transferred as 
supplies to aircraft entitled to the privileges provided for in section 
309;
    (C) All of the aircraft into which fuel is loaded hereunder were 
used in a trade provided for in section 309; and
    (D) The person making the certification possesses evidence 
(documentary or electronic) available for Customs inspection at a named 
place which supports each of the above statements.
    (2) Upon request by Customs, the person who submits the 
certification provided for in paragraph (c)(1) of this section shall 
promptly provide the evidence required to support the claim for 
treatment under this section (including the records described in 
Sec. 10.62b(c)(1)(i)) and 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

[[Page 119]]

quantity of fuel so withdrawn in excess of the quantity of fuel 
established to have been used on qualifying aircraft within 30 days of 
withdrawal, as provided for in paragraph (e) of this section;
    (2) The failure to timely file the evidence or certification 
establishing such use of the fuel which is not entered and on which 
duties are not paid, as provided for in paragraph (c) of this section; 
or
    (3) The failure to promptly provide the evidence required to support 
the claim for treatment under paragraph (b) of this section, upon 
request by Customs, as provided for in paragraph (c)(2) of this section.
    (g) Blanket withdrawals. Blanket withdrawals, as provided for in 
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.

[T.D. 96-18, 61 FR 6778, Feb. 22, 1996, as amended by T.D. 99-33, 64 FR 
16347, Apr. 5, 1999]

[[Page 120]]



Sec. 10.63  Landing of supplies and stores from receiving vessel in the United States.

    Supplies or stores laden on a vessel duty and tax free under section 
309, Tariff Act of 1930, as amended, may be landed under Customs 
supervision under proper permit, the same as if they had been laden in a 
foreign country. See Sec. 4.39 of this chapter. Except when transfer to 
another vessel entitled to the free withdrawal privilege is permitted 
under the original withdrawal under section 309, Tariff Act of 1930, as 
amended, the landed articles shall be treated as an importation from a 
foreign country.

[28 FR 14663, Dec. 31, 12963, as amended by T.D. 89-1, 53 FR 51250, Dec. 
21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997]



Sec. 10.64  Crediting or cancellation of bonds.

    (a) Except as stated below, a bond on Customs Form 301, containing 
the bond conditions set forth in Sec. 113.62 of this chapter may be 
credited or canceled in respect of such articles upon the vessel's 
departure from the port of lading in a class of trade or business 
entitling the articles to exemption from duty and tax under the statute. 
The withdrawer shall cause the merchandise to be delivered to the lading 
vessel, and shall provide such evidence of lading as required by the 
port director within 30 days after lading, except as provided in this 
section. If the vessel is not operated by the United States and proceeds 
in ballast from the port where the articles are laden to another port to 
lade passengers or cargo for carriage in a class of trade specified in 
section 309, Tariff Act of 1930, as amended, the bond may be credited or 
canceled upon the filing with the director of the port of withdrawal 
within 3 months after the date of withdrawal of a proper declaration as 
prescribed below. The declaration shall be executed by one of the 
following who has knowledge of the facts:
    (1) The operations manager or port captain for the vessel on which 
the articles are laden but not a representative of the supplier.
    (2) The master or other officer of the vessel on which the articles 
are laden. The declaration shall be in substantially the following form:

I,______________________________________________________________________
(Operations manager, port captain, master, or other officer) of the 
vessel ------------ declare that I have knowledge of the facts set forth 
herein, and that upon the lading of the articles described below covered 
by withdrawal No. --------, filed at ----------------(Name of port), the 
vessel then proceeded in ballast to ----------------(Name of port) to 
lade cargo or passengers; that the vessel was suitable for service in 
the class of trade checked below with fittings, outfit, and equipment 
for such trade already installed when it so departed in ballast; and 
that upon arrival it proceeded to engage in the carriage of cargo or 
passengers in such trade, except as stated below:
________________________________________________________________________
                                        (If no exception, note ``None'')

1. Foreign Trade.
2. Trade between Atlantic and Pacific ports of the United States, when 
          such trade is not prohibited by coastwise laws.
3. Trade between the United States and any of its possessions, when such 
          trade is not prohibited by coastwise laws.
4. Trade between Alaska or Hawaii and any other part of the United 
          States, when such trade is not prohibited by coastwise laws.

    Description of articles:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
                                                        (Name and title)

    (b) A declaration as to the intended business or trade of a vessel 
may, in the discretion of the port director, be accepted in lieu of a 
declaration prescribed in paragraph (a) of this section when the amount 
of duty or tax, or both, involved in a single lading is less than $100.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, 
Oct. 19, 1984]



Sec. 10.64a  [Reserved]



Sec. 10.65  Cigars and cigarettes.

    (a) Imported cigars and cigarettes in bonded warehouse or otherwise 
in Customs custody, and such articles manufactured with the use of 
imported materials in a bonded manufacturing warehouse of class 6, may 
be withdrawn under section 317, Tariff Act of 1930, as amended, for 
consumption beginning beyond the 3-mile limit or international boundary, 
as the case

[[Page 121]]

may be, (1) on vessels actually engaged in the foreign, intercoastal, or 
noncontiguous territory trade within the purview of Sec. 10.59(a); (2) 
on vessels departing from the port where the withdrawal is made directly 
for a foreign port, a port on the opposite coast, or a port in one of 
the possessions of the United States; or (3) on vessels of war or other 
governmental activity.
    (b) The privilege shall not be granted to vessels stationed in 
American waters for an indefinite period without sailing schedules, nor 
shall it be granted to aircraft of foreign registry of a country for 
which there is not in effect a finding and advice by the Department of 
Commerce under section 309(d), Tariff Act of 1930, as amended, that such 
country allows privileges to aircraft registered in the United States 
substantially reciprocal to those described in section 317, Tariff Act 
of 1930, as amended. See section 10.59(f).
    (c) With the following additions and exceptions, the same procedure 
shall be followed as in the case of withdrawals under section 309(a), 
Tariff Act of 1930, as amended.
    (1) No bond shall be required in the case of vessels operated by the 
United States Government.
    (2) When a shipping case containing cigars and cigarettes is made up 
of a number of units, each in a separate package, such units may be 
withdrawn separately, provided each unit is marked and numbered for 
identification and contains not less than 250 cigars or 1,000 
cigarettes. In the case of imported cigars and cigarettes so packed, 
only one unit from each shipping case shall be opened for examination, 
unless the port director shall deem it necessary for the protection of 
the revenue to examine a greater quantity. Imported tobacco products on 
which the duty or internal-revenue tax has been paid may not be 
withdrawn under section 317, Tariff Act of 1930, as amended, with a 
drawback of such duty or internal-revenue tax.
    (3) When all the units in such shipping case are not to be withdrawn 
at the same time or for use on the same vessel, a blanket withdrawal may 
be filed for the entire case in lieu of a separate withdrawal for each 
unit. In such event, the withdrawal shall be retained by the warehouse 
proprietor until delivery receipts are obtained for the entire quantity 
covered by the withdrawal, provided the total period of time prior to 
delivery to the using vessel or aircraft does not exceed 5 years. A bond 
on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter, when required, shall be filed at the time 
of or prior to the removal of any of the merchandise from the warehouse 
for delivery to the vessel on which it is to be used.
    (4) Merchandise for which blanket withdrawals are filed shall be 
stored in a separate room or enclosure in a bonded warehouse under 
separate locks, and the merchandise clearly marked to show that it has 
been withdrawn. If, at the time of any such inventory, any merchandise 
is missing and not properly accounted for, duties shall be paid thereon 
before any further withdrawals are permitted.
    (5) The declaration of use, when required, shall include a statement 
that consumption of the articles covered by the withdrawal did not begin 
until the withdrawing vessel or aircraft had proceeded beyond the 3 mile 
limit or the international boundary.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 67-193, 32 FR 11764, 
Aug. 16, 1967; T.D. 70-73, 35 FR 5400, Apr. 1, 1970; T.D. 82-204, 47 FR 
49368, Nov. 1, 1982; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 89-1, 
53 FR 51250, Dec. 21, 1988]

                 Articles Exported for Exhibition, Etc.



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

    (a) In connection with the entry of articles, including livestock or 
other animals, exported for temporary exhibition and returned and 
claimed to be exempt from duty under subheading 9801.00.50 or 
9801.00.60, Harmonized Tariff Schedule of the United States (HTSUS), 
there shall be filed:
    (1) A certificate of exportation on Customs Form 3311;
    (2) A declaration of the importer on Customs Form 4455 for articles 
of either domestic or foreign origin; and
    (3) In the case of animals of foreign origin taken abroad for 
exhibition in

[[Page 122]]

connection with a circus or menagerie, a copy of an inventory of these 
animals filed prior to their leaving the country with the director of 
the port of their departure.
    (b) If it is shown to be impracticable to produce the certificate of 
exportation required under paragraph (a)(1) of this section, the port 
director may accept other satisfactory evidence of exportation, or may 
take a bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter to secure the production of such 
certificate or other evidence.
    (c) Articles claimed to be exempt from duty under subheading 
9801.00.50 or 9801.00.60, Harmonized Tariff Schedule of the United 
States (HTSUS) (19 U.S.C. 1202), may be returned free of duty without 
formal entry and without regard to the requirements of paragraph (a) or 
(b) of this section if:
    (1) Prior to the exportation of such articles, an application on 
Customs Form 4455 (accompanied by an appropriate inventory, when 
required by law or by the port director) is filed with a declaration 
thereon that:
    (i) Any right to drawback of Customs duties with respect to that 
shipment was waived;
    (ii) Any internal revenue tax due has been paid and no refund 
thereof will be sought; and
    (iii) The merchandise was identified, registered, and exported in 
accordance with the regulations set forth in Secs. 10.8(e), (g), (h), 
and (i), governing the exportation of articles sent abroad for repairs, 
and
    (2) Upon return, a duplicate Customs Form 4455 (with accompanying 
inventory where one was required) is filed.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 74-242, 39 FR 33794, 
Sept. 20, 1974; T.D. 75-235, 40 FR 44319, Sept. 26, 1975; T.D. 78-153, 
43 FR 23709, June 1, 1978; T.D. 82-224, 47 FR 53727, Nov. 29, 1982; T.D. 
84-213, 49 FR 41166, Oct. 19, 1984; T.D. 87-75, 52 FR 20066, May 29, 
1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 94-1, 58 FR 69470, 
Dec. 30, 1993]



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

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

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

    (b) If it is shown to be impracticable to produce the certificate of 
exportation required by paragraph (a)(1) of this section, the port 
director may accept other satisfactory evidence of exportation. The port 
director may take a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter to secure the 
subsequent production of any of the evidence or documents required by 
paragraph (a) of this section which are not available at the time of 
entry.
    (c) If, prior to the exportation of articles claimed to be exempt 
from duty under subheading 9801.00.40, Harmonized Tariff Schedule of the 
United

[[Page 123]]

States (HTSUS), an application on Customs Form 4455 (accompanied by an 
appropriate inventory when, in the discretion of the port director, such 
inventory is deemed necessary) was filed, such articles may be returned 
for the account of the exporter free of duty without formal entry, 
without regard to the requirements of paragraphs (a) and (b) of this 
section, upon the filing of the duplicate Customs Form 4455 (with 
accompanying inventory, if one was required), and a declaration of the 
ultimate consignee in substantially the form set forth in paragraph 
(a)(3) of this section.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 74-242, 39 FR 33794, 
Sept. 20, 1974; T.D. 84-213, 49 FR 41166, Oct. 19, 1984; T.D. 89-1, 53 
FR 51250, Dec. 21, 1988; T.D. 94-1, 58 FR 69470, Dec. 30, 1993; T.D. 97-
82, 62 FR 51769, Oct. 3, 1997]

Theatrical Effects, Motion-Picture Films, Commercial Travelers' Samples, 
                           and Tools of Trade



Sec. 10.68  Procedure.

    (a) Theatrical scenery, properties, and effects, motion-picture 
films (including motion-picture films taken aboard a vessel for 
exhibition only during an outward voyage and returned for the same 
purpose during an inward voyage on the same or another vessel), 
commercial travelers' samples, and professional books, implements, 
instruments, and tools of trade, occupation, or employment (see 
Sec. 148.53 of this chapter), of domestic or foreign origin, taken 
abroad may be returned without formal entry and without payment of duty 
if an exportation voucher from a carnet, when applicable, or an 
application on Customs Form 4455 was filed, and the merchandise was 
identified as set forth in Sec. 10.8, before exportation of the 
articles. Articles exported under cover of an A.T.A. carnet (where the 
carnet serves as the control document) may, in accordance with this 
paragraph, be returned without entry or the payment of duty. If Customs 
Form 4455 is utilized, commercial travelers' samples, professional 
books, implements, instruments, and tools of trade, occupation, or 
employment may be returned with either an informal entry or a 
declaration on Customs Form 3299; theatrical scenery, properties, and 
effects and motion-picture films may be returned only with an informal 
entry. When articles other than those exported by mail or parcel post 
are examined and registered at one port and exported through another 
port, the port director may require proof of exportation in those cases 
where the carnet or Customs Form 4455 does not reflect that these 
articles were exported under Customs supervision. In the case of 
commercial travelers' samples taken abroad for temporary use, except 
where exportation involves certification of a carnet, port directors may 
waive examination of the samples at the time of exportation. When 
motion-picture films are to be taken aboard a vessel for exhibition only 
during an outward voyage and are to be returned for the same purpose 
during an inward voyage on the same or another vessel, port directors 
may waive examination and supervision at the time of exportation. When 
theatrical scenery, properties, and effects are taken abroad in sealed 
carload lots by rail for temporary use, the cars must be sealed by U.S. 
Customs officers for entry at any Canadian or Mexican port where U.S. 
Customs officers are stationed. Application and examination before the 
time of exportation is waived if a Customs Form 4455 is filed with the 
U.S. Customs officer in the appropriate Canadian or Mexican port, and 
that officer examines the articles before they are released from foreign 
customs custody by the foreign customs officer.
    (b) When any such articles are to be returned to the United States 
from a contiguous foreign country in which a United States Customs 
officer is stationed, the articles may be presented to such officer with 
the duplicate copy of the application for examination and comparison 
with the descriptive list. Upon completion of such examination, the 
packages containing the articles shall be corded and sealed or forwarded 
in cars sealed by Customs officers and shall be manifested in the same 
manner as personal baggage. Articles so treated shall be released upon 
arrival in the United States and removal of the seals by Customs 
officers.
    (c) When commercial travelers' samples consisting of raw cotton are 
taken

[[Page 124]]

to and returned from Canada, the application on Customs Form 4455 shall 
be executed in triplicate, two copies thereof to be returned to the 
traveler for surrender to the Customs officer on the return of the 
samples from Canada.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69-146, 34 FR 9801, June 
25, 1969; T.D. 75-41, 40 FR 6646, Feb. 13, 1975; T.D. 82-49, 47 FR 
12160, Mar. 22, 1980; T.D. 82-116, 47 FR 27261, June 24, 1982]



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

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

                            Animals and Birds

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



Sec. 10.70  Purebred animals for breeding purposes; certificate.

    (a) In connection with the entry of purebred animals for breeding 
purposes under subheading 0101.11.00, Harmonized Tariff Schedule of the 
United States (HTSUS), no claim for free entry shall be allowed in 
liquidation of the entry until the port director has received from the 
Department of Agriculture a certificate that the animal is purebred of a 
recognized breed and duly registered in a book of record recognized by 
the Secretary of Agriculture for that breed. Importers are required by 
regulation of the Department of Agriculture to make application for a 
certificate of pure breeding to the U.S. Department of Agriculture, 
Animal and Plant Health Inspection Service, Veterinary Services, on ANH 
Form 17-338 before the animal will be examined as required by 9 CFR 
151.7. Application for the certificate must be executed by the owner 
agent, or importer and filed at a port of entry designated in the 
regulations of the Department of Agriculture for the importation of 
animals (9 CFR 92.3). However, applications for certificates for dogs 
(other than dogs for handling livestock regulated under 9 CFR 92.18) and 
cats may be filed either at a designated port of entry or at any other 
port where Customs entry is made. The regulations of the Department of 
Agriculture prescribing the requirements for the issuance of 
certificates of pure breeding provide that all animals imported under 
such regulations must be accompanied to the port at which examination is 
to be made by certificates of pedigree and transfer of ownership in 
order that identification may be accomplished, and that, if such animals 
are moved from such port prior to the presentation of such certificates 
and transfers, such action shall constitute a waiver of any further 
claim to certification under such regulations.
    (b) In the cases of cats and dogs arriving at Canadian border ports, 
Customs officers and employees are hereby authorized and directed to 
make the examination required by such regulations of the Department of 
Agriculture. Customs officers and employees are also authorized and 
directed to make such examinations at the ports of New York and Boston, 
provided the dog or cat is brought into the United States by a 
passenger. At all airports, Customs officers shall make the examination 
of dogs and cats, whether or not accompanied by the owners, if there is 
no inspector of the Department of Agriculture stationed there or on duty 
at the time of arrival.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 68-154, 33 FR 8730, June 
14, 1968; T.D. 78-99, 43 FR 13060, Mar. 29, 1978; T.D. 87-75, 52 FR 
20066, May 29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988]

[[Page 125]]



Sec. 10.71  Purebred animals; bond for production of evidence; deposit of estimated duties; stipulation.

    (a) The animal may be released from Customs custody upon the 
furnishing by the importer of a bond on Customs Form 301, containing the 
bond conditions set forth in Sec. 113.62 of this chapter for the 
production within 6 months of (1) a certificate of pure breeding issued 
by the Department of Agriculture, and (2) the declaration required by 
Sec. 10.70(a) submitted in letter form if such declaration was not filed 
at the time of entry. The release of the animal from customs custody 
requires the presentation of the pedigree certificate and evidence of 
transfer of ownership in accordance with the regulations of the 
Department of Agriculture mentioned in Sec. 10.70(b).
    (b) Charges against the bond shall be canceled only upon the 
production of the required evidence or on payment of duties.
    (c) In cases where the pedigree certificate and evidence of transfer 
of ownership have been presented in accordance with the regulations of 
the Department of Agriculture, the importer, if he so elects, may, in 
lieu of giving a bond, deposit estimated duties and file a stipulation 
with the port director within 10 days after the date of entry to produce 
the declaration and certificate of pure breeding within 6 months from 
the date of entry, whereupon the liquidation of the entry shall be 
suspended. (See Sec. 113.42 of this chapter.)
    (d) If the pedigree certificate and evidence of transfer of 
ownership were not presented in accordance with such regulations of the 
Department of Agriculture, a deposit of estimated duties, in addition to 
the regular entry bond, shall be required.
    (e) When a passenger arriving in the United States with one or more 
dogs or cats and with the required certificates of pedigree and 
transfers of ownership in his possession furnishes a properly executed 
declaration as required by Sec. 10.70(a) along with an application to 
the Department of Agriculture on ANH Form 17-338 for a certificate of 
pure breeding, the entry of the animal(s) as duty-free under subheading 
0106.00.50, Harmonized Tariff Schedule of the United States (HTSUS), may 
be made on the passenger's baggage declaration if the value of the 
animals does not exceed $500. In such case the entry shall be supported 
by a bond on Customs Form 301, containing the bond conditions set forth 
in Sec. 113.62 of this chapter for the production within 6 months of a 
certificate of pure breeding. The bond shall be without surety or cash 
deposit unless the port director on the basis of information before him 
finds that a bond with surety or a cash deposit is necessary to protect 
the revenue.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 68-79, 33 FR 4461, Mar. 
13, 1968; T.D. 68-154, 33 FR 8731, June 14, 1968; T.D. 74-227, 39 FR 
32015, Sept. 4, 1974; T.D. 78-99 43 FR 13060, Mar. 29, 1978; T.D. 84-
213, 49 FR 41166, Oct. 19, 1984; T.D. 87-75, 52 FR 26142, July 13, 1987; 
T.D. 89-1, 53 FR 51250, Dec. 21, 1988; T.D. 93-66, 58 FR 44130, Aug. 19, 
1993]



Secs. 10.72-10.73  [Reserved]



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

    When domestic animals for which free entry is to be claimed under 
subheading 9801.00.90, Harmonized Tariff Schedule of the United States, 
have strayed across the boundary line, they may be returned, together 
with their offspring, without entry if brought back within 30 days; 
otherwise entry shall be required. The owner of any such animal shall 
report its return to the nearest Customs office and hold it for such 
inspection and treatment as may be deemed necessary by a representative 
of the Animal and Plant Health Inspection Service of the Department of 
Agriculture. Any such arrival found not to have been so reported or held 
shall be subject to seizure and forfeiture pursuant to 18 U.S.C. 545.

[T.D. 87-75, 52 FR 20067, May 29, 1987, as amended by T.D. 89-1, 53 FR 
51250, Dec. 21, 1988]



Sec. 10.75  Wild animals and birds; zoological collections.

    When wild animals or birds are claimed to be free of duty under 
subheading 9810.00.70, Harmonized Tariff Schedule of the United States 
(HTSUS), (19 U.S.C. 1202), the port director may, at his discretion, 
require appropriate proof that the animals or

[[Page 126]]

birds were specially imported pursuant to negotiations conducted prior 
to importation for the delivery of animals or birds of a named species 
meeting agreed specifications of reasonable particularity and that they 
are intended at the time of importation for public exhibition in a 
collection maintained for scientific or educational purposes and not for 
sale or for use in connection with any enterprise conducted for profit. 
The fact that an animal or bird may have been sent on approval shall not 
preclude free entry under subheading 9810.00.70, HTSUS, when it is 
actually accepted as a part of the zoological collection and so 
exhibited.

[T.D. 85-123, 50 FR 29953, July 23, 1985, as amended by T.D. 89-1, 53 FR 
51250, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997]



Sec. 10.76  Game animals and birds.

    (a) The following classes of live game animals and birds may be 
admitted free of duty for stocking purposes under the provisions of 
subheading 9817.00.70 without reference to the United States Customs 
Service, if the requirements of the Fish and Wildlife Service, 
Department of the Interior, have been complied with.

                                 animals

    1. Cervidae, commonly known as deer and elk.
    2. Leporidae, commonly known as rabbits.
    3. Sciuridae, commonly known as squirrels.

                                  birds

    1. Anatidae, commonly known as ducks and geese.
    2. Gallinae, commonly known as turkeys, grouse, pheasants, 
partridges, and quail.
    3. Otididae, commonly known as bustards.
    4. Tinamidae, commonly known as tinamous.

    (b) Application for the free entry of other live animals or birds 
under subheading 9817.00.70, Harmonized Tariff Schedule of the United 
States shall be referred to the United States Customs Service for 
consideration. Animals imported for fur-farming purposes shall not be 
admitted free of duty under that paragraph.
    (c) [Reserved]
    (d) Game animals and birds killed in foreign countries by residents 
of the United States, if not imported for sale or other commercial 
purposes, may be admitted free of duty without entry, if the person has 
no merchandise requiring a written declaration upon the filing of a 
declaration on U.S. Fish and Wildlife Service Form 3-177, Declaration 
for Importation or Exportation of Fish or Wildlife. No bond or cash 
deposit to insure the destruction or exportation of the plumage of such 
birds shall be required.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35475, 
Aug. 16, 1982; T.D. 86-118, 51 FR 22515, June 20, 1986; T.D. 89-1, 53 FR 
51250, Dec. 21, 1988; T.D. 90-78, 55 FR 40166, Oct. 2, 1990]



Sec. 10.77  [Reserved]

                     Products of American Fisheries



Sec. 10.78  Entry.

    (a) No entry shall be required for fish or other marine products 
taken on the high seas by vessels of the U.S. or by residents of the 
U.S. in undocumented vessels owned in the U.S. when such fish or other 
products are brought into port by the taking vessel or are transferred 
at sea to another fishing vessel of the same fleet and brought into 
port.
    (b) An American fishery, within the meaning of Subchapter XV of 
Chapter 98, Harmonized Tariff Schedule of the United States, is defined 
as a fishing enterprise conducted under the American flag by vessels of 
the United States on the high seas or in foreign waters in which such 
vessels have the right by treaty or otherwise, to take fish or other 
marine products and may include a shore station operated in conjunction 
with such vessels by the owner or master thereof.
    (c) The employment of citizens of a foreign country by an American 
fishery is permissible but the purchase by an American fishery of fish 
or other marine products taken by citizens of a foreign country on the 
high seas or in foreign waters will subject such fish or other marine 
products to treatment as foreign merchandise.
    (d) Products of an American fishery shall be entitled to free entry 
although prepared, preserved, or otherwise changed in condition, 
provided the work is done at sea by the master or crew of the fishery or 
by persons employed by and under the supervision of the master or owner 
of the fishery.

[[Page 127]]

Fish (except cod, haddock, hake, pollock, cusk, mackerel, and swordfish) 
the product of an American fishery landed in a foreign country and there 
not further advanced than beheaded, eviscerated, packed in ice, frozen 
and with fins removed, shall be entitled to free entry, whether or not 
such processing is done by the American fishery. Products of an American 
fishery prepared or preserved on the treaty coasts of Newfoundland, 
Magdalen Islands, or Labrador, as such coasts are defined in the 
Convention of 1818 between the United States and Great Britain, shall be 
entitled to free entry only if the preparation or preservation is done 
by an American fishery.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20067, May 
29, 1987; T.D. 89-1, 53 FR 51250, Dec. 21, 1988]



Sec. 10.79  [Reserved]

                          Salt For Curing Fish



Sec. 10.80  Remission of duty; withdrawal; bond.

    Imported salt in bond may be used in curing fish taken by vessels 
licensed to engage in the fisheries, and in curing fish in the shores of 
the navigable waters of the U.S., whether such fish are taken by 
licensed or unlicensed vessels, and upon proof that the sale has been 
used for either of such purposes, the duties on the same shall be 
remitted. (Section 313(e), Tariff Act of 1930, 19 U.S.C. 1313(e)). 
Imported salt entered for warehouse may be withdrawn under bond for use 
in curing fish. Upon proof that the salt has been so used, the duties 
thereon shall be remitted. In no case shall the quantity of salt 
withdrawn exceed the reasonable requirements of the case. Withdrawal 
shall be made on Customs Form 7501. Each withdrawal shall contain the 
statement prescribed for withdrawals in Sec. 144.32 of this chapter. 
When the withdrawal is made by a person other than the importer of 
record, a bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter for the production of proof of 
proper use shall be filed. Upon acceptance of the bond, a withdrawal 
permit shall be issued on Customs Form 7501.

[T.D. 89-1, 53 FR 51251, Dec. 21, 1988, as amended by T.D 95-81, 60 FR 
52295, Oct. 6, 1995]



Sec. 10.81  Use in any port.

    (a) Salt withdrawn under bond for use in curing fish on the shores 
of navigable waters may be used for such purpose at any port, but the 
evidence of use in such cases shall be submitted through the director of 
the port where the salt was used.
    (b) If desired, salt to be used in curing fish on shore at another 
port than that in which it is warehoused in bond may be withdrawn under 
a transportation entry and shipped in bond to the other port at which it 
is to be used, where it may be entered on Customs Form 7501 which shall 
show withdrawal of the salt for use in curing fish. Thereupon, and upon 
the filing of a bond on Customs Form 301, containing the bond conditions 
set forth in Sec. 113.62 of this chapter, such salt may be used without 
being sent to a bonded warehouse or public store. In such a case the 
proof of use shall be filed at the latter port.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, 
Oct. 19, 1984; T.D. 87-75, 52 FR 20067, May 29, 1987; T.D 95-81, 60 FR 
52295, Oct. 6, 1995]



Sec. 10.82  [Reserved]



Sec. 10.83  Bond; cancellation; extension.

    (a) If it shall appear to the satisfaction of the port director 
holding the bond referred to in Sec. 10.80, that the entire quantity of 
salt covered by the bond has been duly accounted for, either by having 
been used in curing fish or by the payment of duty, the port director 
may cancel the charges against the bond. The port director may require 
additional evidence in corroboration of the proof of use produced.
    (b) On application of the person making the withdrawal, the period 
of the bond may be extended 1 year so as to allow the salt to be used 
during the time of extension in curing fish with the same privileges as 
if used during the original period.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87-75, 52 FR 20067, May 
29, 1987]

[[Page 128]]

                           Automotive Products



Sec. 10.84  Automotive vehicles and articles for use as original equipment in the manufacture of automotive vehicles.

    (a)(1) Certain motor vehicles and motor vehicle equipment are 
eligible for duty-free entry as proclaimed by the President under the 
Automotive Products Trade Act of 1965. The articles designated for such 
duty-free treatment are defined in General Note 3(c)(iii), HTSUS (19 
U.S.C. 1202). Specifically, such articles are those designated [as 
``Free (B)''] in the ``Special'' subcolumn in Chapter 87, HTSUS, and 
must qualify as ``Canadian articles'' as defined in General Note 
3(c)(iii)(A)(1), HTSUS. To claim exemption from duty under the 
Automotive Products Trade Act of 1965, an importer must establish, to 
the satisfaction of the appropriate Customs officer, that the article in 
question qualifies as a ``Canadian article'' for purposes of General 
Note 3(c)(iii)A)(1), HTSUS. The Customs officer may accept as 
satisfactory evidence a certificate executed by the exporter as set 
forth in paragraph (b) of this section, subject to any verification he 
may deem necessary. Alternatively, the Customs officer may determine 
that under the circumstances of the importation a certificate is 
unnecessary.
    (2) Under the United States-Canada Free-Trade Agreement and 
implementing legislation (Pub. L. 100-449, 102 Stat. 1851) a 
manufacturer of motor vehicles may elect to average, over its 12-month 
financial year, its calculation of the value-content requirement for 
vehicles in establishing its eligibility for tariff preference. 
Requirements for averaging are set forth in Sec. 10.310 and 10.311.
    (b)(1) When all materials used at any stage in the production of the 
imported article are wholly obtained or produced in Canada or the United 
States, or both, a certificate in the following form may be accepted as 
evidence that the commodity is a ``Canadian article'':

    All materials contained in the product covered by the ---------- 
(Describe the invoice, bill of lading, or other document or statement 
identifying the shipment) annexed or appended to this certificate of 
Canadian origin at the time it was subscribed were wholly obtained or 
produced in Canada or the United States, or both. No materials other 
than those which were wholly obtained or produced in Canada or the 
United States, or both, were incorporated into this product or any of 
its components at any stage of production or in the production of any 
intermediate product used at any stage in the chain of production in 
Canada or the United States, or both.

    (2) When any material used at any stage in the production of an 
imported article or any of its components is not wholly obtained or 
produced in Canada or the United States, or both, a certificate in the 
following form may be accepted as evidence that the commodity is 
nevertheless a ``Canadian article'':

    The product covered by the ---------- (Describe the invoice, bill of 
lading, or other document or statement identifying the shipment) annexed 
or appended to this certificate of Canadian origin at the time it was 
subscribed is an originating good so as to be a Canadian article. There 
were used in its production in Canada ---------- (Description sufficient 
for tariff classification of the materials, and number of units) of 
third country materials of which the price paid was ---------- per unit 
of quantity, plus ---------- which represents all costs incurred in 
transporting the materials to the location of the producer and the 
duties, taxes, and brokerage fees on the materials, if such costs were 
not included in the price paid.

    (3) If such Customs officer is satisfied that the revenue will be 
protected adequately thereby, he may accept in lieu of the certificate 
specified in paragraph (b)(2) of this section a certificate in the 
following form when the merchandise covered thereby has been produced 
with third country material but is an originating good under a specific 
rule of origin for the merchandise:

    The product covered by the ---------- (Describe the invoice, bill of 
lading, or other document or statement identifying the shipment) annexed 
or appended to this certificate of Canadian origin at the time it was 
subscribed is an originating good so as to be a Canadian article. There 
were or may have been used in its production in Canada or the United 
States, or both, materials of a third country.
    It is impractical to ascertain the exact number of units of third 
country material, if any, used in its production or the price paid (and 
other costs required to be included in the price paid) of such materials 
but to the

[[Page 129]]

best of (my) (our) (its) knowledge the materials are described 
(sufficient for tariff classification purposes) as follows: ----------.

    (4) The certificates described in paragraphs (b)(2) and (b)(3) of 
this section shall not be accepted if the statements therein make it 
evident that the importation is not a ``Canadian article'' within the 
meaning of General Note 3(c), HTSUS.
    (5) If more than one kind of article is covered by a certificate 
provided for in paragraph (b) (1), (2), or (3) of this section, the 
information required by the certificate shall be shown with respect to 
each kind. When more than one kind of material, other than originating 
material, is used in the production of an article covered by such a 
certificate, the certificate shall state the number of units, a 
description sufficient for tariff classification purposes, the price 
paid, and, if not included in the price paid, the costs incurred in 
transporting the materials to the location of the producer and duties, 
taxes and brokerage fees paid in Canada and/or the United States on the 
material, per unit of each kind of materials.
    (6) A certificate conforming to paragraph (b) (1), (2), or (3) of 
this section shall be accepted as evidence of the facts alleged therein 
only if:
    (i) There is annexed thereto a copy of the commercial invoice or 
bill of lading covering the articles or other documentary evidence which 
identifies the article to which the certificate pertains,
    (ii) The certificate is signed by the manufacturer or producer of 
the article to which it pertains, or by the person who exported the 
articles from Canada, and
    (iii) It clearly appears that such copy or other documentary 
evidence was annexed to the certificate when it was signed.
    (c) In lieu of the certification in paragraph (b) (1), (2), or (3) 
of this section, a manufacturer of motor vehicles who claims a 
preference under the United States-Canada Free-Trade Agreement and 
elects to average pursuant to Sec. 10.310(a), shall be subject to the 
requirements of Secs. 10.301 to 10.311 of this part.
    (d) When an importer makes an entry, or withdrawal from warehouse, 
for consumption of articles for use as ``original motor-vehicle 
equipment'' as that term is defined in General Note 3(c)(iii), HTSUS, he 
shall file in connection therewith his declaration that the articles are 
being imported for use as original equipment in the manufacture in the 
United States of the kinds of motor vehicles specified in the General 
Note and furnish the name and address of the motor vehicle manufacturer. 
A copy of the written order, contract, or letter of intent shall be 
attached to the importer's declaration except that if the port director 
is satisfied that a copy of the written order, contract, or letter of 
intent will be made available by the importer or ultimate consignee for 
inspection by customs officials upon request during a period of 3 years 
from the date of such entry or withdrawal from warehouse, the production 
of such documents will not be required. Proof of use need not be 
furnished.
    (e) If, after a Canadian article has been accorded the status of 
original motor-vehicle equipment, it is decided to divert the article 
from its intended use in the manufacture in the United States of motor 
vehicles, the importer or other person deciding to divert the article 
from such intended use shall give notice in writing of the decision to 
the director of the port where entry was made or where the offices of 
the importer are located and either make arrangements for its 
destruction or exportation under Customs supervision or pay duties in 
accordance with General Note 3(c)(iii)(B)(2), HTSUS. If such article is 
not destroyed or exported under Customs supervision or the duties paid, 
the article, or its value, shall be subject to forfeiture.

[T.D. 89-3, 53 FR 51765, Dec. 23, 1988, as amended by T.D. 92-8, 57 FR 
2453, Jan. 22, 1992; T.D. 93-66, 58 FR 44130, Aug. 19, 1993]

                   Master Records, And Metal Matrices



Sec. 10.90  Master records and metal matrices.

    (a) Consumption entries covering importations under subheading 
8524.99.20, HTSUS, shall be filed at a port in the Customs district in 
which the factory where the articles will be used is located.

[[Page 130]]

    (b) The invoice filed with the entry shall contain or be supported 
by a detailed statement of the cost of production, in the country where 
made, of each master record or metal matrix covered thereby.
    (c) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter shall be filed for importations 
under this section.
    (d) Entries already filed and future entries shall be liquidated in 
due course without the assessment of duty, but liability on bonds given 
with the entries shall be discontinued with respect to any article 
covered thereby only upon payment of liquidated damages in an amount 
equal to the duties which would have accrued had the master records or 
metal matrices been imported for use otherwise than in the manufacture 
of sound records for export purposes, or upon satisfactory proof that 
the master records or metal matrices obtained therefrom have been 
exported or destroyed under Customs supervision, and that all sound 
records made with the use of such articles have been exported.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41166, 
Oct. 19, 1984; T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 89-1, 53 FR 
51251, Dec. 21, 1988; T.D. 90-78, 55 FR 40166, Oct. 2, 1990; T.D. 97-82, 
62 FR 51769, Oct. 3, 1997]



Secs. 10.91-10.97  [Reserved]

                            Fluxing Material



Sec. 10.98  Copper-bearing fluxing material.

    (a) For the purpose of this section, ores usable as a flux or 
sulphur reagent, mentioned in the provision for such ores in subheading 
2603.00.00, Harmonized Tariff Schedule of the United States, shall 
include only ores which contain by weight not over 15 percent copper.
    (b) [Reserved]
    (c) There shall be filed in connection with the entry of such 
copper-bearing ores, either for consumption or warehouse, a declaration 
of the importer that the material is to be used for fluxing purposes 
only. In the case of a consumption entry, the estimated tax shall be 
deposited at the time of entry. Liquidation of entries shall be 
suspended pending proof of use for fluxing purposes as hereinafter 
provided.
    (d) Samples of the material shall be taken in accordance with the 
commercial method in effect at the plant if to be used in a bonded 
smelting warehouse, or in accordance with Secs. 151.52 through 151.55 of 
this chapter if entered for consumption, and the copper content thereof 
shall be determined by the Government chemist in accordance with the 
assay.
    (e) The management of the smelting or converting plant shall file 
with the appropriate Customs officer at the port or ports where the 
entries are to be liquidated, a statement based on its records of 
operation for each quarterly period showing for each furnace or 
converter the total quantity of material charged during each month or 
part thereof of each quarter, the total quantity of material used for 
fluxing purposes, and the quantity of imported ores used for fluxing 
purposes for which free entry was claimed under the above-mentioned 
provision, together with the copper content of such imported ores 
computed in accordance with the Government assay. If the quantity of 
ores used for fluxing purposes in any furnace or converter during any 
month or part thereof of any quarter is in excess of 25 percent of the 
charge of such furnace or converter, the quarterly statement shall be 
accompanied by an explanation of the necessity for using such quantity 
for fluxing purposes.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17445, 
July 2, 1973; T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 89-1, 53 FR 
51251, Dec. 21, 1988]

                              Ethyl Alcohol



Sec. 10.99  Importation of ethyl alcohol for nonbeverage purposes.

    (a) If claim is made by an importer other than the United States or 
a governmental agency thereof for the classification of ethyl alcohol of 
an alcoholic strength by volume of 80 percent volume or higher under 
subheading 2207.10.60, Harmonized Tariff Schedules of the United States, 
the importer or his agent shall file in connection with

[[Page 131]]

the entry a declaration that the alcohol is to be used for nonbeverage 
purposes only and whether the alcohol is to be used for fuel purposes. 
Customs shall release the alcohol for transfer, under internal revenue 
bond, to a distilled spirits plant upon deposit of estimated duty, if 
any, and without the payment of the internal revenue tax upon receipt of 
a transfer record for bulk spirits. In addition, a package gauge record 
must be submitted to Customs if the alcohol is in packages, as specified 
in subpart I of part 251, Bureau of Alcohol, Tobacco and Firearms (BATF) 
Regulations (27 CFR part 251, subpart I). The transfer shall be 
accomplished in accordance with subpart L of Part 251, Bureau of 
Alcohol, Tobacco and Firearms Regulations (27 CFR part 251, subpart L).
    (b) An appropriate BATF permit shall be filed with Customs in 
connection with the withdrawal of ethyl alcohol from Customs custody by 
the United States or any governmental agency thereof for its own use for 
nonbeverage purposes. Such permit shall be filed before release under 
the entry without the deposit of estimated duties, if any, and internal 
revenue tax, or before release in accordance with the provisions of 
Sec. 141.102(d) of this chapter. (See subpart M of part 251, Bureau of 
Alcohol, Tobacco and Firearms Regulations (27 CFR part 251, subpart M)).
    (c) The procedures for the withdrawal free of tax on the entry of 
ethyl alcohol for nonbeverage purposes from the Virgin Islands are found 
in subpart O of part 250, Bureau of Alcohol, Tobacco and Firearms 
Regulations (27 CFR part 250, subpart O).

[T.D. 89-65, 54 FR 28413, July 6, 1989]

                  United States Government Importations



Sec. 10.100  Entry, examination, and tariff status.

    Except as otherwise provided for in Secs. 10.101, 10.102, 10.104, 
141.83(d)(8), 141.102(d), or elsewhere in this chapter, importations 
made by or for the account of any agency or office of the United States 
Government are subject to the usual Customs entry and examination 
requirements. In the absence of express exemptions from duty, such as 
are contained in subheadings 9808.00.10, 9808.00.20, 9808.00.30, 
9808.00.40, 9808.00.50, 9808.00.60, 9808.00.70, or other subheadings in 
the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) 
providing for free entry, such importations are also subject to duty.

[T.D. 77-23, 42 FR 2310, Jan. 11, 1977, as amended by T.D. 89-1, 53 FR 
51251, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997]



Sec. 10.101  Immediate delivery.

    (a) Shipments entitled to immediate delivery. Shipments consigned to 
or for the account of any agency or office of the United States 
Government, or to an officer or official of any such agency in his 
official capacity, shall be regarded for purposes of these regulations 
as shipments the immediate delivery of which is necessary within the 
purview of section 448(b), Tariff Act of 1930, as amended (19 U.S.C. 
1448(b)).
    (b) Immediate delivery applications. The shipments described in the 
preceding paragraph may be released upon the filing of immediate 
delivery applications on Customs Form 3461 as set forth in subpart A of 
part 142 of this chapter. Such applications may be limited to particular 
shipments or may cover all shipments imported by the Government agency 
making the application. They may be approved for specific periods of 
time or for indefinite periods of time, provided in either case they are 
supported by carrier's certificates and stipulations as provided for in 
paragraph (c) of this section.
    (c) Carrier's certificates and stipulations. Before the release of a 
shipment under an immediate delivery permit, evidence of the right of 
the applicant to make entry for the articles shall be furnished the port 
director in accordance with the provisions of Secs. 141.11 and 141.12 of 
this chapter.
    (d) Bond. No bond shall be required in support of an immediate 
delivery application provided for in this section if a stipulation in 
the form as set forth below is filed with the port director in 
connection with the application:

I, --------, -------- (Title), a duly authorized representative of the__
________________________________________________________________________

[[Page 132]]

(Name of United States Government department or agency) stipulate and 
agree on behalf of such department or agency that all applicable 
provisions of the Tariff Act of 1930, as amended, and the regulations 
thereunder, and all other laws and regulations, relating to the release 
and entry of merchandise will be observed and complied with in all 
respects.
________________________________________________________________________
                                                             (Signature)

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

[T.D. 77-23, 42 FR 2310, Jan. 11, 1977, as amended by T.D. 87-75, 52 FR 
20067, May 29, 1987]



Sec. 10.102  Duty-free entries.

    (a) Invoice or declaration. No invoice or other declaration of the 
shipper shall be required for shipments expressly exempt from duty as 
provided in subheadings 9808.00.10, 9808.00.20, 9808.00.30, 9808.00.40, 
9808.00.50, 9808.00.60, 9808.00.70, or other subheadings in the 
Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202) 
providing for free entry. However, the importing Government agency or 
office shall present any invoice, memorandum invoice, or bill pertaining 
to the merchandise in its possession or available to it, or, if no such 
invoice or bill is available, a pro forma invoice prepared in accordance 
with Sec. 141.85 of this chapter, setting forth adequate information for 
examination and determination of the dutiable status of the merchandise. 
In addition, the port director shall only admit articles free of duty 
under subheadings 9808.00.30, 9808.00.40, 9808.00.50, HTSUS (19 U.S.C. 
1202), upon the receipt of a certificate executed in the manner and form 
described in paragraph (b) of this section.
    (b) Certification. One of the following certificates executed by a 
duly authorized officer or official of the appropriate Government agency 
or office is required for free entry of articles under subheadings 
9808.00.30, 9808.00.40, or 9808.00.50, HTSUS (19 U.S.C. 1202). The 
certificates may be printed, stamped, or typewritten on the Customs 
entry or withdrawal form, Customs Form 7501, or on a separate paper 
attached to the entry or withdrawal form filed by the Government agency 
or office, provided the certification is clearly and unmistakably 
identified with the articles covered by the entry or withdrawal.
    (1) Articles for military departments, subheading 9808.00.30, HTSUS. 
I certify that the procurement of this material constituted an emergency 
purchase of war material abroad by the Department of the (name of 
military department), and it is accordingly requested that such material 
be admitted free of duty pursuant to subheading 9808.00.30, HTSUS.

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

    (2) Articles for the Defense Logistics Agency, subheading 
9808.00.40, HTSUS. Pursuant to subheading 9808.00.40, HTSUS, I hereby 
certify that the above-described materials are strategic and critical 
materials procured under the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98e).

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

    (3) Articles for the Department of Energy, subheading 9808.00.50, 
HTSUS. I certify to the Secretary of the Treasury that the above-
described materials are source materials purchased abroad, the 
admittance of which is necessary in the interest of the common defense 
and security, in accordance with subheading 9808.00.50, HTSUS.

________________________________________________________________________
 (Name)
________________________________________________________________________
(Title), who has been authorized to execute free-entry certificates for 
the Department of Energy.

    (c) Release of shipments. Shipments for which free entry has been or 
will be claimed under subheading 9808.00.30, 9808.00.40, 9808.00.50, 
HTSUS (19 U.S.C. 1202), shall be released after only such examination as 
is necessary to identify them.

[[Page 133]]

    (d) Entry in Government name. All materials for which free entry is 
claimed under subheading 9808.00.30, 9808.00.40, 9808.00.50, HTSUS (19 
U.S.C. 1202), shall be entered, or withdrawn from warehouse, for 
consumption in the name of the Government department whose 
representative executes the certificate set forth in Sec. 10.102(b) 
unless exemption from this requirement is specifically authorized by the 
port director.

[T.D. 77-23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 85-123, 50 FR 
29953, July 23, 1985; T.D. 89-1, 53 FR 51251, Dec. 21, 1988; T.D. 93-44, 
58 FR 34523, June 28, 1993; T.D 95-81, 60 FR 52295, Oct. 6, 1995]



Sec. 10.103  American goods returned.

    (a) Certificate required. Articles entered, or withdrawn from 
warehouse, for consumption in the name of an agency or office of the 
United States Government (with the exception of military scrap belonging 
to the Department of Defense) may be admitted free of duty under 
subheading 9801.00.10, Harmonized Tariff Schedule of the United States 
(HTSUS) (19 U.S.C. 1202), upon the filing of a certificate on the 
letterhead of the agency or office in the following form in lieu of 
other entry documentation:

    I hereby certify:
    1. That the following articles imported in the --------------------
---- (Name of Carrier) at the port of ------------------------ (Port) on 
------------ (Date) consist of returned products which are the growth, 
produce, or manufacture of the United States, and have been returned to 
the United States without having been advanced in value or improved in 
condition by any process of manufacture or other means, and that no 
drawback has been or will be claimed on such articles, and that the 
articles currently belonging to and are for the further use of --------
---------------- (Agency or Office)

------------------------------------------------------------------------
                                                 General description of
 Number of containers    Bill of lading No.\1\          articles
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------
 \1\ If shipment arrives in the United States on a commercial carrier.

    2. That the shipment does not contain military scrap.
    3. That the shipment is entitled to entry under subheading 
9801.00.10, Harmonized Tariff Schedule of the United States (HTSUS) free 
of duty.
    4. That I am a military installation transportation officer having 
knowledge of the facts involved in this certificate.
 or
    I am an officer or official authorized by ---------------- (Agency 
or Office) (Whichever is applicable) to execute this certificate.
________________________________________________________________________
 (Name)
________________________________________________________________________

            (Rank and branch of service or Agency or Office)

    (b) Combined certificate when articles are intermingled. When 
articles claimed to be free under subheading 9801.00.10 and other 
articles claimed to be free under subheadings 9808.00.30, 9808.00.40, 
9808.00.50, HTSUS (19 U.S.C. 1202), are intermingled in a single 
shipment in a manner which precludes separation for the purpose of 
making claims for free entry under the separate categories, all the 
articles may be covered by a combined certificate which follows the 
requirements of Sec. 10.102(b) and paragraph (a) of this section.
    (c) Execution of certificate. The certificate required by paragraph 
(a) of this section may be executed by any military installation 
transportation officer having knowledge of the facts or by any other 
officer or official specifically designated or authorized to execute 
such certificates by the importing Government agency or office. If the 
merchandise arrived on a commercial carrier, the entry shall be 
supported by evidence of the right to make it.

[T.D. 77-23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 89-1, 53 FR 
51251, Dec. 21, 1988]



Sec. 10.104  Temporary importation entries for United States Government agencies.

    The entry of articles brought into the United States temporarily by 
an agency or office of the United States Government and claimed to be 
exempt from duty under Chapter 98, Subchapter XIII, Heading 9813, 
Harmonized Tariff Schedule of the United States (HTSUS), shall be made 
on Customs Form 7501. No bond shall be required if the agency or office 
files a stipulation in the form set forth in Sec. 141.102(d) of this 
chapter. In those cases in which

[[Page 134]]

the provisions of Chapter 98, Subchapter XIII, HTSUS (19 U.S.C. 1202), 
are not met, however, the port director will proceed as if a bond had 
been filed to cover the particular importation. Articles temporarily 
imported by a Government agency or office under this section are 
entitled to immediate delivery under the procedures set forth in 
Sec. 10.101.

[T.D. 77-23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 89-1, 53 FR 
51251, Dec. 21, 1988]

                                  Wheat



Sec. 10.106  [Reserved]

                         Rescue and Relief Work



Sec. 10.107  Equipment and supplies; admission.

    (a) There shall be admitted without entry and without the payment of 
duty or any tax imposed upon or by reason of importation of any article 
described in section 322(b), Tariff Act of 1930, as amended, subject to 
compliance with the following conditions:
    (1) Before importation or as soon thereafter as possible, and in 
every case before the expiration of 10 days after importation, a report 
shall be made to the nearest Customs officer by the person in charge of 
sending the article from the foreign country, or by the person for whose 
account it was brought into the United States, stating the character, 
quantity, destination, and use to be made of the article.
    (2) If practicable, the article shall be exported under Customs 
supervision. In any other case a report shall be made by the person in 
charge of the exportation as soon as possible after exportation to the 
Customs officer to whom the arrival was reported, stating the character, 
quantity, and circumstances of the exportation.
    (b) In the case of each article admitted under paragraph (a) of this 
section, the port director shall satisfy himself as to whether the 
article was exported within a reasonable time, or that it has been 
properly expended or destroyed. If an article is so far destroyed, in 
connection with a use contemplated for it by section 322 (b) that it has 
only a salvage value, it shall not be required to be exported.
    (c) Any article admitted under paragraph (a) of this section which 
is used in the United States otherwise than for a purpose contemplated 
for it by section 322(b), or which is not exported within 90 days after 
its arrival in the United States, or within such longer time as may be 
specially authorized by the port director or Headquarters, U.S. Customs 
Service, shall be seized and forfeited to the United States.

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51252, Dec. 
21, 1988]

              Products Exported Under Lease and Reimported



Sec. 10.108  Entry of reimported articles exported under lease.

    Free entry shall be accorded under subheading 9801.00.20, Harmonized 
Tariff Schedule of the United States (HTSUS), whenever it is established 
to the satisfaction of the port director that the article for which free 
entry is claimed was duty paid on a previous importation or was 
previously entered free of duty pursuant to the Caribbean Basin Economic 
Recovery Act or Title V of the Trade Act of 1974, is being reimported 
without having been advanced in value or improved in condition by any 
process of manufacture or other means, was exported from the United 
States under a lease or similar use agreement, and is being reimported 
by or for the account of the person who imported it into, and exported 
it from, the United States.

[T.D. 94-40, 59 FR 17474, Apr. 13, 1994]

           Strategic Materials Obtained by Barter or Exchange



Sec. 10.110  [Reserved]

          Late Filing of Free Entry and Reduced Duty Documents



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

    Whenever a free entry or a reduced duty document, form, or statement 
required to be filed in connection with the entry is not filed at the 
time of the entry or within the period for which a bond was filed for 
its production, but failure to file it was not due to willful

[[Page 135]]

negligence or fraudulent intent, such document, form, or statement may 
be filed at any time prior to liquidation of the entry or, if the entry 
was liquidated, before the liquidation becomes final. See Sec. 113.43(c) 
of this chapter for satisfaction of the bond and cancellation of the 
bond charge.

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

  Instruments and Apparatus for Educational and Scientific Institutions



Sec. 10.114  General provisions.

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

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



Secs. 10.115-10.119  [Reserved]

                      Visual or Auditory Materials



Sec. 10.121  Visual or auditory materials of an educational, scientific, or cultural character.

    (a) Where photographic film and other articles described in 
subheading 9817.00.40, Harmonized Tariff Schedule of the United States 
(HTSUS), are claimed to be free of duty under subheading 9817.00.40, 
HTSUS, there shall be filed in connection with the entry covering such 
articles a document issued by the U.S. Information Agency certifying 
that it has determined that the articles are visual or auditory 
materials of an educational, scientific, or cultural character within 
the meaning of the Agreement for Facilitating the International 
Circulation of Visual and Auditory Materials of an Educational, 
Scientific, and Cultural Character as required by U.S. Note 1, 
Subchapter XVII, chapter 98, HTSUS.
    (b) Articles entered under subheading 9817.00.40, Harmonized Tariff 
Schedule of the United States (HTSUS), shall be released from Customs 
custody prior to submission of the document required in paragraph (a) of 
this section only upon the deposit of estimated duties with the port 
director. Liquidation of an entry covering merchandise which has been 
released under this procedure shall be suspended for a period of 90 days 
from the date of entry or until the required document is submitted, 
whichever occurs first. In the event that the director of the port of 
entry does not receive the required document within the 90-day period, 
the merchandise shall be immediately classified and liquidated in the 
ordinary course, without regard to subheading 9817.00.40, HTSUS.

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

                 Rate of Duty Dependent Upon Actual Use



Sec. 10.131  Circumstances in which applicable.

    The provisions of Secs. 10.131 through 10.139 are applicable in 
those circumstances in which the rate of duty applicable to merchandise 
is dependent upon actual use, unless there is a specific provision in 
this part which governs the treatment of the merchandise. However, 
specific marking or certification requirements, such as those for 
bolting cloths in section 10.58, may be applicable to merchandise 
subject to the provisions of sections 10.131-10.139.

[T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 86-118, 51 
FR 22515, June 20, 1986]



Sec. 10.132  [Reserved]



Sec. 10.133  Conditions required to be met.

    When the tariff classification of any article is controlled by its 
actual use in the United States, three conditions must be met in order 
to qualify for free entry or a lower rate of duty unless the language of 
the particular subheading of the Harmonized Tariff Schedule of the 
United States applicable to the merchandise specifies other conditions. 
The conditions are that:
    (a) Such use is intended at the time of importation.
    (b) The article is so used.
    (c) Proof of use is furnished within 3 years after the date the 
article is entered or withdrawn from warehouse for consumption.

[T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988]

[[Page 136]]



Sec. 10.134  Declaration of intent.

    A showing of intent by the importer as to the actual use of imported 
merchandise shall be made by filing with the entry for consumption or 
for warehouse a declaration as to the intended use of the merchandise, 
or by entering the proper subheading of an actual use provision of the 
Harmonized Tariff Schedule of the United States (HTSUS) and the reduced 
or free rate of duty on the entry form. Entry made under an actual use 
provision of the HTSUS may be construed as a declaration that the 
merchandise is entered to be used for the purpose stated in the HTSUS, 
provided the port director is satisfied the merchandise will be so used. 
However, the port director shall require a written declaration to be 
filed if he is not satisfied that merchandise entered under an actual 
use provision will be used for the purposes stated in the HTSUS.

[T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988]



Sec. 10.135  Deposit of duties.

    When the requirement of Sec. 10.134 has been met the merchandise may 
be entered or withdrawn from warehouse for consumption without deposit 
of duty when proof of use will result in free entry, or with deposit of 
duty at the lower rate when proof of use will result in a lower rate of 
duty.

[T.D. 71-139, 36 FR 10726, June 2, 1971, as amended by T.D. 84-213, 49 
FR 41166, Oct. 19, 1984]



Sec. 10.136  Suspension of liquidation.

    Liquidation of an entry covering merchandise for which a declaration 
of intent has been made pursuant to Sec. 10.134 and any required deposit 
of duties made, shall be suspended until proof of use is furnished or 
the 3-year period allowed for production thereof has expired.

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



Sec. 10.137  Records of use.

    (a) Maintenance by importer. The importer shall maintain accurate 
and detailed records showing the use or other disposition of the 
imported merchandise. The burden shall be on the importer to keep 
records so that the claim of actual use can be readily established.
    (b) Retention of records. The importer shall retain records of use 
or disposition for a period of 3 years from the date of liquidation of 
the entry.
    (c) Examination of records. The rec- ords required to be kept by 
paragraph (a) of this section shall be available at all times for 
examination and inspection by an authorized Customs officer.

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



Sec. 10.138  Proof of use.

    Within 3 years from the date of entry or withdrawal from warehouse 
for consumption, the importer shall submit in duplicate in support of 
his claim for free entry or for a reduced rate of duty a certificate 
executed by (1) the superintendent or manager of the manufacturing 
plant, or (2) the individual end-user or other person having knowledge 
of the actual use of the imported article. The certificate shall include 
a description of the processing in sufficient detail to show that the 
use contemplated by the law has actually taken place. A blanket 
certificate covering all purchases of a given type of merchandise from a 
particular importer during a given period, or all such purchases with 
specified exceptions, may be accepted for this purpose, provided the 
importer shall furnish a statement showing in detail, in such manner as 
to be readily identified with each entry, the merchandise which he sold 
to such manufacturer or end-user during such period.

[T.D. 71-139, 36 FR 10727, June 2, 1971]



Sec. 10.139  Liquidation.

    (a) In general. Upon satisfactory proof of timely use of the 
merchandise for the purpose specified by law, the entry shall be 
liquidated free of duty or at the lower rate of duty specified by law. 
When such proof is not filed within 3 years from the date of entry or 
withdrawal from warehouse for consumption, the entry shall be liquidated 
dutiable under the appropriate subheading of the Harmonized Tariff 
Schedule of the United States.
    (b) Exception for blackstrap molasses. An entry covering blackstrap 
molasses,

[[Page 137]]

as hereinafter defined, may be accepted and liquidated with duty at the 
lower rate after the filing of the declaration of intent required by 
Sec. 10.134 and the deposit of estimated duties required by Sec. 10.135 
without compliance with Secs. 10.136, 10.137, and 10.138. Blackstrap 
molasses is ``final'' molasses practically free from sugar crystals, 
containing not over 58 percent total sugars and having a ratio of

total sugarsx100/Brix


not in excess of 71. In the event of doubt, an ash determination may be 
made. An ash content of not less than 7 percent indicates a blackstrap 
molasses within the meaning of this paragraph.

[T.D. 71-139, 36 FR 10727, June 2, 1971, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988]

             Importations Not Over $200 And Bona Fide Gifts



Sec. 10.151  Importations not over $200.

    Subject to the conditions in Sec. 10.153 of this part, the port 
director shall pass free of duty and tax any shipment of merchandise, as 
defined in Sec. 101.1 of this chapter, imported by one person on one day 
having a fair retail value, as evidenced by an oral declaration or the 
bill of lading (or other document filed as the entry) or manifest 
listing each bill of lading, in the country of shipment not exceeding 
$200, unless he has reason to believe that the shipment is one of 
several lots covered by a single order or contract and that it was sent 
separately for the express purpose of securing free entry therefor or of 
avoiding compliance with any pertinent law or regulation. Merchandise 
subject to this exemption shall be entered under the informal entry 
procedures (see subpart C, part 143, and Secs. 128.24, 145.31, 148.12, 
and 148.62, of this chapter).

[T.D. 94-51, 59 FR 30293, June 13, 1994, as amended by T.D. 95-31, 60 FR 
18990, Apr. 14, 1995; T.D. 95-31, 60 FR 37875, July 24, 1995; T.D. 97-
82, 62 FR 51769, Oct. 3, 1997]



Sec. 10.152  Bona-fide gifts.

    Subject to the conditions in Sec. 10.153 of this part, the port 
director shall pass free of duty and tax any article sent as a bona-fide 
gift from a person in a foreign country to a person in the United 
States, provided that the aggregate fair retail value in the country of 
shipment of such articles received by one person on one day does not 
exceed $100 or, in the case of articles sent from a person in the Virgin 
Islands, Guam, and American Samoa, $200. Articles subject to this 
exemption shall be entered under the informal entry procedures (see 
subpart C, part 143, and Secs. 145.32, 148.12, 148.51, and 148.64, of 
this chapter). An article is ``sent'' for purposes of this section if it 
is conveyed in any manner other than on the person or in the accompanied 
or unaccompanied baggage of the donor or donee.

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



Sec. 10.153  Conditions for exemption.

    Customs officers shall be further guided as follows in determining 
whether an article or parcel shall be exempted from duty and tax under 
Sec. 10.151 or Sec. 10.152:
    (a) A ``bona fide gift'' for purposes of Sec. 10.152 is an article 
formerly owned by a donor (may be a commercial firm) who gave it 
outright in its entirety to a donee without compensation or promise of 
compensation. It does not include articles acquired by purchase, barter, 
promissory exchange, or similar transaction, nor does it include 
articles said to be ``given'' in conjunction with a purchase, barter, 
promissory exchange, or similar transaction, such as a so-called bonus 
article.
    (b) A parcel addressed to a person in the United States from an 
individual in a foreign country which contains a gift should be clearly 
marked on the outside to indicate that it contains a gift. Such marking 
is not conclusive evidence of a gift nor is the absence of such marking 
conclusive evidence that an article is not a gift. Ordinarily an article 
not exceeding $100 in fair retail value in the country of shipment sent 
from a person in a foreign country to a person in the United States 
($200, in the case of an article sent from a person in the Virgin 
Islands, Guam, and American Samoa) will be recognizable as a gift from 
the nature of the article and obvious facts surrounding the shipment.

[[Page 138]]

    (c) A parcel addressed to a person in the United States from a 
business firm in a foreign country would ordinarily not contain a gift 
from a donor in the foreign country. When such a parcel in fact contains 
an article entitled to free entry under Sec. 10.152, the parcel should 
be clearly marked to indicate that it contains such a gift and a 
statement to this effect should be enclosed in the parcel.
    (d) Consolidated shipments addressed to one consignee shall be 
treated for purposes of Secs. 10.151 and 10.152 as one importation. The 
foregoing shall not apply to shipments of bona fide gifts consolidated 
abroad for shipment to the United States when:
    (1) The consolidation for shipment to the United States is in a 
cargo van or similar containerization which is consigned to a common 
carrier, freight forwarder, freight handler, or other public service 
agency for distribution of the gift packages;
    (2) The separate gifts not exceeding $100 in fair retail value in 
the country of shipment ($200, in the case of articles sent from persons 
in the Virgin Islands, Guam, and American Samoa) included in the 
consolidated shipment are before shipment individually wrapped and 
addressed to the donee in the United States;
    (3) Each gift package is marked on the outside to indicate that it 
contains a gift not exceeding $100 in fair retail value in the country 
of shipment ($200, in the case of packages sent from persons in the 
Virgin Islands, Guam, and American Samoa); and
    (4) Each gift package is separately listed in the name of the 
addressee-donee on a packing list, manifest, bill of lading, or other 
shipping document.
    (e) No alcoholic beverage, perfume containing alcohol (except where 
the aggregate fair retail value in the country of shipment of all 
merchandise contained in the shipment does not exceed $5), cigars, or 
cigarettes shall be exempted from the payment of duty and tax under 
Sec. 10.151 or Sec. 10.152.
    (f) The exemptions provided for in Sec. 10.151 or Sec. 10.152 are 
not to be allowed in respect of any shipment containing one or more 
gifts having an aggregate fair retail value in the country of shipment 
in excess of $100 ($200, in the case of articles sent from persons in 
the Virgin Islands, Guam, and American Samoa), except as indicated in 
paragraph (d) of this section. For example, an article ordinarily 
subject to an ad valorem rate of duty but sent as a gift, if the fair 
retail value exceeds the $100 (or $200) exemption, would be subject to a 
duty based upon its value under the provisions of section 402 or 402(a), 
Tariff Act of 1930, as amended (19 U.S.C. 1401a or 1402), even though 
the dutiable value is less than the $100 (or $200) exemption.
    (g) The exemption referred to in Sec. 10.151 is not to be allowed in 
the case of any merchandise of a class or kind provided for in any 
absolute or tariff-rate quota, whether the quota is open or closed. In 
the case of merchandise of a class or kind provided for in a tariff-rate 
quota, the merchandise is subject to the rate of duty in effect on the 
date of entry.

[T.D. 73-175, 38 FR 17445, July 2, 1973, as amended by T.D. 75-185, 40 
FR 31753, July 29, 1975; T.D. 78-394, 43 FR 49787, Oct. 25, 1978; T.D. 
85-123, 50 FR 29953, July 23, 1985; T.D. 94-51, 59 FR 30293, June 13, 
1994]

                    Generalized System of Preferences



Sec. 10.171  General.

    (a) Statutory authority. Title V of the Trade Act of 1974 as amended 
(19 U.S.C. 2461-2467) authorizes the President to establish a 
Generalized System of Preferences (GSP) to provide duty-free treatment 
for eligible articles imported directly from designated beneficiary 
developing countries. Beneficiary developing countries and articles 
eligible for duty-free treatment are designated by the President by 
Executive order in accordance with sections 502(a)(1) and 503(a) of the 
Trade Act of 1974 as amended (19 U.S.C. 2462(a)(1), 2463(a)).
    (b) Country defined. For purposes of Secs. 10.171 through 10.178, 
except as otherwise provided in Sec. 10.176(a), the term ``country'' 
means any foreign country, any overseas dependent territory or 
possession of a foreign country, or the Trust Territory of the Pacific 
Islands. In the case of an association of countries which is a free 
trade area or customs union or which is contributing to

[[Page 139]]

comprehensive regional economic integration among its members through 
appropriate means, including but not limited to, the reduction of 
duties, the President may by Executive order provide that all members of 
such association other than members which are barred from designation 
under section 502(b) of the Trade Act of 1974 (19 U.S.C. 2462(b)) shall 
be treated as one country for purposes of Secs. 10.171 through 10.178.

[T.D. 76-2, 40 FR 60047, Dec. 31, 1975, as amended by T.D. 80-271, 45 FR 
75641, Nov. 17, 1980; T.D. 00-67, 65 FR 59675, Oct. 5, 2000]



Sec. 10.172  Claim for exemption from duty under the Generalized System of Preferences.

    A claim for an exemption from duty on the ground that the 
Generalized System of Preferences applies shall be allowed by the port 
director only if he is satisfied that the requirements set forth in this 
section and Secs. 10.173 through 10.178 have been met. If duty-free 
treatment is claimed at the time of entry, a written claim shall be 
filed on the entry document by placing the symbol ``A'' as a prefix to 
the subheading of the Harmonized Tariff Schedule of the United States 
for each article for which such treatment is claimed.

[T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 77-36, 42 FR 
5041, Jan. 27, 1977; T.D. 89-1, 53 FR 51252, Dec. 21, 1988; T.D. 94-47, 
59 FR 25569, May 17, 1994; T.D. 99-27, 64 FR 13675, Mar. 22, 1999]



Sec. 10.173  Evidence of country of origin.

    (a) Shipments covered by a formal entry--(1) Merchandise not wholly 
the growth, product, or manufacture of a beneficiary developing country. 
(i) Declaration. In a case involving merchandise covered by a formal 
entry which is not wholly the growth, product, or manufacture of a 
single beneficiary developing country, the exporter of the merchandise 
or other appropriate party having knowledge of the relevant facts shall 
be prepared to submit directly to the port director, upon request, a 
declaration setting forth all pertinent detailed information concerning 
the production or manufacture of the merchandise. When requested by the 
port director, the declaration shall be prepared in substantially the 
following form:

                             GSP DECLARATION

 I,_____________________________________________________________________
(name), hereby declare that the articles described below were produced 
or manufactured in ---------------- (country) by means of processing 
operations performed in that country as set forth below and were also 
subjected to processing operations in the other country or countries 
which are members of the same association of countries as set forth 
below and incorporate materials produced in the country named above or 
in any other country or countries which are members of the same 
association of countries as set forth below:

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

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (ii) Retention of records and submission of declaration. The 
information necessary for preparation of the declaration shall be 
retained in the files of the party responsible for its preparation and 
submission for a period of 5 years. In the event that the port director 
requests submission of the declaration during the 5-year period, it 
shall be

[[Page 140]]

submitted by the appropriate party directly to the port director within 
60 days of the date of the request or such additional period as the port 
director may allow for good cause shown. Failure to submit the 
declaration in a timely fashion will result in a denial of duty-free 
treatment.
    (2) Merchandise wholly the growth, product, or manufacture of a 
beneficiary developing country. In a case involving merchandise covered 
by a formal entry which is wholly the growth, product, or manufacture of 
a single beneficiary developing country, a statement to that effect 
shall be included on the commercial invoice provided to Customs.
    (b) Shipments covered by an informal entry. Although the filing of 
the declaration provided for in paragraph (a)(1)(i) of this section will 
not be required for a shipment covered by an informal entry, the port 
director may require such other evidence of country of origin as deemed 
necessary.
    (c) Verification of documentation. Any evidence of country of origin 
submitted under this section shall be subject to such verification as 
the port director deems necessary. In the event that the port director 
is prevented from obtaining the necessary verification, the port 
director may treat the entry as dutiable.

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



Sec. 10.174  Evidence of direct shipment.

    (a) Documents constituting evidence of direct shipment. The port 
director may require that appropriate shipping papers, invoices, or 
other documents be submitted within 60 days of the date of entry as 
evidence that the articles were ``imported directly'', as that term is 
defined in Sec. 10.175. Any evidence of direct shipment required by the 
port director shall be subject to such verification as he deems 
necessary.
    (b) Waiver of evidence of direct shipment. The port director may 
waive the submission of evidence of direct shipment when he is otherwise 
satisfied, taking into consideration the kind and value of the 
merchandise, that the merchandise clearly qualifies for treatment under 
the Generalized System of Preferences.

[T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 77-27, 42 FR 
3162, Jan. 17, 1977]



Sec. 10.175  Imported directly defined.

    Eligible articles shall be imported directly from a beneficiary 
developing country to qualify for treatment under the Generalized System 
of Preferences. For purposes of Secs. 10.171 through 10.178 the words 
``imported directly'' mean:
    (a) Direct shipment from the beneficiary country to the United 
States without passing through the territory of any other country; or
    (b) If the shipment is from a beneficiary developing country to the 
U.S. through the territory of any other country, the merchandise in the 
shipment does not enter into the commerce of any other country while en 
route to the U.S., and the invoice, bills of lading, and other shipping 
documents show the U.S. as the final destination; or
    (c) If shipped from the beneficiary developing country to the United 
States through a free trade zone in a beneficiary developing country, 
the merchandise shall not enter into the commerce of the country 
maintaining the free trade zone, and
    (1) The eligible articles must not undergo any operation other than:
    (i) Sorting, grading, or testing,
    (ii) Packing, unpacking, changes of packing, decanting or repacking 
into other containers,
    (iii) Affixing marks, labels, or other like distinguishing signs on 
articles or their packing, if incidental to operations allowed under 
this section, or
    (iv) Operations necessary to ensure the preservation of merchandise 
in its condition as introduced into the free trade zone.
    (2) Merchandise may be purchased and resold, other than at retail, 
for export within the free trade zone.
    (3) For the purposes of this section, a free trade zone is a 
predetermined area or region declared and secured by or under 
governmental authority, where certain operations may be performed with 
respect to articles, without such

[[Page 141]]

articles having entered into the commerce of the country maintaining the 
free trade zone; or
    (d) If the shipment is from any beneficiary developing country to 
the U.S through the territory of any other country and the invoices and 
other documents do not show the U.S as the final destination, the 
articles in the shipment upon arrival in the U.S. are imported directly 
only if they:
    (1) Remained under the control of the customs authority of the 
intermediate country;
    (2) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commercial transaction between the importer and the producer or the 
latter's sales agent; and
    (3) Were not subjected to operations other than loading and 
unloading, and other activities necessary to preserve the articles in 
good condition; or
    (e)(1) Shipment to the U.S. from a beneficiary developing country 
which is a member of an association of countries treated as one country 
under section 507(2), Trade Act of 1974, as amended (19 U.S.C. 2467(2)), 
through the territory of a former beneficiary developing country whose 
designation as a member of the same association for GSP purposes was 
terminated by the President pursuant to section 502(d), Trade Act of 
1974, as amended (19 U.S.C. 2462(d)), provided the articles in the 
shipment did not enter into the commerce of the former beneficiary 
developing country except for purposes of performing one or more of the 
operations specified in paragraph (c)(1) of this section and except for 
purposes of purchase or resale, other than at retail, for export.
    (2) The designation of the following countries as members of an 
association of countries for GSP purposes has been terminated by the 
President pursuant to section 502(d) of the Trade Act of 1974 (19 U.S.C. 
2462(d)):

    The Bahamas
    Brunei Darussalam
    Malaysia
    Singapore

[T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 83-144, 48 FR 
29684, June 28, 1983; T.D. 84-237, 49 FR 47992, Dec. 7, 1984; T.D. 86-
107, 51 FR 20816, June 9, 1986; T.D. 92-6, 57 FR 2018, Jan. 17, 1992; 
T.D. 94-47, 59 FR 25569, May 17, 1994; T.D. 95-30, 60 FR 18543, Apr. 12, 
1995; T.D. 00-67, 65 FR 59675, Oct. 5, 2000]



Sec. 10.176  Country of origin criteria.

    (a) Merchandise produced in a beneficiary developing country or any 
two or more countries which are members of the same association of 
countries--(1) General. Except as otherwise provided in this section, 
any article which either is wholly the growth, product, or manufacture 
of, or is a new or different article of commerce that has been grown, 
produced, or manufactured in, a beneficiary developing country may 
qualify for duty-free entry under the Generalized System of Preferences 
(GSP). No article will be considered to have been grown, produced, or 
manufactured in a beneficiary developing country by virtue of having 
merely undergone simple (as opposed to complex or meaningful) combining 
or packaging operations or mere dilution with water or mere dilution 
with another substance that does not materially alter the 
characteristics of the article. Duty-free entry under the GSP may be 
accorded to an article only if the sum of the cost or value of the 
materials produced in the beneficiary developing country or any two or 
more countries that are members of the same association of countries and 
are treated as one country under section 507(2) of the Trade Act of 
1974, as amended (19 U.S.C. 2467(2)), plus the direct costs of 
processing operations performed in the beneficiary developing country or 
member countries, is not less than 35 percent of the appraised value of 
the article at the time it is entered.
    (2) Combining, packaging, and diluting operations. No article which 
has undergone only a simple combining or packaging operation or a mere 
dilution in a beneficiary developing country within the meaning of 
paragraph (a)(1) of this section will be entitled to duty-free treatment 
even though the processing operation causes the article to meet the 
value requirement set forth in that

[[Page 142]]

paragraph. For purposes of this section:
    (i) Simple combining or packaging operations and mere dilution 
include, but are not limited to, the following:
    (A) The addition of batteries to devices;
    (B) Fitting together a small number of components by bolting, 
glueing, soldering, etc.;
    (C) Blending foreign and beneficiary developing country tobacco;
    (D) The addition of substances such as anticaking agents, 
preservatives, wetting agents, etc.;
    (E) Repacking or packaging components together;
    (F) Reconstituting orange juice by adding water to orange juice 
concentrate; and
    (G) Diluting chemicals with inert ingredients to bring them to 
standard degrees of strength;
    (ii) Simple combining or packaging operations and mere dilution will 
not be taken to include processes such as the following:
    (A) The assembly of a large number of discrete components onto a 
printed circuit board;
    (B) The mixing together of two bulk medicinal substances followed by 
the packaging of the mixed product into individual doses for retail 
sale;
    (C) The addition of water or another substance to a chemical 
compound under pressure which results in a reaction creating a new 
chemical compound; and
    (D) A simple combining or packaging operation or mere dilution 
coupled with any other type of processing such as testing or fabrication 
(for example, a simple assembly of a small number of components, one of 
which was fabricated in the beneficiary developing country where the 
assembly took place); and
    (iii) The fact that an article has undergone more than a simple 
combining or packaging operation or mere dilution is not necessarily 
dispositive of the question of whether that processing constitutes a 
substantial transformation for purposes of determining the country of 
origin of the article.
    (b) [Reserved]
    (c) Merchandise grown, produced, or manufactured in a beneficiary 
developing country. Merchandise which is wholly the growth, product, or 
manufacture of a beneficiary developing country, or an association of 
countries treated as one country under section 507(2) of the Trade Act 
of 1974 (19 U.S.C. 2467(2)) and Sec. 10.171(b), and manufactured 
products consisting of materials produced only in such country or 
countries, shall normally be presumed to meet the requirements set forth 
in this section.

[T.D. 76-2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 80-271, 45 FR 
75641, Nov. 17, 1980; T.D. 00-67, 65 FR 59675, Oct. 5, 2000]



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

    (a) ``Produced in the beneficiary developing country'' defined. For 
purposes of Secs. 10.171 through 10.178, the words ``produced in the 
beneficiary developing country'' refer to the constituent materials of 
which the eligible article is composed which are either:
    (1) Wholly the growth, product, or manufacture of the beneficiary 
developing country; or
    (2) Substantially transformed in the beneficiary developing country 
into a new and different article of commerce.
    (b) Questionable origin. When the origin of an article either is not 
ascertainable or not satisfactorily demonstrated to the port director, 
the article shall not be considered to have been produced in the 
beneficiary developing country.
    (c) Determination of cost or value of materials produced in the 
beneficiary developing country. (1) The cost or value of materials 
produced in the beneficiary developing country includes:
    (i) The manufacturer's actual cost for the materials;
    (ii) When not included in the manufacturer's actual cost for the 
materials, the freight, insurance, packing, and all other costs incurred 
in transporting the materials to the manufacturer's plant;
    (iii) The actual cost of waste or spoilage (material list), less the 
value of recoverable scrap; and
    (iv) Taxes and/or duties imposed on the materials by the beneficiary 
developing country, or an association of

[[Page 143]]

countries treated as one country, provided they are not remitted upon 
exportation.
    (2) Where the material is provided to the manufacturer without 
charge, or at less than fair market value, its cost or value shall be 
determined by computing the sum of:
    (i) All expenses incurred in the growth, production, manufacture or 
assembly of the material, including general expenses;
    (ii) An amount for profit; and
    (iii) Freight, insurance, packing, and all other costs incurred in 
transporting the materials to the manufacturer's plant.

If the pertinent information needed to compute the cost or value of the 
materials is not available, the appraising officer may ascertain or 
estimate the value thereof using all reasonable ways and means at his 
disposal.

[T.D. 76-2, 40 FR 60049, Dec. 31, 1975, as amended by T.D. 86-118, 51 FR 
22515, June 20, 1986]



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

    (a) Items included in the direct costs of processing operations. As 
used in Sec. 10.176, the words ``direct costs of processing operations'' 
means those costs either directly incurred in, or which can be 
reasonably allocated to, the growth, production, manufacture, or 
assembly of the specific merchandise under consideration. Such costs 
include, but are not limited to:
    (1) All actual labor costs involved in the growth, production, 
manufacture, or assembly of the specific merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (2) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (3) Research, development, design, engineering, and blueprint costs 
insofar as they are allocable to the specific merchandise; and
    (4) Costs of inspecting and testing the specific merchandise.
    (b) Items not included in the direct costs of processing operations. 
Those items which are not included within the meaning of the words 
``direct costs of processing operations'' are those which are not 
directly attributable to the merchandise under consideration or are not 
``costs'' of manufacturing the product. These include, but are not 
limited to:
    (1) Profit; and
    (2) General expenses of doing business which are either not 
allocable to the specific merchandise or are not related to the growth, 
production, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.

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



Sec. 10.178a  Special duty-free treatment for sub-Saharan African countries.

    (a) General. Section 506A of the Trade Act of 1974 (19 U.S.C. 2466a) 
authorizes the President to provide duty-free treatment for certain 
articles otherwise excluded from duty-free treatment under the 
Generalized System of Preferences (GSP) pursuant to section 503(b)(1)(B) 
through (G) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1)(B) through 
(G)) and authorizes the President to designate a country listed in 
section 107 of the African Growth and Opportunity Act (19 U.S.C. 3706) 
as an eligible beneficiary sub-Saharan African country for purposes of 
that duty-free treatment.
    (b) Eligible articles. The duty-free treatment referred to in 
paragraph (a) of this section will apply to any article within any of 
the following classes of articles, provided that the article in question 
has been designated by the President for that purpose and is the growth, 
product, or manufacture of an eligible beneficiary sub-Saharan African 
country and meets the requirements specified or referred to in paragraph 
(d) of this section:
    (1) Watches, except those watches entered after June 30, 1989, that 
the President specifically determines, after public notice and comment, 
will not cause material injury to watch or watch band, strap, or 
bracelet manufacturing and assembly operations in the United States or 
the United States insular possessions;

[[Page 144]]

    (2) Certain electronic articles;
    (3) Certain steel articles;
    (4) Footwear, handbags, luggage, flat goods, work gloves, and 
leather wearing apparel which were not eligible articles for purposes of 
the GSP on January 1, 1995, as the GSP was in effect on that date;
    (5) Certain semimanufactured and manufactured glass products; and
    (6) Any other articles which the President determines to be import-
sensitive in the context of the GSP.
    (c) Claim for duty-free treatment. A claim for the duty-free 
treatment referred to in paragraph (a) of this section must be made by 
placing on the entry document the symbol ``D'' as a prefix to the 
subheading of the Harmonized Tariff Schedule of the United States for 
each article for which duty-free treatment is claimed;
    (d) Origin and related rules. The provisions of Secs. 10.171, 
10.173, and 10.175 through 10.178 will apply for purposes of duty-free 
treatment under this section. However, application of those provisions 
in the context of this section will be subject to the following rules:
    (1) The term ``beneficiary developing country,'' wherever it 
appears, means ``beneficiary sub-Saharan African country;'
    (2) In the GSP declaration set forth in Sec. 10.173(a)(1)(i), the 
column heading ``Materials produced in a beneficiary developing country 
or members of the same association'' should read ``Material produced in 
a beneficiary sub-Saharan African country or in the U.S.;''
    (3) The provisions of Sec. 10.175(c) will not apply; and
    (4) For purposes of determining compliance with the 35 percent value 
content requirement set forth in Sec. 10.176(a):
    (i) An amount not to exceed 15 percent of the appraised value of the 
article at the time it is entered may be attributed to the cost or value 
of materials produced in the customs territory of the United States, and 
the provisions of Sec. 10.177 will apply for purposes of identifying 
materials produced in the customs territory of the United States and the 
cost or value of those materials; and
    (ii) The cost or value of materials included in the article that are 
produced in more than one beneficiary sub-Saharan African country may be 
applied without regard to whether those countries are members of the 
same association of countries.
    (e) Importer requirements. In order to make a claim for duty-free 
treatment under this section, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the article qualifies for duty-free treatment;
    (2) Must have records that demonstrate that the importer is claiming 
that the article qualifies for duty-free treatment because it is the 
growth of a beneficiary sub-Saharan African country or because it is the 
product of a beneficiary sub-Saharan African country or because it is 
the manufacture of a beneficiary sub-Saharan African country. If the 
importer is claiming that the article is the growth of a beneficiary 
sub-Saharan African country, the importer must have records that 
indicate that the product was grown in that country, such as a record of 
receipt from a farmer whose crops are grown in that country. If the 
importer is claiming that the article is the product of, or the 
manufacture of, a beneficiary sub-Saharan African country, the importer 
must have records that indicate that the manufacturing or processing 
operations reflected in or applied to the article meet the country of 
origin rules set forth in Sec. 10.176(a) and paragraph (d) of this 
section. A properly completed GSP declaration in the form set forth in 
Sec. 10.173(a)(1) is one example of a record that would serve this 
purpose;
    (3) Must establish and implement internal controls which provide for 
the periodic review of the accuracy of the declarations or other records 
referred to in paragraph (e)(2) of this section;
    (4) Must have shipping papers that show how the article moved from 
the beneficiary sub-Saharan African country to the United States. If the 
imported article was shipped through a country other than a beneficiary 
sub-Saharan African country and the invoices and other documents from 
the beneficiary sub-Saharan African country do not show the United 
States as the final destination, the importer also

[[Page 145]]

must have documentation that demonstrates that the conditions set forth 
in Sec. 10.175(d)(1) through (3) were met;
    (5) Must have records that demonstrate the cost or value of the 
materials produced in the United States and the cost or value of the 
materials produced in a beneficiary sub-Saharan African country or 
countries and the direct costs of processing operations incurred in the 
beneficiary sub-Saharan African country that were relied upon by the 
importer to determine that the article met the 35 percent value content 
requirement set forth in Sec. 10.176(a) and paragraph (c) of this 
section. A properly completed GSP declaration in the form set forth in 
Sec. 10.173(a)(1) is one example of a record that would serve this 
purpose; and
    (6) Must be prepared to produce the records referred to in 
paragraphs (e)(1), (e)(2), (e)(4), and (e)(5) of this section within 30 
days of a request from Customs and must be prepared to explain how those 
records and the internal controls referred to in paragraph (e)(3) of 
this section justify the importer's claim for duty-free treatment.

[T.D. 00-67, 65 FR 59675, Oct. 5, 2000]

                        Canadian Crude Petroleum



Sec. 10.179  Canadian crude petroleum subject to a commercial exchange agreement between United States and Canadian refiners.

    (a) Crude petroleum (as defined in Chapter 27, Additional U.S. Note 
1, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)) 
produced in Canada may be admitted free of duty if the entry is 
accompanied by a certificate from the importer establishing that:
    (1) The petroleum is imported pursuant to a commercial exchange 
agreement between United States and Canadian refiners which has been 
approved by the Secretary of Energy;
    (2) An equivalent amount of domestic or duty-paid foreign crude 
petroleum on which the importer has executed a written waiver of 
drawback, has been exported to Canada pursuant to the export license and 
previously has not been used to effect the duty-free entry of like 
Canadian products; and,
    (3) An export license has been issued by the Secretary of Commerce 
for the petroleum which has been exported to Canada.
    (b) The provisions of this section may be applied to:
    (1) Liquidated or reliquidated entries if the required certification 
is filed with the director of the port where the original entry was made 
on or before the 180th day after the date of entry; and
    (2) Articles entered, or withdrawn from warehouse, for consumption, 
pursuant to a commercial exchange agreement.
    (c) Verification of the quantities of crude petroleum exported to or 
imported from Canada under such a commercial exchange agreement shall be 
made in accordance with import verification provided in Part 151, 
Subpart C, Customs Regulations (19 CFR part 151, subpart C).

[T.D. 81-292, 46 FR 58069, Nov. 30, 1981, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988; T.D. 91-82, 56 FR 49845, Oct. 2, 1991]

                 Certain Fresh, Chilled, or Frozen Beef



Sec. 10.180  Certification.

    (a) The foreign official's meat-inspection certificate required by 
U.S. Department of Agriculture regulations (9 CFR 327.4) shall be 
modified to include the certification below when fresh, chilled, or 
frozen beef is to be entered under the provisions of subheadings 
0201.20.10, 0201.30.02, 0202.20.02, 0202.20.10, Harmonized Tariff 
Schedule of the United States (HTSUS). The certification shall be made, 
prior to exportation of the beef, by an official of the government of 
the exporting country and filed with Customs with the entry summary or 
with the entry when the entry summary is filed at the time of entry. The 
requirements of this section shall be in addition to those requirements 
contained in 9 CFR 327.4. Appropriate officials of the exporting country 
should consult with the U.S. Department of Agriculture as to the beef 
grades or standards within their country that satisfy the certification 
requirement. Exporters or importers of beef to be entered under the 
provisions of subheadings 0201.20.10, 0201.30.02,

[[Page 146]]

0202.20.02, 0202.20.10, HTSUS, should consult with the U.S. Department 
of Agriculture prior to exportation in order to insure that the beef 
will satisfy the certification requirements. This certification is 
relevant only to U.S. Customs tariff classification and is not 
applicable to marketing of beef under U.S. Department of Agriculture 
grading standards, a matter within U.S. Department of Agriculture's 
jurisdiction.

                              Certification

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

[T.D. 82-8, 47 FR 945, Jan. 8, 1982, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988; T.D. 97-82, 62 FR 51769, Oct. 3, 1997]

        Watches and Watch Movements From U.S. Insular Possessions



Secs. 10.181-10.182  [Reserved]

                             Civil Aircraft



Sec. 10.183  Civil aircraft, flight simulators, parts for civil aircraft, and parts for flight simulators.

    (a) Definition. ``Civil aircraft'', when used in this section, means 
all aircraft other than aircraft purchased for use by the Department of 
Defense or the United States Coast Guard.
    (b) Admission free of duty. Civil aircraft parts for civil aircraft 
certified for use in accordance with the provisions of General Note 
3(c)(iv), Harmonized Tariff Schedule of the United States (HTSUS) (19 
U.S.C. 1202), flight simulators, and parts for flight simulators, may be 
admitted free of duty upon compliance with the provisions of this 
section.
    (c) Documentation--(1) Generally. Each entry summary for civil 
aircraft, flight simulators, civil aircraft parts, or flight simulator 
parts shall be filed with a copy of the written order, contract, or any 
additional documentation Customs shall require, to verify the claim for 
admission free of duty unless the port director is satisfied that the 
documents will be available for inspection for five years from the time 
of entry, as provided by part 162 of this chapter. ``Time of entry'' is 
defined in Sec. 141.68 of this chapter. Proof of end use of the civil 
aircraft, flight simulators, civil aircraft parts, or flight simulator 
parts need not be furnished. If the port director determines that 
documentation necessary to verify the claim for entry free of duty is 
not available at the time of filing the entry summary, the importer may 
enter the civil aircraft, flight simulator, civil aircraft part, or 
flight simulator part and post a bond for the missing document in 
accordance with Secs. 141.66 and 141.91 of this chapter. The fact that a 
civil aircraft, flight simulator, civil aircraft part, or flight 
simulator part has previously been exported with benefit of drawback 
does not preclude free entry under this section and Chapter 88, HTSUS.
    (2) Civil aircraft parts. At the time of filing the entry summary, 
the importer of civil aircraft parts shall submit a certificate in 
substantially the form described in paragraph (d)(1) of this section. As 
an alternative, an importer who expects to file more than one entry for 
civil aircraft parts during any 12 month period may submit a blanket 
certification in substantially the form described in paragraph (d)(2) of 
this section with the director of each port where civil aircraft parts 
are to be entered under the provisions of General Note 3(c)(iv), HTSUS. 
Upon approval by the port director, the blanket certification shall be 
valid for a period of one year from the date of approval. The blanket 
certification may be renewed for additional one year periods upon 
written request to each concerned port director. The certification may 
not be treated as a missing document for which a bond may be posted. 
Failure to provide the certification at the time of filing the entry 
summary or to have an approved blanket certification on file with the 
director of the port where the entry summary is filed shall result in a 
dutiable entry.

[[Page 147]]

    (d) Certification--(1) Entry-by-entry certification. If the 
certification is to be filed with each entry summary, it shall be 
substantially in the following form and may be stamped, typed, or 
printed on the entry summary or submitted as a separate document:

          ENTRY-BY-ENTRY CERTIFICATION FOR CIVIL AIRCRAFT PARTS

    I certify that:
    (1) The aircraft part(s) specifically identified in the entry 
summary has (have) been imported for use in civil aircraft and, to the 
best of my knowledge and belief, will be so used.
    (2) (Check the appropriate box(es))
    [ ] (a) The article(s) specifically identified in the entry summary 
has (have) been approved for use in civil aircraft by the Administrator 
of the Federal Aviation Administration (``FAA'').
    Approved part number(s) may be shown here or reference the 
appropriate attached invoice(s) --------.
    [ ] (b) The article(s) specifically identified in the entry summary 
has (have) been approved for use in civil aircraft by --------, the 
airworthiness authority in the country of exportation. This approval is 
recognized by the FAA as an acceptable substitute for FAA approval.
    Approved part number(s) may be shown here or reference the 
appropriate attached invoice(s) --------.
    [ ] (c) An application for approval for use in civil aircraft for 
the article(s) specifically identified in the entry summary has been 
submitted to, and accepted by, the Administrator of the FAA.
________________________________________________________________________
Importer's Signature and Date

    (2) Blanket certification. The certification may be in the form of a 
blanket certification which shall be valid for a period of one year from 
the date of approval by the director of the port where the civil 
aircraft parts will be entered. The blanket certification may be renewed 
for additional one-year periods upon written request to each concerned 
port director. If a blanket certification is used it shall be 
substantially in the following form.

             BLANKET CERTIFICATION FOR CIVIL AIRCRAFT PARTS

I, ----------------------------------------,
 Importer's name, address, IRS number
certify that the use by me or my authorized agent on an entry summary, 
or other entry documentation, of a HTSUS subheading number for civil 
aircraft parts, the subheading number description of which requires 
certification for use in civil aircraft, means that the articles 
identified on the entry summary or entry documentation are imported for 
use in civil aircraft within the meaning of Chapter 88, HTSUS, and 
section 10.183, Customs Regulations (19 CFR 10.183), that the articles 
will be so used and that the articles have been approved for such use by 
the Administrator of the Federal Aviation Administration (FAA) or by the 
airworthiness authority in the country of exportation, if such approval 
is recognized by the FAA as an acceptable substitute for FAA 
certification, or that an application for approval for such use has been 
submitted to, and accepted by, the Administrator of the FAA.
    I agree (1) that documentation will be maintained to support the 
above certification, and (2) to inform the port director of any change 
which would affect the validity of this certification.
    I understand that this certification will be valid for a period of 
one year from the date of approval by the port director and will cover 
entries made only at the port where filed.
Signature_______________________________________________________________
Title___________________________________________________________________
Port Director___________________________________________________________
Approval date___________________________________________________________

    (e) Verification. The port director shall monitor and periodically 
audit selected entries made under this section.

[T.D. 84-109, 49 FR 19450, May 8, 1984, as amended by T.D. 85-123, 50 FR 
29953, July 23, 1985; T.D. 89-1, 53 FR 51252, Dec. 21, 1988]

                            Wool Duty Refunds



Sec. 10.184  Refund of duties on certain wool imports.

    (a) General. Section 505 of Title V of Pub. L. 106-200 (114 Stat. 
251), entitled the Trade and Development Act of 2000, authorizes the 
President to refund duties paid on imports of eligible wool products. 
The statute permits eligible importing-manufacturers and, in certain 
circumstances, manufacturers who are not importers, to apply for a 
refund of duties paid on imports of eligible wool products in each of 
three succeeding years. Claimants are eligible for a refund of duties 
paid on imports of eligible wool products in each of calendar years 
2000, 2001 and 2002, limited to an amount not to exceed one-third of the 
duties paid on such wool products imported in calendar year 1999.

[[Page 148]]

This section sets forth the legal requirements and procedures that apply 
for purposes of obtaining this duty refund.
    (b) Eligible wool products. For purposes of this section, the term 
eligible wool product'' means an imported wool product described under a 
Harmonized Tariff Schedule of the United States subheading listed under 
paragraph (c) of this section, relevant to a manufacturer of the 
particular wool products specified in paragraph (c).
    (c) Refunds authorized by section 505--(1) Worsted wool fabric. For 
each of calendar years 2000, 2001 and 2002, a U.S. manufacturer of men's 
or boys' suits, suit-type jackets, or trousers, of imported worsted wool 
fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12, is eligible to claim a limited refund of the duties paid in 
such calendar years on entries of such fabrics that were imported or 
purchased by the manufacturer. HTSUS subheading 9902.51.11 provides for 
fabrics, of worsted wool, with average fiber diameters greater than 18.5 
micron, all the foregoing certified by the importer as suitable for use 
in making suits, suit-type jackets, or trousers. HTSUS subheading 
9902.51.12 provides for fabrics, of worsted wool, with average fiber 
diameters of 18.5 micron or less, all the foregoing certified by the 
importer as suitable for use in making suits, suit-type jackets, or 
trousers. The amount of duties eligible to be refunded to the 
manufacturer for each of these calendar years is limited to an amount 
not to exceed one-third of the amount of duties paid on calendar year 
1999 imports of worsted wool fabric that was imported or purchased by 
the manufacturer and entered under HTSUS subheadings 5112.11.20 or 
5112.19.90. A broker or other individual acting on behalf of the 
manufacturer is ineligible to claim a duty refund.
    (2) Wool yarn. For each of calendar years 2000, 2001 and 2002, a 
U.S. manufacturer of worsted wool fabric, who imports wool yarn of the 
kind described in HTSUS subheading 9902.51.13, is eligible to claim a 
limited refund of the duties paid in each of these years on such 
imported wool yarn. HTSUS subheading 9902.51.13 provides for yarn, of 
combed wool, not put up for retail sale, containing 85 percent or more 
by weight of wool, formed with wool fibers having diameters of 18.5 
micron or less. The amount of duties eligible to be refunded to the 
manufacturer for each of these calendar years is limited to an amount 
not to exceed one-third of the amount of duties paid by the importing-
manufacturer on calendar year 1999 imports of wool yarn entered under 
HTSUS subheading 5107.10.00.
    (3) Wool fiber and wool top. For each of calendar years 2000, 2001 
and 2002, a U.S. manufacturer of wool yarn or wool fabric, who imports 
wool fiber or wool top of the kind described in HTSUS subheading 
9902.51.14, is eligible to claim a limited refund of the duties paid in 
each of these years on such wool fiber or wool top. HTSUS subheading 
9902.51.14 provides for wool fiber, waste, garnetted stock, combed wool, 
or wool top, having average fiber diameters of 18.5 micron or less. The 
amount of duties eligible to be refunded to the manufacturer for each of 
these calendar years is limited to an amount not to exceed one-third of 
the amount of duties paid by the importing-manufacturer on calendar year 
1999 imports of wool fiber or wool top entered under HTSUS subheadings 
5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 
5105.21 or 5105.29.
    (d) Manufacturer's letter of intent to file a claim for a wool duty 
refund. A manufacturer that anticipates filing a wool duty refund claim 
in calendar years 2000, 2001, and 2002, pursuant to the terms of 
paragraph (c) of this section, must first file with Customs a letter of 
intent to that effect. A manufacturer's letter of intent must 
substantiate, to Customs satisfaction, the amount of duties paid on 
eligible wool products imported in calendar year 1999.
    (1) Documentation required where the manufacturer is the importer. 
Where a manufacturer is the importer of the eligible wool products 
imported in calendar year 1999, a letter of intent to file a wool duty 
refund claim must be signed by the manufacturer or a knowledgeable 
authorized officer or employee of the manufacturer and must state that, 
to the best of the signer's knowledge and belief, the information

[[Page 149]]

contained in the letter is accurate and truthful. The letter of intent 
must contain the following information:
    (i) A statement of the total amount of duties paid by the importing-
manufacturer on eligible wool products imported in calendar year 1999;
    (ii) A list of relevant entry summary numbers, set forth as an 
attachment in either a paper or an electronic format (the latter 
submitted to Customs on diskette), that substantiates the amount set 
forth in paragraph (d)(1)(i) of this section; and
    (iii) A statement that no entry summary has been listed in paragraph 
(d)(1)(ii) of this section that did not liquidate under the HTSUS 
subheadings that provide a basis for a wool duty refund.
    (2) Documentation required where the manufacturer is not the 
importer, but the manufacturer possesses the relevant entry summary 
numbers. Where a manufacturer described in paragraph (c)(1) of this 
section was not the calendar year 1999 importer of worsted wool fabric 
entered under HTSUS subheadings 5112.11.20 or 5112.19.90, but possesses 
the relevant entry summary numbers, a letter of intent to file a wool 
duty refund claim must be submitted to Customs and signed by the non-
importing manufacturer or a knowledgeable authorized officer or employee 
of the manufacturer. The letter of intent must state that, to the best 
of the signer's knowledge and belief, the information contained in the 
letter is accurate and truthful.
    (i) The non-importing manufacturer's letter of intent must contain 
the following information:
    (A) A statement as to the identity of the importer(s) or supplier(s) 
who sold worsted wool fabric that was imported in calendar year 1999, 
and entered under HTSUS subheadings 5112.11.20 or 5112.19.90, to the 
manufacturer;
    (B) Copies of all relevant invoices, set forth as an attachment, 
that demonstrate that the manufacturer purchased imported worsted wool 
fabric of the kind described in paragraph (d)(2)(i)(A) of this section 
from an identified importer(s) or identified supplier(s) and that 
establish, where applicable, that the identified supplier(s) purchased 
such fabric from the identified importer(s);
    (C) A completed Customs Form (CF) 5106--Importer ID Input Record, 
set forth as an attachment; and
    (D) A signed affidavit, set forth as an attachment, that contains 
the following information:
    (1) A statement that the affiant is a U.S. manufacturer of men's or 
boys' suits, suit-type jackets, or trousers, of imported worsted wool 
fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12;
    (2) A statement that the affiant was not the importer in calendar 
year 1999 of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90;
    (3) A statement as to the quantity of imported worsted wool fabric 
of the kind described in paragraph (d)(2)(i)(D)(2) of this section that 
the affiant purchased from an identified importer(s) or from an 
identified supplier(s), with copies of relevant invoices attached;
    (4) If the affiant purchased fabric of the kind described in 
paragraph (d)(2)(i)(D)(2) of this section from an identified supplier, a 
statement that the affiant has been provided with substantiating 
documentation that establishes that the subject fabric was imported by 
the identified importer; and
    (5) A statement by the affiant that the identified importer(s) has 
provided a list of relevant entry summary numbers directly to the 
affiant that substantiates the amount of duties paid on calendar year 
1999 imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90, as identified in the submitted invoices, and 
such information is set forth as an attachment; and/or
    (6) A statement by the affiant that the identified importer has 
agreed to submit a signed affidavit directly to Customs with the 
relevant entry summary numbers attached.
    (ii) A non-importing manufacturer's affidavit to substantiate the 
amount of duties paid on worsted wool fabric imported in calendar year 
1999 must be

[[Page 150]]

signed by the manufacturer or a knowledgeable authorized officer or 
employee of the manufacturer, and be submitted to Customs in the 
following format:

Non-Importing Manufacturer's Affidavit in Support of a Letter of Intent 
 To File a Wool Duty Refund Claim (Where the Manufacturer Possesses the 
Relevant Entry Summary Numbers for the Fabric Identified in the Invoices 
                     Submitted With This Affidavit)

    1. The undersigned (name of manufacturer), is a U.S. manufacturer of 
men's or boys' suits, suit-type jackets, or trousers, of imported 
worsted wool fabric of the kind described in HTSUS subheadings 
9902.51.11 or 9902.51.12;
    2. The undersigned was not the importer in calendar year 1999 of 
worsted wool fabric entered under HTSUS subheadings 5112.11.20 or 
5112.19.90;
    3. The undersigned purchased (specify quantity) of imported worsted 
wool fabric of the kind described in item (2) above from (name of 
importer) or from a supplier (name of supplier), and copies of the 
relevant invoices are attached;
    4. Where the undersigned purchased imported worsted wool fabric of 
the kind described in item (2) above from (name of supplier), the 
undersigned has substantiating documentation that establishes that such 
fabric was imported by (name of importer);
    5(a). Attached is a list of relevant entry summary numbers, provided 
directly to the undersigned by (name of importer), that substantiates 
the amount of duties paid on calendar year 1999 imports of worsted wool 
fabric entered under HTSUS subheadings 5112.11.20 or 5112.19.90, as 
identified in the attached invoices; and/or
    5(b). The importer (name of importer), has agreed to submit a signed 
affidavit directly to Customs that attests to the fact that the importer 
sold imported worsted wool fabric of the kind described in item (2) 
above to the undersigned or to identified supplier(s), and to attach a 
list of the relevant entry summary numbers that substantiates the amount 
of duties paid on calendar year 1999 imports of such worsted wool 
fabric, as identified in the attached invoices; and
    6. The undersigned certifies that the information set forth in this 
affidavit is true and accurate to the best of the affiant's knowledge 
and belief.

    (iii) If an importer assists in the substantiation of a non-
importing manufacturer's letter of intent by submitting relevant entry 
summary numbers directly to Customs as an attachment to a signed 
affidavit, the importer's affidavit must be signed by the importer or a 
knowledgeable officer or employee of the importer and must state that, 
to the best of the affiant's knowledge and belief, the information 
contained in the affidavit is accurate and truthful. The importer's 
signed affidavit must contain the following information:
    (A) A statement that the affiant paid duties on calendar year 1999 
imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90;
    (B) Identification of the claimant, or supplier to the claimant, to 
whom the affiant sold imported worsted wool fabric of the kind described 
in paragraph (d)(2)(iii)(A) of this section;
    (C) A list of relevant entry summary numbers for worsted wool fabric 
of the kind described in paragraph (d)(2)(iii)(A) of this section, 
imported in calendar year 1999, set forth as an attachment in either a 
paper or an electronic format (the latter submitted to Customs on 
diskette), that substantiates the amount of duties paid on such fabric 
sold to the identified claimant or identified supplier, as evidenced by 
the claimant's invoices; and
    (D) A statement that the importer has not listed any entry summary 
in paragraph (d)(2)(iii)(C) of this section that did not liquidate under 
HTSUS subheadings 5112.11.20 or 5112.19.90.
    (iv) The importer's affidavit in support of a non-importing 
manufacturer's letter of intent to claim a wool duty refund must be 
signed by the importer or a knowledgeable officer or employee of the 
importer, and be submitted to Customs in the following format:

Importer's Affidavit in Support of a Non-Importing Manufacturer's Letter 
                  of Intent To Claim a Wool Duty Refund

    1. The undersigned (name of importer), is/was an importer who paid 
duties on calendar year 1999 imports of worsted wool fabric entered 
under HTSUS subheadings 5112.11.20 or 5112.19.90;
    2. The undersigned sold worsted wool fabric of the kind described in 
item (1) above to a manufacturer identified as (name of manufacturer) or 
to a supplier(s) identified as (name of supplier);
    3. Attached is a list of relevant entry summary numbers for worsted 
wool fabric of the kind described in item (1) above that substantiates 
the amount of duties paid on calendar year 1999 imports of such fabric 
that

[[Page 151]]

was sold to (name of manufacturer) or to (name of supplier) by the 
undersigned;
    4. The undersigned has not listed any entry summary in item (3) 
above that did not liquidate under HTSUS subheadings 5112.11.20 or 
5112.11.90; and
    5. The undersigned certifies that the information set forth in this 
affidavit is true and accurate to the best of the affiant's knowledge 
and belief.

    (3) Documentation required where the manufacturer is not the 
importer and the manufacturer does not possess the relevant entry 
summary numbers. Where a manufacturer described in paragraph (c)(1) of 
this section was not the calendar year 1999 importer of worsted wool 
fabric entered under HTSUS subheadings 5112.11.20 or 5112.19.90, and 
does not possess the relevant entry summary numbers, a letter of intent 
to file a wool duty refund claim must be submitted to Customs and signed 
by the non-importing manufacturer or a knowledgeable authorized officer 
or employee of the manufacturer. The letter of intent must state that, 
to the best of the signer's knowledge and belief, the information 
contained in the letter is accurate and truthful.
    (i) The non-importing manufacturer's letter of intent, where the 
manufacturer does not possess the relevant entry summary numbers, must 
contain the following information:
    (A) A statement as to the identity of the importer(s) or supplier(s) 
who sold imported worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90 to the non-importing manufacturer;
    (B) Copies of all relevant calendar year 1999 invoices, set forth as 
an attachment, that demonstrate that the non-importing manufacturer 
purchased imported worsted wool fabric of the kind described in 
paragraph (d)(3)(i)(A) of this section from an identified importer(s) or 
identified supplier(s);
    (C) A statement that if the non-importing manufacturer purchased 
imported worsted wool fabric of the kind described in paragraph 
(d)(3)(i)(A) of this section from an identified supplier, the 
manufacturer has substantiating documentation that establishes that such 
fabric was imported by the identified importer;
    (D) A completed Customs Form (CF) 5106--Importer ID Input Record, 
set forth as an attachment; and
    (E) A signed affidavit, set forth as an attachment, that contains 
the following information:
    (1) A statement that the affiant is a U.S. manufacturer of men's or 
boys' suits, suit-type jackets, or trousers, of imported worsted wool 
fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12;
    (2) A statement that the affiant was not the importer in calendar 
year 1999 of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90;
    (3) A statement of the quantity of imported worsted wool fabric of 
the kind described in paragraph (d)(3)(i)(E)(2) of this section that the 
affiant purchased from an identified importer(s) or from an identified 
supplier(s), with copies of the relevant invoices attached;
    (4) A statement that where the affiant purchased imported worsted 
wool fabric of the kind described in paragraph (d)(3)(i)(E)(2) of this 
section from an identified supplier, the affiant has substantiating 
documentation that establishes that such fabric was imported by the 
identified importer; and
    (5) A statement by the affiant that a good faith effort was made to 
contact the identified importer and request relevant entry summary 
numbers that substantiate the amount of duties paid on calendar year 
1999 imports of worsted wool fabric identified in the submitted 
invoices, but the identified importer is unable or unwilling to provide 
such assistance.
    (ii) A non-importing manufacturer's affidavit to estimate and 
substantiate the amount of duties paid by the importer on worsted wool 
fabric imported in calendar year 1999, where no entry summary numbers 
are available, must be signed by the manufacturer or a knowledgeable 
authorized officer or employee of the manufacturer, and be submitted to 
Customs in the following format:

[[Page 152]]

Non-Importing Manufacturer's Affidavit in Support of a Letter of Intent 
   To File a Wool Duty Refund Claim (Where the Manufacturer Does Not 
Possess the Relevant Entry Summary Numbers for the Fabric Identified in 
               the Invoices Submitted With this Affidavit)

    1. The undersigned (name of manufacturer), is a U.S. manufacturer of 
men's or boys' suits, suit-type jackets, or trousers, of imported 
worsted wool fabric of the kind described in HTSUS subheadings 
9902.51.11 or 9902.51.12;
    2. The undersigned was not the importer in calendar year 1999 of 
worsted wool fabric entered under HTSUS subheadings 5112.11.20 or 
5112.19.90;
    3. The undersigned purchased (specify quantity) of imported worsted 
wool fabric of the kind described in item (2) above from (name of 
importer) or from a supplier (name of supplier), and copies of relevant 
invoices are attached;
    4. If the undersigned has purchased imported worsted wool fabric of 
the kind described in item (2) above from (name of supplier), the 
undersigned has substantiating documentation that establishes that such 
fabric was imported by (name of importer);
    5. The undersigned attests that a good faith effort was made to 
contact the identified importer(s) and request that relevant entry 
summary numbers be provided to either the undersigned or directly to 
Customs that substantiate the amount of duties paid on calendar year 
1999 imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90, as identified in the submitted invoices, but 
the identified importer is unable or unwilling to provide such 
assistance; and
    6. The undersigned certifies that the information set forth in this 
affidavit is true and accurate to the best of the affiant's knowledge 
and belief.

    (4) Documentation required where the manufacturer is both an 
importer and a purchaser of eligible worsted wool fabric. Where a 
manufacturer described in paragraph (c)(1) of this section is both an 
importer and a purchaser of eligible worsted wool fabric, the 
manufacturer must submit to Customs a letter of intent to file a wool 
duty refund claim that is signed by the manufacturer or a knowledgeable 
authorized officer or employee of the manufacturer. The letter of intent 
must state that, to the best of the signer's knowledge and belief, the 
information contained in the letter is accurate and truthful, and must 
contain the following:
    (i) Where the manufacturer is the importer, the information 
described in paragraph (d)(1) of this section;
    (ii) Where the manufacturer is not the importer, but the 
manufacturer possesses the relevant entry summary numbers, the 
information described in paragraph (d)(2) of this section and the 
relevant entry summary numbers may be submitted directly to Customs by 
the manufacturer and/or the importer(s); and/or
    (iii)Where the manufacturer is not the importer, and the 
manufacturer does not possess the relevant entry summary numbers, the 
information described in paragraph (d)(3) of this section.
    (5) Documentation required where a prospective claimant is the legal 
assignee of an eligible manufacturer's potential wool duty refund 
rights. To file a letter of intent where the prospective claimant is the 
legal assignee of any potential wool duty refund claim rights 
attributable to an eligible manufacturer described in paragraph (c) of 
this section, the facts of such legal assignation, and the identity of 
all affected parties, must be submitted to Customs in a written 
attachment to the letter of intent, and additional substantiating 
documentation must be available to Custom upon request. Only those 
assignees that substantiate, to Customs satisfaction, the terms and 
legality of the assignation will be eligible to claim a wool duty 
refund.
    (6) Time to file a letter of intent. A manufacturer's letter of 
intent to file a wool duty refund claim, including amendments, all 
attachments and, where applicable, the importer's signed affidavit in 
support of the manufacturer's letter of intent, must be received by 
Customs no later than May 8, 2001, unless this date is extended upon due 
notice in the Federal Register.
    (7) Place to file a letter of intent. A manufacturer's letter of 
intent to file a wool duty refund claim, including all attachments and, 
where applicable, the importer's signed affidavit in support of the 
manufacturer's letter of intent, must be submitted to: U.S. Customs 
Service, Wool Refund Claim, Residual Liquidation and Protest Branch, Rm. 
761, 6 World Trade Center, New York, N.Y. 10048-0945.

[[Page 153]]

    (e) Customs verification letter. Customs will issue to a prospective 
claimant a written verification letter within 30 calendar days from the 
date Customs receives a timely and complete letter of intent that relies 
solely on relevant entry summary numbers to substantiate, to Customs 
satisfaction, the amount of duties paid on eligible wool products 
imported in calendar year 1999. Where a prospective claimant submits a 
letter of intent that relies on invoices, in whole or in part, to 
substantiate, to Customs satisfaction, the amount of duties paid on 
eligible wool products imported in calendar year 1999, Customs will 
issue a verification letter to such prospective claimant within 30 
calendar days after the date all letters of intent must be received by 
Customs, as set forth in paragraph (d)(6) of this section. The amount of 
potential duty refund will be based on the quantity of eligible wool 
products that was imported by the prospective claimant or, where the 
prospective claimant was not the importer, purchased by the prospective 
claimant (as indicated by submitted invoices). If entry summary numbers 
are used to substantiate the amount of duties paid on eligible wool 
products imported in calendar year 1999, the potential refund amount 
will be limited to the amount of duties paid on such entry summaries 
that is attributable to that quantity of eligible wool products. If, 
instead, invoices are used to estimate and substantiate the amount of 
duties paid on eligible wool fabrics imported in calendar year 1999, the 
amount of duties will be determined by deducting 10 percent from the 
invoice amounts (to deduct imputed profits and costs), dividing the 
resulting adjusted invoice amounts by 130.6% to back out the duty, and 
then multiplying that amount times the duty rate (30.6%). If the 
aggregate amount of duties attributable to an importer exceeds the 
amount of duties paid by that importer in calendar year 1999, as 
indicated by ACS, an adjustment will be made to those claimants 
requiring use of the invoice formula. The percentage deducted from the 
invoice amounts for those claimants will be increased on a pro rata 
basis to ensure that the aggregate amount to be refunded does not exceed 
the ACS amount. Refund amounts substantiated by entry summary numbers 
will not be reduced. A letter of verification will set forth the 
following information:
    (1) The prospective claimant's claim identification number;
    (2) The maximum amount of wool duty refund that the individual 
prospective claimant will be eligible to receive in each of calendar 
years 2000, 2001, and 2002; and
    (3) Where invoices are used to substantiate the amount of duties 
paid on worsted wool fabric in calendar year 1999, the percentage that 
was deducted from the invoice amounts, with accompanying explanation.
    (f) Eligibility criteria to claim a wool duty refund for calendar 
years 2000, 2001, and 2002. To be eligible to claim a refund of duties 
paid on imports of certain wool products in calendar years 2000, 2001, 
and 2002, a claimant must be in receipt of a claim verification letter 
from Customs. Additionally, in each calendar year for which a wool duty 
refund claim is being made, a claimant must be:
    (1) A U.S. manufacturer of men's or boys' suits, suit-type jackets, 
or trousers, of imported worsted wool fabric of the kind described in 
HTSUS subheadings 9902.51.11 or 9902.51.12, for which duties were paid 
on entries made under HTSUS subheadings 5112.11.20 or 5112.19.90 in 
calendar year 2000, or under HTSUS subheadings 5112.11.30, 5112.11.60, 
5112.19.60, 5112.19.95, 9902.51.11 or 9902.51.12 in calendar years 2001 
and 2002;
    (2) A U.S. manufacturer of worsted wool fabric who paid duties on 
imported wool yarn of the kind described in HTSUS subheading 9902.51.13 
and entered under HTSUS subheadings 5107.10.00 in calendar year 2000, or 
under HTSUS subheadings 5107.10.30 or 9902.51.13 in calendar years 2001 
and 2002;
    (3) A U.S. manufacturer of wool yarn or wool fabric who paid duties 
on imported wool fiber or wool top of the kind described in HTSUS 
subheading 9902.51.14 and entered under HTSUS subheadings 5101.11, 
5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21 
or 5105.29 in calendar years 2000,

[[Page 154]]

2001 and 2002, or under HTSUS subheading 9902.51.14 in calendar years 
2001 and 2002; and/or
    (4) A legal assignee of the existing wool duty refund claim rights 
of an eligible manufacturer described in paragraphs (f)(1), (f)(2) or 
(f)(3) of this section.
    (g) Procedures for filing a claim--(1) Time to file. An eligible 
claimant may file with Customs one wool duty refund claim for each of 
calendar claim years 2000, 2001 and 2002, including, where applicable, 
related amended claims. A claim may be amended within 90 calendar days 
from the date of the original submission or, if Customs has notified the 
claimant in writing that the claim is insufficient to support the claim 
as requested or is otherwise defective (e.g., a claim that relies on an 
entry summary that is ineligible for a wool duty refund, as provided for 
in Sec. 10.184(j)), within 90 calendar days from the date of the Customs 
notification. All claims for a wool duty refund, whether original or 
amended in the absence of a Customs notification of insufficiency or 
defect, must be received by Customs no later than December 31 of the 
year following the calendar claim year for which a wool duty refund is 
being sought, with the exception of claims for calendar claim year 2000 
which may be filed no later than December 31, 2002. An amended claim 
made in response to a Customs notification of insufficiency or defect 
may be submitted to Customs after the December 31 deadline applicable to 
all other claim submissions. A claimant may file two separate duty 
refund claims in a single calendar year, so long as the claims are for 
two different claim years.
    (2) Place to file. A claim for a refund of duties paid on imports of 
eligible wool products must be submitted to: U.S. Customs Service, 
Office of Field Operations, Wool Duty Refund Unit, 1300 Pennsylvania 
Avenue, NW., 5th Floor, Washington, DC 20229.
    (3) Documentation. (i) Where the manufacturer is the importer. To 
file a wool duty refund claim, an importing-manufacturer must provide 
Customs with a copy of the verification letter the claimant received 
from Customs and an affidavit, signed by the manufacturer or a 
knowledgeable officer or employee of the manufacturer, that contains the 
following information:
    (A) A statement that the affiant is/was a U.S. manufacturer of the 
kind described in paragraphs (f)(1), (f)(2) or (f)(3) of this section, 
in the calendar claim year for which a wool duty refund is being sought;
    (B) A statement of the total amount of duties paid by the affiant in 
that year on eligible wool products;
    (C) The total amount of duty refund being claimed;
    (D) A list of relevant entry summary numbers, set forth as an 
attachment and submitted to Customs in either a paper or an electronic 
format (the latter on diskette), that substantiates the amount of duties 
for which a refund is being claimed in paragraph (g)(3)(i)(C) of this 
section, and does not exceed the affiant's share of duties eligible to 
be refunded as set forth in the attached verification letter;
    (E) A statement that no entry summary has been listed in paragraph 
(g)(3)(i)(D) of this section that has already had 99% or more of the 
amount of duties paid on that entry refunded pursuant to any refund 
claim authorized by law; and
    (F) A statement that identifies, if applicable, any entry summary 
listed in paragraph (g)(3)(i)(D) of this section that is, or may become, 
subject to an outstanding drawback claim, protest, or any other refund 
claim authorized by law.
    (ii) Form of affidavit. An importing-manufacturer's signed affidavit 
to substantiate a wool duty refund claim in calendar years 2000, 2001, 
or 2002 must be signed by the manufacturer, or a knowledgeable officer 
or employee of the manufacturer, and submitted to Customs in the 
following format:

Importing-Manufacturer's Affidavit in Support of a Claim for a Wool Duty 
 Refund Under Section 505 of the Trade and Development Act of 2000, for 
                              Calendar Year

    1. The undersigned, (name of manufacturer), is/was a U.S. 
manufacturer of the kind described in paragraphs (f)(1) [--], (f)(2) [--
] or (f)(3) [--] [check one] of Sec. 10.184 of the Customs Regulations 
(19 CFR 10.184(f)), in the calendar claim year for which a wool duty 
refund is being sought;

[[Page 155]]

    2. The undersigned paid (total amount of duties paid) in calendar 
year ---------- on eligible wool products;
    3. The amount of wool duty refund being claimed is $------------;
    4. Attached is a list of the relevant current claim year entry 
summary numbers that substantiate the amount of duty refund being 
claimed in item (3) above;
    5. The undersigned has not listed any entry summary in item (4) 
above that has had 99% or more of the amount of duties paid on that 
entry refunded pursuant to any refund claim authorized by law;
    6. The undersigned will list any entry summary in item (4) above 
that is, or may become, subject to an outstanding drawback claim, 
protest, or any other refund claim authorized by law; and
    7. The undersigned certifies that the information set forth in this 
affidavit is true and accurate to the best of the affiant's knowledge 
and belief.

    (iii) Where the manufacturer is not the importer. To file a wool 
duty refund claim, a manufacturer of men's or boys' suits, suit-type 
jackets, or trousers, of imported worsted wool fabric of the kind 
described in HSTUS subheadings 9902.51.11 or 9902.51.12, who is a 
purchaser but not the importer of such fabric, must provide Customs with 
a copy of the verification letter the claimant received from Customs and 
an affidavit signed by the manufacturer, or a knowledgeable officer or 
employee of the manufacturer, that contains the following information:
    (A) A statement that the affiant is/was a U.S. manufacturer in the 
calendar claim year for which a wool duty refund is being sought, of 
men's or boys' suits, suit-type jackets, or trousers, of imported 
worsted wool fabric of the kind described in HTSUS subheadings 
9902.51.11 or 9902.51.12;
    (B) A statement that the affiant was not the importer in the 
calendar claim year for which a wool duty refund is being sought of 
imported worsted wool fabric of the kind described in paragraph 
(g)(3)(iii)(A) of this section;
    (C) A statement as to the quantity of imported worsted wool fabric 
of the kind described in paragraph (g)(3)(iii)(A) of this section that 
the affiant purchased from an identified importer(s) or from an 
identified supplier(s), with copies of relevant invoices attached;
    (D) A statement that where the affiant purchased imported worsted 
wool fabric of the kind described in paragraph (g)(3)(iii)(A) of this 
section from an identified supplier(s), the affiant has substantiating 
documentation that establishes that such fabric was imported by the 
identified importer(s); and
    (E) A statement by the affiant that the identified importer(s) has 
provided a list of relevant entry summary numbers directly to the 
affiant that substantiates the amount of duties paid in the calendar 
claim year for which a wool duty refund is being sought on imported 
worsted wool fabric of the kind described in paragraph (g)(3)(iii)(A) of 
this section, as identified in the submitted invoices, and entered under 
HTSUS subheadings 5112.11.20 or 5112.19.90 in calendar year 2000, or 
under HTSUS subheadings 5112.11.30, 5112.11.60, 5112.19.60, 5112.19.95, 
9902.51.11 or 9902.51.12 in calendar years 2001 and 2002, and such 
information is set forth as an attachment; and/or
    (F) A statement by the affiant that the identified importer(s) has 
agreed to submit a signed affidavit directly to Customs with the 
relevant entry summary numbers attached that substantiates the amount of 
duties paid in the calendar claim year for which a wool duty refund is 
being sought on imported worsted wool fabric of the kind described in 
paragraph (g)(3)(iii)(A) of this section, as identified in the submitted 
invoices, and entered under HTSUS subheadings 5112.11.20 or 5112.19.90 
in calendar year 2000, or under HTSUS subheadings 5112.11.30, 
5112.11.60, 5112.19.60, 5112.19.95, 9902.51.11 or 9902.51.12 in calendar 
years 2001 and 2002.
    (iv) Form of affidavit. A manufacturer who is not the importer of 
the imported worsted wool fabric must submit to Customs an affidavit to 
substantiate a wool duty refund claim in calendar years 2000, 2001, or 
2002, signed by the manufacturer or a knowledgeable officer or employee 
of the manufacturer, in the following format:

[[Page 156]]

Non-Importing Manufacturer's Affidavit in Support of a Claim for a Duty 
 Refund Under Section 505 of the Trade and Development Act of 2000, for 
                              Calendar Year

    1. The undersigned (name of manufacturer), is/was a U.S. 
manufacturer in calendar year ------ of men's or boys' suits, suit-type 
jackets, or trousers, of imported worsted wool fabric of the kind 
described in HTSUS subheadings 9902.51.11 or 9902.51.12;
    2. The undersigned was not the importer in the calendar claim year 
for which a wool duty refund is being sought of worsted wool fabric of 
the kind described in item 1 above;
    3. The undersigned purchased (specify quantity) of imported worsted 
wool fabric of the kind described in item (1) above from (name of 
importer(s)) or from a supplier(s), and the relevant invoices are 
attached;
    4. Where the undersigned purchased imported worsted wool fabric of 
the kind described in item (1) above from (name of supplier), the 
undersigned has substantiating documentation that establishes that such 
fabric was imported by (name of importer);
    5(a). Attached is a list of relevant entry summary numbers, provided 
directly to the undersigned by (name of importer), that substantiates 
the amount of duties paid in the calendar claim year for which a wool 
duty refund is being sought, as evidenced by the attached invoices, on 
imported worsted wool fabric of the kind described in item (1) above and 
entered under HTSUS subheadings 5112.11.20 or 5112.19.90 in calendar 
year 2000, or under HTSUS subheadings 5112.11.30, 5112.11.60, 
5112.19.60, 5112.19.95, 9902.51.11 or 9902.51.12 in calendar years 2001 
and 2002; and/or
    5(b). The importer (name of importer), has agreed to submit a signed 
affidavit directly to Customs that attests to the fact that the importer 
sold imported worsted wool fabric of the kind described in item (1) 
above to the undersigned or to (name of supplier), and has agreed to 
attach a list of relevant entry summary numbers that substantiates the 
amount of duties paid in the calendar claim year for which a wool duty 
refund is being sought, as evidenced by the attached invoices, on such 
fabric that was entered under HTSUS subheadings 5112.11.20 or 5112.19.90 
in calendar year 2000, or under HTSUS subheadings 5112.11.30, 
5112.11.60, 5112.19.60, 5112.19.95, 9902.51.11 or 9902.51.12 in calendar 
years 2001 and 2002; and
    6. The undersigned certifies that the information set forth in this 
affidavit is true and accurate to the best of the affiant's knowledge 
and belief.

    (v) Required content of an importer's signed affidavit in support of 
a manufacturer's wool duty refund claim. Where an importer chooses to 
assist in the substantiation of a non-importing manufacturer's wool duty 
refund claim by submitting relevant entry summary numbers directly to 
Customs, such entry information must be set forth as an attachment to an 
affidavit that is signed by the importer or by a knowledgeable officer 
or employee of the importer, and must contain the following information:
    (A) A statement as to the total amount of duties that the importer 
paid in the calendar year for which a wool duty refund is being sought 
on worsted wool fabric of the kind described in paragraph (g)(3)(iii) of 
this section;
    (B) A statement that the importer sold worsted wool fabric of the 
kind described paragraph (g)(3)(iii) of this section, to the identified 
manufacturer or to the identified supplier(s);
    (C) A list of relevant entry summary numbers for worsted wool fabric 
of the kind described in paragraph (g)(3)(iii) of this section, set 
forth as an attachment in either a paper or an electronic format (the 
latter submitted to Customs on diskette), that substantiates the amount 
of duties paid in the calendar claim year for which a wool duty refund 
is being sought on such fabric that was sold by the importer to the 
identified manufacturer or to the identified supplier(s);
    (D) A statement that no entry summary number has been listed in 
paragraph (g)(3)(v)(C) of this section that has already had 99% or more 
of the amount of duties paid on that entry refunded pursuant to any 
refund claim authorized by law; and
    (E) A statement that lists any entry summary number in paragraph 
(g)(3)(v)(C) of this section that is, or may become, subject to an 
outstanding drawback claim, protest, or any other refund claim 
authorized by law.
    (vi) Form of affidavit. The importer's affidavit in support of 
manufacturer's wool duty refund claim must be signed by the importer or 
by a knowledgeable officer or employee of the importer, and be submitted 
to Customs in the following format:

[[Page 157]]

Importer's Affidavit in Support of a Non-Importing Manufacturer's Claim 
for a Duty Refund Under Section 505 of the Trade and Development Act of 
                         2000, for Calendar Year

    1. The undersigned (name of importer), is/was an importer who paid 
duties in calendar year ------ on imported worsted wool fabric of the 
kind described in HTSUS subheadings 9902.51.11 or 9902.51.12;
    2. The undersigned sold worsted wool fabric of the kind described in 
item (1) above to a manufacturer identified as (name of manufacturer) or 
to a supplier(s) identified as (name of supplier);
    3. Attached is a list of relevant entry summary numbers for worsted 
wool fabric of the kind described in item (1) above, that substantiates 
the amount of duties paid in the calendar claim year for which a wool 
duty refund is being sought on such fabric that was sold by the 
undersigned to (name of manufacturer) or to an identified supplier(s) 
(name of supplier(s));
    4. The undersigned has not listed any entry summary in item (3) 
above that has had 99% or more of the amount of duties paid on that 
entry refunded pursuant to any refund claim authorized by law;
    5. The undersigned will list any entry summary in item (3) above 
that is, or may become, subject to an outstanding drawback claim, 
protest, or any other refund claim authorized by law; and
    6. The undersigned certifies that the information set forth in this 
affidavit is true and accurate to the best of the affiant's knowledge 
and belief.

    (vii) Documentation required where the manufacturer is both an 
importer and a purchaser of eligible worsted wool fabric. Where a 
manufacturer described in paragraph (c)(1) of this section is both an 
importer and a purchaser of eligible worsted wool fabric, the 
manufacturer must provide Customs with both the documentation described 
in paragraphs (g)(3)(i) and (g)(3)(ii) of this section, and the 
documentation described in paragraphs (g)(3)(iii) and (g)(3)(iv) of this 
section.
    (viii) Documentation required where the claimant is the legal 
assignee of an eligible manufacturer's wool duty refund claim rights. To 
file a wool duty refund claim where the claimant is the legal assignee 
of the existing wool duty refund claim rights of an eligible 
manufacturer described in paragraphs (f)(1), (f)(2) or (f)(3) of this 
section, the facts of such legal assignation, and the identity of all 
affected parties, must be submitted to Customs in a written attachment 
to the claim, and additional substantiating documentation must be 
available to Custom upon request. Only those assignees that 
substantiate, to Customs satisfaction, the terms and legality of the 
assignation will be eligible to claim a wool duty refund.
    (h) Wool duty refund claim processing procedures. Upon receipt of a 
timely and complete wool duty refund claim filed pursuant to the terms 
of this section, Customs will determine the liquidation status of the 
entry summaries used to substantiate the claim. No duty refund will be 
issued to a claimant until all the entry summaries identified for 
purposes of substantiating the claim have been finally liquidated and 
the applicable amendment period, as set forth in paragraph (g)(1) of 
this section has expired or the claimant has submitted to Customs a 
signed waiver of amendment.
    (i) Denial of a wool duty refund claim. Customs may deny a wool duty 
refund claim if the claim was not timely filed, if the claimant is not 
eligible pursuant to the terms of this section, or if the claimant has 
not complied with the requirements of this section. Customs will provide 
the claimant with written notice of the denial of the claim, including 
the reason for the denial.
    (j) Multiple refund claims and pending judicial review--(1) 
Allowance or denial of subsequent claims. If an entry has been used to 
provide the basis for a duty refund claim pursuant to this section, and 
the entire amount of duties paid on that entry was refunded to the 
claimant, a claim for drawback, or any other refund claim authorized by 
law, that is based on that entry, will be denied by Customs. If an entry 
has been used to substantiate a claim for a duty refund under this 
section, and an amount in duties paid on that entry has not been 
refunded, the remaining amount may be eligible for subsequent duty 
refund claims under this section, drawback, or any other refund claim 
authorized by law. An entry that has already had 99% or more of the 
duties paid on that entry refunded by way of a drawback claim, protest, 
or any other claim authorized by law, may not be used to provide the 
basis for a wool duty refund claim.
    (2) Substitution of entry summary numbers. If a duty refund claim 
under this

[[Page 158]]

section has not yet been processed by Customs, an importer may 
substitute an entry summary that has already been identified to Customs 
for purposes of substantiating the claim with another comparable entry 
summary, so long as the amount of duty paid in connection with the 
replacement entry is not less than the duty paid on the entry that was 
identified to Customs originally.
    (3) Pending judicial review. If a summons involving the tariff 
classification or the dutiability of an imported wool product has been 
filed in the Court of International Trade, Customs will deem any entry 
summary at issue in that judicial proceeding ineligible to substantiate 
a duty refund claim.
    (k) Penalties and liquidated damages. A wool duty refund claimant's 
failure to comply with any of the procedural requirements set forth in 
this document, or failure to adhere to all applicable laws and 
regulations, may subject the claimant to penalties, liquidated damages 
or other administrative sanctions.

[66 FR 20395, Apr. 23, 2001, as amended at 67 FR 3059, Jan. 23, 2002]

                       Caribbean Basin Initiative

    Source: Sections 10.191 through 10.197 issued by T.D. 84-237, 49 FR 
47993, Dec. 7, 1984, unless otherwise noted.



Sec. 10.191  General.

    (a) Statutory authority. Subtitle A, Title II, Pub. L. 98-67, 
entitled the Caribbean Basin Economic Recovery Act (19 U.S.C. 2701-2706) 
and referred to as the Caribbean Basin Initiative (CBI), authorizes the 
President to proclaim duty-free treatment for all eligible articles from 
any beneficiary country.
    (b) Definitions--(1) Beneficiary country. For purposes of 
Sec. 10.191 through Sec. 10.199 and except as otherwise provided in 
Sec. 10.195(b), the term ``beneficiary country'' means any country or 
territory or successor political entity with respect to which there is 
in effect a proclamation by the President designating such country, 
territory or successor political entity as a beneficiary country in 
accordance with section 212(a)(1)(A) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2702(a)(1)(A)).
    (2) Eligible articles. Except as provided herein, for purposes of 
Sec. 10.191(a), the term ``eligible articles'' means any merchandise 
which is imported directly from a beneficiary country as provided in 
Sec. 10.193 and which meets the country of origin criteria set forth in 
Sec. 10.195 or in Sec. 10.198b. The following merchandise shall not be 
considered eligible articles entitled to duty-free treatment under the 
CBI.
    (i) Textile and apparel articles which were not eligible articles 
for purposes of the CBI on January 1, 1994, as the CBI was in effect on 
that date.
    (ii) Footwear not designated on August 5, 1983, as eligible articles 
for the purpose of the Generalized System of Preferences under Title V, 
Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467).
    (iii) Tuna, prepared or preserved in any manner, in airtight 
containers.
    (iv) Petroleum, or any product derived from petroleum, provided for 
in headings 2709 and 2710, Harmonized Tariff Schedule of the United 
States (HTSUS).
    (v) Watches and watch parts (including cases, bracelets and straps), 
of whatever type including, but not limited to, mechanical, quartz 
digital or quartz analog, if such watches or watch parts contain any 
material which is the product of any country with respect to which HTSUS 
column 2 rates of duty apply.
    (vi) Articles to which reduced rates of duty apply under 
Sec. 10.198a.
    (vii) Sugars, sirups, and molasses, provided for in subheadings 
1701.11.00 and 1701.12.00, HTSUS, to the extent that importation and 
duty-free treatment of such articles are limited by Additional U.S. Note 
4, Chapter 17, HTSUS.
    (viii) Articles subject to the provisions of the subheadings of 
Subchapter III, from the beginning through 9903.85.21, Chapter 99, 
HTSUS, to the extent that such provisions have not been modified or 
terminated by the President pursuant to section 213(e)(5) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(e)(5)).
    (ix) Merchandise for which duty-free treatment under the CBI is 
suspended or withdrawn by the President pursuant to sections 213 (c)(2), 
(e)(1), or (f)(3)

[[Page 159]]

of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703 (c)(2), 
(e)(1), or (f)(3)).
    (3) Wholly the growth, product, or manufacture of a beneficiary 
country. For purposes of Sec. 10.191 through Sec. 10.199, the expression 
``wholly the growth, product, or manufacture of a beneficiary country'' 
refers both to any article which has been entirely grown, produced, or 
manufactured in a beneficiary country or two or more beneficiary 
countries and to all materials incorporated in an article which have 
been entirely grown, produced, or manufactured in any beneficiary 
country or two or more beneficary countries, as distinguished from 
articles or materials imported into a beneficiary country from a non-
beneficiary country whether or not such articles or materials were 
substantially transformed into new or different articles of commerce 
after their importation into the beneficiary country.
    (4) Entered. For purposes of Sec. 10.191 through Sec. 10.199, the 
term ``entered'' means entered, or withdrawn from warehouse for 
consumption, in the customs territory of the U.S.

[T.D. 84-237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988; T.D. 00-68, 65 FR 59657, Oct. 5, 2000; T.D. 01-17, 
66 FR 9645, Feb. 9, 2001]



Sec. 10.192  Claim for exemption from duty under the CBI.

    A claim for an exemption from duty on the ground that the CBI 
applies shall be allowed by the port director only if he is satisfied 
that the requirements set forth in this section and Sec. 10.193 through 
Sec. 10.198b have been met. Duty-free treatment may be claimed at the 
time of filing the entry summary by placing the symbol ``E'' as a prefix 
to the HTSUS subheading number for each article for which such treatment 
is claimed on that document.

[T.D. 84-237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988; T.D. 94-47, 59 FR 25570, May 17, 1994; T.D. 00-68, 
65 FR 59658, Oct. 5, 2000]



Sec. 10.193  Imported directly.

    To qualify for treatment under the CBI, an article shall be imported 
directly from a beneficiary country into the customs territory of the 
U.S. For purposes of Sec. 10.191 through Sec. 10.198b the words 
``imported directly'' mean:
    (a) Direct shipment from any beneficiary country to the U.S. without 
passing through the territory of any non-beneficiary country; or
    (b) If the shipment is from any beneficiary country to the U.S. 
through the territory of any non-beneficiary country, the articles in 
the shipment do not enter into the commerce of any non-beneficiary 
country while en route to the U.S. and the invoices, bills of lading, 
and other shipping documents show the U.S. as the final destination; or
    (c) If the shipment is from any beneficiary country to the U.S. 
through the territory of any non-beneficiary country, and the invoices 
and other documents do not show the U.S. as the final destination, the 
articles in the shipment upon arrival in the U.S. are imported directly 
only if they:
    (1) Remained under the control of the customs authority of the 
intermediate country;
    (2) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commericial transaction between the importer and the producer or the 
latter's sales agent; and
    (3) Were not subjected to operations other than loading and 
unloading, and other activities necessary to preserve the articles in 
good condition.

[T.D. 84-237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 00-68, 65 FR 
59658, Oct. 5, 2000]



Sec. 10.194  Evidence of direct shipment.

    (a) Documents constituting evidence of direct shipment. The port 
director may require that appropriate shipping papers, invoices, or 
other documents be submitted within 60 days of the date of entry as 
evidence that the articles were ``imported directly'', as that term is 
defined in Sec. 10.193. Any evidence of direct shipment required shall 
be subject to such verification as deemed necessary by the port 
director.
    (b) Waiver of evidence of direct shipment. The port director may 
waive the submission of evidence of direct shipment when otherwise 
satisfied, taking

[[Page 160]]

into consideration the kind and value of the merchandise, that the 
merchandise was, in fact, imported directly and that it otherwise 
clearly qualifies for treatment under the CBI.



Sec. 10.195  Country of origin criteria.

    (a) Articles produced in a beneficiary country--(1) General. Except 
as provided herein, any article which is either wholly the growth, 
product, or manufacture of a beneficiary country or a new or different 
article of commerce which has been grown, produced, or manufactured in a 
beneficiary country, may qualify for duty-free entry under the CBI. No 
article or material shall be considered to have been grown, produced, or 
manufactured in a beneficiary country by virtue of having merely 
undergone simple (as opposed to complex or meaningful) combining or 
packaging operations, or mere dilution with water or mere dilution with 
another substance that does not materially alter the characteristics of 
the article. Duty-free entry under the CBI may be accorded to an article 
only if the sum of the cost or value of the material produced in a 
beneficiary country or countries, plus the direct costs of processing 
operations performed in a beneficiary country or countries, is not less 
than 35 percent of the appraised value of the article at the time it is 
entered.
    (2) Combining, packaging, and diluting operations. No article which 
has undergone only a simple combining or packaging operation or a mere 
dilution in a beneficiary country within the meaning of paragraph (a)(1) 
of this section shall be entitled to duty-free treatment even though the 
processing operation causes the article to meet the value requirement 
set forth in that paragraph.
    (i) For purposes of this section, simple combining or packaging 
operations and mere dilution include, but are not limited to, the 
following processes:
    (A) The addition of batteries to devices;
    (B) Fitting together a small number of components by bolting, 
glueing, soldering etc.;
    (C) Blending foreign and beneficiary country tobacco;
    (D) The addition of substances such as anticaking agents, 
preservatives, wetting agents, etc.;
    (E) Repacking or packaging components together;
    (F) Reconstituting orange juice by adding water to orange juice 
concentrate; and
    (G) Diluting chemicals with inert ingredients to bring them to 
standard degrees of strength.
    (ii) For purposes of this section, simple combining or packaging 
operations and mere dilution shall not be taken to include processes 
such as the following:
    (A) The assembly of a large number of discrete components onto a 
printed circuit board;
    (B) The mixing together of two bulk medicinal substances followed by 
the packaging of the mixed product into individual doses for retail 
sale;
    (C) The addition of water or another substance to a chemical 
compound under pressure which results in a reaction creating a new 
chemical compound; and
    (D) A simple combining or packaging operation or mere dilution 
coupled with any other type of processing such as testing or fabrication 
(e.g., a simple assembly of a small number of components, one of which 
was fabricated in the beneficiary country where the assembly took 
place).

The fact that an article or material has undergone more than a simple 
combining or packaging operation or mere dilution is not necessarily 
dispositive of the question of whether that processing constitutes a 
substantial transformation for purposes of determining the country of 
origin of the article or material.
    (b) Commonwealth of Puerto Rico and U.S. Virgin Islands--(1) 
General. For purposes of determining the percentage referred to in 
paragraph (a) of this section, the term ``beneficiary country'' includes 
the Commonwealth of Puerto Rico and the U.S. Virgin Islands. Any cost or 
value of materials or direct costs of processing operations attributable 
to the U.S. Virgin Islands must be included in the article prior to its 
final exportation from a beneficiary country to the United States.
    (2) Manufacture in the Commonwealth of Puerto Rico after final 
exportation.

[[Page 161]]

Notwithstanding the provisions of 19 U.S.C. 1311, if an article from a 
beneficiary country is entered under bond for processing or use in 
manufacturing in the Commonwealth of Puerto Rico, no duty will be 
imposed on the withdrawal from warehouse for consumption of the product 
of that processing or manufacturing provided that:
    (i) The article entered in the warehouse in the Commonwealth of 
Puerto Rico was grown, produced, or manufactured in a beneficiary 
country within the meaning of paragraph (a) of this section and was 
imported directly from a beneficiary country within the meaning of 
Sec. 10.193; and
    (ii) At the time of its withdrawal from the warehouse, the product 
of the processing or manufacturing in the Commonwealth of Puerto Rico 
meets the 35 percent value-content requirement prescribed in paragraph 
(a) of this section.
    (c) Materials produced in the U.S. For purposes of determining the 
percentage referred to in paragraph (a) of this section, an amount not 
to exceed 15 percent of the appraised value of the article at the time 
it is entered may be attributed to the cost or value of materials 
produced in the customs territory of the U.S. (other than the 
Commonwealth of Puerto Rico). In the case of materials produced in the 
customs territory of the U.S., the provisions of Sec. 10.196 shall 
apply.
    (d) Textile components cut to shape in the U.S. The percentage 
referred to in paragraph (c) of this section may be attributed in whole 
or in part to the cost or value of a textile component that is cut to 
shape (but not to length, width, or both) in the U.S. (including the 
Commonwealth of Puerto Rico) from foreign fabric and exported to a 
beneficiary country for assembly into an article that is then returned 
to the U.S. and entered, or withdrawn from warehouse, for consumption on 
or after July 1, 1996. For purposes of this paragraph, the terms 
``textile component'' and ``fabric'' have reference only to goods 
covered by the definition of ``textile or apparel product'' set forth in 
Sec. 102.21(b)(5) of this chapter.
    (e) Articles wholly grown, produced, or manufactured in a 
beneficiary country. Any article which is wholly the growth, product, or 
manufacture of a beneficiary country, including articles produced or 
manufactured in a beneficiary country exclusively from materials which 
are wholly the growth, product, or manufacture of a beneficiary country 
or countries, shall normally be presumed to meet the requirements set 
forth in paragraph (a) of this section.
    (f) Country of origin marking. The general country of origin marking 
requirements that apply to all importations are also applicable to 
articles imported under the CBI.

[T.D. 84-237, 49 FR 47993, Dec. 7, 1984; 49 FR 49575, Dec. 20, 1984, as 
amended by T.D. 95-69, 60 FR 46197, Sept. 5, 1995; T.D. 95-69, 60 FR 
55995, Nov. 6, 1996; T.D. 00-68, 65 FR 59658, Oct. 5, 2000]



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

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

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

[[Page 162]]

tanned to create nonperishable ``crust leather''. The tanned skin is 
then imported directly into the U.S. Although the tanned skin represents 
a new or different article of commerce produced in a beneficiary country 
within the meaning of Sec. 10.195(a), the cost or value of the raw skin 
may not be counted toward the 35 percent value requirement because (1) 
the tanned material of which the imported article is composed is not 
wholly the growth, product, or manufacture of a beneficiary country and 
(2) the tanning operation creates the imported article itself rather 
than an intermediate article which is then used in the beneficiary 
country in the production or manufacture of an article imported into the 
U.S. The tanned skin would be eligible for duty-free treatment only if 
the direct costs attributable to the tanning operation represent at 
least 35 percent of the appraised value of the imported article.
    Example 3. A raw, perishable skin of an animal grown in a non-
beneficiary country is sent to a beneficiary country where it is tanned 
to create nonperishable ``crust leather''. The tanned material is then 
cut, sewn and assembled with a metal buckle imported from a non-
beneficiary country to create a finished belt which is imported directly 
into the U.S. Because the operations performed in the beneficiary 
country involved both the substantial transformation of the raw skin 
into a new or different article and the use of that intermediate article 
in the production or manufacture of a new or different article imported 
into the U.S., the cost or value of the tanned material used to make the 
imported article may be counted toward the 35 percent value requirement. 
The cost or value of the metal buckle imported into the beneficiary 
country may not be counted toward the 35 percent value requirement 
because the buckle was not substantially transformed in the beneficiary 
country into a new or different article prior to its incorporation in 
the finished belt.
    Example 4. A raw, perishable skin of an animal grown in the U.S. 
Virgin Islands is sent to a beneficiary country where it is tanned to 
create nonperishable ``crust leather'', which is then imported directly 
into the U.S. The tanned skin represents a new or different article of 
commerce produced in a beneficiary country within the meaning of 
Sec. 10.195(a), and under Sec. 10.195(b), the raw skin from which the 
tanned product was made is considered to have been grown in a 
beneficiary country for the purpose of applying the 35 percent value 
requirement. The tanned material of which the imported article is 
composed is considered to be wholly the growth, product, or manufacture 
of one or more beneficiary countries with the result that the entire 
cost or value of that material may be counted toward the 35 percent 
value requirement.

    (b) Questionable origin. When the origin of a material either is not 
ascertainable or is not satisfactorily demonstrated to the port 
director, the material shall not be considered to have been grown, 
produced, or manufactured in a beneficiary country.
    (c) Determination of cost or value of materials produced in a 
beneficiary country. (1) The cost or value of materials produced in a 
beneficiary country or countries includes:
    (i) The manufacturer's actual cost for the materials;
    (ii) When not included in the manufacturer's actual cost for the 
materials, the freight, insurance, packing, and all other costs incurred 
in transporting the materials to the manufacturer's plant;
    (iii) The actual cost of waste or spoilage (material list), less the 
value of recoverable scrap; and
    (iv) Taxes and/or duties imposed on the materials by any beneficiary 
country, provided they are not remitted upon exportation.
    (2) Where a material is provided to the manufacturer without charge, 
or at less than fair market value, its cost or value shall be determined 
by computing the sum of:
    (i) All expenses incurred in the growth, production, or manufacture 
of the material, including general expenses;
    (ii) An amount for profit; and
    (iii) Freight, insurance, packing, and all other costs incurred in 
transporting the material to the manufacturer's plant.

If the pertinent information needed to compute the cost or value of a 
material is not available, the appraising officer may ascertain or 
estimate the value thereof using all reasonable ways and means at his 
disposal.



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

    (a) Items included in the direct costs of processing operations. As 
used in Sec. 10.195 and Sec. 10.198, the words ``direct costs of 
processing operations'' mean those costs either directly incurred in, or 
which can be reasonably allocated to, the growth, production, 
manufacture,

[[Page 163]]

or assembly of the specific merchandise under consideration. Such costs 
include, but are not limited to the following, to the extent that they 
are includable in the appraised value of the imported merchandise:
    (1) All actual labor costs involved in the growth, production, 
manufacture or assembly of the specific merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (2) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (3) Research, development, design, engineering, and blueprint costs 
insofar as they are allocable to the specific merchandise and;
    (4) Costs of inspecting and testing the specific merchandise.
    (b) Items not included in the direct costs of processing operations. 
Those items which are not included within the meaning of the words 
``direct costs of processing operations'' are those which are not 
directly attributable to the merchandise under consideration or are not 
``costs'' of manufacturing the product. These include, but are not 
limited to:
    (1) Profit; and
    (2) General expenses of doing business which are either not 
allocable to the specific merchandise or are not related to the growth, 
production, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.

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



Sec. 10.198  Evidence of country of origin.

    (a) Shipments covered by a formal entry--(1) Articles not wholly the 
growth, product, or manufacture of a beneficiary country--(i) 
Declaration. In a case involving an article covered by a formal entry 
which is not wholly the growth, product, or manufacture of a single 
beneficiary country, the exporter or other appropriate party having 
knowledge of the relevant facts in the beneficiary country where the 
article was produced or last processed shall be prepared to submit 
directly to the port director, upon request, a declaration setting forth 
all pertinent detailed information concerning the production or 
manufacture of the article. When requested by the port director, the 
declaration shall be prepared in substantially the following form:

                             CBI Declaration

    I. ----------------------------,
(name), hereby declare that the articles described below (a) were 
produced or manufactured in ---------------- (country) by means of 
processing operations performed in that country as set forth below and 
were also subjected to processing operations in the other beneficiary 
country or countries (including the Commonwealth of Puerto Rico and the 
U.S. Virgin Islands) as set forth below and (b) incorporate materials 
produced in the country named above or in any other beneficiary country 
or countries (including the Commonwealth of Puerto Rico and the U.S. 
Virgin Islands) or in the customs territory of the United States (other 
than the Commonwealth of Puerto Rico) as set forth below:

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

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________


[[Page 164]]

________________________________________________________________________
    (ii) Retention of records and submission of declaration. The 
information necessary for preparation of the declaration shall be 
retained in the files of the party responsible for its preparation and 
submission for a period of 5 years. In the event that the port director 
requests submission of the declaration during the 5-year period, it 
shall be submitted by the appropriate party directly to the port 
director within 60 days of the date of the request or such additional 
period as the port director may allow for good cause shown. Failure to 
submit the declaration in a timely fashion will result in a denial of 
duty-free treatment.
    (iii) Value added after final exportation. In a case in which value 
is added to an article in a bonded warehouse or in a foreign-trade zone 
in the Commonwealth of Puerto Rico or in the U.S. after final 
exportation of the article from a beneficiary country, in order to 
ensure compliance with the value requirement under Sec. 10.195(a), the 
declaration provided for in paragraph (a)(1)(i) of this section shall be 
filed by the importer or consignee with the entry summary as evidence of 
the country of origin. The declaration shall be properly completed by 
the party responsible for the addition of such value.
    (2) Merchandise wholly the growth, product, or manufacture of a 
beneficiary country. In a case involving merchandise covered by a formal 
entry which is wholly the growth, product, or manufacture of a single 
beneficiary country, a statement to that effect shall be included on the 
commercial invoice provided to Customs.
    (b) Shipments covered by an informal entry. Although the filing of 
the declaration provided for in paragraph (a)(1)(i) of this section will 
not be required for a shipment covered by an informal entry, the port 
director may require such other evidence of country of origin as deemed 
necessary.
    (c) Verification of documentation. Any evidence of country of origin 
submitted under this section shall be subject to such verification as 
the port director deems necessary. In the event that the port director 
is prevented from obtaining the necessary verification, the port 
director may treat the entry as dutiable.

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



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

    Except as otherwise provided in Sec. 10.233, reduced rates of duty 
as proclaimed by the President will apply to handbags, luggage, flat 
goods, work gloves, and leather wearing apparel that were not designated 
on August 5, 1983, as eligible articles for purposes of the Generalized 
System of Preferences under Title V, Trade Act of 1974, as amended (19 
U.S.C. 2461 through 2467), provided that the article in question at the 
time it is entered:
    (a) Was grown, produced, or manufactured in a beneficiary country 
within the meaning of Sec. 10.195;
    (b) Meets the 35 percent value-content requirement prescribed in 
Sec. 10.195; and
    (c) Was imported directly from a beneficiary country within the 
meaning of Sec. 10.193.

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



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

    Except in the case of any article described in Sec. 10.191(b)(2)(i) 
through (vi), the duty-free treatment provided for under the CBI will 
apply to an article that is the growth, product, or manufacture of the 
Commonwealth of Puerto Rico and that is by any means advanced in value 
or improved in condition in a beneficiary country, provided that:
    (a) If any materials are added to the article in the beneficiary 
country, those materials consist only of materials that are a product of 
a beneficiary country or the United States; and
    (b) The article is imported directly from the beneficiary country 
into the customs territory of the United States within the meaning of 
Sec. 10.193.

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



Sec. 10.199  Duty-free entry for certain beverages produced in Canada from Caribbean rum.

    (a) General. A liqueur or other spirituous beverage that is imported 
directly from the territory of Canada and

[[Page 165]]

that is classifiable under subheading 2208.40 or 2208.90, Harmonized 
Tariff Schedule of the United States (HTSUS), will be entitled, upon 
entry or withdrawal from warehouse for consumption, to duty-free 
treatment under section 213(a)(6) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703(a)(6)), also known as the Caribbean Basin 
Initiative (CBI), if the liqueur or spirituous beverage has been 
produced in the territory of Canada from rum, provided that the rum:
    (1) Is the growth, product, or manufacture either of a beneficiary 
country or of the U.S. Virgin Islands;
    (2) Was imported directly into the territory of Canada from a 
beneficiary country or from the U.S. Virgin Islands; and
    (3) Accounts for at least 90 percent of the alcoholic content by 
volume of the liqueur or spirituous beverage.
    (b) Claim for exemption from duty under CBI. A claim for an 
exemption from duty for a liqueur or spirituous beverage under section 
213(a)(6) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2703(a)(6)) may be made by entering such liqueur or beverage under 
subheading 9817.22.05, HTSUS, on the entry summary document or its 
electronic equivalent. In order to claim the exemption, the importer 
must have the records described in paragraphs (d), (e), (f) and (g) of 
this section so that, upon Customs request, the importer can establish 
that:
    (1) The rum used to produce the liqueur/beverage is the growth, 
product or manufacture either of a beneficiary country or of the U.S. 
Virgin Islands;
    (2) The rum was shipped directly from a beneficiary country or from 
the U.S. Virgin Islands to Canada;
    (3) The liqueur/beverage was produced in Canada;
    (4) The rum accounts for at least 90% of the alcohol content of the 
liqueur/beverage; and
    (5) The liqueur/beverage was shipped directly from Canada to the 
United States.
    (c) Imported directly. For liqueur or other spirituous beverage 
imported from Canada to qualify for duty-free entry under the CBI, the 
liqueur or spirituous beverage must be imported directly into the 
customs territory of the United States from Canada; and the rum used in 
its production must have been imported directly into the territory of 
Canada either from a beneficiary country or from the U.S. Virgin 
Islands.
    (1) ``Imported directly'' into the customs territory of the United 
States from Canada means:
    (i) Direct shipment from the territory of Canada to the U.S. without 
passing through the territory of any other country; or
    (ii) If the shipment is from the territory of Canada to the U.S. 
through the territory of any other country, the liqueurs and spirituous 
beverages do not enter into the commerce of any other country while en 
route to the U.S.; or
    (iii) If the shipment is from the territory of Canada to the U.S. 
through the territory of another country, and the invoices and other 
documents do not show the U.S. as the final destination, the liqueurs 
and spirituous beverages in the shipment are imported directly only if 
they:
    (A) Remained under the control of the customs authority of the 
intermediate country;
    (B) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commercial transaction between the importer and the producer or the 
latter's sales agent; and
    (C) Were not subjected to operations other than loading and 
unloading, and other activities necessary to preserve the products in 
good condition.
    (2) ``Imported directly'' from a beneficiary country or from the 
U.S. Virgin Islands into the territory of Canada means:
    (i) Direct shipment from a beneficiary country or from the U.S. 
Virgin Islands into the territory of Canada without passing through the 
territory of any non-beneficiary country; or
    (ii) If the shipment is from a beneficiary country or from the U.S. 
Virgin Islands into the territory of Canada through the territory of any 
non-beneficiary country, the rum does not enter into the commerce of any 
non-beneficiary country while en route to Canada; or

[[Page 166]]

    (iii) If the shipment is from a beneficiary country or from the U.S. 
Virgin Islands into the territory of Canada through the territory of any 
non-beneficiary country, the rum in the shipment is imported directly 
into the territory of Canada only if it:
    (A) Remained under the control of the customs authority of the 
intermediate country;
    (B) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail; and
    (C) Was not subjected to operations in the intermediate country 
other than loading and unloading, and other activities necessary to 
preserve the product in good condition.
    (d) Evidence of direct shipment--(1) Liqueurs or spirituous 
beverages imported from Canada. The importer must be prepared to provide 
to the port director, if requested, documentary evidence that the 
liqueurs or spirituous beverages were imported directly from the 
territory of Canada, as described in paragraph (c)(1) of this section. 
This evidence may include documents such as a bill of lading, invoice, 
air waybill, freight waybill, or cargo manifest. Any evidence of the 
direct shipment of these liqueurs or spirituous beverages from Canada 
into the U.S. may be subject to such verification as deemed necessary by 
the port director.
    (2) Rum imported into Canada from beneficiary country or U.S. Virgin 
Islands. The importer must be prepared to provide to the port director, 
if requested, evidence that the rum used in producing the liqueurs or 
spirituous beverages was imported directly into the territory of Canada 
from a beneficiary country or from the U.S. Virgin Islands, as described 
in paragraph (c)(2) of this section. This evidence may include documents 
such as a Canadian customs entry, Canadian customs invoice, Canadian 
customs manifest, cargo manifest, bill of lading, landing certificate, 
airway bill, or freight waybill. Any evidence of the direct shipment of 
the rum from a beneficiary country or from the U.S. Virgin Islands into 
the territory of Canada for use there in producing the liqueurs or other 
spirituous beverages may be subject to such verification as deemed 
necessary by the port director.
    (e) Origin of rum used in production of liqueur or spirituous 
beverage--(1) Origin criteria. In order for a liqueur or spirituous 
beverage covered by this section to be entitled to duty-free entry under 
the CBI, the rum used in producing the liqueur or spirituous beverage in 
the territory of Canada must be wholly the growth, product, or 
manufacture either of a beneficiary country under the CBI or of the U.S. 
Virgin Islands, or must constitute a new or different article of 
commerce that was produced or manufactured in a beneficiary country or 
in the U.S. Virgin Islands. Such rum will not be considered to have been 
grown, produced, or manufactured in a beneficiary country or in the U.S. 
Virgin Islands by virtue of having merely undergone blending, combining 
or packaging operations, or mere dilution with water or mere dilution 
with another substance that does not materially alter the 
characteristics of the product.
    (2) Evidence of origin of rum--(i) Declaration. The importer must be 
prepared to submit directly to the port director, if requested, a 
declaration prepared and signed by the person who produced or 
manufactured the rum, affirming that the rum is the growth, product or 
manufacture of a beneficiary country or of the U.S. Virgin Islands. 
While no particular form is prescribed for the declaration, it must 
include all pertinent information concerning the processing operations 
by which the rum was produced or manufactured, the address of the 
producer or manufacturer, the title of the party signing the 
declaration, and the date it is signed.
    (ii) Records supporting declaration. The supporting records, 
including those production records, that are necessary for the 
preparation of the declaration must also be available for submission to 
the port director if requested. The declaration and any supporting 
evidence as to the origin of the rum may be subject to such verification 
as deemed necessary by the port director.
    (f) Canadian processor declaration; supporting documentation--(1) 
Canadian processor declaration. The importer must be prepared to submit 
directly to

[[Page 167]]

the port director, if requested, a declaration prepared by the person 
who produced the liqueur(s) and/or the spirituous beverage(s) in Canada, 
setting forth all pertinent information concerning the production of the 
liqueurs/beverages. The declaration will be in substantially the 
following form:
    I, ------ declare that the liqueurs and/or spirituous beverages here 
specified are the products that were produced by me (us), as described 
below, with the use of rum that was received by me (us); that the rum 
used in producing the liqueurs/beverages was received by me (us) on ----
-- (date), from ------ (name and address of owner or exporter in the 
beneficiary country or in the U.S. Virgin Islands, as applicable); and 
that such rum accounts for at least 90 percent of the alcoholic content 
by volume, as shown below, of each liqueur or spirituous beverage so 
produced.

------------------------------------------------------------------------
                                                       Alcoholic content
                                    Description of       of products;
        Marks and numbers           products and of    alcoholic content
                                      processing       (%) attributable
                                                          to rum \1\
------------------------------------------------------------------------
                                  ..................  ..................
                                  ..................  ..................
                                  ..................  ..................
                                  ..................  ..................
                                  ..................  ..................
------------------------------------------------------------------------
\1\ The production records must establish, for each lot of liqueur/
  beverage produced, the quantity of rum the growth, product or
  manufacture of a CBI beneficiary country or of the U.S. Virgin Islands
  under 19 U.S.C. 2703(a)(6) that is used in producing the finished
  liqueur/beverage; the alcoholic content by volume of the finished
  liqueur/beverage; and the alcoholic content by volume of the finished
  liqueur/beverage, expressed as a percentage, that is attributable to
  the qualifying rum. If rum from two or more qualifying sources (e.g.,
  rum the growth, product or manufacture of a CBI beneficiary country or
  of the U.S. Virgin Islands and other rum the growth, product or
  manufacture of another CBI country) are used in processing the liqueur/
  beverage, the alcoholic content requirement may be met by aggregating
  the alcoholic content of the finished liqueur/beverage that is
  attributable to rum from each of the qualifying sources used in
  processing the finished liqueur/beverage, as reflected in the
  production records.

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (2) Availability of supporting documents. The information, including 
any supporting documents and records, necessary for the preparation of 
the declaration, as described in paragraph (f)(1) of this section, must 
be available for submission to the port director, if requested. The 
declaration and any supporting evidence may be subject to such 
verification as deemed necessary by the port director. The specific 
documentary evidence necessary to support the declaration consists of 
those documents and records which satisfactorily establish:
    (i) The receipt of the rum by the Canadian processor, including the 
date of receipt and the name and address of the party from whom the rum 
was received (the owner or exporter in the beneficiary country or the 
U.S. Virgin Islands); and
    (ii) For each lot of liqueur/beverage produced and included in the 
declaration, the specific identification of the production lot(s) 
involved; the quantity of qualifying rum that is used in producing the 
finished liqueur/beverage, including a description of the processing and 
of the finished products; the alcoholic content by volume of the 
finished liqueur/beverage; and the alcoholic content by volume of the 
finished liqueur/beverage, expressed as a percentage, that is 
attributable to the qualifying rum.
    (g) Importer system for review of necessary recordkeeping. The 
importer will establish and implement a system of internal controls 
which demonstrate that reasonable care was exercised in its claim for 
duty-free treatment under the CBI. These controls should include tests 
to assure the accuracy and availability of records that establish:
    (1) The origin of the rum;
    (2) The direct shipment of the rum from a beneficiary country or 
from the U.S. Virgin Islands to Canada;
    (3) The alcohol content of the finished liqueur/beverage imported 
from Canada; and
    (4) The direct shipment of the finished liqueur/beverage from Canada 
to the United States.
    (h) Submission of documents to Customs. The importer must be 
prepared to submit directly to the port director, if requested, those 
documents and/or supporting records as described in paragraphs (d), (e) 
and (f) of this section, for a period of 5 years from the date of entry 
of the related liqueurs and spirituous beverages under section 213(a)(6) 
of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(6)), as 
provided in Sec. 163.4(a) of this chapter. If requested, the importer 
must submit such documents and/or supporting records to the port 
director within 60

[[Page 168]]

calendar days of the date of the request or such additional period as 
the port director may allow for good cause shown.

[T.D. 01-17, 66 FR 9645, Feb. 9, 2001]

                         Andean Trade Preference

    Source: Sections 10.201 through 10.208 appear at T.D. 98-76, 63 FR 
51292, Sept. 25, 1998, unless otherwise noted.



Sec. 10.201  Applicability.

    Title II of Pub. L. 102-182 (105 Stat. 1233), entitled the Andean 
Trade Preference Act (ATPA) and codified at 19 U.S.C. 3201-3206, 
authorizes the President to proclaim duty-free treatment for all 
eligible articles from any beneficiary country, to designate countries 
as beneficiary countries, and to proclaim duty reductions for certain 
goods not eligible for duty-free treatment. The provisions of 
Secs. 10.202-10.208 of this part set forth the legal requirements and 
procedures that apply for purposes of obtaining such duty-free or 
reduced-duty treatment for articles from a beneficiary country which are 
identified for purposes of such treatment in General Note 11, Harmonized 
Tariff Schedule of the United States (HTSUS), and in the ``Special'' 
rate of duty column of the HTSUS.



Sec. 10.202  Definitions.

    The following definitions apply for purposes of Secs. 10.201 through 
10.208:
    (a) Beneficiary country. Except as otherwise provided in 
Sec. 10.206(b), the term ``beneficiary country'' refers to any country 
or successor political entity with respect to which there is in effect a 
proclamation by the President designating such country or successor 
political entity as a beneficiary country in accordance with section 203 
of the ATPA (19 U.S.C. 3202).
    (b) Eligible articles. The term ``eligible'' when used with 
reference to an article means merchandise which is imported directly 
from a beneficiary country as provided in Sec. 10.204, which meets the 
country of origin criteria set forth in Sec. 10.205 and the value-
content requirement set forth in Sec. 10.206, and which, if the 
requirements of Sec. 10.207 are met, is therefore entitled to duty-free 
treatment under the ATPA. However, the following merchandise shall not 
be considered eligible articles entitled to duty-free treatment under 
the ATPA:
    (1) Textile and apparel articles which are subject to textile 
agreements;
    (2) Footwear not designated on December 4, 1991, as eligible for the 
purpose of the Generalized System of Preferences under Title V, Trade 
Act of 1974, as amended (19 U.S.C. 2461-2466);
    (3) Tuna, prepared or preserved in any manner, in airtight 
containers;
    (4) Petroleum, or any product derived from petroleum, provided for 
in headings 2709 and 2710, Harmonized Tariff Schedule of the United 
States (HTSUS);
    (5) Watches and watch parts (including cases, bracelets, and 
straps), of whatever type including, but not limited to, mechanical, 
quartz digital or quartz analog, if such watches or watch parts contain 
any material which is the product of any country with respect to which 
HTSUS column 2 rates of duty apply;
    (6) Sugars, syrups, and molasses classified in subheadings 
1701.11.03, 1701.12.02, 1701.99.02, 1702.90.32, 1806.10.42, and 
2106.90.12, HTSUS;
    (7) Rum and tafia classified in subheading 2208.40.00, HTSUS; or
    (8) Articles to which reduced rates of duty apply under section 
204(c) of the ATPA (19 U.S.C. 3203(c)) (see Sec. 10.208).
    (c) Entered. The term ``entered'' means entered, or withdrawn from 
warehouse for consumption, in the customs territory of the United 
States.
    (d) Wholly the growth, product, or manufacture of a beneficiary 
country. The expression ``wholly the growth, product, or manufacture of 
a beneficiary country'' has the same meaning as that set forth in 
Sec. 10.191(b)(3) of this part.



Sec. 10.203  Eligibility criteria in general.

    An article classifiable under a subheading of the Harmonized Tariff 
Schedule of the United States for which a rate of duty of ``Free'' 
appears in the ``Special'' subcolumn followed by the symbol ``J'' or 
``J*'' in parentheses is eligible for duty-free treatment, and will be 
accorded such treatment, if each of the following requirements is met:

[[Page 169]]

    (a) Imported directly. The article is imported directly from a 
beneficiary country as provided in Sec. 10.204.
    (b) Country of origin criteria. The article complies with the 
country of origin criteria set forth in Sec. 10.205.
    (c) Value content requirement. The article complies with the value 
content requirement set forth in Sec. 10.206.
    (d) Filing of claim and submission of supporting documentation. The 
claim for duty-free treatment is filed, and any required documentation 
in support of the claim is submitted, in accordance with the procedures 
set forth in Sec. 10.207.



Sec. 10.204  Imported directly.

    In order to be eligible for duty-free treatment under the ATPA, an 
article shall be imported directly from a beneficiary country into the 
customs territory of the United States. For purposes of this 
requirement, the words ``imported directly'' mean:
    (a) Direct shipment from any beneficiary country to the United 
States without passing through the territory of any non-beneficiary 
country; or
    (b) If shipment from any beneficiary country to the United States 
was through the territory of a non-beneficiary country, the articles in 
the shipment did not enter into the commerce of the non-beneficiary 
country while en route to the United States, and the invoices, bills of 
lading, and other shipping documents show the United States as the final 
destination; or
    (c) If shipment from any beneficiary country to the United States 
was through the territory of a non-beneficiary country and the invoices 
and other documents do not show the United States as the final 
destination, then the articles in the shipment, upon arrival in the 
United States, are imported directly only if they:
    (1) Remained under the control of the customs authority in the 
intermediate country;
    (2) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the articles 
are imported into the United States as a result of the original 
commercial transaction between the importer and the producer or the 
latter's sales agent; and
    (3) Were not subjected to operations in the intermediate country 
other than loading and unloading, and other activities necessary to 
preserve the articles in good condition.



Sec. 10.205  Country of origin criteria.

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



Sec. 10.206  Value content requirement.

    (a) General. An article may be eligible for duty-free treatment 
under the ATPA only if the sum of the cost or value of the materials 
produced in a beneficiary country or countries, plus the direct costs of 
processing operations performed in a beneficiary country or countries, 
is not less than 35 percent of the appraised value of the article at the 
time it is entered.
    (b) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI 
beneficiary countries. For purposes of determining the percentage 
referred to in paragraph (a) of this section, the term ``beneficiary 
country'' includes the Commonwealth of Puerto Rico, the U.S. Virgin 
Islands, and any CBI beneficiary country as defined in Sec. 10.191(b)(1) 
of this part. Any cost or value of materials or direct costs of 
processing operations attributable to the Virgin Islands or any CBI 
beneficiary country must be included

[[Page 170]]

in the article prior to its final exportation to the United States from 
a beneficiary country as defined in Sec. 10.202(a).
    (c) Materials produced in the United States. For purposes of 
determining the percentage referred to in paragraph (a) of this section, 
an amount not to exceed 15 percent of the appraised value of the article 
at the time it is entered may be attributed to the cost or value of 
materials produced in the customs territory of the United States (other 
than the Commonwealth of Puerto Rico). The principles set forth in 
paragraph (d)(1) of this section shall apply in determining whether a 
material is ``produced in the customs territory of the United States'' 
for purposes of this paragraph.
    (d) Cost or value of materials--(1) ``Materials produced in a 
beneficiary country or countries'' defined. For purposes of paragraph 
(a) of this section, the words materials produced in a beneficiary 
country or countries refer to those materials incorporated in an article 
which are either:
    (i) Wholly the growth, product, or manufacture of a beneficiary 
country or two or more beneficiary countries; or
    (ii) Substantially transformed in any beneficiary country or two or 
more beneficiary countries into a new or different article of commerce 
which is then used in any beneficiary country as defined in 
Sec. 10.202(a) in the production or manufacture of a new or different 
article which is imported directly into the United States. For purposes 
of this paragraph (d)(1)(ii), no material shall be considered to be 
substantially transformed into a new or different article of commerce by 
virtue of having merely undergone simple (as opposed to complex or 
meaningful) combining or packaging operations, or mere dilution with 
water or mere dilution with another substance that does not materially 
alter the characteristics of the article. The examples set forth in 
Sec. 10.196(a) of this part, and the principles and examples set forth 
in Sec. 10.195(a)(2) of this part, shall apply for purposes of the 
corresponding context under paragraph (d)(1) of this section.
    (2) Questionable origin. When the origin of a material either is not 
ascertainable or is not satisfactorily demonstrated to the appropriate 
port director, the material shall not be considered to have been grown, 
produced, or manufactured in a beneficiary country or in the customs 
territory of the United States.
    (3) Determination of cost or value of materials. (i) The cost or 
value of materials produced in a beneficiary country or countries or in 
the customs territory of the United States includes:
    (A) The manufacturer's actual cost for the materials;
    (B) When not included in the manufacturer's actual cost for the 
materials, the freight, insurance, packing, and all other costs incurred 
in transporting the materials to the manufacturer's plant;
    (C) The actual cost of waste or spoilage, less the value of 
recoverable scrap; and
    (D) Taxes and/or duties imposed on the materials by any beneficiary 
country or by the United States, provided they are not remitted upon 
exportation.
    (ii) Where a material is provided to the manufacturer without 
charge, or at less than fair market value, its cost or value shall be 
determined by computing the sum of:
    (A) All expenses incurred in the growth, production, or manufacture 
of the material, including general expenses;
    (B) An amount for profit; and
    (C) Freight, insurance, packing, and all other costs incurred in 
transporting the material to the manufacturer's plant.
    (iii) If the pertinent information needed to compute the cost or 
value of a material is not available, the appraising officer may 
ascertain or estimate the value thereof using all reasonable ways and 
means at his disposal.
    (e) Direct costs of processing operations--(1) Items included. For 
purposes of paragraph (a) of this section, the words direct costs of 
processing operations mean those costs either directly incurred in, or 
which can be reasonably allocated to, the growth, production, 
manufacture, or assembly of the specific merchandise under 
consideration. Such costs include, but are not limited

[[Page 171]]

to the following, to the extent that they are includable in the 
appraised value of the imported merchandise:
    (i) All actual labor costs involved in the growth, production, 
manufacture, or assembly of the specific merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (ii) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (iii) Research, development, design, engineering, and blueprint 
costs insofar as they are allocable to the specific merchandise; and
    (iv) Costs of inspecting and testing the specific merchandise.
    (2) Items not included. For purposes of paragraph (a) of this 
section, the words ``direct costs of processing operations'' do not 
include items which are not directly attributable to the merchandise 
under consideration or are not costs of manufacturing the product. These 
include, but are not limited to:
    (i) Profit; and
    (ii) General expenses of doing business which either are not 
allocable to the specific merchandise or are not related to the growth, 
production, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.
    (f) Articles wholly the growth, product, or manufacture of a 
beneficiary country. Any article which is wholly the growth, product, or 
manufacture of a beneficiary country as defined in Sec. 10.202(a), and 
any article produced or manufactured in a beneficiary country as defined 
in Sec. 10.202(a) exclusively from materials which are wholly the 
growth, product, or manufacture of a beneficiary country or countries, 
shall normally be presumed to meet the requirement set forth in 
paragraph (a) of this section.



Sec. 10.207  Procedures for filing duty-free treatment claim and submitting supporting documentation.

    (a) Filing claim for duty-free treatment. Except as provided in 
paragraph (c) of this section, a claim for duty-free treatment under the 
ATPA may be made at the time of filing the entry summary by placing the 
symbol ``J'' as a prefix to the Harmonized Tariff Schedule of the United 
States subheading number applicable to each article for which duty-free 
treatment is claimed on that document.
    (b) Shipments covered by a formal entry--(1) Articles not wholly the 
growth, product, or manufacture of a beneficiary country--(i) 
Declaration. In a case involving an article covered by a formal entry 
for which duty-free treatment is claimed under the ATPA and which is not 
wholly the growth, product, or manufacture of a single beneficiary 
country as defined in Sec. 10.202(a), the exporter or other appropriate 
party having knowledge of the relevant facts in the beneficiary country 
as defined in Sec. 10.202(a) where the article was produced or last 
processed shall be prepared to submit directly to the port director, 
upon request, a declaration setting forth all pertinent detailed 
information concerning the production or manufacture of the article. 
When requested by the port director, the declaration shall be prepared 
in substantially the following form:

                            ATPA DECLARATION

    I, ------------ (name), hereby declare that the articles described 
below (a) were produced or manufactured in ------------
(country) by means of processing operations performed in that country as 
set forth below and were also subjected to processing operations in the 
other beneficiary country or countries (including the Commonwealth of 
Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country) 
as set forth below and (b) incorporate materials produced in the country 
named above or in any other beneficiary country or countries (including 
the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and any CBI 
beneficiary country) or in the customs territory of the United States 
(other than the Commonwealth of Puerto Rico) as set forth below:

[[Page 172]]

________________________________________________________________________

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

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (ii) Retention of records and submission of declaration. The 
information necessary for the preparation of the declaration shall be 
retained in the files of the party responsible for its preparation and 
submission for a period of 5 years. In the event that the port director 
requests submission of the declaration during the 5-year period, it 
shall be submitted by the appropriate party directly to the port 
director within 60 days of the date of the request or such additional 
period as the port director may allow for good cause shown. Failure to 
submit the declaration in a timely fashion will result in a denial of 
duty-free treatment.
    (iii) Value added after final exportation. In a case in which value 
is added to an article in the Commonwealth of Puerto Rico or in the 
United States after final exportation of the article from a beneficiary 
country as defined in Sec. 10.202(a), in order to ensure compliance with 
the value requirement under Sec. 10.206(a), the declaration provided for 
in paragraph (b)(1)(i) of this section shall be filed by the importer or 
consignee with the entry summary. The declaration shall be completed by 
the party responsible for the addition of such value.
    (2) Articles wholly the growth, product, or manufacture of a 
beneficiary country. In a case involving an article covered by a formal 
entry for which duty-free treatment is claimed under the ATPA and which 
is wholly the growth, product, or manufacture of a single beneficiary 
country as defined in Sec. 10.202(a), a statement to that effect shall 
be included on the commercial invoice provided to Customs.
    (c) Shipments covered by an informal entry. The normal procedure for 
filing a claim for duty-free treatment as set forth in paragraph (a) of 
this section need not be followed, and the filing of the declaration 
provided for in paragraph (b)(1)(i) of this section will not be 
required, in a case involving a shipment covered by an informal entry. 
However, the port director may require submission of such other evidence 
of entitlement to duty-free treatment as deemed necessary.
    (d) Evidence of direct importation--(1) Submission. The port 
director may require that appropriate shipping papers, invoices, or 
other documents be submitted within 60 days of the date of entry as 
evidence that the articles were ``imported directly'', as that term is 
defined in Sec. 10.204.
    (2) Waiver. The port director may waive the submission of evidence 
of direct importation when otherwise satisfied, taking into 
consideration the kind and value of the merchandise, that the 
merchandise was, in fact, imported directly and that it otherwise 
clearly qualifies for duty-free treatment under the ATPA.
    (e) Verification of documentation. The documentation submitted under 
this section to demonstrate compliance with the requirements for duty-
free treatment under the ATPA shall be subject to such verification as 
the port director deems necessary. In the event that the port director 
is prevented from obtaining the necessary verification, the port 
director may treat the entry as fully dutiable.



Sec. 10.208  Duty reductions for certain products.

    (a) General. Handbags, luggage, flat goods, work gloves, and leather 
wearing apparel that were not designated on August 5, 1983, as eligible 
articles for purposes of the Generalized System of Preferences under 
Title V, Trade Act of 1974, as amended (19 U.S.C. 2461-2466), are not 
eligible for duty-free treatment

[[Page 173]]

under the ATPA. However, any such article from a beneficiary country may 
be subject to a reduced rate of duty set forth in the Harmonized Tariff 
Schedule of the United States in the applicable ``Special'' subcolumn 
followed by the symbol ``J'' in parenthesis, provided the article is a 
product of any beneficiary country. For purposes of this section, an 
article is a ``product of'' a beneficiary country if the article is 
either:
    (1) Wholly the growth, product, or manufacture of a beneficiary 
country; or
    (2) A new or different article of commerce which has been grown, 
produced, or manufactured in a beneficiary country.
    (b) Filing reduced-duty claim. A claim for reduced-duty treatment 
under the ATPA may be made at the time of filing the entry summary or 
other entry document by placing thereon the symbol ``J'' as a prefix to 
the Harmonized Tariff Schedule of the United States subheading number 
applicable to each article for which reduced-duty treatment is claimed 
and by placing thereon the reduced duty rate applicable to each such 
article.
    (c) Verification of reduced-duty claim. Any claim for reduced-duty 
treatment under this section shall be subject to such verification as 
the port director deems necessary. In the event that the port director 
is prevented from obtaining the necessary verification, the port 
director may treat the entry as dutiable at the applicable non-ATPA 
rate.

 Textile and Apparel Articles Under the African Growth and Opportunity 
                                   Act

    Source: T.D. 00-67, 65 FR 59676, Oct. 5, 2000, unless otherwise 
noted.



Sec. 10.211  Applicability.

    Title I of Public Law 106-200 (114 Stat. 251), entitled the African 
Growth and Opportunity Act (AGOA), authorizes the President to extend 
certain trade benefits to designated countries in sub-Saharan Africa. 
Section 112 of the AGOA, codified at 19 U.S.C. 3721, provides for the 
preferential treatment of certain textile and apparel articles from 
beneficiary countries. The provisions of Secs. 10.211-10.217 of this 
part set forth the legal requirements and procedures that apply for 
purposes of obtaining preferential treatment pursuant to section 112.



Sec. 10.212  Definitions.

    When used in Secs. 10.211 through 10.217, the following terms have 
the meanings indicated:
    Apparel articles. ``Apparel articles'' means goods classifiable in 
Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and 
subheadings 6406.99 and 6505.90 of the HTSUS.
    Assembled in one or more beneficiary countries. ``Assembled in one 
or more beneficiary countries'' when used in the context of a textile or 
apparel article has reference to a joining together of two or more 
components that occurred in one or more beneficiary countries, whether 
or not a prior joining operation was performed on the article or any of 
its components in the United States.
    Beneficiary country. ``Beneficiary country'' means a country listed 
in section 107 of the African Growth and Opportunity Act (19 U.S.C. 
3706) which has been the subject of a finding by the President or his 
designee, published in the Federal Register, that the country has 
satisfied the requirements of section 113 of the African Growth and 
Opportunity Act (19 U.S.C. 3722) and which the President has designated 
as a beneficiary sub-Saharan African country under section 506A of the 
Trade Act of 1974 (19 U.S.C. 2466a).
    Cut in one or more beneficiary countries. ``Cut in one or more 
beneficiary countries'' when used with reference to apparel articles 
means that all fabric components used in the assembly of the article 
were cut from fabric in one or more beneficiary countries.
    Foreign. ``Foreign'' means of a country other than the United States 
or a beneficiary country.
    HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the United 
States.
    Knit-to-shape. The term ``knit-to-shape'' applies to any apparel 
article of which 50 percent or more of the exterior surface area is 
formed by major parts that have been knitted or crocheted directly to 
the shape used in the

[[Page 174]]

apparel article, with no consideration being given to patch pockets, 
appliques, or the like. Minor cutting, trimming, or sewing of those 
major parts will not affect the determination of whether an apparel 
article is ``knit-to-shape.''
    Major parts. ``Major parts'' means integral components of an apparel 
article but does not include collars, cuffs, waistbands, plackets, 
pockets, linings, paddings, trim, accessories, or similar parts or 
components.
    NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Originating. ``Originating'' means having the country of origin 
determined by application of the provisions of Sec. 102.21 of this 
chapter.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative limitations 
as provided in 19 U.S.C. 3721.
    Wholly assembled in. When used with reference to a textile or 
apparel article in the context of one or more beneficiary countries or 
one or more lesser developed beneficiary countries, the expression 
``wholly assembled in'' means that all of the components of the textile 
or apparel article (including thread, decorative embellishments, 
buttons, zippers, or similar components) were joined together in one or 
more beneficiary countries or one or more lesser developed beneficiary 
countries.
    Wholly formed. ``Wholly formed,'' when used with reference to yarns 
or thread, means that all of the production processes, starting with the 
extrusion of filament or the spinning of all fibers into yarn or both 
and ending with a yarn or plied yarn, took place in a single country, 
and, when used with reference to fabric(s), means that all of the 
production processes, starting with polymers, fibers, filaments, textile 
strips, yarns, twine, cordage, rope, or strips of fabric and ending with 
a fabric by a weaving, knitting, needling, tufting, felting, entangling 
or other process, took place in a single country.

[T.D. 00-67, 65 FR 59676, Oct. 5, 2000; 65 FR 67260, Nov. 9, 2000]



Sec. 10.213  Articles eligible for preferential treatment.

    (a) General. The preferential treatment referred to in Sec. 10.211 
applies to the following textile and apparel articles that are imported 
directly into the customs territory of the United States from a 
beneficiary country:
    (1) Apparel articles assembled in one or more beneficiary countries 
from fabrics wholly formed and cut in the United States, from yarns 
wholly formed in the United States, (including fabrics not formed from 
yarns, if those fabrics are classifiable under heading 5602 or 5603 of 
the HTSUS and are wholly formed and cut in the United States) that are 
entered under subheading 9802.00.80 of the HTSUS;
    (2) Apparel articles assembled in one or more beneficiary countries 
from fabrics wholly formed and cut in the United States, from yarns 
wholly formed in the United States, (including fabrics not formed from 
yarns, if those fabrics are classifiable under heading 5602 or 5603 of 
the HTSUS and are wholly formed and cut in the United States) that are 
entered under Chapter 61 or 62 of the HTSUS, if, after that assembly, 
the articles would have qualified for entry under subheading 9802.00.80 
of the HTSUS but for the fact that the articles were embroidered or 
subjected to stone-washing, enzyme-washing, acid washing, perma-
pressing, oven-baking, bleaching, garment-dyeing, screen printing, or 
other similar processes in a beneficiary country;
    (3) Apparel articles cut in one or more beneficiary countries from 
fabric wholly formed in the United States from yarns wholly formed in 
the United States (including fabrics not formed from yarns, if those 
fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are 
wholly formed in the United States), if those articles are assembled in 
one or more beneficiary countries with thread formed in the United 
States;
    (4) Apparel articles wholly assembled in one or more beneficiary 
countries from fabric wholly formed in one or

[[Page 175]]

more beneficiary countries from yarn originating either in the United 
States or one or more beneficiary countries (including fabrics not 
formed from yarns, if those fabrics are classifiable under heading 5602 
or 5603 of the HTSUS and are wholly formed and cut in one or more 
beneficiary countries);
    (5) Apparel articles wholly assembled in one or more lesser 
developed beneficiary countries regardless of the country of origin of 
the fabric used to make the articles;
    (6) Sweaters, in chief weight of cashmere, knit-to-shape in one or 
more beneficiary countries and classifiable under subheading 6110.10 of 
the HTSUS;
    (7) Sweaters, containing 50 percent or more by weight of wool 
measuring 18.5 microns in diameter or finer, knit-to-shape in one or 
more beneficiary countries;
    (8) Apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more beneficiary countries, from fabric 
or yarn that is not formed in the United States or a beneficiary 
country, to the extent that apparel articles of those fabrics or yarns 
would be eligible for preferential treatment, without regard to the 
source of the fabric or yarn, under Annex 401 to the NAFTA;
    (9) Apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more beneficiary countries from fabrics 
or yarn that the President or his designee has designated in the Federal 
Register as not available in commercial quantities in the United States;
    (10) A handloomed, handmade, or folklore article of a beneficiary 
country or countries that is certified as a handloomed, handmade, or 
folklore article by the competent authority of the beneficiary country 
or countries, provided that the President or his designee has determined 
that the article in question will be treated as being a handloomed, 
handmade, or folklore article.
    (b) Special rules for certain component materials--(1) General. An 
article otherwise described under paragraph (a) of this section will not 
be ineligible for the preferential treatment referred to in Sec. 10.211 
because the article contains:
    (i) Findings and trimmings of foreign origin, if the value of those 
findings and trimmings does not exceed 25 percent of the cost of the 
components of the assembled article. For purposes of this section 
``findings and trimmings'' include, but are not limited to, hooks and 
eyes, snaps, buttons, ``bow buds,'' decorative lace trim, elastic strips 
(but only if they are each less than 1 inch in width and are used in the 
production of brassieres), zippers (including zipper tapes), labels, and 
sewing thread except in the case of an article described in paragraph 
(a)(3) of this section;
    (ii) Interlinings of foreign origin, if the value of those 
interlinings does not exceed 25 percent of the cost of the components of 
the assembled article. For purposes of this section ``interlinings'' 
include only a chest type plate, a ``hymo'' piece, or ``sleeve header,'' 
of woven or weft-inserted warp knit construction and of coarse animal 
hair or man-made filaments;
    (iii) Any combination of findings and trimmings of foreign origin 
and interlinings of foreign origin, if the total value of those findings 
and trimmings and interlinings does not exceed 25 percent of the cost of 
the components of the assembled article; or
    (iv) Fibers or yarns not wholly formed in the United States or one 
or more beneficiary countries if the total weight of all those fibers 
and yarns is not more than 7 percent of the total weight of the article.
    (2) Treatment of fibers and yarns as findings or trimmings. If any 
fibers or yarns not wholly formed in the United States or one or more 
beneficiary countries are used in an article as a finding or trimming 
described in paragraph (b)(1)(i) of this section, the fibers or yarns 
will be considered to be a finding or trimming for purposes of paragraph 
(b)(1) of this section.
    (c) Imported directly defined. For purposes of paragraph (a) of this 
section, the words ``imported directly'' mean:
    (1) Direct shipment from any beneficiary country to the United 
States without passing through the territory of any non-beneficiary 
country;
    (2) If the shipment is from any beneficiary country to the United 
States through the territory of any non-beneficiary country, the 
articles in the

[[Page 176]]

shipment do not enter into the commerce of any non-beneficiary country 
while en route to the United States and the invoices, bills of lading, 
and other shipping documents show the United States as the final 
destination; or
    (3) If the shipment is from any beneficiary country to the United 
States through the territory of any non-beneficiary country, and the 
invoices and other documents do not show the United States as the final 
destination, the articles in the shipment upon arrival in the United 
States are imported directly only if they:
    (i) Remained under the control of the customs authority of the 
intermediate country;
    (ii) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commercial transaction between the importer and the producer or the 
producer's sales agent; and
    (iii) Were not subjected to operations other than loading or 
unloading, and other activities necessary to preserve the articles in 
good condition.

[T.D. 00-67, 65 FR 59676, Oct. 5, 2000; 65 FR 67260, Nov. 9, 2000]



Sec. 10.214  Certificate of Origin.

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

[[Page 177]]

[GRAPHIC] [TIFF OMITTED] TR05OC00.000

    (c) Preparation of Certificate. The following rules will apply for 
purposes of completing the Certificate of Origin set forth in paragraph 
(b) of this section:
    (1) Blocks 1 through 5 pertain only to the final article exported to 
the United States for which preferential treatment may be claimed;
    (2) Block 1 should state the legal name and address (including 
country) of the exporter;
    (3) Block 2 should state the legal name and address (including 
country) of the producer. If there is more than one producer, attach a 
list stating the legal name and address (including country) of all 
additional producers. If this information is confidential, it is 
acceptable to state ``available to Customs upon request'' in block 2. If 
the producer and the exporter are the same, state ``same'' in block 2;
    (4) Block 3 should state the legal name and address (including 
country) of the importer;

[[Page 178]]

    (5) Block 4 should provide a full description of each article. The 
description should be sufficient to relate it to the invoice description 
and to the description of the article in the international Harmonized 
System. Include the invoice number as shown on the commercial invoice 
or, if the invoice number is not known, include another unique reference 
number such as the shipping order number;
    (6) In block 5, insert the letter that designates the preference 
group which applies to the article according to the description 
contained in the CFR provision cited on the Certificate for that group;
    (7) Blocks 6 through 10 must be completed only when the block in 
question calls for information that is relevant to the preference group 
identified in block 5;
    (8) Block 6 should state the legal name and address (including 
country) of the fabric producer;
    (9) Block 7 should state the legal name and address (including 
country) of the yarn producer;
    (10) Block 8 should state the legal name and address (including 
country) of the thread producer;
    (11) Block 9 should state the name of the folklore article or should 
state that the article is handloomed or handmade;
    (12) Block 10, which should be completed only when preference group 
``H'' is inserted in block 5, should state the name of the fabric or 
yarn that is not formed in the United States or a beneficiary country or 
that is not available in commercial quantities in the United States;
    (13) Block 16a should reflect the date on which the Certificate was 
completed and signed;
    (14) Block 16b should be completed if the Certificate is intended to 
cover multiple shipments of identical articles as described in block 4 
that are imported into the United States during a specified period of up 
to one year (see Sec. 10.216(b)(4)(ii)). The ``from'' date is the date 
on which the Certificate became applicable to the article covered by the 
blanket Certificate (this date may be prior to the date reflected in 
block 16a). The ``to'' date is the date on which the blanket period 
expires; and
    (15) The Certificate may be printed and reproduced locally. If more 
space is needed to complete the Certificate, attach a continuation 
sheet.



Sec. 10.215  Filing of claim for preferential treatment.

    (a) Declaration. In connection with a claim for preferential 
treatment for a textile or apparel article described in Sec. 10.213, the 
importer must make a written declaration that the article qualifies for 
that treatment. In the case of an article described in 
Sec. 10.213(a)(1), the written declaration should be made by including 
on the entry summary, or equivalent documentation, the symbol ``D'' as a 
prefix to the subheading within Chapter 98 of the HTSUS under which the 
article is classified, and, in the case of any article described in 
Sec. 10.213(a)(2) through (a)(10), the inclusion on the entry summary, 
or equivalent documentation, of the subheading within Chapter 98 of the 
HTSUS under which the article is classified will constitute the written 
declaration. Except in any of the circumstances described in 
Sec. 10.216(d)(1), the declaration required under this paragraph must be 
based on an original Certificate of Origin that has been completed and 
properly executed in accordance with Sec. 10.214, that covers the 
article being imported, and that is in the possession of the importer.
    (b) Corrected declaration. If, after making the declaration required 
under paragraph (a) of this section, the importer has reason to believe 
that a Certificate of Origin on which a declaration was based contains 
information that is not correct, the importer must within 30 calendar 
days after the date of discovery of the error make a corrected 
declaration and pay any duties that may be due. A corrected declaration 
will be effected by submission of a letter or other written statement to 
the Customs port where the declaration was originally filed.



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

    (a) Maintenance of records. Each importer claiming preferential 
treatment

[[Page 179]]

for an article under Sec. 10.215 must maintain in the United States, in 
accordance with the provisions of part 163 of this chapter, all records 
relating to the importation of the article. Those records must include 
the original Certificate of Origin referred to in Sec. 10.215(a) and any 
other relevant documents or other records as specified in Sec. 163.1(a) 
of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on a textile or apparel article under Sec. 10.215(a) must 
provide, at the request of the port director, a copy of the Certificate 
of Origin pertaining to the article. A Certificate of Origin submitted 
to Customs under this paragraph:
    (1) Must be in writing or must be transmitted electronically 
pursuant to any electronic data interchange system authorized by Customs 
for that purpose;
    (2) Must be signed by the exporter or by the exporter's authorized 
agent having knowledge of the relevant facts;
    (3) Must be completed either in the English language or in the 
language of the country from which the article is exported. If the 
Certificate is completed in a language other than English, the importer 
must provide to Customs upon request a written English translation of 
the Certificate; and
    (4) May be applicable to:
    (i) A single importation of an article into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (ii) Multiple importations of identical articles into the United 
States that occur within a specified blanket period, not to exceed 12 
months, set out in the Certificate by the exporter. For purposes of this 
paragraph and Sec. 10.214(c)(14), ``identical articles'' means articles 
that are the same in all material respects, including physical 
characteristics, quality, and reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate of Origin in his possession for:
    (i) An importation of an article for which the port director has in 
writing waived the requirement for a Certificate of Origin because the 
port director is otherwise satisfied that the article qualifies for 
preferential treatment;
    (ii) A non-commercial importation of an article; or
    (iii) A commercial importation of an article whose value does not 
exceed US$2,500, provided that, unless waived by the port director, the 
producer, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

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

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

________________________________________________________________________
Name
________________________________________________________________________
Title
________________________________________________________________________
Address
________________________________________________________________________
Signature and Date

    (2) Exception. If the port director determines that an importation 
described in paragraph (d)(1) of this section forms part of a series of 
importations that may reasonably be considered to have been undertaken 
or arranged for the purpose of avoiding a Certificate of Origin 
requirement under Secs. 10.214 through 10.216, the port director will 
notify the importer in writing that for

[[Page 180]]

that importation the importer must have in his possession a valid 
Certificate of Origin to support the claim for preferential treatment. 
The importer will have 30 calendar days from the date of the written 
notice to obtain a valid Certificate of Origin, and a failure to timely 
obtain the Certificate of Origin will result in denial of the claim for 
preferential treatment. For purposes of this paragraph, a ``series of 
importations'' means two or more entries covering articles arriving on 
the same day from the same exporter and consigned to the same person.



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

    (a) Verification by Customs. A claim for preferential treatment made 
under Sec. 10.215, including any statements or other information 
contained on a Certificate of Origin submitted to Customs under 
Sec. 10.216, will be subject to whatever verification the port director 
deems necessary. In the event that the port director for any reason is 
prevented from verifying the claim, the port director may deny the claim 
for preferential treatment. A verification of a claim for preferential 
treatment may involve, but need not be limited to, a review of:
    (1) All records required to be made, kept, and made available to 
Customs by the importer or any other person under part 163 of this 
chapter;
    (2) Documentation and other information in a beneficiary country 
regarding the country of origin of an article and its constituent 
materials, including, but not limited to, production records, 
information relating to the place of production, the number and 
identification of the types of machinery used in production, and the 
number of workers employed in production; and
    (3) Evidence in a beneficiary country to document the use of U.S. 
materials in the production of the article in question, such as purchase 
orders, invoices, bills of lading and other shipping documents, and 
customs import and clearance documents.
    (b) Importer requirements. In order to make a claim for preferential 
treatment under Sec. 10.215, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the textile or apparel article qualifies for 
preferential treatment. Those records must include documents that 
support a claim that the article in question qualifies for preferential 
treatment because it is specifically described in one of the provisions 
under Sec. 10.213(a). If the importer is claiming that the article 
incorporates fabric or yarn that originated or was wholly formed in the 
United States, the importer must have records that identify the U.S. 
producer of the fabric or yarn. A properly completed Certificate of 
Origin in the form set forth in Sec. 10.214(b) is a record that would 
serve these purposes;
    (2) Must establish and implement internal controls which provide for 
the periodic review of the accuracy of the Certificate of Origin or 
other records referred to in paragraph (b)(1) of this section;
    (3) Must have shipping papers that show how the article moved from 
the beneficiary country to the United States. If the imported article 
was shipped through a country other than a beneficiary country and the 
invoices and other documents from the beneficiary country do not show 
the United States as the final destination, the importer also must have 
documentation that demonstrates that the conditions set forth in 
Sec. 10.213(c)(3) (i) through (iii) were met; and
    (4) Must be prepared to explain, upon request from Customs, how the 
records and internal controls referred to in paragraphs (b)(1) through 
(b)(3) of this section justify the importer's claim for preferential 
treatment.

  Textile and Apparel Articles Under the United States-Caribbean Basin 
                          Trade Partnership Act

    Source: T.D. 00-68, 65 FR 59658, Oct. 5, 2000, unless otherwise 
noted.



Sec. 10.221  Applicability.

    Title II of Public Law 106-200 (114 Stat. 251), entitled the United 
States-Caribbean Basin Trade Partnership Act (CBTPA), amended section 
213(b) of the Caribbean Basin Economic Recovery Act (the CBERA, 19 
U.S.C. 2701-2707) to authorize the President to extend additional trade 
benefits to countries that

[[Page 181]]

have been designated as beneficiary countries under the CBERA. Section 
213(b)(2) of the CBERA (19 U.S.C. 2703(b)(2)) provides for the 
preferential treatment of certain textile and apparel articles from 
CBERA beneficiary countries. The provisions of Secs. 10.221-10.227 of 
this part set forth the legal requirements and procedures that apply for 
purposes of obtaining preferential treatment pursuant to CBERA section 
213(b)(2).

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000]



Sec. 10.222  Definitions.

    When used in Secs. 10.221 through 10.228, the following terms have 
the meanings indicated:
    Apparel articles. ``Apparel articles'' means goods classifiable in 
Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and 
subheadings 6406.99 and 6505.90 of the HTSUS.
    Assembled in one or more CBTPA beneficiary countries. ``Assembled in 
one or more CBTPA beneficiary countries'' when used in the context of a 
textile or apparel article has reference to a joining together of two or 
more components that occurred in one or more beneficiary countries, 
whether or not a prior joining operation was performed on the article or 
any of its components in the United States.
    CBERA. ``CBERA'' means the Caribbean Basin Economic Recovery Act, 19 
U.S.C. 2701-2707.
    CBTPA beneficiary country. ``CBTPA beneficiary country'' means a 
``beneficiary country'' as defined in Sec. 10.191(b)(1) for purposes of 
the CBERA which the President also has designated as a beneficiary 
country for purposes of preferential treatment of textile and apparel 
articles under 19 U.S.C. 2703(b)(2) and which has been the subject of a 
finding by the President or his designee, published in the Federal 
Register, that the beneficiary country has satisfied the requirements of 
19 U.S.C. 2703(b)(4)(A)(ii).
    Cut in one or more CBTPA beneficiary countries. ``Cut in one or more 
CBTPA beneficiary countries'' when used with reference to apparel 
articles means that all fabric components used in the assembly of the 
article were cut from fabric in one or more CBTPA beneficiary countries.
    Foreign. ``Foreign'' means of a country other than the United States 
or a CBTPA beneficiary country.
    HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the United 
States.
    Knit-to-shape. The term ``knit-to-shape'' applies to any apparel 
article of which 50 percent or more of the exterior surface area is 
formed by major parts that have been knitted or crocheted directly to 
the shape used in the apparel article, with no consideration being given 
to patch pockets, appliques, or the like. Minor cutting, trimming, or 
sewing of those major parts will not affect the determination of whether 
an apparel article is ``knit-to-shape.''
    Made in one or more CBTPA beneficiary countries. ``Made in one or 
more CBTPA beneficiary countries'' when used with reference to non-
underwear t-shirts means cut in one or more CBTPA beneficiary countries 
and wholly assembled in one or more CBTPA beneficiary countries.
    Major parts. ``Major parts'' means integral components of an apparel 
article but does not include collars, cuffs, waistbands, plackets, 
pockets, linings, paddings, trim, accessories, or similar parts or 
components.
    NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative 
restrictions, limitations, or consultation levels as provided in 19 
U.S.C. 2703(b)(2).
    Wholly assembled in one or more CBTPA beneficiary countries. 
``Wholly assembled in one or more CBTPA beneficiary countries'' when 
used in the context of a textile or apparel article has reference to a 
joining together of all components (including thread, decorative 
embellishments, buttons, zippers, or similar components) that occurred 
only in one or more CBTPA beneficiary countries.

[[Page 182]]

    Wholly formed. ``Wholly formed,'' when used with reference to yarns 
or thread, means that all of the production processes, starting with the 
extrusion of filament or the spinning of all fibers into yarn or both 
and ending with a yarn or plied yarn, took place in a single country, 
and, when used with reference to fabric(s), means that all of the 
production processes, starting with polymers, fibers, filaments, textile 
strips, yarns, twine, cordage, rope, or strips of fabric and ending with 
a fabric by a weaving, knitting, needling, tufting, felting, entangling 
or other process, took place in a single country.

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000; T.D. 
01-74, 66 FR 50537, Oct. 4, 2001]



Sec. 10.223  Articles eligible for preferential treatment.

    (a) General. The preferential treatment referred to in Sec. 10.221 
applies to the following textile and apparel articles that are imported 
directly into the customs territory of the United States from a CBTPA 
beneficiary country:
    (1) Apparel articles assembled in one or more CBTPA beneficiary 
countries from fabrics wholly formed and cut in the United States, from 
yarns wholly formed in the United States, (including fabrics not formed 
from yarns, if those fabrics are classifiable under heading 5602 or 5603 
of the HTSUS and are wholly formed and cut in the United States) that 
are entered under subheading 9802.00.80 of the HTSUS;
    (2) Apparel articles assembled in one or more CBTPA beneficiary 
countries from fabrics wholly formed and cut in the United States, from 
yarns wholly formed in the United States, (including fabrics not formed 
from yarns, if those fabrics are classifiable under heading 5602 or 5603 
of the HTSUS and are wholly formed and cut in the United States) that 
are entered under Chapter 61 or 62 of the HTSUS, if, after that 
assembly, the articles would have qualified for entry under subheading 
9802.00.80 of the HTSUS but for the fact that the articles were 
embroidered or subjected to stone-washing, enzyme-washing, acid washing, 
perma-pressing, oven-baking, bleaching, garment-dyeing, screen printing, 
or other similar processes in a CBTPA beneficiary country;
    (3) Apparel articles (other than articles described in paragraph 
(a)(12) of this section) cut in one or more CBTPA beneficiary countries 
from fabric wholly formed in the United States from yarns wholly formed 
in the United States (including fabrics not formed from yarns, if those 
fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are 
wholly formed in the United States), if those articles are assembled in 
one or more CBTPA beneficiary countries with thread formed in the United 
States;
    (4) Apparel articles (other than socks provided for in heading 6115 
of the HTSUS) knit to shape in a CBTPA beneficiary country from yarns 
wholly formed in the United States, and knitted or crocheted apparel 
articles (other than non-underwear t-shirts) cut and wholly assembled in 
one or more CBTPA beneficiary countries from fabrics formed in one or 
more CBTPA beneficiary countries or in one or more CBTPA beneficiary 
countries and the United States from yarns wholly formed in the United 
States (including fabrics not formed from yarns, if those fabrics are 
classifiable under heading 5602 or 5603 of the HTSUS and are formed in 
one or more CBTPA beneficiary countries);
    (5) Non-underwear t-shirts, classifiable under subheadings 
6109.10.00 and 6109.90.10 of the HTSUS, made in one or more CBTPA 
beneficiary countries from fabric formed in one or more CBTPA 
beneficiary countries from yarns wholly formed in the United States;
    (6) Brassieres classifiable under subheading 6212.10 of the HTSUS, 
cut and sewn or otherwise assembled in the United States, or one or more 
CBTPA beneficiary countries, or both, provided that any applicable 
additional requirements set forth in Sec. 10.228 are met;
    (7) Apparel articles, other than articles described in paragraph 
(a)(6) of this section, that are both cut (or knit-to-shape) and sewn or 
otherwise assembled in one or more CBTPA beneficiary countries, from 
fabrics or yarn that is not formed in the United States or in one or 
more CBTPA beneficiary countries, to the extent that apparel articles of 
those fabrics or yarn would be eligible for preferential treatment,

[[Page 183]]

without regard to the source of the fabrics or yarn, under Annex 401 of 
the NAFTA;
    (8) Apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more CBTPA beneficiary countries from 
fabrics or yarn that the President or his designee has designated in the 
Federal Register as not available in commercial quantities in the United 
States;
    (9) A handloomed, handmade, or folklore textile or apparel article 
of a CBTPA beneficiary country that the President or his designee and 
representatives of the CBTPA beneficiary country mutually agree is a 
handloomed, handmade, or folklore article and that is certified as a 
handloomed, handmade, or folklore article by the competent authority of 
the CBTPA beneficiary country;
    (10) Textile luggage assembled in a CBTPA beneficiary country from 
fabric wholly formed and cut in the United States, from yarns wholly 
formed in the United States, that is entered under subheading 9802.00.80 
of the HTSUS;
    (11) Textile luggage assembled in a CBTPA beneficiary country from 
fabric cut in a CBTPA beneficiary country from fabric wholly formed in 
the United States from yarns wholly formed in the United States; and
    (12) Knitted or crocheted apparel articles (other than non-underwear 
t-shirts described in paragraph (a)(5) of this section) cut and 
assembled in one or more CBTPA beneficiary countries from fabrics wholly 
formed in the United States from yarns wholly formed in the United 
States (including fabrics not formed from yarns, if those fabrics are 
classifiable under heading 5602 or 5603 of the HTSUS and are wholly 
formed in the United States), provided that the assembly is with thread 
formed in the United States.
    (b) Special rules for certain component materials--(1) Foreign 
findings, trimmings, interlinings, fibers and yarns--(i) General. An 
article otherwise described under paragraph (a) of this section will not 
be ineligible for the preferential treatment referred to in Sec. 10.221 
because the article contains:
    (A) Findings and trimmings of foreign origin, if the value of those 
findings and trimmings does not exceed 25 percent of the cost of the 
components of the assembled article. For purposes of this section 
``findings and trimmings'' include, but are not limited to, hooks and 
eyes, snaps, buttons, ``bow buds,'' decorative lace trim, elastic strips 
(but only if they are each less than 1 inch in width and are used in the 
production of brassieres), zippers (including zipper tapes), labels, and 
sewing thread except in the case of an article described in paragraph 
(a)(3) or (a)(12) of this section;
    (B) Interlinings of foreign origin, if the value of those 
interlinings does not exceed 25 percent of the cost of the components of 
the assembled article. For purposes of this section ``interlinings'' 
include only a chest type plate, a ``hymo'' piece, or ``sleeve header,'' 
of woven or weft-inserted warp knit construction and of coarse animal 
hair or man-made filaments;
    (C) Any combination of findings and trimmings of foreign origin and 
interlinings of foreign origin, if the total value of those findings and 
trimmings and interlinings does not exceed 25 percent of the cost of the 
components of the assembled article; or
    (D) Fibers or yarns not wholly formed in the United States or in one 
or more CBTPA beneficiary countries if the total weight of all those 
fibers and yarns is not more than 7 percent of the total weight of the 
article, except in the case of any apparel article described in 
paragraph (a)(1) through (a)(5) or (a)(12) of this section containing 
elastomeric yarns which will be eligible for preferential treatment only 
if those yarns are wholly formed in the United States.
    (ii) Treatment of fibers and yarns as findings or trimmings. If any 
fibers or yarns not wholly formed in the United States or one or more 
beneficiary countries are used in an article as a finding or trimming 
described in paragraph (b)(1)(i)(A) of this section, the fibers or yarns 
will be considered to be a finding or trimming for purposes of paragraph 
(b)(1)(i) of this section.
    (2) Special rule for nylon filament yarn. An article otherwise 
described under paragraph (a)(1), (a)(2), (a)(3) or (a)(12) of this 
section will not be ineligible for the preferential treatment referred 
to

[[Page 184]]

in Sec. 10.221 because the article contains nylon filament yarn (other 
than elastomeric yarn) that is classifiable under subheading 5402.10.30, 
5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 
5402.41.90, 5402.51.00, or 5402.61.00 of the HTSUS duty-free from 
Canada, Mexico or Israel.
    (c) Imported directly defined. For purposes of paragraph (a) of this 
section, the words ``imported directly'' mean:
    (1) Direct shipment from any CBTPA beneficiary country to the United 
States without passing through the territory of any country that is not 
a CBTPA beneficiary country;
    (2) If the shipment is from any CBTPA beneficiary country to the 
United States through the territory of any country that is not a CBTPA 
beneficiary country, the articles in the shipment do not enter into the 
commerce of any country that is not a CBTPA beneficiary country while en 
route to the United States and the invoices, bills of lading, and other 
shipping documents show the United States as the final destination; or
    (3) If the shipment is from any CBTPA beneficiary country to the 
United States through the territory of any country that is not a CBTPA 
beneficiary country, and the invoices and other documents do not show 
the United States as the final destination, the articles in the shipment 
upon arrival in the United States are imported directly only if they:
    (i) Remained under the control of the customs authority of the 
intermediate country;
    (ii) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commercial transaction between the importer and the producer or the 
producer's sales agent; and
    (iii) Were not subjected to operations other than loading or 
unloading, and other activities necessary to preserve the articles in 
good condition.

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000, as 
amended by T.D. 01-74, 66 FR 50537, Oct. 4, 2001]



Sec. 10.224  Certificate of Origin.

    (a) General. A Certificate of Origin must be employed to certify 
that a textile or apparel article being exported from a CBTPA 
beneficiary country to the United States qualifies for the preferential 
treatment referred to in Sec. 10.221. The Certificate of Origin must be 
prepared by the exporter in the CBTPA beneficiary country in the form 
specified in paragraph (b) of this section. Where the CBTPA beneficiary 
country exporter is not the producer of the article, that exporter may 
complete and sign a Certificate of Origin on the basis of:
    (1) Its reasonable reliance on the producer's written representation 
that the article qualifies for preferential treatment; or
    (2) A completed and signed Certificate of Origin for the article 
voluntarily provided to the exporter by the producer.
    (b) Form of Certificate. The Certificate of Origin referred to in 
paragraph (a) of this section must be in the following format:

[[Page 185]]

[GRAPHIC] [TIFF OMITTED] TR09NO00.012

    (c) Preparation of Certificate. The following rules will apply for 
purposes of completing the Certificate of Origin set forth in paragraph 
(b) of this section:
    (1) Blocks 1 through 5 pertain only to the final article exported to 
the United States for which preferential treatment may be claimed;
    (2) Block 1 should state the legal name and address (including 
country) of the exporter;
    (3) Block 2 should state the legal name and address (including 
country) of the producer. If there is more than one producer, attach a 
list stating the legal name and address (including

[[Page 186]]

country) of all additional producers. If this information is 
confidential, it is acceptable to state ``available to Customs upon 
request'' in block 2. If the producer and the exporter are the same, 
state ``same'' in block 2;
    (4) Block 3 should state the legal name and address (including 
country) of the importer;
    (5) Block 4 should provide a full description of each article. The 
description should be sufficient to relate it to the invoice description 
and to the description of the article in the international Harmonized 
System. Include the invoice number as shown on the commercial invoice 
or, if the invoice number is not known, include another unique reference 
number such as the shipping order number;
    (6) In block 5, insert the letter that designates the preference 
group which applies to the article according to the description 
contained in the CFR provision cited on the Certificate for that group;
    (7) Blocks 6 through 10 must be completed only when the block in 
question calls for information that is relevant to the preference group 
identified in block 5;
    (8) Block 6 should state the legal name and address (including 
country) of the fabric producer;
    (9) Block 7 should state the legal name and address (including 
country) of the yarn producer;
    (10) Block 8 should state the legal name and address (including 
country) of the thread producer;
    (11) Block 9 should state the name of the folklore article or should 
state that the article is handloomed or handmade;
    (12) Block 10, which should be completed only when preference group 
``G'' is inserted in block 5, should state the name of the fabric or 
yarn that is not formed in the United States or a CBTPA beneficiary 
country or that is not available in commercial quantities in the United 
States;
    (13) Block 16a should reflect the date on which the Certificate was 
completed and signed;
    (14) Block 16b should be completed if the Certificate is intended to 
cover multiple shipments of identical articles as described in block 4 
that are imported into the United States during a specified period of up 
to one year (see Sec. 10.226(b)(4)(ii)). The ``from'' date is the date 
on which the Certificate became applicable to the article covered by the 
blanket Certificate (this date may be prior to the date reflected in 
block 16a). The ``to'' date is the date on which the blanket period 
expires; and
    (15) The Certificate may be printed and reproduced locally. If more 
space is needed to complete the Certificate, attach a continuation 
sheet.

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000]



Sec. 10.225  Filing of claim for preferential treatment.

    (a) Declaration. In connection with a claim for preferential 
treatment for a textile or apparel article described in Sec. 10.223, the 
importer must make a written declaration that the article qualifies for 
that treatment. In the case of an article described in Sec. 10.223(a)(1) 
or (a)(10), the written declaration should be made by including on the 
entry summary, or equivalent documentation, the symbol ``R'' as a prefix 
to the subheading within Chapter 98 of the HTSUS under which the article 
is classified, and, in the case of any article described in 
Sec. 10.223(a)(2) through (a)(9), (a)(11) or (a)(12), the inclusion on 
the entry summary, or equivalent documentation, of the subheading within 
Chapter 98 of the HTSUS under which the article is classified will 
constitute the written declaration. Except in any of the circumstances 
described in Sec. 10.226(d)(1), the declaration required under this 
paragraph must be based on an original Certificate of Origin that has 
been completed and properly executed in accordance with Sec. 10.224, 
that covers the article being imported, and that is in the possession of 
the importer.
    (b) Corrected declaration. If, after making the declaration required 
under paragraph (a) of this section, the importer has reason to believe 
that a Certificate of Origin on which a declaration was based contains 
information that is not correct, the importer must within 30 calendar 
days after the date of discovery of the error make a corrected 
declaration and pay any duties that may be due. A corrected declaration 
will be effected by submission of a

[[Page 187]]

letter or other written statement to the Customs port where the 
declaration was originally filed.

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000]



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

    (a) Maintenance of records. Each importer claiming preferential 
treatment for an article under Sec. 10.225 must maintain in the United 
States, in accordance with the provisions of part 163 of this chapter, 
all records relating to the importation of the article. Those records 
must include the original Certificate of Origin referred to in 
Sec. 10.225(a) and any other relevant documents or other records as 
specified in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on a textile or apparel article under Sec. 10.225(a) must 
provide, at the request of the port director, a copy of the Certificate 
of Origin pertaining to the article. A Certificate of Origin submitted 
to Customs under this paragraph:
    (1) Must be in writing or must be transmitted electronically 
pursuant to any electronic data interchange system authorized by Customs 
for that purpose;
    (2) Must be signed by the exporter or by the exporter's authorized 
agent having knowledge of the relevant facts;
    (3) Must be completed either in the English language or in the 
language of the country from which the article is exported. If the 
Certificate is completed in a language other than English, the importer 
must provide to Customs upon request a written English translation of 
the Certificate; and
    (4) May be applicable to:
    (i) A single importation of an article into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (ii) Multiple importations of identical articles into the United 
States that occur within a specified blanket period, not to exceed 12 
months, set out in the Certificate by the exporter. For purposes of this 
paragraph and Sec. 10.224(c)(14), ``identical articles'' means articles 
that are the same in all material respects, including physical 
characteristics, quality, and reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate of Origin in his possession for:
    (i) An importation of an article for which the port director has in 
writing waived the requirement for a Certificate of Origin because the 
port director is otherwise satisfied that the article qualifies for 
preferential treatment;
    (ii) A non-commercial importation of an article; or
    (iii) A commercial importation of an article whose value does not 
exceed US $2,500, provided that, unless waived by the port director, the 
producer, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

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

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

________________________________________________________________________
Name

________________________________________________________________________
Title

________________________________________________________________________
Address


[[Page 188]]


________________________________________________________________________
Signature and Date

    (2) Exception. If the port director determines that an importation 
described in paragraph (d)(1) of this section forms part of a series of 
importations that may reasonably be considered to have been undertaken 
or arranged for the purpose of avoiding a Certificate of Origin 
requirement under Secs. 10.224 through 10.226, the port director will 
notify the importer in writing that for that importation the importer 
must have in his possession a valid Certificate of Origin to support the 
claim for preferential treatment. The importer will have 30 calendar 
days from the date of the written notice to obtain a valid Certificate 
of Origin, and a failure to timely obtain the Certificate of Origin will 
result in denial of the claim for preferential treatment. For purposes 
of this paragraph, a ``series of importations'' means two or more 
entries covering articles arriving on the same day from the same 
exporter and consigned to the same person.



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

    (a) Verification by Customs. A claim for preferential treatment made 
under Sec. 10.225, including any statements or other information 
contained on a Certificate of Origin submitted to Customs under 
Sec. 10.226, will be subject to whatever verification the port director 
deems necessary. In the event that the port director for any reason is 
prevented from verifying the claim, the port director may deny the claim 
for preferential treatment. A verification of a claim for preferential 
treatment may involve, but need not be limited to, a review of:
    (1) All records required to be made, kept, and made available to 
Customs by the importer or any other person under part 163 of this 
chapter;
    (2) Documentation and other information in a CBTPA beneficiary 
country regarding the country of origin of an article and its 
constituent materials, including, but not limited to, production 
records, information relating to the place of production, the number and 
identification of the types of machinery used in production, and the 
number of workers employed in production; and
    (3) Evidence in a CBTPA beneficiary country to document the use of 
U.S. materials in the production of the article in question, such as 
purchase orders, invoices, bills of lading and other shipping documents, 
and customs import and clearance documents.
    (b) Importer requirements. In order to make a claim for preferential 
treatment under Sec. 10.225, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the textile or apparel article qualifies for 
preferential treatment. Those records must include documents that 
support a claim that the article in question qualifies for preferential 
treatment because it is specifically described in one of the provisions 
under Sec. 10.223(a). If the importer is claiming that the article 
incorporates fabric or yarn that was wholly formed in the United States, 
the importer must have records that identify the U.S. producer of the 
fabric or yarn. A properly completed Certificate of Origin in the form 
set forth in Sec. 10.224(b) is a record that would serve these purposes;
    (2) Must establish and implement internal controls which provide for 
the periodic review of the accuracy of the Certificates of Origin or 
other records referred to in paragraph (b)(1) of this section;
    (3) Must have shipping papers that show how the article moved from 
the CBTPA beneficiary country to the United States. If the imported 
article was shipped through a country other than a CBTPA beneficiary 
country and the invoices and other documents from the CBTPA beneficiary 
country do not show the United States as the final destination, the 
importer also must have documentation that demonstrates that the 
conditions set forth in Sec. 10.223(c)(3)(i) through (iii) were met; and
    (4) Must be prepared to explain, upon request from Customs, how the 
records and internal controls referred to in paragraphs (b)(1) through 
(b)(3) of this section justify the importer's claim for preferential 
treatment.

[[Page 189]]



Sec. 10.228  Additional requirements for preferential treatment of brassieres.

    (a) Definitions. When used in this section, the following terms have 
the meanings indicated:
    (1) Producer. ``Producer'' means an individual, corporation, 
partnership, association, or other entity or group that exercises 
direct, daily operational control over the production process in a CBTPA 
beneficiary country.
    (2) Entity controlling production. ``Entity controlling production'' 
means an individual, corporation, partnership, association, or other 
entity or group that is not a producer and that controls the production 
process in a CBTPA beneficiary country through a contractual 
relationship or other indirect means.
    (3) Fabric components formed in the United States. ``Fabric 
components formed in the United States'' means components that were knit 
to shape from yarns in the United States and components that were cut or 
otherwise produced in the United States from fabric that was formed in 
the United States by a weaving, knitting, needling, tufting, felting, 
entangling or other process, whether or not the components incorporate 
non-textile materials.
    (4) Cost. ``Cost'' when used with reference to fabric components 
formed in the United States means:
    (i) The price of the fabric components when last purchased, f.o.b. 
United States port of exportation, as set out in the invoice or other 
commercial documents, or, if the price is other than f.o.b. United 
States port of exportation, the price as set out in the invoice or other 
commercial documents adjusted to arrive at an f.o.b. United States port 
of exportation price; or
    (ii) If the price cannot be determined under paragraph (a)(4)(i) of 
this section or if that price is unreasonable, all reasonable expenses 
incurred in the growth, production, manufacture or other processing of 
the fabric components, including the cost or value of materials and 
general expenses, plus a reasonable amount for profit, and the freight, 
insurance, packing, and other costs incurred in transporting the 
components to the United States port of exportation.
    (5) Declared customs value. ``Declared customs value'' when used 
with reference to fabric contained in an article means the sum of:
    (i) The cost of fabric components formed in the United States less 
the cost or value of any non-textile materials, and less the U.S. 
producer's expenses for cutting or other processing to create the 
components other than knitting to shape, that the producer or entity 
controlling production can verify; and
    (ii) The cost of all other fabric contained in the article, that is, 
fabric not incorporated in a fabric component formed in the United 
States, determined as follows:
    (A) In the case of fabric purchased by the producer or entity 
controlling production, the f.o.b. port of exportation price of the 
fabric as set out in the invoice or other commercial documents or, if 
the price is other than f.o.b. port of exportation, the price as set out 
in the invoice or other commercial documents adjusted to arrive at an 
f.o.b. port of exportation price, plus expenses for embroidering and 
dyeing, printing and other finishing operations applied to the fabric if 
not included in that price;
    (B) In the case of fabric for which the cost cannot be determined 
under paragraph (a)(5)(ii)(A) of this section or if that cost is 
unreasonable, all reasonable expenses incurred in the growth, production 
or manufacture of the fabric, including the cost or value of materials, 
general expenses and embroidering and dyeing, printing, and other 
finishing expenses, plus a reasonable amount for profit, and the 
freight, insurance, packing and other costs incurred in transporting the 
fabric to the port of exportation;
    (C) In the case of fabric components that were purchased by the 
producer or entity controlling production, either the f.o.b. port of 
exportation price of those fabric components as set out in the invoice 
or other commercial documents (or, if the price is other than f.o.b. 
port of exportation, the price as set out in the invoice or other 
commercial documents adjusted to arrive at an f.o.b. port of exportation 
price) or that

[[Page 190]]

f.o.b. port of exportation price less the cost or value of any non-
textile materials and less expenses for cutting or other processing to 
create the components other than knitting to shape, that the producer or 
entity controlling production can verify; and
    (D) In the case of fabric components for which a fabric cost cannot 
be determined under paragraph (a)(5)(ii)(C) of this section or if that 
cost is unreasonable, all reasonable expenses incurred in the growth, 
production or manufacture of the fabric components, including the cost 
or value of materials and general expenses, but excluding the cost or 
value of any non-textile materials and excluding expenses for cutting or 
other processing to create the components other than knitting to shape, 
that the producer or entity controlling production can verify, plus a 
reasonable amount for profit, and the freight, insurance, packing and 
other costs incurred in transporting the components to the port of 
exportation.
    (6) Year. ``Year'' means the 1-year period beginning on October 1, 
2000, and ending on September 30, 2001, and any of the seven succeeding 
1-year periods.
    (7) Entered. ``Entered'' means entered, or withdrawn from warehouse 
for consumption, in the customs territory of the United States.
    (b) Limitations on preferential treatment--(1) General. During the 
year that begins on October 1, 2001, and during any subsequent year, 
articles described in Sec. 10.223(a)(6) of a producer or an entity 
controlling production will be eligible for preferential treatment only 
if:
    (i) The aggregate cost of fabric components formed in the United 
States that were used in the production of all of those articles of that 
producer or that entity controlling production that were produced and 
entered during the immediately preceding year was at least 75 percent of 
the aggregate declared customs value of the fabric contained in all of 
those articles of that producer or that entity controlling production 
that were produced and entered during that year; or
    (ii) In a case in which Customs determines that the 75 percent 
requirement set forth in paragraph (b)(1)(i) of this section was not met 
during a year and therefore those articles of that producer or that 
entity controlling production were not eligible for preferential 
treatment during the following year, the aggregate cost of fabric 
components formed in the United States that were used in the production 
of all of those articles of that producer or that entity controlling 
production that were produced and entered during the immediately 
preceding year was at least 85 percent of the aggregate declared customs 
value of the fabric contained in all of those articles of that producer 
or that entity controlling production that were produced and entered 
during that year; and
    (iii) In conjunction with the filing of the claim for preferential 
treatment under Sec. 10.225, the importer records on the entry summary 
or warehouse withdrawal for consumption (Customs Form 7501, column 34), 
or its electronic equivalent, the distinct and unique identifier 
assigned by Customs to the applicable documentation prescribed under 
paragraph (c) of this section.
    (2) Rules of application--(i) General. For purposes of paragraphs 
(b)(1)(i) and (b)(1)(ii) of this section and for purposes of preparing 
and filing the documentation prescribed in paragraph (c) of this 
section, the following rules will apply:
    (A) The articles in question must conform to the description set 
forth in Sec. 10.223(a)(6) and must be both produced and entered within 
the same year;
    (B) Articles that are exported to countries other than the United 
States and are never entered are not to be considered in determining 
compliance with the 75 or 85 percent standard specified in paragraph 
(b)(1)(i) or paragraph (b)(1)(ii) of this section;
    (C) Fabric components and fabrics that constitute findings or 
trimmings of foreign origin for purposes of Sec. 10.223(c) are not to be 
considered in determining compliance with the 75 or 85 percent standard 
specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this 
section;
    (D) An article is considered to be produced in the year in which it 
reaches the condition in which it will be shipped to the United States;

[[Page 191]]

    (E) A new producer or new entity controlling production, that is, a 
producer or entity controlling production who did not produce or control 
production during the immediately preceding year, must first establish 
compliance with the 75 percent standard specified in paragraph (b)(1)(i) 
of this section as a prerequisite to preparation of the declaration of 
compliance referred to in paragraph (c) of this section;
    (F) Beginning October 1, 2001, in order for articles to be eligible 
for preferential treatment in a given year, a producer of, or entity 
controlling production of, those articles must have met the 75 percent 
standard specified in paragraph (b)(1)(i) of this section during the 
immediately preceding year. If articles of a producer or entity 
controlling production fail to meet the 75 percent standard specified in 
paragraph (b)(1)(i) of this section during a year, articles of that 
producer or entity controlling production:
    (1) Will not be eligible for preferential treatment during the 
following year;
    (2) Will remain ineligible for preferential treatment until the year 
that follows a year in which articles of that producer or entity 
controlling production met the 85 percent standard specified in 
paragraph (b)(1)(ii) of this section; and
    (3) After the 85 percent standard specified in paragraph (b)(1)(ii) 
of this section has been met, will again be subject to the 75 percent 
standard specified in paragraph (b)(1)(i) of this section during the 
following year for purposes of determining eligibility for preferential 
treatment in the next year.
    (G) A declaration of compliance prepared by a producer or by an 
entity controlling production must cover all production of that producer 
or all production that the entity controls;
    (H) A producer would not prepare a declaration of compliance if all 
of its production is covered by a declaration of compliance prepared by 
an entity controlling production;
    (I) In the case of a producer, the 75 or 85 percent standard 
specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section 
and the declaration of compliance procedure under paragraph (c) of this 
section apply to all articles of that producer for the year in question, 
even if some but not all of that production is also covered by a 
declaration of compliance prepared by an entity controlling production; 
and
    (J) The U.S. importer does not have to be the producer or the entity 
controlling production who prepared the declaration of compliance.
    (ii) Examples. The following examples will illustrate application of 
the principles set forth in paragraph (b)(2)(i) of this section.

    Example 1. A CBTPA beneficiary country producer of articles that 
meet the description in Sec. 10.223(a)(6) sends 50 percent of that 
production to the CBTPA region markets and the other 50 percent to the 
U.S. market; the cost of the fabric components formed in the United 
States equals 100 percent of the value of all of the fabric in the 
articles sent to the CBTPA region and 60 percent of the value of all of 
the fabric in the articles sent to the United States. Although the cost 
of fabric components formed in the United States is more than 75 percent 
of the value of all of the fabric used in all of the articles produced, 
this producer could not prepare a valid declaration of compliance 
because the articles sent to the United States did not meet the minimum 
75 percent standard.
    Example 2. An entity controlling production of articles that meet 
the description in Sec. 10.223(a)(6) buys for the U.S., Canadian and 
Mexican markets; the articles in each case are first sent to the United 
States where they are entered for consumption and then placed in a 
commercial warehouse from which they are shipped to various stores in 
the United States, Canada and Mexico. Notwithstanding the fact that some 
of the articles ultimately ended up in Canada or Mexico, a declaration 
of compliance prepared by the entity controlling production must cover 
all of the articles rather than only those that remained in the United 
States because all of those articles had been entered for consumption.
    Example 3. Fabric is cut and sewn in the United States with other 
U.S. materials to form cups which are joined together to form brassiere 
front subassemblies in the United States, and those front subassemblies 
are then placed in a warehouse in the United States where they are held 
until the following year; during that following year the front 
subassemblies are shipped to a CBTPA beneficiary country where they are 
assembled with elastic straps less than 1 inch in width produced in an 
Asian country and other fabrics, components or materials produced in the 
CBTPA beneficiary country to form articles that meet the description in

[[Page 192]]

Sec. 10.223(a)(6) and that are then shipped to the United States and 
entered during that same year. In determining whether the entered 
articles meet the minimum 75 percent standard, the foreign-origin 
elastic straps are to be disregarded entirely because they constitute 
findings or trimmings for purposes of Sec. 10.223(c), and the front 
subassemblies are countable as components formed in the United States 
because they were used in the production of articles that were both 
produced and entered in the same year.
    Example 4. A CBTPA beneficiary country producer's entire production 
of articles that meet the description in Sec. 10.223(a)(6) is sent to a 
U.S. importer in two separate shipments, one covering articles produced 
and shipped in February and one covering articles produced and shipped 
in June of the same calendar year; the articles produced and shipped in 
February do not meet the minimum 75 percent standard but the two 
shipments, taken together, do meet that standard; the articles covered 
by the February shipment are entered for consumption on March 1 of that 
calendar year, and the articles covered by the June shipment are placed 
in a Customs bonded warehouse upon arrival and are subsequently 
withdrawn from warehouse for consumption on November 1 of that calendar 
year. The CBTPA beneficiary country producer may not prepare a valid 
declaration of compliance for any portion of these two shipments because 
the articles in the first shipment did not meet the minimum 75 percent 
standard and the articles in the second shipment were not both produced 
and entered in the same year and therefore cannot be included either on 
a declaration of compliance that would apply to the articles of the 
first shipment or on a declaration of compliance that would apply to 
articles produced in a different year.
    Example 5. A producer in the second year begins production of 
articles exclusively for the U.S. market that meet the description in 
Sec. 10.223(a)(6); the articles do not meet the minimum 75 percent 
standard until the third year; the articles fail to meet the minimum 75 
percent standard during the fourth year; and the articles do not attain 
the 85 percent standard until the sixth year. The producer's articles 
may not receive preferential treatment during the second year because 
there was no production in the immediately preceding year on which to 
assess compliance with the 75 percent standard. The producer's articles 
also may not receive preferential treatment during the third year 
because the 75 percent standard was not met in the immediately preceding 
(that is, second) year. The producer's articles are eligible for 
preferential treatment during the fourth year based on compliance with 
the 75 percent standard in the immediately preceding (that is, third) 
year. The producer's articles may not receive preferential treatment 
during the fifth year because the 75 percent standard was not met in the 
immediately preceding (that is, fourth) year. The producer's articles 
may not receive preferential treatment during the sixth year because the 
85 percent standard has become applicable and was not met in the 
immediately preceding (that is, fifth) year. The producer's articles are 
eligible for preferential treatment during the seventh year because the 
85 percent standard was met in the immediately preceding (that is, 
sixth) year, and during that seventh year the 75 percent standard is 
applicable for purposes of determining whether the producer's articles 
are eligible for preferential treatment in the following (that is, 
eighth) year.
    Example 6. An entity controlling production (Entity A) uses five 
CBTPA beneficiary country producers (Producers 1-5), all of whom produce 
only articles that meet the description in Sec. 10.223(a)(6); Producers 
1-4 send all of their production to the United States and Producer 5 
sends 10 percent of its production to the United States and the rest to 
Europe; Producers 1-3 and Producer 5 produce only pursuant to contracts 
with Entity A, but Producer 4 also operates independently of Entity A by 
producing for several U.S. importers, one of which is an entity 
controlling production (Entity B) that also controls all of the 
production of articles of one other producer (Producer 6) who sends all 
of its production to the United States. A declaration of compliance 
prepared by Entity A must cover all of the articles of Producers 1-3 and 
the 10 percent of articles of Producer 5 that are sent to the United 
States and that portion of the articles of Producer 4 that are produced 
pursuant to the contract with Entity A, because Entity A controls the 
production of those articles. There is no need for Producers 1-3 and 
Producer 5 to prepare a declaration of compliance because they have no 
production that is not covered by a declaration of compliance prepared 
by an entity controlling production. A declaration of compliance 
prepared by Producer 4 would cover all of its production, that is, 
articles produced for Entity A, articles produced for Entity B, and 
articles produced independently for other U.S. importers; a declaration 
of compliance prepared by Entity B must cover that portion of the 
production of Producer 4 that he controls as well as all of the 
production of Producer 6 because Entity B also controls all of the 
production of Producer 6. Producer 6 would not prepare a declaration of 
compliance because all of its production is covered by the declaration 
of compliance prepared by Entity B.

    (c) Documentation--(1) Initial declaration of compliance. In order 
for an importer to comply with the requirement set forth in paragraph 
(b)(1)(iii) of this

[[Page 193]]

section, the producer or the entity controlling production must have 
filed with Customs, in accordance with paragraph (c)(4) of this section, 
a declaration of compliance with the applicable 75 or 85 percent 
requirement prescribed in paragraph (b)(1)(i) or (b)(1)(ii) of this 
section. After filing of the declaration of compliance has been 
completed, Customs will advise the producer or the entity controlling 
production of the distinct and unique identifier assigned to that 
declaration. The producer or the entity controlling production will then 
be responsible for advising each appropriate U.S. importer of that 
distinct and unique identifier for purposes of recording that identifier 
on the entry summary or warehouse withdrawal. In order to provide 
sufficient time for advising the U.S. importer of that distinct and 
unique identifier prior to the arrival of the articles in the United 
States, the declaration of compliance should be filed with Customs at 
least 10 calendar days prior to the date of the first shipment of the 
articles to the United States.
    (2) Amended declaration of compliance. If the information on the 
declaration of compliance referred to in paragraph (c)(1) of this 
section is based on an estimate because final year-end information was 
not available at that time and the final data differs from the estimate, 
or if the producer or the entity controlling production has reason to 
believe for any other reason that the declaration of compliance that was 
filed contained erroneous information, within 30 calendar days after the 
final year-end information becomes available or within 30 calendar days 
after the date of discovery of the error:
    (i) The producer or the entity controlling production must file with 
the Customs office identified in paragraph (c)(4) of this section an 
amended declaration of compliance containing that final year-end 
information or other corrected information; or
    (ii) If that final year-end information or other corrected 
information demonstrates noncompliance with the applicable 75 or 85 
percent requirement, the producer or the entity controlling production 
must in writing advise both the Customs office identified in paragraph 
(c)(4) of this section and each appropriate U.S. importer of that fact.
    (3) Form and preparation of declaration of compliance--(i) Form. The 
declaration of compliance referred to in paragraph (c)(1) of this 
section may be printed and reproduced locally and must be in the 
following format:


[[Page 194]]


[GRAPHIC] [TIFF OMITTED] TR04OC01.007


    (ii) Preparation. The following rules will apply for purposes of 
completing the declaration of compliance set forth in paragraph 
(c)(3)(i) of this section:
    (A) In block 1, fill in the year commencing October 1 and ending 
September 30 of the calendar year during which the applicable 75 or 85 
percent standard specified in paragraph (b)(1)(i) or paragraph 
(b)(1)(ii) of this section was met;
    (B) Block 2 should state the legal name and address (including 
country) of the preparer and should also include the preparer's importer 
identification number (see Sec. 24.5 of this chapter), if the preparer 
has one;
    (C) Block 3 should state the legal name and address (including 
country) of the CBTPA beneficiary country producer if that producer is 
not already identified in block 2. If there is more than one producer, 
attach a list stating the legal name and address (including country) of 
all additional producers;
    (D) Blocks 4 and 5 apply only to articles that were both produced 
and entered during the year identified in block 1;
    (E) In block 6, the 75 percent space should be checked if that 
figure applies under paragraph (b)(1)(i) of this section for the year 
identified in block 1, and the 85 percent space should be checked

[[Page 195]]

if that figure applies under paragraph (b)(1)(ii) of this section for 
the year identified in block 1; and
    (F) In block 7, the signature must be that of an authorized officer, 
employee, agent or other person having knowledge of the relevant facts 
and the date must be the date on which the declaration of compliance was 
completed and signed.
    (4) Filing of declaration of compliance. The declaration of 
compliance referred to in paragraph (c)(1) of this section:
    (i) Must be completed either in the English language or in the 
language of the country in which the articles covered by the declaration 
were produced. If the declaration is completed in a language other than 
English, the producer or the entity controlling production must provide 
to Customs upon request a written English translation of the 
declaration; and
    (ii) Must be filed with the New York Strategic Trade Center, U.S. 
Customs Service, 1 Penn Plaza, New York, New York 10119.
    (d) Verification of declaration of compliance--(1) Verification 
procedure. A declaration of compliance filed under this section will be 
subject to whatever verification Customs deems necessary. In the event 
that Customs for any reason is prevented from verifying the statements 
made on a declaration of compliance, Customs may deny any claim for 
preferential treatment made under Sec. 10.225 that is based on that 
declaration. A verification of a declaration of compliance may involve, 
but need not be limited to, a review of:
    (i) All records required to be made, kept, and made available to 
Customs by the importer, the producer, the entity controlling 
production, or any other person under part 163 of this chapter;
    (ii) Documentation and other information regarding all articles 
described in Sec. 10.223(a)(6) that were produced and exported to the 
United States and entered during the preference year in question, 
whether or not a claim for preferential treatment was made under 
Sec. 10.225. Those records and other information include, but are not 
limited to, work orders and other production records, purchase orders, 
invoices, bills of lading and other shipping documents;
    (iii) Evidence to document the cost of fabric components formed in 
the United States that were used in the production of the articles in 
question, such as purchase orders, invoices, bills of lading and other 
shipping documents, and customs import and clearance documents, work 
orders and other production records, and inventory control records;
    (iv) Evidence to document the cost or value of all fabric other than 
fabric components formed in the United States that were used in the 
production of the articles in question, such as purchase orders, 
invoices, bills of lading and other shipping documents, and customs 
import and clearance documents, work orders and other production 
records, and inventory control records; and
    (v) Accounting books and documents to verify the records and 
information referred to in paragraphs (d)(1)(ii) through (d)(1)(iv) of 
this section. The verification of purchase orders, invoices and bills of 
lading will be accomplished through the review of a distinct audit 
trail. The audit trail documents must consist of a cash disbursement or 
purchase journal or equivalent records to establish the purchase of the 
fabric or component. The headings in each of these journals or other 
records must contain the date, vendor name, and amount paid for the 
fabric or component. The verification of production records and work 
orders will be accomplished through analysis of the inventory records of 
the producer or entity controlling production. The inventory records 
must identify the date of production of the finished article which must 
be referenced to the original purchase order or lot number covering the 
fabric or component used in production. In the inventory production 
records, the inventory should show the opening balance of the inventory 
plus the purchases made during the year and the inventory closing 
balance.
    (2) Notice of determination. If, based on a verification of a 
declaration of compliance filed under this section, Customs determines 
that the applicable 75 or 85 percent standard specified in paragraph 
(b)(1)(i) or paragraph (b)(1)(ii) of this section was not met, Customs 
will publish a notice of that

[[Page 196]]

determination in the Federal Register.

[T.D. 01-74, 66 FR 50537, Oct. 4, 2001; 66 FR 51864, Oct. 11, 2001]

   Non-Textile Articles Under the United States-Caribbean Basin Trade 
                             Partnership Act

    Source: T.D. 00-68, 65 FR 59663, Oct. 5, 2000, unless otherwise 
noted.



Sec. 10.231  Applicability.

    Title II of Public Law 106-200 (114 Stat. 251), entitled the United 
States-Caribbean Basin Trade Partnership Act (CBTPA), amended section 
213(b) of the Caribbean Basin Economic Recovery Act (the CBERA, 19 
U.S.C. 2701-2707) to authorize the President to extend additional trade 
benefits to countries that have been designated as beneficiary countries 
under the CBERA. Section 213(b)(3) of the CBERA (19 U.S.C. 2703(b)(3)) 
provides for special preferential tariff treatment of certain non-
textile articles that are otherwise excluded from duty-free treatment 
under the CBERA. The provisions of Secs. 10.231-10.237 of this part set 
forth the legal requirements and procedures that apply for purposes of 
obtaining preferential tariff treatment pursuant to CBERA section 
213(b)(3).

[T.D. 00-68, 65 FR 59663, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000]



Sec. 10.232  Definitions.

    When used in Secs. 10.231 through 10.237, the following terms have 
the meanings indicated:
    CBERA. ``CBERA'' means the Caribbean Basin Economic Recovery Act, 19 
U.S.C. 2701-2707.
    CBTPA beneficiary country. ``CBTPA beneficiary country'' means a 
``beneficiary country'' as defined in Sec. 10.191(b)(1) for purposes of 
the CBERA which the President also has designated as a beneficiary 
country for purposes of preferential duty treatment of articles under 19 
U.S.C. 2703(b)(3) and which has been the subject of a finding by the 
President or his designee, published in the Federal Register, that the 
beneficiary country has satisfied the requirements of 19 U.S.C. 
2703(b)(4)(A)(ii).
    CBTPA originating good. ``CBTPA originating good'' means a good that 
meets the rules of origin for a good as set forth in General Note 12, 
HTSUS, and in the appendix to part 181 of this chapter and as applied 
under Sec. 10.233(b).
    HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the United 
States.
    NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Preferential tariff treatment. ``Preferential tariff treatment'' 
when used with reference to an imported article means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States with duty and other tariff treatment that is identical 
to the tariff treatment that would be accorded at that time under Annex 
302.2 of the NAFTA to an imported article described in the same 8-digit 
subheading of the HTSUS that is a good of Mexico.

[T.D. 00-68, 65 FR 59663, Oct. 5, 2000; 65 FR 67264, Nov. 9, 2000]



Sec. 10.233  Articles eligible for preferential tariff treatment.

    (a) General. The preferential tariff treatment referred to in 
Sec. 10.231 applies to any of the following articles, provided that the 
article in question is a CBTPA originating good, is imported directly 
into the customs territory of the United States from a CBTPA beneficiary 
country, and is not accorded duty-free treatment under U.S. Note 2(b), 
Subchapter II, Chapter 98, HTSUS (see Sec. 10.26):
    (1) Footwear not designated on August 5, 1983, as eligible articles 
for the purpose of the Generalized System of Preferences under Title V, 
Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467);
    (2) Tuna, prepared or preserved in any manner, in airtight 
containers;
    (3) Petroleum, or any product derived from petroleum, provided for 
in headings 2709 and 2710 of the HTSUS;
    (4) Watches and watch parts (including cases, bracelets, and 
straps), of whatever type including, but not limited to, mechanical, 
quartz digital or quartz analog, if those watches or watch parts contain 
any material

[[Page 197]]

which is the product of any country with respect to which HTSUS column 2 
rates of duty apply; and
    (5) Articles to which reduced rates of duty apply under 
Sec. 10.198a, except as otherwise provided in paragraph (c) of this 
section.
    (b) Application of NAFTA rules of origin. In determining whether an 
article is a CBTPA originating good for purposes of paragraph (a) of 
this section, application of the provisions of General Note 12 of the 
HTSUS and the appendix to part 181 of this chapter will be subject to 
the following rules:
    (1) No country other than the United States and a CBTPA beneficiary 
country may be treated as being a party to the NAFTA;
    (2) Any reference to trade between the United States and Mexico will 
be deemed to refer to trade between the United States and a CBTPA 
beneficiary country;
    (3) Any reference to a party will be deemed to refer to a CBTPA 
beneficiary country or the United States; and
    (4) Any reference to parties will be deemed to refer to any 
combination of CBTPA beneficiary countries or to the United States and 
one or more CBTPA beneficiary countries (or any combination involving 
the United States and CBTPA beneficiary countries).
    (c) Duty reductions for leather-related articles. If, after it is 
determined that an article described in paragraph (a)(5) of this section 
qualifies as a CBTPA originating good and is eligible for preferential 
tariff treatment under this section, it is determined that the article 
in question also would otherwise qualify for a reduced rate of duty 
under Sec. 10.198a and that reduced rate of duty is lower than the rate 
of duty that would apply under this section, that lower rate of duty 
will apply to the article for purposes of preferential tariff treatment 
under this section.
    (d) Imported directly defined. For purposes of paragraph (a) of this 
section, the words ``imported directly'' mean:
    (1) Direct shipment from any CBTPA beneficiary country to the United 
States without passing through the territory of any country that is not 
a CBTPA beneficiary country;
    (2) If the shipment is from any CBTPA beneficiary country to the 
United States through the territory of any country that is not a CBTPA 
beneficiary country, the articles in the shipment do not enter into the 
commerce of any country that is not a CBTPA beneficiary country while en 
route to the United States and the invoices, bills of lading, and other 
shipping documents show the United States as the final destination; or
    (3) If the shipment is from any CBTPA beneficiary country to the 
United States through the territory of any country that is not a CBTPA 
beneficiary country, and the invoices and other documents do not show 
the United States as the final destination, the articles in the shipment 
upon arrival in the United States are imported directly only if they:
    (i) Remained under the control of the customs authority of the 
intermediate country;
    (ii) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commercial transaction between the importer and the producer or the 
producer's sales agent; and
    (iii) Were not subjected to operations other than loading or 
unloading, and other activities necessary to preserve the articles in 
good condition.



Sec. 10.234  Certificate of Origin.

    A Certificate of Origin as specified in Sec. 10.236 must be employed 
to certify that an article described in Sec. 10.233(a)(1) through (5) 
being exported from a CBTPA beneficiary country to the United States 
qualifies for the preferential tariff treatment referred to in 
Sec. 10.231. The Certificate of Origin must be prepared by the exporter 
in the CBTPA beneficiary country. Where the CBTPA beneficiary country 
exporter is not the producer of the article, that exporter may complete 
and sign a Certificate of Origin on the basis of:
    (a) Its reasonable reliance on the producer's written representation 
that the article qualifies for preferential tariff treatment; or

[[Page 198]]

    (b) A completed and signed Certificate of Origin for the article 
voluntarily provided to the exporter by the producer.



Sec. 10.235  Filing of claim for preferential tariff treatment.

    (a) Declaration. In connection with a claim for preferential tariff 
treatment for an article described in Sec. 10.233(a)(1) through (5), the 
importer must make a written declaration that the article qualifies for 
that treatment. The written declaration should be made by including on 
the entry summary, or equivalent documentation, the symbol ``R'' as a 
prefix to the subheading of the HTSUS under which the article in 
question is classified. Except in any of the circumstances described in 
Sec. 10.236(d)(1), the declaration required under this paragraph must be 
based on a complete and properly executed original Certificate of Origin 
that covers the article being imported and that is in the possession of 
the importer.
    (b) Corrected declaration. If, after making the declaration required 
under paragraph (a) of this section, the importer has reason to believe 
that a Certificate of Origin on which a declaration was based contains 
information that is not correct, the importer must within 30 calendar 
days after the date of discovery of the error make a corrected 
declaration and pay any duties that may be due. A corrected declaration 
will be effected by submission of a letter or other written statement to 
the Customs port where the declaration was originally filed.



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

    (a) Maintenance of records. Each importer claiming preferential 
tariff treatment for an article under Sec. 10.235 must maintain in the 
United States, in accordance with the provisions of part 163 of this 
chapter, all records relating to the importation of the article. Those 
records must include the original Certificate of Origin referred to in 
Sec. 10.235(a) and any other relevant documents or other records as 
specified in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
tariff treatment on an article under Sec. 10.235(a) must provide, at the 
request of the port director, a copy of the Certificate of Origin 
pertaining to the article. A Certificate of Origin submitted to Customs 
under this paragraph:
    (1) Must be on Customs Form 450, including privately-printed copies 
of that Form, or, as an alternative to Customs Form 450, in an approved 
computerized format or other medium or format as is approved by the 
Office of Field Operations, U.S. Customs Service, Washington, DC 20229. 
An alternative format must contain the same information and 
certification set forth on Customs Form 450;
    (2) Must be signed by the exporter or by the exporter's authorized 
agent having knowledge of the relevant facts;
    (3) Must be completed either in the English language or in the 
language of the country from which the article is exported. If the 
Certificate is completed in a language other than English, the importer 
must provide to Customs upon request a written English translation of 
the Certificate; and
    (4) May be applicable to:
    (i) A single importation of an article into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (ii) Multiple importations of identical articles into the United 
States that occur within a specified period, not to exceed 12 months, 
set out in the Certificate by the exporter.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.

[[Page 199]]

    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate of Origin in his possession for:
    (i) An importation of an article for which the port director has in 
writing waived the requirement for a Certificate of Origin because the 
port director is otherwise satisfied that the article qualifies for 
preferential tariff treatment;
    (ii) A non-commercial importation of an article; or
    (iii) A commercial importation of an article whose value does not 
exceed US$2,500, provided that, unless waived by the port director, the 
producer, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

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

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

    (2) Exception. If the port director determines that an importation 
described in paragraph (d)(1) of this section forms part of a series of 
importations that may reasonably be considered to have been undertaken 
or arranged for the purpose of avoiding a Certificate of Origin 
requirement under Secs. 10.234 through 10.236, the port director will 
notify the importer in writing that for that importation the importer 
must have in his possession a valid Certificate of Origin to support the 
claim for preferential tariff treatment. The importer will have 30 
calendar days from the date of the written notice to obtain a valid 
Certificate of Origin, and a failure to timely obtain the Certificate of 
Origin will result in denial of the claim for preferential tariff 
treatment. For purposes of this paragraph, a ``series of importations'' 
means two or more entries covering articles arriving on the same day 
from the same exporter and consigned to the same person.



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

    (a) Verification by Customs. A claim for preferential tariff 
treatment made under Sec. 10.235, including any statements or other 
information contained on a Certificate of Origin submitted to Customs 
under Sec. 10.236, will be subject to whatever verification the port 
director deems necessary. In the event that the port director for any 
reason is prevented from verifying the claim, the port director may deny 
the claim for preferential tariff treatment. A verification of a claim 
for preferential tariff treatment may involve, but need not be limited 
to, a review of:
    (1) All records required to be made, kept, and made available to 
Customs by the importer or any other person under part 163 of this 
chapter;
    (2) Documentation and other information in a CBTPA beneficiary 
country regarding the country of origin of an article and its 
constituent materials, including, but not limited to, production 
records, information relating to the place of production, the number and 
identification of the types of machinery used in production, and the 
number of workers employed in production; and
    (3) Evidence in a CBTPA beneficiary country to document the use of 
U.S. materials in the production of the article in question, such as 
purchase orders, invoices, bills of lading and other shipping documents, 
and customs import and clearance documents.
    (b) Importer requirements. In order to make a claim for preferential 
tariff treatment under Sec. 10.235, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the article qualifies for preferential tariff treatment. 
Those records must include documents that support a claim that the 
article in question qualifies for preferential tariff treatment because 
it meets the applicable rule of origin set forth in General Note 12, 
HTSUS, and in the appendix to part 181 of this chapter. A properly

[[Page 200]]

completed Certificate of Origin in the form prescribed in Sec. 10.236(b) 
is a record that would serve this purpose;
    (2) Must establish and implement internal controls which provide for 
the periodic review of the accuracy of the Certificate of Origin or 
other records referred to in paragraph (b)(1) of this section;
    (3) Must have shipping papers that show how the article moved from 
the CBTPA beneficiary country to the United States. If the imported 
article was shipped through a country other than a CBTPA beneficiary 
country and the invoices and other documents from the CBTPA beneficiary 
country do not show the United States as the final destination, the 
importer also must have documentation that demonstrates that the 
conditions set forth in Sec. 10.233(d)(3)(i) through (iii) were met; and
    (4) Must be prepared to explain, upon request from Customs, how the 
records and internal controls referred to in paragraphs (b)(1) through 
(b)(3) of this section justify the importer's claim for preferential 
tariff treatment.

                United States-Canada Free Trade Agreement

    Source: Sections 10.301 through 10.311 issued by T.D. 89-3, 53 FR 
51766, Dec. 23, 1988, unless otherwise noted.



Sec. 10.301  Scope and applicability.

    The provisions of Secs. 10.302 through 10.311 of this part relate to 
the procedures for obtaining duty preferences on imported goods under 
the United States-Canada Free-Trade Agreement (the Agreement) entered 
into on January 2, 1988, and the United States-Canada Free-Trade 
Agreement Implementation Act of 1988 (102 Stat. 1851). The United States 
and Canada agreed to suspend operation of the Agreement with effect from 
January 1, 1994, to coincide with the entry into force of the North 
American Free Trade Agreement (see part 181 of this chapter) and, 
accordingly, the provisions of Secs. 10.302 through 10.311 of this part 
apply only to goods imported from Canada that were entered for 
consumption, or withdrawn from warehouse for consumption, during the 
period January 1, 1989, through December 31, 1993. In situations 
involving goods subject to bilateral restrictions or prohibitions, or 
country of origin marking, other criteria for determining origin may be 
applicable pursuant to Article 407 of the Agreement.

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



Sec. 10.302  Eligibility criteria in general.

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



Sec. 10.303  Originating goods.

    (a) General. For purposes of eligibility for a preference under the 
Agreement, goods may be regarded as originating goods if:
    (1) Wholly of Canadian or United States origin. The goods are wholly 
obtained or produced in the Territory of Canada or the United States, or 
both, as set forth in General Note 3(c), HTSUS;
    (2) Transformed with a change in classification. The goods have been 
transformed by a processing which results in a change in classification 
and, if required, a sufficient value-content, as set forth in General 
Note 3(c), HTSUS; or
    (3) Transformed without a change in classification. An assembly of 
goods, other than goods of chapters 61 to 63 of the HTSUS, which does 
not result in a change in classification because the goods were imported 
in an unassembled or disassembled form and classified as the goods, 
unassembled or disassembled, pursuant to General Rule of Interpretation 
2(a), HTSUS, or because the tariff subheading for the goods provides for 
both the goods themselves and their parts, shall nonetheless be treated 
as originating goods if:
    (i) The value of originating materials and the direct cost of 
assembling in Canada or the United States, or both, as defined in 
Sec. 10.305 constitute not less

[[Page 201]]

than 50 percent of the value of the goods when exported to the United 
States;
    (ii) The assembled goods are not subsequently processed or further 
assembled in a third country; and
    (iii) The goods satisfy the requirement in Sec. 10.306.
    (b) Originating materials. For purposes of this section and 
Sec. 10.305, the term ``materials'' means goods, other than those 
included as part of the direct cost of processing or assembling, used or 
consumed in the production of other goods, and the term ``orginating'' 
when used with reference to such materials means that the materials 
satisfy one of the criteria for originating goods set forth in paragraph 
(a) of this section.
    (c) Change in classification. For purposes of paragraph (a) of this 
section, the expression ``change in classification'' means a change of 
classification within the Harmonized Commodity Description and Coding 
System (Harmonized System) as published and amended from time to time by 
the Customs Cooperation Council.
    (d) Articles of feather. The goods are eligible to be treated as 
originating in Canada pursuant to General Note 3(c)(vii)(R)(12)(ee), 
HTSUS.

[T.D. 92-8, 57 FR 2453, Jan. 22, 1992]



Sec. 10.304  Exclusions.

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



Sec. 10.305  Value content requirement.

    (a) Direct cost of processing or assembling.
    (1) Definition. For purposes of applying a specific rule of origin 
under the Agreement which requires a value content determination, the 
terms ``direct cost of processing'' and ``direct cost of assembling'' 
mean the costs directly incurred in, or that can be reasonably allocated 
to, the production of goods, including:
    (i) The cost of all labor, including benefits and on-the-job 
training, labor provided in connection with supervision, quality 
control, shipping, receiving, storage, packaging, management at the 
location of the process or assembly, and other like labor, whether 
provided by employees or independent contractors;
    (ii) The cost of inspecting and testing the goods;
    (iii) The cost of energy, fuel, dies, molds, tooling, and the 
depreciation and maintenance of machinery and equipment, without regard 
to whether they originate within the territory of the United States or 
Canada;
    (iv) Development, design, and engineering costs;
    (v) Rent, mortgage interest, depreciation on buildings, property 
insurance premiums, maintenance, taxes and the cost of utilities for 
real property used in the production of the goods; and
    (vi) Royalty, licensing, or other like payments for the right to the 
goods.
    (2) Exclusions from direct costs of processing or assembling. 
Excluded from the direct costs of processing or assembling are:
    (i) Costs relating to the general expense of doing business, such as 
the cost of providing executive, financial, sales, advertising, 
marketing, accounting and legal services, and insurance;
    (ii) Brokerage charges relating to the importation and exportation 
of goods;
    (iii) Costs for telephone, mail, and other means of communication;
    (iv) Packing costs for exporting the goods;
    (v) Royalty payments related to a licensing agreement to distribute 
or sell the goods;
    (vi) Rent, mortgage interest, depreciation on buildings, property 
insurance premiums, maintenance, taxes, and the cost of utilities for 
real property used by personnel charged with administrative functions; 
and
    (vii) Profit on the goods.

[[Page 202]]

    (3) Interpretation--(i) Indirect materials. Under the definition of 
``materials'' set forth in Sec. 10.303(b), certain types of materials 
are treated as direct costs of processing or assembling under paragraph 
(a) of this section. This applies principally to materials used or 
consumed indirectly in the production of exported goods, where no 
portion of those materials is physically incorporated in the exported 
goods. In addition to the items specified in paragraph (a)(1)(iii) of 
this section, such materials include items such as gloves and safety 
glasses worn by production workers, tape used in painting processes, and 
tools, materials and spare parts used in the repair and maintenance of 
machinery and equipment used in the production of the exported goods. 
Such materials are to be distinguished from waste and spoilage specified 
in paragraph (b)(1)(ii)(C) of this section, which relate to materials 
that are physically incorporated in the exported goods.
    (ii) Directly incurred. In order for costs incurred by a production 
facility to be treated as direct costs of processing or assembling, 
those costs must be directly incurred in the production of the exported 
goods and not merely associated with the production facility as 
peripheral costs necessary to operate the facility. In addition to the 
exclusions set forth in paragraph (a)(2) of this section, such 
peripheral costs include labor costs for nurses tending to employees, 
for accounting personnel involved in physical inventory taking, for 
personnel responsible for purchasing or requisitioning materials to be 
used or consumed in the production process, and for second level 
supervisors and above who are not directly involved in the production 
process.
    (iii) Labor costs. Under paragraph (a)(1)(i) of this section, labor 
costs includable as direct costs of processing or assembling are limited 
to labor provided by the producer's employees or by independent 
contractors. Thus, for example, where processing operations are 
performed on components in the United States and those components are 
sold to a manufacturer in Canada where they are incorporated in goods 
exported to the United States, the cost of those processing operations 
in the United States cannot be separately counted as a direct cost of 
processing attributable to the finished goods exported to the United 
States.
    (iv) Interest expense. Bona fide interest payments on debt of any 
form, secured or unsecured, undertaken on arm's length terms in the 
ordinary course of business to finance the acquisition of fixed assets 
such as real property, a plant, and/or equipment used in the production 
of goods in the territory of Canada or the U.S. are includable in the 
direct cost of processing or direct cost of assembling. Interest will be 
treated as a direct cost of processing or assembling, but only that 
portion of the interest which is related to a fixed asset directly used 
in the production of the goods exported; thus, where a entire production 
facility is covered by a mortgage and incorporates both production and 
administrative or other general expense space, an appropriate allocation 
must be made in order to ensure that only that portion of the interest 
allocated to the production area is counted toward the value-content 
requirement. Interest expenses attributable to general and 
administrative costs or expenses, including interest on funds borrowed 
to meet the payroll of personnel directly involved in the production of 
goods, are not considered direct costs of processing or assembly.
    (b) Value of originating materials--(1) Definition. The term ``value 
of materials originating in the United States or Canada or both'' means 
the aggregate of:
    (i) The price paid by the producer of exported goods for materials 
originating in either the United States or Canada, or both, or for 
materials imported from a third country used or consumed in the 
production of such originating materials; and
    (ii) When not included in that price, the following costs related 
thereto:
    (A) Freight, insurance, packing and all other costs incurred in 
transporting any of the materials referred to in paragraph (b)(1)(i) of 
this section to the location of the producer;
    (B) Duties, taxes and brokerage fees on such materials paid in the 
United States, or Canada, or both;
    (C) The cost of waste or spoilage resulting from the use or 
consumption of

[[Page 203]]

such materials, less the value of renewable scrap or by-product; and
    (D) The value of goods and services relating to such materials 
determined in accordance with subparagraph 1(b) of Article 8 of the 
Agreement on Implementation of Article VII of the General Agreement on 
Tariffs and Trade.
    (2) Directly attributable. Whenever a value-content determination is 
required by the rules of the Agreement and whenever originating 
materials and materials obtained or produced in a third country are used 
or consumed together in the production of goods in the United States or 
Canada, the value of originating materials may be treated as such only 
to the extent that the value is directly attributable to the goods under 
consideration.
    (3) Interpretation. (i) Price paid. As provided in paragraph (b)(1) 
of this section, the ``price paid'' for materials by the producer of 
exported goods forms the basis for determining the value of such 
materials when incorporated in the exported goods. The actual price paid 
for such materials will determine the value of those materials for 
purposes of the value-content requirement, even though a relationship 
between the producer and the seller of the materials may have influenced 
the price, except where the price did not include items specified in 
paragraph (b)(1)(ii) of this section that relate to the materials. The 
following examples will illustrate these principles. Notwithstanding 
these examples, the totality of the facts must be examined in each case 
to determine whether Sec. 10.304(b) is applicable.

    Example 1. Non-originating materials are sold by Company X (a 
foreign corporation located outside the United States or Canada) to 
Company Y (a Canadian corporation) for $100; Company X also sold 
identical materials to Company Z (a U.S. corporation) for $200 which was 
the price Company Z had paid to Company X for similar materials prior to 
implementation of the Agreement; and those non-originating materials 
sold by Company X to Company Y are then incorporated by Company Y into 
goods exported to the United States. In this case the $100 price paid by 
Company Y to Company X constitutes the value of those materials for 
purposes of the value-content requirement.
    Example 2. Company X purchased materials for $100, added a four 
percent mark-up to the price paid to defray purchasing expenses, and 
then sold the marked-up materials to Company Y (a Canadian corporation) 
which incorporated the materials in goods exported to the United States. 
In this case the $104 price paid by Company Y to Company X constitutes 
the value of the materials for purposes of the value-content 
requirement.
    Example 3. Company X (a foreign corporation located outside the 
United States) sold non-originating materials to Company Y (a U.S. 
corporation) for $200, and Company Y then sold those materials for $100 
to Company Z (a Canadian corporation) which incorporated the materials 
in goods which were imported into the United States by Company P (the 
U.S. parent company of Company Y). In this case, in accordance with 
paragraph (b)(1)(ii)(D) of this section, $100 would be added to the 
price paid by Company Z for purposes of the value-content requirement 
because the materials were sold at a reduced cost within the meaning of 
subparagraph 1(b) of Article 8 of the Agreement on Implementation of 
Article VII of the General Agreement on Tariffs and Trade.

    (ii) Originating materials for which no price paid. In cases 
involving a vertically integrated producer (that is, an entity which 
produces goods for export from materials which that producer has also 
made) a ``price paid'' for such originating materials normally does not 
exist. Even in the absence of a ``price paid'', such a vertically 
integrated producer may still claim the materials as originating 
materials for purposes of qualifying the finished goods exported to the 
United States as goods originating in Canada. However, under paragraph 
(b)(1)(i) of this section the value of those materials for purposes of 
applying the value-content requirement is limited to the price paid for 
those materials imported from the third country plus any costs added 
thereto under paragraph (b)(1)(ii) of this section. The following 
examples will illustrate these principles.

    Example 1. If an automobile producer in the United States or Canada 
fabricates body panels wholly from third country steel coil, those body 
panels can qualify as originating materials without having to satisfy a 
value-content requirement because steel coil is classified in chapter 72 
of the Harmonized System and body panels are classified in chapter 87 
and the change in classification rules in chapter 87 do not incorporate 
a value-content requirement in this context. Thus, the producer can 
claim the body panels fabricated from the third country steel as 
originating materials for purposes of the value-content requirement 
applicable to the

[[Page 204]]

finished automobile which will be exported to the United States. The 
value of those originating materials is the price paid for the steel 
coil imported from the third country and used or consumed in the 
production of the body panels.
    Example 2. An automobile exporter in Canada purchases and imports 
body panels fabricated in a third country in order to join them with 
vertically (locally) fabricated body panels to form an automobile body. 
If the body qualifies as an originating material, the exporter has two 
options. Under the first option, the exporter can claim the body as 
originating material, in which case the value of originating material is 
the price paid for the foreign body panels. Under the second option, the 
exporter may elect not to claim the body as originating material; but, 
rather, the exporter may claim as originating material any domestic 
steel coil used in producing the vertically (locally) fabricated body 
panels, in which case the value of originating material is the price 
paid for the domestic steel coil.

    (c) Value of goods when exported. The term ``value of the goods when 
exported to the United States'' means the aggregate of:
    (1) The price paid by the producer for all materials, whether or not 
the materials originate in the United States, or Canada, or both, and, 
when not included in the price paid for the materials, the following 
costs related thereto:
    (i) Freight, insurance, packing, and all other costs incurred in 
transporting all materials to the location of the producer;
    (ii) Duties, taxes, and brokerage fees on all materials paid in the 
United States, or Canada, or both;
    (iii) The cost of waste or spoilage resulting from the use or 
consumption of such materials, less the value of renewable scrap or by-
product; and
    (iv) The value of goods and services relating to all materials 
determined in accordance with subparagraph 1(b) of Article 8 of the 
Agreement on Implementation of Article VII of the General Agreement on 
Tariffs Trade; and
    (2) The direct cost of processing or the direct cost of assembling 
the goods.

[T.D. 92-8, 57 FR 2453, Jan. 22, 1992; 57 FR 4793, Feb. 7, 1992, as 
amended by T.D. 92-98, 57 FR 46504, Oct. 9, 1992]



Sec. 10.306  Direct shipment to the United States.

    Goods shall be considered as directly shipped to the United States 
from Canada for the purpose of eligibility for preferences under the 
Agreement only under the following circumstances:
    (a) Through shipment. The goods have been shipped directly from 
Canada to the United States without passage through the territory of any 
third country; or
    (b) Shipment through a third country. The goods were shipped through 
the territory of a third country but:
    (1) The goods did not enter the commerce of any third country;
    (2) The goods did not undergo any operation other than unloading, 
reloading, or any operation necessary to transport them to the United 
States or to preserve them in good condition; and
    (3) All shipping and export documents show the United States as the 
final destination.



Sec. 10.307  Documentation.

    (a) Claims for a preference. A preference in accordance with the 
Agreement may be claimed by including on the entry summary, or 
equivalent documentation, the symbol ``CA'' as a prefix to the 
subheading of the HTSUS under which each eligible good is classified.
    (b) Failure to claim a preference. Failure to make a timely claim 
for a preference under the Agreement will result in liquidation at the 
rate which would otherwise be applicable.
    (c) Documentation showing origin. A claim for a preference under the 
Agreement shall be based on the Exporter's Certificate of Origin, 
properly completed and signed by the person who exports or knowingly 
causes the goods to be exported from Canada. The Exporter's Certificate 
of Origin must be available at the time the preference is claimed and 
shall be presented to the port director upon request.
    (d) Exporter's Certificate of Origin--(1) General. The Exporter's 
Certificate of Origin shall be prepared on Customs Form 353. In lieu of 
the Customs Form 353, the exporter may use an approved

[[Page 205]]

computerized format or such other format as is approved by the 
Headquarters, U.S. Customs Service, Office of Trade Operations, 
Washington, DC 20229. Alternative formats must contain the same 
information and certification set forth on Customs Form 353.
    (2) Blanket certifications. A blanket Exporter's Certificate of 
Origin, not to exceed a period of 12 months, issued for goods claimed as 
originating goods under the Agreement, can only be used if the 
certifying exporter is able to verify that the goods in each shipment to 
be covered by the blanket certification actually qualify for treatment 
under the Agreement. A blanket certification does not allow an exporter 
to average its costs over the blanket certification period in order to 
establish that the exported goods meet the criteria for originating 
goods under the Agreement. Under Sec. 10.308, the exporter must retain 
supporting records that will permit a review of the eligibility of the 
goods in each shipment covered by a blanket certification.
    (e) Exceptions to documentation requirements. Exceptions to the 
foregoing documentation requirements may be authorized at the discretion 
of the port director in the following circumstances:
    (1) Exception for informal entries. As set forth in paragraphs 
(e)(1) (i) and (ii) of this section, an Exporter's Certificate of Origin 
may be waived in connection with an entry entitled to informal entry 
procedures as authorized in Secs. 143.21 and 143.22 of this chapter if:
    (i) Commercial goods which qualify for informal entry. The invoice, 
or an appropriate Customs release document, for commercial goods which 
qualify both for informal entry and a preference must include the 
following statement, on the invoice or appropriate Customs document:

    I hereby certify that the goods described herein are eligible for a 
preference based upon the rules of origin enumerated in the United 
States-Canada Free-Trade Agreement.
    Check One:

( ) Manufacturer
( ) Supplier
( ) Exporter
________________________________________________________________________
Signature
________________________________________________________________________
Title
Date:___________________________________________________________________
    (ii) Noncommercial goods which qualify for informal entry. The 
importation of goods from Canada by a person for noncommercial use may 
be exempt from documentation requirements if the goods are legally 
marked ``Made in Canada'', or it can otherwise be shown that they are 
originating goods under the Agreement and there is no evidence to the 
contrary.
    (2) Waiver of evidence of direct shipment. The port director may 
waive the submission of evidence of direct shipment when otherwise 
satisfied, taking into consideration the kind and value of the goods, 
that the goods were, in fact, imported directly from Canada, and that 
they otherwise qualify for a preference in accordance with the 
Agreement.

[T.D. 89-3, 53 FR 51766, Dec. 23, 1988, as amended by T.D. 92-8, 57 FR 
2455, Jan. 22, 1992]



Sec. 10.308  Records retention.

    (a) Importer. The importer of record shall retain the exporter's 
certificate of origin required by Sec. 10.307(d) for a period of 5 years 
and it must be made available upon request by the appropriate Customs 
official.
    (b) Exporter. Any person who exports, or who knowlingly causes to be 
exported, any merchandise to Canada shall make, keep, and render for 
examination and inspection, such records (including certifications of 
origin or copies thereof), which pertain to such exportation for a 
period of 5 years from the date of exportation. In the event that the 
appropriate Customs official requests submission of the records, they 
shall be submitted directly to the requesting official.



Sec. 10.309  Verification of documentation.

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

[[Page 206]]

refuse to grant the claim for preference, in addition to other available 
sanctions.



Sec. 10.310  Election to average for motor vehicles.

    (a) Election. In determining whether a motor vehicle is originating 
for purposes of the preferences under the Agreement or a Canadian 
article under the Automotive Products Trade Act of 1965 (APTA), a 
manufacturer may elect to average, over its 12-month financial year, its 
calculation of the value-content requirement for vehicles of the same 
class or sister vehicles which are assembled in the same plant as 
provided for in the Agreement. A manufacturer must declare its election 
to average before the importation of any vehicles produced within the 
identified 12-month period. The election to average is subject to the 
conditions and requirements set forth in Secs. 10.310 and 10.311.
    (b) Effect of election. An election to average shall be binding at 
the time of the first entry of vehicles for which the election has been 
made and shall remain binding for the plant for the entire period 
covered by the election. If a manufacturer's annual report, required by 
Sec. 10.311, does not verify the claim that the vehicles are originating 
goods under the Agreement or Canadian articles under APTA, or if a 
manufacturer otherwise fails to comply with the reporting requirements, 
entries of the vehicles identified in the averaging declaration will be 
subject to liquidation in accordance with the rate of duty which would 
otherwise apply.
    (c) Election in lieu of certificate of origin. In lieu of the 
Exporter's Certificate of Origin required in Sec. 10.307(c), an importer 
of vehicles covered by an election to average under this section may 
have its claim for preference based on a copy of the declaration of 
election.

[T.D. 89-3, 53 FR 51766, Dec. 23, 1988, as amended by T.D. 92-8, 57 FR 
2455, Jan. 22, 1992]



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

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



PART 11--PACKING AND STAMPING; MARKING--Table of Contents




                          Packing and Stamping

Sec.
11.1 Cigars, cigarettes, medicinal preparations, and perfumery.
11.2 Manufactured tobacco.
11.2a Release from Customs custody without payment of tax on cigars, 
          cigarettes and cigarette papers and tubes.

[[Page 207]]

11.3 Package and notice requirements for cigars and cigarettes; package 
          requirements for cigarette papers and tubes.
11.5 [Reserved]
11.6 Distilled spirits, wines, and malt liquors in bulk.
11.7 Distilled spirits and other alcoholic beverages imported in bottles 
          and similar containers; regulations of the Bureau of Alcohol, 
          Tobacco and Firearms.

                                 Marking

11.9 Special marking on certain articles.
11.12 Labeling of wool products to indicate fiber content.
11.12a Labeling of fur products to indicate composition.
11.12b Labeling textile fiber products.
11.13 False designations of origin and false descriptions; false marking 
          of articles of gold or silver.

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Notes 23 and 
24, Harmonized Tariff Schedule of the United States), 1624.

                          Packing and Stamping



Sec. 11.1  Cigars, cigarettes, medicinal preparations, and perfumery.

    (a) All cigars and cigarettes imported into the United States, 
except importations by mail and in baggage, shall be placed in the 
public stores or in a designated bonded warehouse to remain until 
inspected, weighed, and repacked, if necessary, under the Customs and 
internal-revenue laws. However, if the invoice and entry presented 
specify all of the information necessary for prompt determination of the 
estimate duty and tax on the packages of cigars and cigarettes covered 
thereby, the port director may permit designation of less than the 
entire importation for examination.
    (b) After the cigars and cigarettes have been examined, weighed, and 
appraised, before release the inspecting officer shall verify that they 
are in properly constructed packages, conforming to the requirements of 
the regulations of the Bureau of Alcohol, Tobacco and Firearms, bearing 
a legible imprint or a securely affixed label stating the quantity, 
kind, and classification for tax purposes as required by such 
regulations. Cigars or cigarettes must be in compliance with such 
requirements before being released for consumption unless specifically 
exempted therefrom as indicated in Sec. 11.3.
    (c) The immediate containers of all domestic cigars, cigarettes, 
medicinal preparations, and perfumery, which are returned to the United 
States and are subject to a duty equal to an internal-revenue tax, shall 
be stamped by Customs. The packaging requirements set forth in paragraph 
(b) of this section apply to returned cigars and cigarettes of domestic 
origin.

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 78-329, 43 FR 43454, 
Sept. 26, 1978]



Sec. 11.2  Manufactured tobacco.

    (a) If the invoice and entry presented for manufactured tobacco 
specify all the information necessary for prompt determination of the 
estimated duty on the manufactured tobacco covered thereby, the port 
director may permit designation of less than the entire importation for 
examination.
    (b) In the case of returned American manufactured tobacco, the 
packages shall be marked or stamped by Customs with the inscription 
``American goods returned.''

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 67-193, 32 FR 11764, 
Aug. 16, 1967]



Sec. 11.2a  Release from Customs custody without payment of tax on cigars, cigarettes and cigarette papers and tubes.

    Cigars, cigarettes, and cigarette papers and tubes may be released 
from Customs custody without payment of any applicable internal revenue 
tax upon presentation of the Customs entry or withdrawal form and three 
copies of Alcohol, Tobacco and Firearms Form 2145 (5200.11) or 3072 
(5210.14), certified by the appropriate regional regulatory 
administrator, Bureau of Alcohol, and Tobacco and Firearms. The Customs 
officer shall complete the notice of release, retain one copy, send one 
copy to the regional regulatory administrator, and return one copy to 
the manufacturer. The release may not be made under a mail entry. See 
Sec. 145.13(b) of this chapter.

[T.D. 78-329, 43 FR 43454, Sept. 26, 1978]

[[Page 208]]



Sec. 11.3  Package and notice requirements for cigars and cigarettes; package requirements for cigarette papers and tubes.

    Exemptions from tax on cigars, cigarettes, and cigarette papers and 
tubes apply in accordance with the regulations of the Bureau of Alcohol, 
Tobacco, and Firearms (27 CFR part 275) upon release from Customs 
custody of such articles imported by consular officers and employees of 
foreign states. Cigars, cigarettes, cigarette papers, and tubes may also 
be released without payment of tax as provided in Sec. 11.2a and for 
exhibition in accordance with part 147 of this chapter. Additionally, 
cigars, cigarettes, or cigarette papers and tubes may be admitted free 
of duty and tax under the provisions of Subchapter IV, Chapter 98, 
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), or 
section 321, Tariff Act of 1930, as amended (19 U.S.C. 1321), 
Secs. 148.63, 148.74, and subpart I of part 148 of this chapter. Except 
in the foregoing instances and in any instance in which such articles 
are imported in passengers' baggage or are to be released under a mail 
entry for the personal consumption of the importer or for disposition as 
his bona fide gift, the provisions in Part 275 of the regulations of the 
Bureau of Alcohol, Tobacco, and Firearms (27 CFR part 275) as to 
packages and notices thereon apply.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 73-227, 38 FR 
22548, Aug. 22, 1973; T.D. 78-329, 43 FR 43454, Sept. 26, 1978; T.D. 89-
1, 53 FR 51253, Dec. 21, 1988]



Sec. 11.5  [Reserved]



Sec. 11.6  Distilled spirits, wines, and malt liquors in bulk.

    (a) The port director, in his discretion, may require marks, brands, 
stamps, labels, or similar devices to be placed on any bulk container 
used for holding, storing, transferring, or conveying imported distilled 
spirits, wines, and malt liquors, in accordance with 19 U.S.C. 467.
    (b) Marks, brands, stamps, labels, or similar devices required by 
Federal, State, or local statute or regulation may be affixed, and 
Customs inspection, gauging, marking, or measurement may be done, at the 
place of unlading or other suitable place, unless the port director 
determines that inspection, gauging, marking, or measurement shall be 
done at a public store, warehouse, or other appropriate facility.
    (c) Marks, brands, stamps, labels, or similar devices shall be 
permanent in nature and not subject to obliteration or removal as a 
result of handling or other condtions. The port director shall determine 
whether a mark, brand, stamp, label, or similar device is acceptable, 
based on the nature, surface, and composition of the container.

[T.D. 79-221, 44 FR 46813, Aug. 9, 1979; T.D. 80-26, 45 FR 3901, Jan. 
21, 1980; T.D. 89-1, 53 FR 51253, Dec. 21, 1988]



Sec. 11.7  Distilled spirits and other alcoholic beverages imported in bottles and similar containers; regulations of the Bureau of Alcohol, Tobacco, and 
          Firearms.

    The importation of distilled spirits and other alcoholic beverages 
in bottles and similar containers is subject to regulations of the 
Bureau of Alcohol, Tobacco and Firearms relating to strip stamps and 
other matters. (27 CFR parts 5, 201, and 251). Customs officers and 
employees shall perform such functions as are necessary or proper on 
their part to carry out such regulations.

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 78-329, 43 FR 43454, 
Sept. 26, 1978]

                                 Marking



Sec. 11.9  Special marking on certain articles.

    (a) No movement, case, or dial provided for in Chapter 91, 
Harmonized Tariff Schedule of the United States (HTSUS), shall be 
released for consumption until marked in exact compliance with the 
requirements of additional U.S. Note 4, Chapter 91. If any article so 
required to be marked is found not to be marked to indicate the country 
of origin, the 10 percent marking duty shall be assessed, unless such 
marking is accomplished or the merchandise is exported or destroyed 
under Customs supervision prior to the liquidation of the entry, in 
accordance with the provisions of 19 U.S.C. 1304(f).

[[Page 209]]

    (b) The name of the manufacturer or purchaser which must appear on 
articles provided for Chapter 91, Harmonized Tariff Schedule of the 
United States (HTSUS), and specified in Additional U.S. Note 4, Chapter 
91, may be either the actual name of the manufacturer or purchaser or a 
duly registered trade name under which such manufacturer or purchaser 
carries on his business. A trade-mark shall not be accepted as meeting 
any such special marking requirement unless it includes the full name of 
the manufacturer or purchaser. The term ``Purchaser'' as used in this 
paragraph means the purchaser in the United States by whom or for whose 
account the articles are imported.

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988; T.D. 90-51, 55 FR 28190, July 10, 1990; T.D. 97-82, 62 FR 
51770, Oct. 3, 1997; 62 FR 55512, Oct. 27, 1997]



Sec. 11.12  Labeling of wool products to indicate fiber content.

    (a) Wool products imported into the United States, except those made 
more than 20 years prior to importation, and except carpets, rugs, mats, 
and upholsteries, shall have affixed thereto a stamp, tag, label, or 
other means of identification, as required by the Wool Products Labeling 
Act of 1939 (54 Stat. 1129; 15 U.S.C. 68 et seq.) and the rules and 
regulations promulgated thereunder by the Federal Trade Commission (16 
CFR part 300). The term ``wool product'' means any product, or any 
portion of a product, which contains, purports to contain, or in any way 
is represented as containing wool, reprocessed wool, or reused wool.
    (b) If imported wool products are not correctly labeled and the port 
director is satisfied that the error or omission involved no fraud or 
willful neglect, the importer shall be afforded a reasonable opportunity 
to label the merchandise under Customs supervision to conform with the 
requirements of such act and the rules and regulations of the Federal 
Trade Commission. The compensation and expenses of Customs officers and 
employees assigned to supervise the labeling shall be reimbursed to the 
Government and shall be assessed in the same manner as in the case of 
marking of country of origin, Sec. 134.55 of this chapter.
    (c) Packages of wool products subject to the provisions of this 
section which are not designated for examination may be released pending 
examination of the designated packages, but only if there shall have 
been filed in connection with the entry bonds on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 and/or 
Sec. 113.68 of this chapter, as appropriate, in such amount as the port 
director may require.
    (d) The port director shall give written notice to the importer of 
any lack of compliance with the Wool Products Labeling Act of 1939 in 
respect of an importation of wool products, and pursuant to Sec. 141.113 
of this chapter shall demand the immediate return of the involved 
products to Customs custody, unless the lack of compliance is forthwith 
corrected.
    (e) If the products covered by a notice and demand given pursuant to 
paragraph (d) of this section are not promptly returned to Customs 
custody and the port director is not fully satisfied that they have been 
brought into compliance with the Wool Products Labeling Act of 1939, 
appropriate action shall be taken to effect the collection of liquidated 
damages in an amount equal to the entered value of the merchandise not 
redelivered, plus the estimated duty thereon as determined at the time 
of entry, unless the owner or consignee shall file with the appropriate 
Customs officer an application for cancellation of the liability 
incurred under the bond upon the payment as liquidated damages of a 
lesser amount than the full amount of the liquidated damages incurred, 
or upon the basis of such other terms and conditions as the Secretary of 
the Treasury may deem sufficient. The application shall contain a full 
statement of the reasons for the requested cancellation and shall be in 
duplicate.
    (f) If any fraudulent violation of the act with respect to imported 
articles comes to the attention of the port director, the involved 
merchandise shall be placed under seizure, or a demand shall be made for 
the redelivery of the merchandise if it has been released from Customs 
custody, and the case

[[Page 210]]

shall be reported to the Federal Trade Commission, Washington, D.C.

(Sec. 8, 54 Stat. 1132; 15 U.S.C. 68f; R.S. 251, as amended, secs. 623, 
as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 72-262, 37 FR 20318, 
Sept. 29, 1972; T.D. 73-175, 38 FR 17446, July 2, 1973; T.D. 84-213, 49 
FR 41167, Oct. 19, 1984]



Sec. 11.12a  Labeling of fur products to indicate composition.

    (a) Fur products imported into the United States shall have affixed 
thereto a label as required by section 4 of the Fur Products Labeling 
Act (15 U.S.C. 69b) and the rules and regulations promulgated thereunder 
by the Federal Trade Commission (16 CFR 301.1--301.49). The term ``fur 
product'' means any article of wearing apparel made in whole or in part 
of fur or used fur; except that such term shall not include such 
articles as the Federal Trade Commission shall exempt by reason of the 
relatively small quantity or value of the fur or used fur contained 
therein.
    (b) If imported fur products are not correctly labeled and the port 
director is satisfied that the error or omission involved no fraud or 
willful neglect, the importer shall be afforded a reasonable opportunity 
to label the merchandise under Customs supervision to conform with the 
requirements of such act and the rules and regulations of the Federal 
Trade Commission. The compensation and expenses of Customs officers and 
employees assigned to supervise the labeling shall be reimbursed to the 
Government and shall be assessed in the same manner as in the case of 
marking of country of origin, Sec. 134.55 of this chapter.
    (c) Packages of fur products subject to the provisions of this 
section which are not designated for examination may be released pending 
examination of the designated packages, but only if there shall have 
been filed in connection with the entry bonds on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 and/or 
Sec. 113.68 of this chapter, as appropriate, in such amount as the port 
director may require.
    (d) The port director shall give written notice to the importer of 
any lack of compliance with the Fur Products Labeling Act in respect of 
an importation of fur products, and pursuant to Sec. 141.113 of this 
chapter shall demand the immediate return of the involved products to 
Customs custody, unless the lack of compliance is forthwith corrected.
    (e) If the products covered by a notice and demand given pursuant to 
paragraph (d) of this section are not promptly returned to Customs 
custody and the port director is not fully satisfied that they have been 
brought into compliance with the Fur Products Labeling Act, appropriate 
action shall be taken to effect the collection of liquidated damages in 
an amount equal to the entered value of the merchandise not redelivered, 
plus the estimated duty thereon as determined at the time of entry, 
unless the owner or consignee shall file with the appropriate Customs 
officer an application for cancellation of the liability incurred under 
the bond upon the payment as liquidated damages of a lesser amount than 
the full amount of the liquidated damages incurred, or upon the basis of 
such other terms and conditions as the Secretary of the Treasury may 
deem sufficient. The application shall contain a full statement of the 
reasons for the requested cancellation and shall be in duplicate.
    (f) If any fraudulent violation of the act with respect to imported 
articles comes to the attention of a port director, the involved 
merchandise shall be placed under seizure, or a demand shall be made for 
the redelivery of the merchandise if it has been released from Customs 
custody, and the case shall be reported to the Federal Trade Commission, 
Washington, DC 20580.

(Sec. 6, 65 Stat. 178; 15 U.S.C. 69d; R.S. 251, as amended, secs. 623, 
as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 72-262, 37 FR 20318, 
Sept. 29, 1972; T.D. 73-175, 38 FR 17446, July 2, 1973; T.D. 84-213, 49 
FR 41167, Oct. 19, 1984]



Sec. 11.12b  Labeling textile fiber products.

    (a) Textile fiber products imported into the United States shall be 
labeled or marked in accordance with the Textile Fiber Products 
Identification Act

[[Page 211]]

(15 U.S.C. 70 through 70k) and the rules and regulations promulgated 
thereunder by the Federal Trade Commission (16 CFR part 303) unless 
exempt from marking or labeling under section 12 of the Act (15 U.S.C. 
70i). An invoice or other paper, containing the specified information 
may be used in lieu of a label where the textile product is not in the 
form intended for sale, delivery to, or for use by the ultimate 
consumer. Rule 31 of the Federal Trade Commission (16 CFR 303.31).
    (b) If imported fiber products are not correctly labeled and the 
port director is satisfied that the error or omission involved no fraud 
or willful neglect, the importer shall be afforded a reasonable 
opportunity to label the merchandise under customs supervision to 
conform with the requirements of such Act and the rules and regulations 
of the Federal Trade Commission. The compensation and expenses of 
Customs officers and employees assigned to supervise the labeling shall 
be reimbursed to the Government and shall be assessed in the same manner 
as in the case of marking of country of origin, Sec. 134.55 of this 
chapter.
    (c) Packages of fiber products subject to the provisions of this 
section which are not designated for examination may be released pending 
examination of the designated packages, but only if there shall have 
been filed in connection with the entry bonds on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 and/or 
Sec. 113.68 of this chapter, as appropriate, in such amount as the port 
director may require.
    (d) The port director shall give written notice to the importer of 
any lack of compliance with the Fiber Products Identification Act in 
respect of an importation of fiber products, and pursuant to 
Sec. 141.113 of this chapter shall demand the immediate return of the 
involved products to customs custody, unless the lack of compliance is 
forthwith corrected.
    (e) If the products covered by a notice and demand given pursuant to 
the preceding paragraph are not promptly returned to Customs custody and 
the port director is not fully satisfied that they have been brought 
into compliance with the Fiber Products Identification Act, appropriate 
action shall be taken to effect the collection of liquidated damages in 
an amount equal to the entered value of the merchandise not redelivered, 
plus the estimated duty thereon as determined at the time of entry, 
unless the owner or consignee shall file with the appropriate Customs 
officer an application for cancellation of the liability incurred under 
the bond upon the payment as liquidated damages of a lesser amount than 
the full amount of the liquidated damages incurred, or upon the basis of 
such other terms and conditions as the Secretary of the Treasury may 
deem sufficient. The application shall contain a full statement of the 
reasons for the requested cancellation and shall be in duplicate.
    (f) If any willful or flagrant violation of the Act with respect to 
the importation of articles comes to the attention of a port director, 
the involved merchandise shall be placed under seizure, or a demand 
shall be made for the redelivery of the merchandise if it has been 
released from Customs custody, and the case shall be reported to the 
Federal Trade Commission, Washington DC 20580.

(Sec. 501, 65 Stat. 290, secs. 2-12, 14, 72 Stat. 1717; 15 U.S.C. 70-
70k, 31 U.S.C. 483a; R.S. 251, as amended, secs. 623, as amended, 624, 
46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 72-262, 37 FR 20318, 
Sept. 29, 1972; T.D. 73-175, 38 FR 17446, July 2, 1973; T.D. 84-213, 49 
FR 41167, Oct. 19, 1984]



Sec. 11.13  False designations of origin and false descriptions; false marking of articles of gold or silver.

    (a) Articles which bear, or the containers which bear, false 
designations of origin, or false descriptions or representations, 
including words or other symbols tending falsely to describe or 
represent the articles, are prohibited importation under 15 U.S.C. 294, 
295, 296, 1124, 1125 or 48 U.S.C. 1405q, and shall be detained.
    (b) Articles made in whole or in part of gold or silver or alloys 
thereof imported for sale by manufacturers or dealers which are marked 
or labeled in a manner indicating a greater degree of fineness than the 
actual fineness of the

[[Page 212]]

gold or silver or alloys thereof, and any plated or filled articles so 
imported which are marked or labeled to indicate the fineness of the 
gold or silver and are not also marked or labeled to indicate the plated 
or filled condition or are marked or labeled with the word ``sterling'' 
or the word ``coin'', are prohibited importation and shall be detained, 
and the facts shall be reported to the United States attorney.
    (c) Whenever any articles are detained in accordance with the 
foregoing provisions of this section, and the case of any articles 
detained under paragraph (b) of this section the United States attorney 
has indicated that he does not intend to prosecute, the articles shall 
be seized and forfeited in the usual manner, except that, upon the 
filing of a petition therefor by the importer prior to final disposition 
of the articles, the port director may release the articles upon the 
condition that the prohibited marking be removed or obliterated or that 
the articles and containers be properly marked to indicate their origin, 
contents, or condition, or may permit the articles to be exported or 
destroyed under Customs supervision, and without expense to the 
Government.
    (d) Articles forfeited for violation of section 294, 1124, or 1125, 
Title 15 and section 545, Title 18, U.S. Code, may be disposed of in 
accordance with the procedure applicable to other Customs forfeitures, 
but may not be released from Customs custody except upon the removal by 
and at the expense of the party in interest of the prohibited marking by 
reason of which the articles were seized, except articles disposed of 
under Sec. 133.52 (a) or (b) of this chapter.

(Secs. 1-5, 34 Stat. 260-262, secs. 42, 43, 60 Stat. 440, 441, sec. 1, 
62 Stat. 716, sec. 618, 46 Stat. 757; 15 U.S.C. 294-298, 1124, 1125, 18 
U.S.C. 545, 19 U.S.C. 1618)

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 79-159, 44 FR 31967, 
June 4, 1979; T.D. 89-1, 53 FR 51253, Dec. 21, 1988]



PART 12--SPECIAL CLASSES OF MERCHANDISE--Table of Contents




Food, Drugs, and Cosmetics, Economic Poisons, Hazardous Substances, and 
                Dangerous Caustic or Corrosive Substances

Sec.
12.1 Cooperation with certain agencies; joint regulations.
12.3 Release under bond; liquidated damages.
12.4 Exportation.
12.5 Shipment to other ports.

                     Importation of Certain Cheeses

12.6 Affidavits required to accompany entry.

                             Milk and Cream

12.7 Permits required for importation.

                       Meat and Meat-Food Products

12.8 Inspection; bond; release.
12.9 Release for final delivery to consignee.

                        Plants and Plant Products

12.10 Regulations and orders of the Department of Agriculture.
12.11 Requirements for entry and release.
12.12 Release under bond.
12.13 Unclaimed shipments.
12.14 Detention.
12.15 Disposition; refund of duty.

                    Agricultural and Vegetable Seeds

12.16 Joint regulations of the Secretary of the Treasury and the 
          Secretary of Agriculture.

      Viruses, Serums, and Toxins for Treatment of Domestic Animals

12.17 Importation restricted.
12.18 Labels.
12.19 Detention; samples.
12.20 Disposition.

  Viruses, Serums, Toxins, Antitoxins, and Analogous Products for the 
                            Treatment of Man

12.21 Licensed establishments.
12.22 Labels; samples.
12.23 Detention; examination; disposition.

     Domestic Animals, Animal Products, and Animal Feeding Materials

12.24 Regulations of the Department of Agriculture.

[[Page 213]]

                    Wild Animals, Birds, and Insects

12.26 Importations of wild animals, fish, amphibians, reptiles, 
          mollusks, and crustaceans; prohibited and endangered and 
          threatened species; designated ports of entry; permits 
          required.
12.27 Importation or exportation of wild animals or birds, or the dead 
          bodies thereof illegally captured or killed, etc.
12.28 Importation of wild mammals and birds in violation of foreign law.
12.29 Plumage and eggs of wild birds.
12.30 Whaling.
12.31 Plant pests.
12.32 Honeybees and honeybee semen.

                                   Tea

12.33 Importation of tea; entry; examination for customs purposes.

                        White Phosphorus Matches

12.34 Importation prohibited; certificate of inspection; importer's 
          declaration.
12.35 [Reserved]

                             Narcotic Drugs

12.36 Regulations of Bureau of Narcotics.

                                 Liquors

12.37 Restricted importations.
12.38 Labeling requirements; shipments.

                           Unfair Competition

12.39 Imported articles involving unfair methods of competition or 
          practices.
12.39a Registered patent owners; import survey.

                            Immoral Articles

12.40 Seizure; disposition of seized articles; reports to United States 
          attorney.
12.41 Prohibited films.

      Merchandise Produced by Convict, Forced, or Indentured Labor

12.42 Findings of Commissioner of Customs.
12.43 Proof of admissibility.
12.44 Disposition.
12.45 Transportation and marketing of prison-labor products.

 Counterfeit Coins, Obligations, and Other Securities; Illustrations or 
                    Reproductions of Coins or Stamps

12.48 Importation prohibited; exceptions to prohibition of importation; 
          procedure.

                       Fur-Seal or Sea-Otter Skins

12.60 Importation prohibited.
12.61 Fur-seal or sea-otter skins permitted entry.
12.62 Enforcement; duties of Customs officers.
12.63 Seal-skin or sea-otter-skin waste.

Entry of Motor Vehicles, Motor Vehicle Engines and Nonroad Engines Under 
                      the Clean Air Act, as Amended

12.73 Motor vehicle and engine compliance with Federal antipollution 
          emission requirements.
12.74 Nonroad engine compliance with Federal antipollution emission 
          requirements.

  Motor Vehicles and Motor Vehicle Equipment Manufactured on or After 
                             January 1, 1968

12.80 Federal motor vehicle safety standards.

           Safety Standards for Boats and Associated Equipment

12.85 Coast Guard boat and associated equipment safety standards.

                           Electronic Products

12.90 Definitions.
12.91 Electronic products offered for importation under the Act.

                           Switchblade Knives

12.95 Definitions.
12.96 Imports unrestricted under the Act.
12.97 Importations contrary to law.
12.98 Importations permitted by statutory exceptions.
12.99 Procedures for permitted entry.
12.100 Importations in good faith; common or contract carriage.
12.101 Seizure of prohibited switchblade knives.
12.102 Forfeiture.
12.103 Report to the U.S. Attorney.

                            Cultural Property

12.104 Definitions.
12.104a Importations prohibited.
12.104b State Parties to the Convention.
12.104c Importations permitted.
12.104d Detention of articles; time in which to comply.
12.104e Seizure and forfeiture.
12.104f Temporary disposition of materials and articles.
12.104g Specific items or categories designated by agreements or 
          emergency actions.
12.104h Exempt materials and articles.
12.104i Enforcement.

     Pre-Columbian Monumental and Architectural Sculpture and Murals

12.105 Definitions.
12.106 Importation prohibited.
12.107 Importations permitted.
12.108 Detention of articles; time in which to comply.
12.109 Seizure and forfeiture.

[[Page 214]]

                         Pesticides and Devices

12.110 Definitions.
12.111 Registration.
12.112 Notice of arrival of pesticides and devices.
12.113 Arrival of shipment.
12.114 Release or refusal of delivery.
12.115 Release under bond.
12.116 Samples.
12.117 Procedure after examination.

    Chemical Substances in Bulk and as Part of Mixtures and Articles

12.118 Toxic Substances Control Act.
12.119 Scope.
12.120 Definitions.
12.121 Reporting requirements.
12.122 Detention of certain shipments.
12.123 Procedure after detention.
12.124 Time limitations and extensions.
12.125 Notice of exportation.
12.126 Notice of abandonment.
12.127 Decision to store or dispose.

                      Textiles and Textile Products

12.130 Textiles and textile products country of origin.
12.131 Entry of textiles and textile products.
12.132 Textile and apparel goods under the North American Free Trade 
          Agreement.

                       Softwood Lumber From Canada

12.140 Entry of softwood lumber from Canada.

                Merchandise Subject to Economic Sanctions

12.150 Merchandise prohibited by economic sanctions; detention; seizure 
          or other disposition; blocked property.

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 23, 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
    Section 12.1 also issued under 21 U.S.C. 371(b);
    Section 12.3 also issued under 7 U.S.C. 135h, 21 U.S.C. 381;
    Section 12.4 also issued under 21 U.S.C. 381(b);
    Section 12.6 also issued under 7 U.S.C. 1854, 19 U.S.C. 1303;
    Section 12.10 also issued under 7 U.S.C. 151-162;
    Section 12.15 also issued under 19 U.S.C. 1558;
    Section 12.16 also issued under 7 U.S.C. 1592(b);
    Sections 12.21 through 12.23 also issued under 42 U.S.C. 262;
    Section 12.26 also issued under 18 U.S.C. 42;
    Section 12.28 also issued under 18 U.S.C. 42, 19 U.S.C. 1527;
    Section 12.34 also issued under 19 U.S.C. 1202 (additional U.S. Note 
to Chapter 36, HTSUS);
    Section 12.37 also issued under 27 U.S.C. 203;
    Section 12.39 also issued under 19 U.S.C. 1337, 1623;
    Sections 12.40 and 12.41 also issued under 19 U.S.C. 1305;
    Sections 12.42 through 12.44 also issued under 19 U.S.C. 1307 and 
Pub. L. 105-61 (111 Stat. 1272);
    Sections 12.73 and 12.74 also issued under 19 U.S.C. 1484, 42 U.S.C. 
7522, 7601;
    Section 12.85 also issued under 19 U.S.C. 1623, 46 U.S.C. 4302, 
4306, 4310;
    Sections 12.95 through 12.103 also issued under 15 U.S.C. 1241-1245;
    Sections 12.104 through 12.104i also issued under 19 U.S.C. 2612.
    Sections 12.105 through 12.109 also issued under 19 U.S.C. 2094;
    Sections 12.110 through 12.117 also issued under 7 U.S.C. 136 et 
seq.;
    Sections 12.118 through 12.127 also issued under 15 U.S.C. 2601 et 
seq.;
    Sections 12.130 and 12.131 also issued under 7 U.S.C. 1854;
    Section 12.140 also issued under 19 U.S.C. 1484, 2416(a), 2171;
    Section 12.150 also issued under 19 U.S.C. 1595a and 1618; 22 U.S.C. 
401.

    Source: 28 FR 14710, Dec. 31, 1963, unless otherwise noted.

Food, Drugs, and Cosmetics, Economic Poisons, Hazardous Substances, and 
                Dangerous Caustic or Corrosive Substances



Sec. 12.1  Cooperation with certain agencies; joint regulations.

    (a) Federal Food, Drug, and Cosmetic Act. The importation into the 
United States of food, drugs, devices, and cosmetics as defined in 
section 201 (f), (g), (h), and (i) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321 (f), (g), (h), (i)) is governed by section 
801 of the Act, as amended (21 U.S.C. 381) and regulations issued under 
authority of section 701(b) of the Act (21 U.S.C. 371(b)) by the 
Secretary of Health and Human Services and the Secretary of the Treasury 
(21 CFR 1.83 through 1.99).
    (b) Federal Insecticide, Fungicide, and Rodenticide Act. The 
importation of pesticides and devices is governed by section 17(c) of 
the Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 
U.S.C. 136o(c)), and regulations issued under the authority of section 
17(e) of that Act (7 U.S.C. 1360(e)) by the Secretary of the Treasury, 
in consultation with the Administrator of

[[Page 215]]

the Environmental Protection Agency, as set forth below (Sec. 12.110 et 
seq.).
    (c) Federal Hazardous Substances Act. The importation of hazardous 
substances, misbranded hazardous substances, or banned hazardous 
substances as defined in section 2 of the Federal Hazardous Substances 
Act, as amended (15 U.S.C. 1261), is governed by regulations issued 
under the authority of sections 10(b) and 14 of the Act, as amended (15 
U.S.C. 1269, 1273), by the Consumer Product Safety Commission (16 CFR 
1500.265 through 1500.272).

[T.D. 68-191, 33 FR 11019, Aug. 2, 1968, as amended by T.D. 75-194, 40 
FR 32321, Aug. 1, 1975; T.D. 82-145, 47 FR 35475, Aug. 16, 1982]



Sec. 12.3  Release under bond; liquidated damages.

    (a) Release. No food, drug, device, cosmetic, pesticide, hazardous 
substance or dangerous caustic or corrosive substance that is the 
subject of Sec. 12.1 will be released except in accordance with the laws 
and regulations applicable to the merchandise. When any merchandise that 
is the subject of Sec. 12.1 is to be released under bond pursuant to 
regulations applicable to that merchandise, a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this chapter, 
will be required.
    (b) Bond amount. The bond referred to in paragraph (a) of this 
section must be in a specific amount prescribed by the port director 
based on the circumstances of the particular case that is either:
    (1) Equal to the domestic value (see Sec. 162.43(a) of this chapter) 
of the merchandise at the time of release as if the merchandise were 
admissible and otherwise in compliance; or
    (2) Equal to three times the value of the merchandise as provided in 
Sec. 113.62(l)(1) of this chapter.
    (c) Liquidated damages. Whenever liquidated damages arise with 
regard to any food, drug, device or cosmetic subject to Sec. 12.1(a) for 
failure to redeliver merchandise into Customs custody or for failure to 
rectify any noncompliance with the applicable provisions of admission, 
including the failure to export or destroy the merchandise within the 
time period prescribed by law after the merchandise has been refused 
admission pursuant to the provisions of the Food, Drug and Cosmetic Act, 
those liquidated damages will be assessed pursuant to Sec. 113.62(l)(1) 
of this chapter in the amount of the bond prescribed under paragraph (b) 
of this section.

[T.D. 01-26, 66 FR 16853, Mar. 28, 2001]



Sec. 12.4  Exportation.

    The exportation of merchandise, the subject of Sec. 12.1, refused 
admission into the United States in accordance with regulations 
applicable thereto shall be under Customs supervision in accordance with 
the regulations set forth in Secs. 18.25 and 18.26 of this chapter.

[T.D. 68-191, 33 FR 11019, Aug. 2, 1968]



Sec. 12.5  Shipment to other ports.

    When imported merchandise, the subject of Sec. 12.1, is shipped to 
another port for reconditioning or exportation, such shipment shall be 
under a Customs carrier's manifest, Customs Form 7512, in the same 
manner as shipments in bond.

[T.D. 68-191, 33 FR 11019, Aug. 2, 1968]

                     Importation of Certain Cheeses



Sec. 12.6  Affidavits required to accompany entry.

    (a) Cheeses produced in the member states of the European 
Communities shall not be permitted entry into the Customs territory of 
the United States (excluding Puerto Rico) if exported from any country 
or area other than the country of origin, or into Puerto Rico, unless 
accompanied by:
    (1) An affidavit, in the event of shipments into the Customs 
territory of the United States (excluding Puerto Rico), of the producer 
or exporter that the cheese has not received and will not receive 
restitution payments of the type referred to in Executive Order No. 
11851, dated April 10, 1975 (40 FR 16645); or
    (2) An affidavit, in the event of shipments into Puerto Rico, of the 
importer that the cheese will be consumed in Puerto Rico or areas 
outside the Customs territory of the United States. Proof of actual 
consumption shall be furnished to the appropriate Customs officer within 
three years after the date such cheese is entered or

[[Page 216]]

withdrawn from warehouse, for consumption.
    (b) These affidavits shall not be required to accompany importations 
of cheese produced in the member states of the European Communities if 
such cheese is shipped directly to the United States (excluding Puerto 
Rico) from the country of origin on a through bill of lading.

[T.D. 75-210, 40 FR 36767, Aug. 22, 1975]

                             Milk and Cream



Sec. 12.7  Permits required for importation.

    (a) Under the Act of February 15, 1927 (44 Stat. 1101, as amended, 
21 U.S.C. 141-149), commonly known as the Federal Import Milk Act, the 
importation into the United States of milk and cream is prohibited 
unless the person by whom such milk or cream is shipped or transported 
into the United States holds a valid permit from the Department of 
Health and Human Services. Such permits become invalid at the end of one 
year unless applications for renewal are filed prior to the date of 
expiration.
    (b) The regulations of the Department of Health and Human Services 
under the said act require that each container of milk or cream shipped 
or transported into the United States by a permittee shall have firmly 
attached thereto a tag showing in clear and legible type the product 
(raw milk, pasteurized milk, raw cream, or pasteurized cream) the permit 
number and the name and address of the shipper; except that in case of 
unit shipments consisting of milk only or cream only under one permit 
number, each container need not be so marked if the vehicle of 
transportation is sealed and tagged with the above-mentioned tag. In 
such case the tag is required to show, in addition to the other required 
information, the number of containers and the contents of each. Customs 
officers shall not permit the importation of any milk or cream that is 
not tagged in accordance with such regulations.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35475, 
Aug. 16, 1982; T.D. 89-1, 53 FR 51253, Dec. 21, 1988]

                       Meat and Meat-Food Products



Sec. 12.8  Inspection; bond; release.

    (a) All imported meat, meat-food products horse meat and horse meat-
food products offered for entry into the United States are subject to 
the regulations prescribed by the Secretary of Agriculture under section 
306, Tariff Act of 1930. The term ``meat and meat-food products,'' for 
the purpose of this section, shall include any imported article of food 
or any imported article which enters or may enter into the composition 
of food for human consumption, which is derived or prepared in whole or 
in part from any portion of the carcass of any cattle, sheep, swine, or 
goat, if such portion is all or a considerable and definite portion of 
the article, except such articles as organotherapeutic substances, meat 
juice, meat extract, and the like, which are only for medicinal purposes 
and are advertised only to the medical profession. Such meat, meat-food 
products, horse meat and horse meat-food products shall not be released 
from Customs custody prior to inspection by an inspector of the Food 
Safety and Inspection Service, Meat and Poultry Inspection, except when 
authority is given by such inspector for inspection at the importer's 
premises or other place not under Customs supervision. In such case a 
bond for the return to Customs custody of the merchandise shall be given 
by the consignee or agent on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter, and the conveyances 
or packages in which such merchandise is removed to the place of 
examination shall be sealed or corded and sealed by a customs officer or 
an inspector of the Food Safety and Inspection Service, Meat and Poultry 
Inspection, with import-meat seals furnished by the Department of 
Agriculture unless bearing United States Customs seals, or in the case 
of packages otherwise identified as provided for in this section. When 
cording is necessary for proper sealing, the cords shall be furnished 
and affixed by the importer or his agent. Import-meat seals or cords and 
seals may be broken only by a Customs officer or inspector of the Meat 
Inspection Division, Agricultural Research Service.

[[Page 217]]


In lieu of cording and sealing packages, the carrier or importer may 
furnish and attach to each package of product a warning notice on bright 
yellow paper, not less than 5 by 8 inches in size, containing the 
following legend in black type of a conspicuous size:

(Name of Truck Line or Carrier)

                                 Notice

    This package of meat or meat product must be delivered intact to an 
inspector of the Meat Inspection Division, U.S. Department of 
Agriculture.

                                 Warning

    Failure to comply with these instructions will result in penalty 
action being taken against the holder of the Customs entry bond.
    If the product is found to be acceptable upon inspection the package 
will be marked ``U.S. Inspected and Passed'' and this warning notice 
defaced.
    (b) Liquidated damages assessed for breach of a bond taken under 
this section, if not in excess of the Fines, Penalties, and Forfeitures 
Officer's delegated authority, and if a written application for relief 
is filed, may be canceled by the port director upon the payment of less 
than the full amount as he shall deem appropriate, or without the 
payment of any amount, as may be deemed appropriate, but the Fines, 
Penalties, and Forfeitures Officer shall not act under this paragraph 
unless the officer in charge of the local office of the Food Safety and 
Inspection Service, Meat and Poultry Inspection, Department of 
Agriculture, is in full agreement with the proposed action. If there is 
no local inspector of the Food Safety and Inspection Service, Meat and 
Poultry Inspection, the port director shall not act unless he has 
obtained the full agreement of the Food Safety and Inspection Service, 
Meat and Poultry Inspection in Washington.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 82-145, 47 FR 35476, Aug. 16, 1982; T.D. 84-213, 49 FR 
41167, Oct. 19, 1984; T.D. 89-1, 53 FR 51253, Dec. 21, 1988; T.D. 99-27, 
64 FR 13675, Mar. 22, 1999; T.D. 99-64, 64 FR 43265, Aug. 10, 1999; T.D. 
00-57, 65 FR 53574, Sept. 5, 2000]



Sec. 12.9  Release for final delivery to consignee.

    No meat, meat-food products, or animal casings shall be released for 
final delivery to the consignee until the port director is advised by 
the Department of Agriculture, or its representative, that the 
merchandise is admissible.

                        Plants and Plant Products



Sec. 12.10  Regulations and orders of the Department of Agriculture.

    The importation into the United States of plants and plant products 
is subject to regulations and orders of the Department of Agriculture 
restricting or prohibiting the importation of such plants and plant 
products. Customs officers and employees shall perform such functions as 
are necessary or proper on their part to carry out such regulations and 
orders of the Department of Agriculture and the provisions of law under 
which they are made.



Sec. 12.11  Requirements for entry and release.

    (a) The importer or his representative shall submit to the director 
of the port of first arrival, for each entry of plants or plant products 
requiring a plant quarantine permit, a notice of arrival for any type of 
entry except rewarehouse and informal mail entries. Such notice shall be 
on a form provided for the purpose by the Department of Agriculture. The 
director of the port of arrival shall compare the notice of arrival 
which he receives from the importer or his representative with the 
shipping documents, certify its agreement therewith, and transmit it, 
together with any accompanying certificates or other documents 
pertaining to the sanitary status of the shipment, to the Department of 
Agriculture. The merchandise may not be moved, stored, or otherwise 
disposed of until the notice of arrival has been submitted and release 
for the intended purpose has been authorized by an inspector of the 
Animal and Plant Health Inspection Service, Plant Protection and 
Quarantine Programs.
    (b) Where plant or plant products are shipped from the port of first 
arrival to another port or place for inspection or other treatment by a 
representative of

[[Page 218]]

the Animal and Plant Health Inspection Service, Plant Protection and 
Quarantine Programs and all Customs requirements for the release of the 
merchandise have been met, the merchandise shall be forwarded under a 
special manifest (Customs Form 7512) and in-bond labels or Customs seals 
to the representative of the Animal and Plant Health Inspection Service, 
Plant Protection and Quarantine Programs at the place at which the 
inspection or other treatment is to take place. No further release by 
the port director shall be required.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978]



Sec. 12.12  Release under bond.

    Plants or plant products which require fumigation, disinfection, 
sterilization, or other treatment as a condition of entry may be 
released to the permittee for treatment at a plant approved by the 
Department of Agriculture upon the giving of a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this chapter 
to insure that the merchandise is treated under the supervision and to 
the satisfaction of an inspector of the Department of Agriculture or 
returned to Customs custody when demanded by the port director.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 84-213, 49 FR 41167, 
Oct. 19, 1984]



Sec. 12.13  Unclaimed shipments.

    (a) If plants or plant products enterable into the United States 
under the rules and regulations promulgated by the Secretary of 
Agriculture are unclaimed, they may be sold subject to the provisions of 
subparts C and D of part 127 of this chapter to any person to whom a 
permit has been issued who can comply with the requirements of the 
regulations governing the material involved.
    (b) Unclaimed plants and plant products not complying with the 
requirements mentioned in this section shall be destroyed, by burning or 
otherwise, under Customs supervision.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 74-114, 39 FR 12091, 
Apr. 3, 1974]



Sec. 12.14  Detention.

    (a) Port directors shall refuse release of all plants or plant 
products with respect to which a notice of prohibition has been 
promulgated by the Secretary of Agriculture under any of the various 
quarantines. If an importer refuses to export a prohibited shipment 
immediately, the port director shall report the facts to the U.S. 
Department of Agriculture, Animal and Plant Health Inspection Service, 
Plant Protection and Quarantine Programs and the United States attorney 
and withhold delivery pending advice from that Department.
    (b) In case of doubt as to whether any plant or plant product is 
prohibited, the port director shall detain it pending advice from the 
Department of Agriculture.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978]



Sec. 12.15  Disposition; refund of duty.

    Plants or plant products which are prohibited admission into the 
United States under Federal law or regulations and are exported or 
destroyed under proper supervision are exempt from duty and any duties 
collected thereon shall be refunded. (See Secs. 158.41 and 158.45(c) of 
this chapter.)

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 72-258, 37 FR 20174, 
Sept. 27, 1972]

                    Agricultural and Vegetable Seeds



Sec. 12.16  Joint regulations of the Secretary of the Treasury and the Secretary of Agriculture.

    (a) The importation into the United States of agricultural and 
vegetable seeds and screenings thereof is governed by rules and 
regulations prescribed jointly by the Secretary of the Treasury and the 
Secretary of Agriculture under section 402(b) of the Federal Seed Act of 
August 9, 1939 (7 CFR part 201).
    (b) Under the said joint rules and regulations, port directors are 
required to draw samples of such seeds and screenings, forward them to 
the seed laboratories, and notify the owner or consignee that such 
samples have been drawn and that the shipment shall be held intact 
pending a decision of the

[[Page 219]]

Livestock, Meat, Grain, and Seed Division, Agricultural Marketing 
Service, in the matter.
    (c) It is further provided in said joint rules and regulations that 
after samples have been drawn such seeds and screenings shall be 
admitted into the commerce of the United States only if they have been 
found to meet the requirements of the Federal Seed Act of August 9, 
1939, and the said regulations, but if the containers bear sufficient 
marks of identification the port director may release the shipment, 
pending examination and decision in the matter, upon the giving of a 
bond. The bond shall be filed with the port director on Customs Form 301 
and contain the bond conditions set forth in Sec. 113.62 of this 
chapter. In case of default the port director shall issue a claim for 
liquidated damages under the bond.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35476, 
Aug. 16, 1982; T.D. 84-213, 49 FR 41167, Oct. 19, 1984; T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]

      Viruses, Serums, and Toxins for Treatment of Domestic Animals



Sec. 12.17  Importation restricted.

    The importation into the United States of viruses, serums, toxins, 
and analogous products for use in the treatment of domestic animals is 
prohibited unless the importer holds a permit from the Department of 
Agriculture covering the specific product. The port director shall 
notify the Animal and Plant Health Inspection Service, Veterinary 
Services, Washington, D.C., of the arrival of any such product, and 
detain it until he shall receive notice from that Department that a 
permit to import the shipment has been issued.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 82-145, 47 FR 35476, Aug. 16, 1982; T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]



Sec. 12.18  Labels.

    Each separate container of such virus, serum, toxin, or analogous 
product imported is required by the regulations of the Department of 
Agriculture to bear the true name of the product and the permit number 
assigned by the Department of Agriculture in the following form: ``U.S. 
Veterinary Permit No. --------,'' or an abbreviation thereof authorized 
by the Animal and Plant Health Inspection Service, Veterinary Services. 
Each separate container also shall bear a serial number affixed by the 
manufacturer for identification of the product with the records of 
preparation thereof, together with a return date.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978]



Sec. 12.19  Detention; samples.

    (a) The port director shall detain all shipments of such products 
for which no permit to import has been issued pending instructions from 
the Department of Agriculture.
    (b) Samples shall be furnished to the Department of Agriculture upon 
its request, and the port director shall immediately notify the 
consignee of any such request.



Sec. 12.20  Disposition.

    Viruses, serums, or toxins rejected by the Department of Agriculture 
shall be released by the port director to that Department for 
destruction, or exported under Customs supervision at the expense of the 
importer if exportation is authorized by the Department of Agriculture.

  Viruses, Serums, Toxins, Antitoxins, and Analogous Products for the 
                            Treatment of Man



Sec. 12.21  Licensed establishments.

    The bringing into the United States for sale, barter, or exchange, 
of any virus, therapeutic serum, toxin, antitoxin, or analogous product, 
or arsphenamine or its derivatives (or any other trivalent organic 
arsenic compound), applicable to the prevention, treatment, or cure of 
diseases or injuries of man is prohibited unless such virus, serum, 
toxin, antitoxin, or other product has been manufactured at an 
establishment holding an unsuspended and unrevoked license issued by the 
Secretary of Health and Human Services for such manufacture.

[T.D. 69-201, 34 FR 14328, Sept. 12, 1969, as amended by T.D. 82-145, 47 
FR 35476, Aug. 16, 1982]

[[Page 220]]



Sec. 12.22  Labels; samples.

    Each package of such products imported for sale, barter, or exchange 
shall be labeled or plainly marked with the name, address, and license 
number of the manufacturer, and the date beyond which the contents 
cannot be expected to yield their specific results. From each lot of 
product the port director shall select at random at least two final 
containers. The random sample together with a copy of the associated 
documents which describe and identify the shipment shall be forwarded to 
the Director, Bureau of Biologics, Food and Drug Administration, 8800 
Rockville Pike, Bethesda, Md. 20014. For shipments of 20 or less final 
containers, samples need not be forwarded, provided a copy of an 
official release from the Bureau of Biologics accompanies each shipment.

[T.D. 69-201, 34 FR 14328, Sept. 12, 1969, as amended by T.D. 82-145, 47 
FR 35476, Aug. 16, 1982]



Sec. 12.23  Detention; examination; disposition.

    (a) Port directors shall detain all importations of unlicensed 
viruses, therapeutic serums, toxins, antitoxins, and analogous products, 
and arsphenamines or its derivatives (or any other trivalent organic 
arsenic compound) for the treatment or cure of diseases or injuries of 
man pending examination by the Director, Bureau of Biologics, unless 
satisfied from evidence furnished at the time of entry that the products 
are intended solely for purposes of controlled investigation and not for 
sale, barter, or exchange, as evidenced by a copy of a filed ``Notice of 
Claimed Investigational Exemption for a New Drug,'' pursuant to 
Sec. 312.1 of the Food, Drug, and Cosmetic Act Regulations (21 CFR 
312.1), or are being imported under the short supply provisions of 
Sec. 601.22 of the Public Health Service Regulations (42 CFR 601.22).
    (b) If the shipment is imported for sale, barter, or exchange and is 
found by the Director, Division of Biologics Standards, to be 
admissible, the port director shall release it upon receipt of a report 
from him that the shipment is admissible.
    (c) If the Director, Division of Biologics Standards, reports that 
the shipment was found upon examination not to conform to the law and 
the regulations, the port director shall not release the shipment but 
shall permit the exportation or destruction thereof under Customs 
supervision at the option of the importer.
    (d) Shipments of such products for use in the treatment of man but 
made from or with material of animal origin other than human, shall, 
unless accompanied by a Department of Agriculture, Veterinary Services, 
Animal and Plant Health Inspection Service (APHIS) permit, be detained 
until proof is presented to the port director that their importation is 
not prohibited under 9 CFR part 94 or part 122.

[T.D. 69-201, 34 FR 14328, Sept. 12, 1969, as amended by T.D. 82-145, 47 
FR 35476, Aug. 16, 1982]

     Domestic Animals, Animal Products, and Animal Feeding Materials



Sec. 12.24  Regulations of the Department of Agriculture.

    (a) The importation into the United States of domestic animals, 
animal products, and animal feeding materials is subject to inspection 
and quarantine regulations of the Department of Agriculture, Customs 
officers and employees are authorized and directed to perform such 
functions as are necessary or proper on their part to carry out such 
regulations of the Department of Agriculture.
    (b) Inspection by an inspector of the Animal and Plant Health 
Inspection Service, Veterinary Services is required for all horses, 
cattle, sheep, other ruminants, and swine as a prerequisite to their 
entry from any foreign country. Orders listing the ports designated as 
quarantine stations for the inspection and quarantine of animals will be 
issued by the Secretary of Agriculture, with the approval of the 
Secretary of the Treasury, whenever conditions warrant.
    (c) The entry of domestic animals may be made, but shall not be 
required, before the expiration of the quarantine period. Such animals, 
if not entered at the time of arrival, shall be considered as under 
general order while under quarantine and shall not be released

[[Page 221]]

except upon notice from the port director that the importer has complied 
with all the requirements for entry.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 82-145, 47 FR 35476, Aug. 16, 1982; T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]

                    Wild Animals, Birds, and Insects



Sec. 12.26  Importations of wild animals, fish, amphibians, reptiles, mollusks, and crustaceans; prohibited and endangered and threatened species; designated 
          ports of entry; permits required.

    (a)(1) The importation into the United States, the Commonwealth of 
Puerto Rico, and the territories and possessions of the United States of 
live specimens of:
    (i) Any species of the so-called ``flying fox'' or fruit bat of the 
genus Pteropus;
    (ii) Any species of mongoose or meerkat of the genera Atilax, 
Cynictis, Helogale, Herpestes, Ichneumia, Mungos, and Suricata;
    (iii) Any species of European rabbit the genus Oryctolagus;
    (iv) Any species of Indian wild dog, red dog, or dhole of the genus 
Cuon;
    (v) Any species of multimammate rat or mouse of the genus Mastomys;
    (vi) Any live specimens or egg of the species of so-called ``pink 
starling'' or ``rosy pastor'' Sturnus roseus;
    (vii) The species of dioch (including the subspecies black-fronted, 
red-billed, or Sudan dioch) Quelea quelea;
    (viii) Any species of Java sparrow, Padda oryzivora;
    (ix) The species of red-whiskered bulbul, Pycnonotus jocosus;
    (x) Any live fish or viable eggs of the family Clariidae;
    (xi) Any other species of wild mammals, wild birds, fish (including 
mollusks and crustacea), amphibians, reptiles, or the offspring or eggs 
of any of the foregoing which the Secretary of the Interior may 
prescribe by regulations to be injurious to human beings, to the 
interest of agriculture, horticulture, forestry, or to wildlife or the 
wildlife resources of the United States, is prohibited, except as may be 
authorized by the issuance of a permit by the Director, U.S. Fish and 
Wildlife Service, U.S. Department of the Interior, Washington, DC 20240, 
or his authorized representative. If any such prohibited specimen is 
imported, or if any specie or subspecie of other live or dead fish or 
wildlife, including any parts, products, or eggs thereof, appearing on 
the Endangered Species List published by the U.S. Fish and Wildlife 
Service, is imported, Customs release of the prohibited specimen or 
endangered fish or wildlife shall be refused unless there has been 
issued and presented in connection with entry a proper U.S. Fish and 
Wildlife Service permit authorizing the import transaction. In the 
absence of such permit, injurious specimens prohibited entry shall be 
required to be immediately exported or destroyed. Changes in injurious 
species and endangered species or subspecies which are prohibited or 
restricted importation may be published from time to time in 50 CFR part 
13--Importation of Wildlife or Eggs Thereof or in part 17--Conservation 
of Endangered Species and Other Fish or Wildlife. Unreleased species or 
subspecies of live or dead endangered fish or wildlife, including parts, 
products, or eggs thereof, shall remain under detention subject to 
seizure and delivery to an appropriate regional director or other agent 
of the U.S. Fish and Wildlife Service for disposition as appropriate 
pursuant to 50 CFR part 17.
    (2) Fish and eggs of salmonids of the fish family Salmonidae are 
prohibited entry into the United States for any purpose unless such 
importations are by direct shipment, accompanied by the signed 
certification of a qualified fish pathologist in substantially the form 
as prescribed in 50 CFR 13.7. The following are excepted from the 
certification requirements:
    (i) Salmon landed in North America and brought into the United 
States for processing or sale;
    (ii) Any salmonid caught in the wild in North America under a sport 
or a commercial fishing license; and
    (iii) Fish or eggs of the family Salmonidae when processed or 
prepared in accordance with 50 CFR 13.7(c), or otherwise exempted from 
the requirement of certification.
    (3) Regulations (50 CFR part 17) require the importer or his agent 
to file a Declaration for the Importation of

[[Page 222]]

Fish or Wildlife, unless it is an import transaction exempted from the 
requirement by 50 CFR part 13 or part 17. Such declaration on U.S. Fish 
and Wildlife Service Form 3-177, available to importers through Customs 
ports of entry, shall be filed with the appropriate Customs officer at 
the port of entry conducting the actual Customs clearance and release of 
the declared fish, wild mammal, or bird, amphibian, reptile, mollusk, 
crustacean, or dead body or egg thereof. The declaration on Form 3-177 
shall show the common and scientific names, number, and country of 
origin of all species or subspecies declared, designate and identify any 
species listed on the U.S. List of Endangered Foreign Fish and Wildlife, 
50 CFR part 17, appendix A, and indicate whether any species is subject 
to laws and regulations in any foreign country regarding its taking, 
transportation, or sale. See paragraph (g) of this section for special 
documentation requirements.
    (4) Federal agencies, subject to requirements in paragraph (a)(2) of 
this section, may import solely for their own use live wildlife except 
migratory birds, or their eggs, without a permit from the U.S. Fish and 
Wildlife Service, upon filing the declaration on Form 3-177. Importation 
of bald or golden eagles, or their eggs is prohibited.
    (5) Customs entry for consumption or bonded warehousing of fish and 
wildlife, as defined in 50 CFR 17.2 (e) and (f), intended for 
importation into the United States, or admission into a foreign trade 
zone, shall be filed at a port of entry among those designated for 
Customs entry in 50 CFR part 17, appendix B. However, Customs entry for 
consumption or bonded warehousing of shipments subject to emergency 
diversion or otherwise authorized under regulations or by permit issued 
by the U.S. Fish and Wildlife Service pursuant to 50 CFR part 17, 
appendices B and C, may be filed for examination and release at the 
ports of entry so named or permitted, but no consumption or bonded 
warehouse entry shall be filed or accepted at an undesignated port for 
any endangered specie or subspecie permitted importation pursuant to 50 
CFR 17.12 except in the case of an emergency diversion of live 
endangered fish or wildlife accepted for such entry in accordance with 
item 2(b) of 50 CFR part 17, appendix B. Importations of fish and 
wildlife subject to regulations of the U.S. Fish and Wildlife Service 
which arrive from abroad at any place in the United States not 
designated as an authorized port for Customs entry, unless occurring 
under conditions or circumstances in which Customs entry for consumption 
or bonded warehousing and final clearance has been authorized by U.S. 
Fish and Wildlife Service regulations or permit, may be entered only for 
immediate transportation without appraisement for movement under Customs 
bond to one of the designated ports of entry. Customs entry, release, 
and delivery of any shipment of shellfish and fishery products defined 
in 50 CFR 17.2(j) imported for commercial purposes is authorized at any 
port of entry, except insofar as such items include any species or 
subspecies which appears on the Endangered Species List in 50 CFR part 
17, appendix A.
    (b) Permits are required for the importation of wild animals and 
birds as follows:
    (1) Wild birds protected by the Migratory Bird Treaty Act (16 U.S.C. 
703 through 711) and the regulations promulgated thereunder (50 CFR part 
10), may be imported from foreign countries for scientific, propagating, 
or other limited purposes only under permits issued by the U.S. Fish and 
Wildlife Service, United States Department of the Interior, Washington, 
DC, 20240. State game departments, municipal game farms or parks, and 
public museums, zoological parks or societies, and scientific or 
educational institutions may import migratory birds without a permit. 
Such migratory birds, when imported from Mexico, must be accompanied by 
Mexican export permits (50 CFR 16.3 and 16.5).
    (2) Game mammals (antelopes, mountain sheep, deer, bears, peccaries, 
squirrels, rabbits, and hares), protected by the Migratory Bird Treaty 
Act (16 U.S.C. 703 through 711), dead or alive, or their parts or 
products, must be accompanied by Mexican export permits (50 CFR 15.3) 
when imported from Mexico.

[[Page 223]]

    (3) Wild ruminants (all animals which chew the cud, such as cattle, 
buffaloes, sheep, goats, deer, antelopes, camels, llamas, and giraffes) 
and swine (various varieties of wild hogs), except from Canada and 
certain northern States of Mexico may be imported only under a permit 
from the Animal and Plant Health Inspection Service, Veterinary 
Services, United States Department of Agriculture, Washington, DC 20250. 
Such permits must be obtained before the animals are shipped from the 
country of exportation. All wild ruminants and swine must be inspected 
at designated ports of entry by veterinarians of the Animal and Plant 
Health Inspection Service, Veterinary Services, United States Department 
of Agriculture.
    (4) Psittacine birds, which include all birds commonly known as 
parrots, Amazons, African grays, cockatoos, macaws, parrotlets, beebees, 
parakeets, lovebirds, lories, lorikeets, and all other birds of the 
order Psittaciformes, when destined for a zoological park or medical 
research institution without having had prior confinement and treatment 
abroad at an approved treatment center, and psittacine birds taken out 
of the United States but inadmissible under paragraph (c) of this 
section, may be imported when accompanied by a permit issued by the 
Surgeon General. Application for such a permit may be made to the Chief, 
Foreign Quarantine Program, National Communicable Disease Center, U.S. 
Public Health Service, Atlanta, Ga. 30333, or to a Public Health Service 
quarantine station established at a port of entry in the United States.
    (5) Ducks, geese, swans, turkeys, pigeons, doves, pheasants, grouse, 
partridges, quail, guinea fowl, and pea fowl, except from Canada, may be 
imported only under a permit from the Animal and Plant Health Inspection 
Service, Veterinary Services, United States Department of Agriculture, 
Washington, DC 20250. Such permits must be obtained before the birds are 
shipped from the country of origin. Such birds from Canada must be 
accompanied by a certificate issued by a Canadian Government 
veterinarian. All such birds must be inspected at designated ports of 
entry by veterinarians of the Animal and Plant Health Inspection 
Service, Veterinary Services, United States Department of Agriculture.
    (c) Psittacine birds as defined in paragraph (b)(4) of this section, 
not to exceed two such birds by members of a family comprising a single 
household in any 12-month period, may be imported under prescribed 
conditions (see 42 CFR 71.164(e)) without permit and without prior 
confinement and treatment, to be kept as pets by the owner, who will be 
required to comply with the Foreign Quarantine Regulations of the U.S. 
Public Health Service. Birds taken out of the United States and being 
returned may be admitted, without permit, upon full compliance with 
prescribed conditions of those regulations for admission of birds 
imported as pets. No such birds shall be released until the importer has 
complied with applicable requirements of the Public Health regulations.
    (d) Cats, dogs, and monkeys are subject to the Foreign Quarantine 
Regulations of the United States Public Health Service, Department of 
Health, Education, and Welfare, Washington, D.C. Such animals shall not 
be released until the Public Health regulations are complied with by the 
importer.
    (e) If a shipment contains migratory birds for which a permit is 
required by the Fish and Wildlife Service of the Department of the 
Interior, and such permit is not at hand when the birds arrive, an 
examination thereof shall be made at once by the port director and any 
duties estimated to be due shall be collected. A stipulation shall be 
filed with the port director within 24 hours of the entry to produce the 
necessary permit within 30 days from the date of entry, whereupon final 
liquidation shall be suspended until the permit is produced or the 30-
day period expires. The shipment may be immediately released if a bond 
is filed with the port director on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter, in an amount equal 
to the entered value plus estimated duties. If the bond conditions are 
violated the port director shall issue a claim for liquidated damages 
under the bond. In lieu of filing a bond

[[Page 224]]

the merchandise may be left in Customs custody at the risk and expense 
of the importer pending issuance of the permit.
    (f) If the permit referred to in paragraph (e) of this section is 
refused by the Fish and Wildlife Service, or if the permit is not 
produced within the said 30 days, the port director shall promptly 
recall the property, if delivered under bond, and shall require its 
immediate exportation at the expense of the importer or consignee.
    (g)(1) All import shipments of fish and wildlife subject to the 
regulations or permit requirements of the U.S. Fish and Wildlife 
Service, published pursuant to the Endangered Species Act of 1973, 16 
U.S.C. 1531, or other statutory authority, shall be subject to 
examination or inspection by that agency's officer serving the port of 
entry, for determination as to permissible release or such other 
disposition as he may direct. Customs officers performing examinations 
of such fish and wildlife in accordance with regulations of the U.S. 
Fish and Wildlife Service in 50 CFR part 10 and parts 13 through 17, 
shall release shipments only upon submission by the importer of evidence 
sufficient to establish compliance with those regulations, any 
applicable permit requirements, and compliance with applicable 
identification and package or container marking requirements as 
specified by 50 CFR 17.6(a) and 17.9. In case of doubt as to whether 
fish, birds, or other wildlife belong to prohibited or endangered 
species or subspecies or whether an entry permit is required, or in case 
of suspicion on the part of officers of the Customs that the species 
sought to be entered are prohibited or endangered species or subspecies 
imported under other names or descriptions, the importation shall be 
refused Customs release, and the importer shall be responsible for 
concluding arrangements acceptable to the regional director or other 
agent of the U.S. Fish and Wildlife Service for proper handling, 
custody, and care, at the importer's expense and risk, of the unreleased 
fish, birds, or other wildlife. No Customs disposition of the 
importation shall be concluded pending the determination by the U.S. 
Fish and Wildlife Service of the true nature of the species or 
subspecies. In case of refusal or neglect of the importer or consignee, 
or agent of either, to have the identity so established, final 
disposition of the importation shall be required as determined by the 
U.S. Fish and Wildlife Service. In addition to U.S. Fish and Wildlife 
Service Form 3-177, required to be filed as prescribed in 50 CFR 17.4 
upon entry of importations of fish and wildlife, entrants shall present 
appropriate foreign export permits, other acceptable foreign documentary 
evidence of lawful taking, transportation, or sale, or appropriate 
American consular certificates upon importation of fish and wildlife 
species or subspecies subject to such documentation requirements of 50 
CFR 17.4 (c) and (d).
    (2) Any antique article imported under Sec. 10.53(g) of this chapter 
shall be entered at one of the following ports:

Boston, Massachusetts
New York, New York
Baltimore, Maryland, Philadelphia, Pennsylvania
Miami, Florida, San Juan, Puerto Rico
New Orleans, Louisiana
Houston, Texas
Los Angeles, California
San Francisco, California
Anchorage, Alaska, Honolulu, Hawaii
O'Hare International Airport, Chicago, Illinois

    (h) All invoices of animals and birds shall specify the species 
covered thereby and the number of each species. In the event of the 
return to the port director of any importation under the bond given 
under paragraph (e) of this section, if the number and species of birds 
does not correspond with the description stated in the invoice and if no 
satisfactory explanation of any discrepancy is furnished, a claim for 
liquidated damages shall be issued under the bond.
    (i) The privilege of entry for immediate transportation granted by 
section 552, Tariff Act of 1930, shall not be allowed for importations 
of fish, birds, or other wildlife which are confirmed at the port of 
first arrival or discharge to be injurious prohibited species, or which 
require permits issued prior to importation, or which are subject to 
quarantine regulations or inspection at the ports of first arrival or 
discharge or other specified place of veterinary inspection. However, 
entry for immediate

[[Page 225]]

transportation properly is allowed for any importation of fish, birds, 
or other wildlife which at the place of first arrival or discharge is 
not confirmed to be an injurious prohibited specie and which, following 
compliance with any applicable quarantine regulations or required 
veterinary inspection, is being transported by means of an in-bond 
movement to a port of entry designated in 50 CFR part 17, appendix B, 
for Customs entry (see paragraphs (a) and (b) of this section). Ports of 
designated entry, inspection, quarantine, and related enforcement 
procedures covering certain animals and poultry and certain animal and 
poultry products imported into the United States are regulated by 
requirements and standards prescribed in regulations of the Secretary of 
Agriculture, Department of Agriculture (see 9 CFR parts 92-96; 19 CFR 
12.8 and 12.24).
    (j) Wild animals and birds shall be imported under humane and 
healthful conditions, due regard being given to the accommodations and 
facilities necessary for the species transported.
    (k) When any Customs officer has good reason to believe that wild 
animals or birds have been imported under inhumane or unhealthful 
conditions in violation of 18 U.S.C. 42, an immediate investigation 
shall be made to ascertain whether they have in fact been transported 
under such conditions. The investigation shall determine the provisions 
made on the vessel or other conveyance for the accommodation of the 
animals or birds, the suitability of the boxes, cages, stalls, etc., the 
space, ventilation, and protection from the elements accorded the 
animals or birds, the facilities for cleaning, feeding, watering, 
bedding, and such other services as may be required for the species 
imported. The investigation shall also determine, the physical condition 
of such animals or birds and the ratio of dead, crippled, diseased, or 
starving animals or birds. If necessary, officers of the Animal and 
Plant Health Inspection Service, Veterinary Services, or Fish and 
Wildlife Service, or other officers or experts, may be called upon to 
assist customs officers in the matter.
    (l) Unless the port director is satisfied that the provisions of 18 
U.S.C. 42 have not been violated, he shall report the matter to the 
United States attorney for appropriate action.

[28 FR 14710, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 12.26, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 12.27  Importation or exportation of wild animals or birds, or the dead bodies thereof illegally captured or killed, etc.

    Customs officers shall perform all duties required of them under 
statutory provisions that prohibit or restrict the importation or 
exportation of wild animals or birds, or the dead bodies thereof, or the 
eggs of such birds, killed, captured, taken, transported, etc., contrary 
to law. Such laws and statutory provisions include 18 U.S.C. 43, 44, 
3054, 3112.

[T.D. 89-1, 53 FR 51253, Dec. 21, 1988]



Sec. 12.28  Importation of wild mammals and birds in violation of foreign law.

    No imported wild mammal or bird, or part or product thereof, shall 
be released from Customs custody, except as permitted under 
Sec. 12.26(i) relating to an in-bond movement to a port designated for 
wildlife entry, if the port director has knowledge of a foreign law or 
regulation obliging enforcement of section 527(a), Tariff Act of 1930 
(19 U.S.C. 1527(a)), unless the importation is an excepted transaction 
entitled to entry under the provisions of section 527(c) of the Tariff 
Act or, in connection with the entry, there is presented documentation 
in the manner specified in 50 CFR 17.4(c) (1) or (2) required for import 
transactions subject to foreign laws or regulations regarding taking, 
transportation, or sale of wildlife including wild mammals and birds or 
parts or products thereof (see Sec. 12.26).

[T.D. 70-242, 35 FR 17994, Nov. 24, 1970, as amended by T.D. 82-145, 47 
FR 35476, Aug. 16, 1982]



Sec. 12.29  Plumage and eggs of wild birds.

    (a) The provisions of Chapter 5, Additional U.S. Note 1, relating to 
the plumage of any bird, apply to all such plumage, whether imported 
separately

[[Page 226]]

or upon the bird itself, except (1) the feathers of birds specifically 
excepted by Additional U.S. Note 1 to Chapter 5, Harmonized Tariff 
Schedule of the United States (HTSUS), (2) plumage imported for 
scientific or educational purposes, (3) fully-manufactured artificial 
flies used for fishing, (4) plumage on game birds killed in foreign 
countries by residents of the United States and not imported for sale or 
other commercial purposes, and (5) plumage on live wild birds.
    (b) The feathers or skins of certain birds may be imported for use 
in the manufacture of artificial flies used for fishing or for millinery 
purposes only under a permit issued by the Fish and Wildlife Service, 
United States Department of Interior, Washington DC 20240. No feathers 
or skins of the pro-species provided for by Additional U.S. Note 1, 
Chapter 5, HTSUS, shall be permitted to be entered, or withdrawn from 
warehouse, for consumption, unless the requisite permit is presented 
with the entry or withdrawal.
    (c) The importation of the eggs of wild nongame birds is prohibited 
except as dead natural history specimens for museum or scientific 
collection purposes. The eggs of migratory birds may be imported for 
propagating purposes or for scientific and other limited purposes under 
permits issued by the Fish and Wildlife Service, U.S. Department of the 
Interior, Washington, DC 20240. State game departments, municipal game 
farms or parks, and public museums, zoological parks or societies, and 
scientific or educational institutions may import the eggs of migratory 
birds without a permit (50 CFR 16.3). The eggs of certain game or 
migratory birds imported for hatching, such as ducks, geese, swans, 
turkeys, pigeons, doves, pheasant, grouse, partridges, quail, guinea 
fowl, and pea fowl, are subject to the regulations of the Animal and 
Plant Health Inspection Service, Veterinary Services, U.S. Department of 
Agriculture, Washington, DC 20250. Such regulations require that 
permits, except for eggs from Canada offered for entry at certain land 
border ports, must be obtained before the eggs are shipped from the 
country of origin and that all eggs shall be accompanied by a 
certificate issued by a national government veterinarian of the country 
of origin and inspected at a designated port of entry.
    (d) Upon the attempted importation of eggs of wild birds, the 
importation of which is prohibited by Chapter 4, Additional U.S. Note 
26, the eggs shall be seized and the importer accorded an opportunity to 
assent to forfeiture. In the event the importer refuses or fails to 
assent to the forfeiture of the prohibited eggs, the port director shall 
proceed to forfeit them under the provisions of the tariff act 
applicable to seizure and forfeiture of merchandise valued at less than 
$2,500.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 66-68, 31 FR 5358, Apr. 
5, 1966; T.D. 78-99, 43 FR 13060, Mar. 29, 1978; T.D. 82-145, 47 FR 
35476, Aug. 16, 1982; T.D. 89-1, 53 FR 51253, Dec. 21, 1988; T.D. 97-82, 
62 FR 51770, Oct. 3, 1997]



Sec. 12.30  Whaling.

    The importation and exportation of whales or whale products taken or 
processed in violation of the International Convention for the 
Regulation of Whaling signed at Washington under date of December 2, 
1946 (Publication No. 3383, Department of State, Whaling Convention), or 
of the Whaling Convention Act of 1949 (16 U.S.C. 916 through 916(1)), or 
of any regulation issued under the Act (50 CFR part 351) is unlawful. 
Customs officers and employees shall perform all functions required of 
them by the above-mentioned convention, law and regulation.

[T.D. 89-1, 53 FR 51253, Dec. 21, 1988]



Sec. 12.31  Plant pests.

    The importation in a live state of insects which are injurious to 
cultivated crops, including vegetables, field crops, bush fruits, and 
orchard, forest or shade trees, and of the eggs, pupae, or larvae of 
such insects, except for scientific purposes under regulations 
prescribed by the Secretary of Agriculture, is prohibited. All packages 
containing live insects or their eggs, pupae, or larvae arriving from 
abroad, unless accompanied by a permit issued by the Department of 
Agriculture, shall be detained and submitted to the U.S. Department of 
Agriculture, Animal and Plant Health Inspection Service, Plant 
Protection and Quarantine

[[Page 227]]

Programs of that Department for inspection and determination of their 
admissibility into the United States.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 82-145, 47 FR 35476, Aug. 16, 1982; T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]



Sec. 12.32  Honeybees and honeybee semen.

    (a) Honeybees from any country may be imported into the U.S. by the 
Department of Agriculture for experimental or scientific purposes. All 
other importations of honeybees are prohibited except those from a 
country which the Secretary of Agriculture has determined to be free of 
diseases dangerous to honeybees.
    (b) Honeybee semen may be imported into the U.S. only from countries 
determined by the Secretary of Agriculture to be free of undesirable 
honeybees, and which take adequate precautions to prevent the 
importation of undersirable honeybees and their semen.
    (c) The importation of honeybees and honeybee semen is governed by 
joint regulations of the Secretary of Agriculture and the Secretary of 
the Treasury published in Treasury Decisions and the Federal Register 
from time to time.

[T.D. 85-3, 50 FR 1044, Jan. 9, 1985, as amended by T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]

                                   Tea



Sec. 12.33  Importation of tea; entry; examination for customs purposes.

    (a) The importation of any merchandise as tea which is inferior in 
purity, quality, and fitness for consumption to the standards prescribed 
by the Act of March 2, 1897, as amended (21 U.S.C. 41 through 50), is 
prohibited. Customs officers and employees shall perform all duties 
required of them by the said act and regulations.
    (b) The importation of tea is subject also to the provisions of the 
Federal Food, Drug, and Cosmetic Act and the regulations thereunder. See 
Secs. 12.1 to 12.5.
    (c) [Reserved]
    (d) The port director may order such an examination of packages 
containing tea as will satisfy him that no dutiable goods are packed 
therein. For this purpose the customary designation shall be made of 
packages for examination in public stores.
    (e) If the invoice has not been received, the importer may use an 
additional copy of the chop list and release permit required by the 
regulations of the Department of Health and Human Services as a pro 
forma invoice, marking ``Pro forma invoice'' across the face thereof.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 82-145, 47 FR 35477, Aug. 16, 1982; T.D. 84-213, 49 FR 
41167, Oct. 19, 1984; T.D. 89-1, 53 FR 51253, Dec. 21, 1988; T.D. 97-82, 
62 FR 51770, Oct. 3, 1997]

                        White Phosphorus Matches



Sec. 12.34  Importation prohibited; certificate of inspection; importer's declaration.

    (a) The importation into the United States of white phosphorus 
matches is prohibited.
    (b) Invoices covering matches imported into the United States shall 
be accompanied by a certificate of official inspection of the Government 
of the country of manufacture in the following form:

              Certificate of Official Inspection of Matches

    I, ---------------- (Name), do hereby certify that I am the --------
---- (Official title), that according to the chemical analysis made by 
me the matches described below do not contain white or yellow phosphorus 
and that therefore they are not white phosphorus matches as defined in 
the Act of Congress of the United States of America approved April 9, 
1912;

------------------------------------------------------------------------
                                                             Name of
                                                          consignee and
Number of case    Description of     Name and address   address, vessel,
     mark             matches         of manufacturer      and date of
                                                            shipment
------------------------------------------------------------------------
                ..................  ..................  ................
                ..................  ..................  ................
                ..................  ..................  ................
------------------------------------------------------------------------

________________________________________________________________________
                                                             (Signature)
________________________________________________________________________
                                                        (Official title)

    (c) In the absence of such certificate, the matches shall be 
detained until a certificate is produced or the importer submits 
satisfactory evidence to show

[[Page 228]]

that the matches were not in fact manufactured with the use of poisonous 
white or yellow phosphorus.
    (d) The production of the above certificate shall not be required on 
the entry of matches manufactured in countries which prohibit the use of 
white or yellow phosphorus in the manufacture of matches.
    (e) At the time of filing an entry for imported matches, the 
importer shall make a declaration that to the best of his knowledge and 
belief no matches included in the invoice and entry are white phosphorus 
matches.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35477, 
Aug. 16, 1982; T.D. 89-1, 53 FR 51253, Dec. 21, 1988]



Sec. 12.35  [Reserved]

                             Narcotic Drugs



Sec. 12.36  Regulations of Bureau of Narcotics.

    The importation and exportation of narcotic drugs are governed by 
regulations of the Drug Enforcement Administration Bureau of Narcotics. 
Customs officers and employees shall perform all duties imposed upon 
them by such regulations and the laws under which they are issued. Such 
regulations are in addition to, and not in lieu of, the Customs, 
internal-revenue, and other pertinent laws and regulations.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978; T.D. 82-145, 47 FR 35477, Aug. 16, 1982; T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]

                                 Liquors



Sec. 12.37  Restricted importations.

    (a) The basic permit requirements prescribed by the act of August 
29, 1935 (27 U.S.C. 203), shall not be deemed applicable when the port 
director is satisfied that the liquor is for personal use or for 
experimental purposes in the making of analyses, tests, or comparisons.
    (b) The production of a basic permit shall not be required when 
spirits are withdrawn from warehouse under any form of withdrawal entry.
    (c) Blending or rectifying of wines or distilled spirits in class 6 
manufacturing warehouses, or the bottling of imported distilled spirits 
in class 8 manipulation warehouses, shall not be permitted unless the 
proprietor has obtained an appropriate permit from the Bureau of 
Alcohol, Tobacco and Firearms.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-329, 43 FR 43454, 
Sept. 26, 1978; T.D. 82-145, 47 FR 35477, Aug. 16, 1982; T.D. 89-1, 53 
FR 51253, Dec. 21, 1988]



Sec. 12.38  Labeling requirements; shipments.

    All shipments of liquor not labeled as required by 18 U.S.C. 1263 
214 and any vessel or vehicle, other than a common carrier, used in the 
transportation of such liquor shall be seized and disposed of in 
accordance with 18 U.S.C. 3615 (see 171.22(b) of this chapter).

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 70-249, 35 FR 18265, 
Dec. 1, 1970; T.D. 82-145, 47 FR 35477, Aug. 16, 1982; T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]

                           Unfair Competition



Sec. 12.39  Imported articles involving unfair methods of competition or practices.

    (a) Determinations of the International Trade Commission. Under 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), 
unfair methods of competition and unfair practices in the importation or 
sale of articles, the effect or tendency of which is to destroy, 
substantially injure, or prevent the establishment of an efficiently and 
economically operated United States industry, or to restrain or 
monopolize trade and commerce in the United States, are unlawful. After 
an investigation of an alleged violation of section 337, the U.S. 
International Trade Commission (``the Commission'') may determine that 
section 337 has been violated. The Commission also may determine during 
the course of its investigation that there is reason to believe that a 
violation of section 337 exists. The Commission's determination in 
either case is effective on the date of its publication in the Federal 
Register and is referred to the President, who may disapprove the 
determination for policy reasons on or before the close of a 60-day 
period beginning on the day after the day he receives a copy of the 
determination. A

[[Page 229]]

Commission determination disapproved by the President shall have no 
force or effect as of the date the Commission is notified of his 
disapproval. If the Commission's determination is not disapproved by the 
President during the 60-day period, or if he notifies the Commission 
before the close of the period that he approves the determination, the 
determination becomes final on the day after the close of the period or 
the day of the notification, whichever is earlier.
    (b) Exclusion from entry; entry under bond; notice of exclusion 
order. (1) If the Commission finds a violation of section 337, or reason 
to believe that a violation exists, it may direct the Secretary of the 
Treasury to exclude from entry into the United States the articles 
concerned which are imported by the person violating or suspected of 
violating section 337. The Commission's exclusion order remains in 
effect until the Commission determines, and notifies the Secretary of 
the Treasury, that the conditions which led to the exclusion no longer 
exist, or until the determination of the Commission on which the order 
is based is disapproved by the President.
    (2) During the period the Commission's exclusion order remains in 
effect, excluded articles may be entered under a single entry bond in an 
amount determined by the International Trade Commission to be sufficient 
to protect the complainant from any injury. On or after the date that 
the Commission's determination of a violation of section 337 becomes 
final, as set forth in paragraph (a) of this section, articles covered 
by the determination will be refused entry. If a violation of section 
337 is found, the bond may be forfeited to the complainant under terms 
and conditions prescribed by the Commission. To enter merchandise that 
is the subject of a Commission exclusion order, importers must:
    (i) File with the port director prior to entry a bond in the amount 
determined by the Commission that contains the conditions identified in 
the special importation and entry bond set forth in appendix B to part 
113 of this chapter; and
    (ii) Comply with the terms set forth in 19 CFR 210.50(d) in the 
event of a forfeiture of this bond.
    (3) Port directors shall notify each importer or consignee of 
articles released under bond pursuant to paragraph (b)(2) of this 
section when the Commission's determination of a violation of section 
337 becomes final and that entry of the articles is refused. The 
importer or consignee shall export or destroy the released articles 
under customs supervision within 30 days after the date of notification. 
The port director who released the articles shall assess liquidated 
damages in the full amount of the bond if the importer or consignee 
fails to export or destroy the released articles under Customs 
supervision within the 30-day period.
    (4) In addition to the notice given to importers or consignees of 
articles released under bond, port directors shall provide written 
notice to all owners, importers or consignees of articles which are 
denied entry into the United States pursuant to an exclusion order that 
any future attempt to import such articles may result in the articles 
being seized and forfeited. Copies of all such notices are to be 
forwarded to the Commercial Enforcement, Trade Compliance Division, at 
Customs Headquarters, and to the Office of The General Counsel, USITC, 
500 E Street, SW., Washington, DC 20436 by port directors.
    (c) Seizure and Forfeiture Orders. (1) In addition to issuing an 
exclusion order under paragraph (b)(1) of this section, the Commission 
may issue an order providing that any article determined to be in 
violation of Sec. 337 be seized and forfeited to the United States. Such 
order may be issued if:
    (i) The owner, importer, or consignee of the article previously 
attempted to import the article or like articles into the United States;
    (ii) The article or like articles were previously denied entry into 
the United States by reason of an exclusion order issued under paragraph 
(b)(1) of this section; and
    (iii) Upon such previous denial of entry, the port director of the 
port in which the entry was attempted had notified the owner, importer, 
or consignee of the article in writing of both the exclusion order and 
that seizure

[[Page 230]]

and forfeiture would result from any further attempt to import the 
article or like articles into the United States.
    (2) Upon receipt of any seizure order issued by the Commission in 
accordance with this paragraph, Customs shall immediately notify all 
ports of entry of the property subject to the seizure order and identify 
the persons notified under paragraph (b)(4) of this section.
    (3) The port director in the port in which the article was seized 
shall issue a notice of seizure to parties known to have an interest in 
the seized property. All interested parties to the property shall have 
an opportunity to petition for relief under the provisions of 19 CFR 
part 171. All petitions must be filed within 30 days of the date of 
issuance of the notice of seizure, and failure of a claimant to petition 
will result in the commencement of administrative forfeiture 
proceedings. All petitions will be decided by the appropriate Customs 
officer, based upon the value of the articles under seizure.
    (4) If seized articles are found to be not includable in an order 
for seizure and forfeiture, then the seizure and the forfeiture shall be 
remitted in accordance with standard Customs procedures.
    (5) Forfeited merchandise shall be disposed of in accordance with 
the Customs laws.
    (d) Certain importations by or for the United States. Any exclusion 
from entry under section 337 based on claims of United States letters 
patent shall not apply to articles imported by and for the use of the 
United States, or imported for, and to be used for, the United States 
with the authorization or consent of the Government.
    (e) Importations of semiconductor chip products. (1) In accordance 
with the Semiconductor Chip Protection Act of 1984 (17 U.S.C. 901 et 
seq.), if the owner of a mask work which is registered with the 
Copyright Office seeks to have Customs deny entry to any imported 
semiconductor chip products which infringe his rights in such mask work, 
the owner must obtain a court order enjoining, or an order of the U.S. 
International Trade Commission (USITC), under section 337, Tariff Act of 
1930, as amended (19 U.S.C.1337), excluding, importation of such 
products. Exclusion orders issued by the USITC are enforceable by 
Customs under paragraph (b) of this section. Court orders or exclusion 
orders issued by the USITC shall be forwarded, for enforcement purposes, 
to the Director, International Trade Compliance Division, U.S. Customs 
Service, Washington, DC 20229.
    (2) The port director shall enforce any court order or USITC 
exclusion order based upon a mask work registration in accordance with 
the terms of such order. Court orders may require either denial of entry 
or the seizure of violative semiconductor chip products. Forfeiture 
proceedings in accordance with part 162 of this chapter shall be 
instituted against any such products so seized.
    (3) This regulation will be effective against all importers 
regardless of whether they have knowledge that their importations are in 
violation of the Semiconductor Chip Protection Act of 1984 (17 U.S.C. 
901 through 904).

[T.D. 79-231, 44 FR 49247, Aug. 22, 1979, as amended by T.D. 84-213, 49 
FR 41167, Oct. 19, 1984; T.D. 87-132, 52 FR 39221, Oct. 21, 1987; T.D. 
95-87, 60 FR 54941, Oct. 27, 1995; T.D. 99-27, 64 FR 13675, Mar. 22, 
1999; T.D. 00-87, 65 FR 77815, Dec. 13, 2000; 65 FR 80497, Dec. 21, 
2000]



Sec. 12.39a  Registered patent owners; import survey.

    (a) When the owner of a patent registered in the United States 
believes that merchandise is being imported into the United States which 
infringes such patent, an application for a survey to assist the patent 
owner in taking appropriate action may be made. The purpose of the 
survey is to provide the patent owner with the names and addresses of 
importers of merchandise which appears to infringe the registered 
patent.
    (b) The application may be made by letter addressed to the 
Commissioner of Customs, U.S. Customs Service, Washington, DC 20229. It 
shall state the name and address of the patent owner; and if available, 
a description of the merchandise believed to infringe the registered 
patent and the country of manufacture of the merchandise. A certified 
copy of the patent registration issued by the Patent and Trademark 
Office showing ownership to be in the

[[Page 231]]

name as claimed, 3 additional copies of the patent registration for 
Customs files, and a check or money order to cover the fee prescribed by 
Sec. 24.12(a)(3) of this chapter for the survey selected shall be 
submitted with the application.
    (c) Surveys will be made for periods of 2, 4 or 6 months at the 
option of the applicant.

[T.D. 56137, 29 FR 4720, Apr. 2, 1964, as amended by T.D. 84-133, 49 FR 
26571, June 28, 1984]

                            Immoral Articles



Sec. 12.40  Seizure; disposition of seized articles; reports to United States attorney.

    (a) Any book, pamphlet, paper, writing, advertisement, circular, 
print, picture, or drawing containing any matter advocating or urging 
treason or insurrection against the United States or forcible resistance 
to any law of the United States, or containing any threat to take the 
life of or inflict bodily harm upon any person in the United States, 
seized under section 305, Tariff Act of 1930, shall be transmitted to 
the United States attorney for his consideration and action.
    (b) Upon the seizure of articles or matter prohibited entry by 
section 305, Tariff Act of 1930 (with the exception of the matter 
described in paragraph (a) of this section), a notice of the seizure of 
such articles or matter shall be sent to the consignee or addressee.
    (c) When articles of the class covered by paragraph (b) of this 
section are of small value and no criminal intent is apparent, a blank 
assent to forfeiture, Customs Form 4607, shall be sent with the notice 
of seizure. Upon receipt of the assent to forfeiture duly executed, the 
articles shall be destroyed if not needed for official use and the case 
closed.
    (d) In the case of a repeated offender or when the facts indicate 
that the importation was made deliberately with intent to evade the law, 
the facts and evidence shall be submitted to the United States attorney 
for consideration of prosecution of the offender as well as an action in 
rem under section 305 for condemnation of the articles.
    (e) All cases in which articles have been seized pursuant to 19 
U.S.C. 1305(a) should be referred to the U.S. Attorney, for possible 
institution of condemnation proceedings, within 4 days, but in no event 
more than 14 days, after the date of Customs initial examination. The 
referral to the U.S. Attorney should be initiated simultaneously with 
the mailing to the importer of the seizure notice and the assent to 
forfeiture form. If the importer declines to execute an assent to 
forfeiture of the articles other than those mentioned in paragraph (a) 
of this section and fails to submit, within 30 days after being notified 
of his privilege to do so, a petition under section 618, Tariff Act of 
1930 (19 U.S.C. 1618), for remission of the forfeiture and permission to 
export the seized articles, then the U.S. Attorney, who has already 
received information concerning the seizure pursuant to this paragraph, 
may proceed with the condemnation action.
    (f) If seizure is made of books or other articles which do not 
contain obscene matter but contain information or advertisements 
relative to means of causing unlawful abortion, the procedure outlined 
in paragraphs (b), (c), (d), and (e) of this section shall be followed.
    (g) In any case when a book is seized as being obscene and the 
importer declines to execute an assent to forfeiture on the ground that 
the book is a classic, or of recognized and established literary or 
scientific merit, a petition addressed to the Secretary of the Treasury 
with evidence to support the claim may be filed by the importer for 
release of the book. Mere unsupported statements or allegations will not 
be considered. If the ruling is favorable, release of such book shall be 
made only to the ultimate consignee.
    (h) Whenever it clearly appears from information, instructions, 
advertisements enclosed with or appearing on any drug or medicine or its 
immediate or other container, or otherwise that such drug or medicine is 
intended for inducing unlawful abortion, such drug or medicine shall be 
detained or seized.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 71-165, 36 FR 12209, 
June 29, 1971; T.D. 76-261, 41 FR 39022, Sept. 14, 1976; T.D. 82-145, 47 
FR 35477, Aug. 16, 1982; T.D. 85-186, 50 FR 47207, Nov. 15, 1985; T.D. 
93-66, 58 FR 44130, Aug. 19, 1993]

[[Page 232]]



Sec. 12.41  Prohibited films.

    (a) Importers of films, shall certify on Customs Form 3291 that the 
imported films contain no obscene or immoral matter, nor any matter 
advocating or urging treason or insurrection against the United States 
or forcible resistance to any law of the United States, nor any threat 
to take the life or inflict bodily harm upon any person in the United 
States. When imported films are claimed to be free of duty as American 
goods returned, this certification may be made on Customs Form 3311 in 
the space designated ``Remarks'' in lieu of on Form 3291.
    (b) Films exposed abroad by a foreign concern or individual shall be 
previewed by a qualified employee of the Customs Service before release. 
In case such films are imported as undeveloped negatives exposed abroad, 
the approximate number of feet shall be ascertained by weighing before 
they are allowed to be developed and printed and such film shall be 
previewed by a qualified employee of the Customs Service after having 
been developed and printed.
    (c) Any objectionable film shall be detained pending instructions 
from Headquarters, U.S. Customs Service or a decision of the court as to 
its final disposition.

      Merchandise Produced By Convict, Forced, or Indentured Labor



Sec. 12.42  Findings of Commissioner of Customs.

    (a) If any port director or other principal Customs officer has 
reason to believe that any class of merchandise that is being, or is 
likely to be, imported into the United States is being produced, whether 
by mining, manufacture, or other means, in any foreign locality with the 
use of convict labor, forced labor, or indentured labor under penal 
sanctions, including forced child labor or indentured child labor under 
penal sanctions, so as to come within the purview of section 307, Tariff 
Act of 1930, he shall communicate his belief to the Commissioner of 
Customs. Every such communication shall contain or be accompanied by a 
statement of substantially the same information as is required in 
paragraph (b) of this section, if in the possession of the port director 
or other officer or readily available to him.
    (b) Any person outside the Customs Service who has reason to believe 
that merchandise produced in the circumstances mentioned in paragraph 
(a) of this section is being, or is likely to be, imported into the 
United States and, if the production is with the use of forced labor or 
indentured labor under penal sanctions, that merchandise of the same 
class is being produced in the United States in such quantities as to 
meet the consumptive demands of the United States may communicate his 
belief to any port director or the Commissioner of Customs. Every such 
communication shall contain, or be accompanied by, (1) a full statement 
of the reasons for the belief, (2) a detailed description or sample of 
the merchandise, and (3) all pertinent facts obtainable as to the 
production of the merchandise abroad. If the foreign merchandise is 
believed to be mined, produced, or manufactured with the use of forced 
labor or indentured labor under penal sanctions, such communication 
shall also contain (4) detailed information as to the production and 
consumption of the particular class of merchandise in the United States 
and the names and addresses of domestic producers likely to be 
interested in the matter.
    (c) If any information filed with a port director pursuant to 
paragraph (b) of this section does not conform with the requirements of 
that paragraph, the communication shall be returned promptly to the 
person who submitted it with detailed written advice as to the respects 
in which it does not conform. If such information is found to comply 
with the requirements, it shall be transmitted by the port director 
within 10 days to the Commissioner of Customs, together with all 
pertinent additional information available to the port director.
    (d) Upon receipt by the Commissioner of Customs of any communication 
submitted pursuant to paragraph (a) or (b) of this section and found to 
comply with the requirements of the pertinent paragraph, the 
Commissioner will cause such investigation to be made as

[[Page 233]]

appears to be warranted by the circumstances of the case and the 
Commissioner or his designated representative will consider any 
representations offered by foreign interests, importers, domestic 
producers, or other interested persons.
    (e) If the Commissioner of Customs finds at any time that 
information available reasonably but not conclusively indicates that 
merchandise within the purview of section 307 is being, or is likely to 
be, imported, he will promptly advise all port directors accordingly and 
the port directors shall thereupon withhold release of any such 
merchandise pending instructions from the Commissioner as to whether the 
merchandise may be released otherwise than for exportation.
    (f) If it is determined on the basis of the foregoing that the 
merchandise is subject to the provisions of the said section 307, the 
Commissioner of Customs, with the approval of the Secretary of the 
Treasury, will publish a finding to that effect in a weekly issue of the 
Customs Bulletin and in the Federal Register.
    (g) Any merchandise of a class specified in a finding made under 
paragraph (f) of this section, which is imported directly or indirectly 
from the locality specifed in the findings and has not been released 
from Customs custody before the date of publication of such finding in 
the Federal Register shall be considered and treated as an importation 
prohibited by section 307, Tariff Act of 1930, unless the importer 
establishes by satisfactory evidence that the merchandise was not mined, 
produced, or manufactured in any part with the use of a class of labor 
specified in the finding.
    (h) The following findings made under the authority of section 307, 
Tariff Act of 1930 are currently in effect with respect to the 
merchandise listed below:

------------------------------------------------------------------------
             Merchandise                        Country            T.D.
------------------------------------------------------------------------
Furniture, clothes hampers, and palm   Ciudad Victoria,            53408
 leaf bags.                             Tamaulipas, Mexico.        54725
------------------------------------------------------------------------


[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988; T.D. 00-52, 65 FR 45875, July 26, 2000]



Sec. 12.43  Proof of admissibility.

    (a) If an importer of any article detained under Sec. 12.42(e) or 
(g) desires to contend that the article was not mined, produced, or 
manufactured in any part with the use of a class of labor specified in 
section 307, Tariff Act of 1930, he shall submit to the Commissioner of 
Customs within 3 months after the date the article was imported a 
certificate of origin in the form set forth below, signed by the foreign 
seller or owner of the article. If the article was mined, produced, or 
manufactured wholly or in part in a country other than that from which 
it was exported to the United States, an additional certificate in such 
form and signed by the last owner or seller in such other country, 
substituting the facts of transportation from such other country for the 
statements with respect to shipment from the country of exportation, 
shall be so submitted.

                          Certificate of Origin

    I, ----------------, foreign seller or owner of the merchandise 
hereinafter described, certify that such merchandise, consisting of ----
------------ (Quantity) of ---------------- (Description) in ----------
---------- (Number and kind of packages) bearing the following marks and 
numbers ------------ was mined, produced, or manufactured by ----------
------ (Name) at or near ----------------, and was laden on board ------
-------------- (Carrier to the United States) at ---------------- (Place 
of lading) (Place of final departure from country of exportation) which 
departed from on ------------; (Date); and that -------------------- 
(Class of labor specified in finding) was not employed in any stage of 
the mining, production, or manufacture of the merchandise or of any 
component thereof.
    Dated ------------

________________________________________________________________________
                                                             (Signature)

    (b) The importer shall also submit to the Commissioner of Customs 
within such 3-month period a statement of the ultimate consignee of the 
merchandise, showing in detail that he had made every reasonable effort 
to determine the source of the merchandise and of every component 
thereof and to ascertain the character of labor used in the production 
of the merchandise and each of its components, the full results

[[Page 234]]

of his investigation, and his belief with respect to the use of the 
class of labor specified in the finding in any stage of the production 
of the merchandise or of any of its components.
    (c) If the certificate or certificates and statements specified in 
paragraphs (a) and (b) of this section are submitted within the time 
prescribed and the Commissioner finds that the merchandise is 
admissible, the port director concerned will be advised to that effect, 
whereupon he shall release the merchandise upon compliance with the 
usual entry requirements.



Sec. 12.44  Disposition.

    (a) Export and abandonment. Merchandise detained pursuant to 
Sec. 12.42(e) may be exported at any time prior to seizure pursuant to 
paragraph (b) of this section, or before it is deemed to have been 
abandoned as provided in this section, whichever occurs first. Provided 
no finding has been issued by the Commissioner of Customs under 
Sec. 12.42(f) and the merchandise has not been exported within 3 months 
after the date of importation, the port director will ascertain whether 
the proof specified in Sec. 12.43 has been submitted within the time 
prescribed in that section. If the proof has not been timely submitted, 
or if the Commissioner of Customs advises the port director that the 
proof furnished does not establish the admissibility of the merchandise, 
the port director will promptly advise the importer in writing that the 
merchandise is excluded from entry. Upon the expiration of 60 days after 
the delivery or mailing of such advice by the port director, the 
merchandise will be deemed to have been abandoned and will be destroyed, 
unless it has been exported or a protest has been filed as provided for 
in section 514, Tariff Act of 1930.
    (b) Seizure and summary forfeiture. In the case of merchandise 
covered by a finding under Sec. 12.42(f), if the Commissioner of Customs 
advises the port director that the proof furnished under Sec. 12.43 does 
not establish the admissibility of the merchandise, or if no proof has 
been timely furnished, the port director shall seize the merchandise for 
violation of 19 U.S.C. 1307 and commence forfeiture proceedings pursuant 
to part 162, subpart E, of this chapter.
    (c) Prison-labor goods. Nothing in this chapter precludes Customs 
from seizing for forfeiture merchandise imported in violation of 18 
U.S.C. 1761 and 1762 concerning prison-labor goods.

[T.D. 00-52, 65 FR 45875, July 26, 2000]



Sec. 12.45  Transportation and marketing of prison-labor products.

    If any apparent violation of section 1761 or 1762, title 18, United 
States Code, with respect to any imported article comes to the attention 
of a port director, he shall detain the article and report the facts to 
the appropriate United States attorney. If the United States attorney 
advises the port director that action should be taken against the 
article, it shall be seized and held pending the receipt of further 
instructions from the United States attorney or the court.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988]

 Counterfeit Coins, Obligations, and Other Securities; Illustrations or 
                    Reproductions of Coins or Stamps



Sec. 12.48  Importation prohibited; exceptions to prohibition of importation; procedure.

    (a) In accordance with Chapter 25, Title 18, United States Code, any 
token, disk, or device in the likeness or similitude of any coin of the 
United States or of a foreign country; counterfeits of coins in 
circulation in the United States; counterfeited, forged, or altered 
obligations or other securities of the United States or of any foreign 
government; or plates, dies, or other apparatus which may be used in 
making any of the foregoing, when brought into the United States, shall 
be seized, and delivered to the nearest representative of the United 
States Secret Service, together with a report of the facts, for 
appropriate disposition.
    (b) In accordance with section 504 of title 18, United States Code, 
the printing, publishing, or importation or the making or importation of 
the necessary plates for such printing or publishing for philatelic, 
numismatic, educational, historical, or newsworthy purposes in articles, 
books, journals, newspapers, or albums (but not for advertising 
purposes, except illustrations

[[Page 235]]

of stamps and paper money in philatelic or numismatic advertising of 
legitimate numismatists and dealers in stamps or publishers of or 
dealers in philatelic or numismatic articles, books, journals, 
newspapers, or albums) of black and white illustrations of canceled and 
uncanceled United States postage stamps shall be permitted.
    (c) The importation (but not for advertising purposes except 
philatelic advertising) of motion-picture films, microfilms, or slides, 
for projection upon a screen or for use in telecasting, of postage and 
revenue stamps and other obligations and securities of the United States 
and postage and revenue stamps, notes, bonds, and other obligations or 
securities of any foreign government, bank, or corporation shall be 
permitted.
    (d) Printed matter of the character described in section 504, title 
18, United States Code,32 containing reproductions of postage 
or revenue stamps, executed in accordance with any exception stated in 
section 504, or colored reproductions of canceled foreign postage stamps 
may be admitted to entry. Printed matter containing illustrations or 
reproductions not executed in accordance with such exceptions shall be 
treated as prohibited importations. If no application for exportation or 
assent to forfeiture and destruction is received by the port director 
within 30 days from the date of notification to the importer that the 
articles are prohibited, the articles shall be reported to the United 
States attorney for forfeiture.
---------------------------------------------------------------------------

    \32\ Notwithstanding any other provision of this chapter, the 
following are permitted:
    (1) The printing, publishing, or importation, or the making or 
importation of the necessary plates for such printing or publishing, of 
illustrations of:
    (A) Postage stamps of the United States,
    (B) Revenue stamps of the United States,
    (C) Any other obligation or other security of the United States, and
    (D) Postage stamps, revenue stamps, notes, bonds, and any other 
obligation or other security of any foreign government, bank, or 
corporation, for philatelic, numismatic, educational, historical, or 
newsworthy purposes in articles, books, journals, newspapers, or albums 
(but not for advertising purposes, except illustrations of stamps and 
paper money in philatelic or numismatic advertising of legitimate 
numismatists and dealers in stamps or publishers of or dealers in 
philatelic or numismatic articles, books, journals, newspapers, or 
albums). Illustrations permitted by the foregoing provisions of this 
section shall be made in accordance with the following conditions--
    (i) All illustrations shall be in black and white, except that 
illustrations of postage stamps issued by the United States or by any 
foreign government may be in color;
    (ii) All illustrations (including illustrations of uncanceled 
postage stamps in color) shall be of a size less than three-fourths or 
more than one and one-half, in linear dimension, of each part of any 
matter so illustrated which is covered by subparagraph (A), (B), (C), or 
(D) of this paragraph, except that black and white illustrations of 
postage and revenue stamps issued by the United States or by any foreign 
government and colored illustrations of canceled postage stamps issued 
by the United States may be in the exact linear dimension in which the 
stamps were issued; and
    (iii) The negatives and plates used in making the illustrations 
shall be destroyed after their final use in accordance with this 
section.
    (2) The making or importation, but not for advertising purposes 
except philatelic advertising, of motion-picture films, microfilms, or 
slides, for projection upon a screen or for use in telecasting, of 
postage and revenue stamps and other obligations and securities of the 
United States, and postage and revenue stamps, notes, bonds, and other 
obligations or securities of any foreign government, bank, or 
corporation. No prints or other reproductions shall be made from such 
films or slides, except for the purposes of paragraph (1), without the 
permission of the Secretary of the Treasury.
    For the purposes of this section the term ``postage stamp'' includes 
``postage meter stamps.'' (18 U.S.C. 504).

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82-145, 47 FR 35477, 
Aug. 16, 1982; T.D. 89-1, 53 FR 51253, Dec. 21, 1988]

                       Fur-Seal or Sea-Otter Skins



Sec. 12.60  Importation prohibited.

    The transportation, importation, sale, or possession of the skins of 
fur seals or sea otters is prohibited if such skins were taken contrary 
to the provisions of section 2 of the act of February 26, 1944 (58 Stat. 
100-104) or, the case of such skins taken under the authority of the act 
or any fur-seal agreement, if the skins are not officially marked and

[[Page 236]]

certified as required by section 2 of the act. Section 16 makes the act 
inapplicable to skins taken for scientific purposes under a special 
permit.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988]



Sec. 12.61  Fur-seal or sea-otter skins permitted entry.

    (a) Fur-seal or sea-otter skins taken by Indians, Aleuts, or other 
aborigines under the authority of section 3 of the act, fur-seal skins 
taken under the authority of the Canadian Government, and fur-seal skins 
taken on the Pribilof Islands and other specified areas under the 
authority of section 4 of the act shall be admitted to entry if 
officially marked and certified as having been lawfully taken and if 
accompanied by a declaration of the shipper identifying the skins by 
marks and numbers as those covered by the official certificate.
    (b) Fur-seal or sea-otter skins taken in waters or on land not 
specified in the act or in the fur-seal agreement with Canada or other 
fur-seal agreement shall be admitted to entry upon the production of 
evidence satisfactory to the port director that they have been so taken.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988]



Sec. 12.62  Enforcement; duties of Customs officers.

    (a) In accordance with the authority contained in sections 10 and 12 
of the act, Customs officers shall arrest or cause to be arrested 
persons violating the provisions of the act or of any regulation made 
pursuant thereto; shall search vessels when there is reasonable cause to 
believe that such vessels are subject to seizure under the act, shall 
seize any vessel used or employed or which it appears has been or is 
about to be used or employed in violation of the act or any regulation 
made pursuant thereto; and shall seize fur seals and sea otters, or the 
skins thereof, killed, captured, transported, imported, offered for 
sale, or possessed by any person contrary to the provisions of the act 
or of any regulation made pursuant thereto.
    (b) All articles, including vessels and equipment, seized by Customs 
officers for violation of the act shall be turned over to the nearest 
officer or agent of the Fish and Wildlife Service, Department of the 
Interior, for appropriate disposition under the act, receipts to be 
taken in duplicate therefor. One copy of each such receipt shall be 
transmitted to Headquarters, U.S. Customs Service with a detailed report 
of the facts in the particular case involved.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988]



Sec. 12.63  Seal-skin or sea-otter-skin waste.

    Seal-skin or sea-otter-skin waste composed of small pieces not large 
enough to be sewed together and utilized as dressed fur shall not be 
subject to the requirements of the regulations in this part.

Entry of Motor Vehicles, Motor Vehicle Engines and Nonroad Engines Under 
                      the Clean Air Act, as Amended



Sec. 12.73  Motor vehicle and engine compliance with Federal antipollution emission requirements.

    (a) Applicability of EPA requirements. This section is ancillary to 
the regulations of the U.S. Environmental Protection Agency (EPA) issued 
under the Clean Air Act, as amended (42 U.S.C. 7401 et seq.), and found 
in 40 CFR parts 85 and 86. Those regulations should be consulted for 
more detailed information concerning EPA emission requirements. The 
requirements apply to imported motor vehicles, but do not apply to 
separately imported non-chassis mounted engines to be used in light-duty 
trucks or other light-duty vehicles. Other separately imported engines 
for heavy-duty motor vehicles are covered, and all references in this 
section to motor vehicles should be deemed to include motor vehicles as 
well as these heavy-duty engines. Nothing in this section should be 
construed as limiting or changing in any way the applicability of the 
EPA regulations.
    (b) Importation of complying vehicles--(1) Labeled vehicles. 
Vehicles which in their condition as imported are covered by an EPA 
certificate of conformity and which bear the manufacturer's

[[Page 237]]

label showing such conformity and other EPA-required information shall 
be deemed in compliance with applicable emission requirements for the 
purpose of Customs admissibility and entry liquidation determinations. 
This paragraph does not apply to importations of ICI's covered by 
paragraph (d) of this section.
    (2) Pending certification. Vehicles otherwise covered by paragraph 
(b)(1) of this section which were manufactured for compliance with 
applicable emission requirements, but for which an application for a 
certificate of conformity is pending with the EPA may be conditionally 
released from Customs custody pending production of the certificate of 
conformity within 120 days of release.
    (c) Importation of vehicles previously in compliance--(1) Vehicles 
of returning residents. Vehicles of residents returning from Canada, 
Mexico or other countries as EPA may designate are not covered by this 
section.
    (2) Vehicles of commuting nonresidents and tourists. A port director 
through the issuance of an appropriate means of identification to be 
affixed to a vehicle may waive all of the requirements of this section 
for a nonresident regularly crossing the Canadian or Mexican border, or 
waive the requirements for Mexico or Canadian-registered vehicles of 
tourists or other travelers.
    (3) Participants in EPA-approved catalytic converter or oxygen 
sensor control programs. Further evidence of emissions compliance will 
not be required for catalytic converter or oxygen sensor-equipped 
vehicles imported for participating in EPA-approved catalytic converter 
or oxygen sensor control programs and subject to the requirements of 
those programs.
    (4) Previously labeled, modified or imported vehicles. Any other 
vehicle of United States or foreign origin manufactured with a catalytic 
converter or oxygen sensor, or any previously imported vehicle 
subsequently modified with a catalytic converter or oxygen sensor, will 
not be deemed in compliance with applicable emission requirements if 
used outside of the United States, Canada, Mexico, or other countries as 
EPA may designate, until the catalytic converter and/or oxygen sensor is 
replaced. Conditional release from Customs custody for the purpose of 
the modification is subject to a 120-day period for completion. Subject 
to special documentation at the time of export from the United States 
and approval and other requirements of EPA, replacement of a catalytic 
converter or oxygen sensor may be avoided if the equipment is 
disconnected before export from the United States and reconnected after 
subsequent importation.
    (d) Importation of vehicles by ICI's. Except for motor vehicles 
imported in the applicable circumstances covered by paragraphs (c), (e), 
(f), (g) or (h) of this section, an individual or business other than an 
independent commercial importer (ICI) holding a currently valid EPA 
certificate of conformity may not enter a motor vehicle which does not 
conform with EPA emission requirements. An ICI, subject to the more 
specific definition in EPA regulations, is an importer which does not 
have a contract with a foreign or domestic motor vehicle manufacturer 
for distributing products into the United States market. However, a 
motor vehicle may not be conditionally admitted unless it falls within 
one of the categories provided for in 40 CFR 85.1505 or 85.1509. Before 
the vehicle is deemed to be in compliance with applicable emission 
requirements and, therefore, finally admitted into the United States, 
the ICI must keep the vehicle in storage for a 15-working day period. 
This period follows notice to EPA of completion of the compliance work 
to give EPA the opportunity to conduct confirmatory testing and inspect 
the vehicle and records. The 15-working day period is part of the 120-
day period in which an ICI must bring the vehicle into emissions 
compliance. Individuals and businesses not entitled to enter 
nonconforming motor vehicles may arrange for their importation through 
an ICI certificate holder. In these circumstances, the ICI will not act 
as an agent or broker for Customs transaction purposes unless otherwise 
licensed or authorized to do so.
    (e) Exemptions and exclusions from emission requirements based on 
age of vehicle. The following motor vehicles, except as shown, may be 
imported by any person and do not have to be shown to

[[Page 238]]

be in compliance with emission requirements or modified before entitled 
to admissibility:
    (1) Gasoline-fueled light-duty trucks and light-duty motor vehicles 
manufactured before January 1, 1968;
    (2) Diesel-fueled light-duty motor vehicles manufactured before 
January 1, 1975;
    (3) Diesel-fueled light-duty trucks manufactured before January 1, 
1976;
    (4) Motorcycles manufactured before January 1, 1978;
    (5) Gasoline-fueled and diesel-fueled heavy-duty engines 
manufactured before January 1, 1970; and
    (6) Motor vehicles not otherwsie exempt from EPA emission 
requirements and more than 20 years old. Age is determined by 
subtracting the year of production (as opposed to model year) from the 
year of importation. The exemption under this subparagraph is available 
only if the vehicle is imported by an ICI.
    (f) Exemption for exports. A motor vehicle intended solely for 
export to a country not having the same emission standards applicable in 
the United States, and both the vehicle and its container bear a label 
or tag indicating that it is intended solely for export, is exempt from 
applicable United States emission requirements. 40 CFR 85.1709.
    (g) Exemptions for diplomats, foreign military personnel and 
nonresidents. Subject to the condition that they are not resold in the 
United States, the following motor vehicles are exempt from applicable 
emission requirements:
    (1) A motor vehicle imported solely for the personal use of a 
nonresident importer or consignee and the use will be for a period not 
to exceed one year; and
    (2) A motor vehicle of a member of the armed forces of a foreign 
country on assignment in the United States, or of a member of the 
personnel of a foreign government on assignment in the United States or 
other individual who comes within the class of persons for whom free 
entry of motor vehicles has been authorized by the Department of State 
in accordance with general principles of international law. For special 
documentation requirements see paragraph (i)(4) of this section.
    (h) Exemptions and exclusions based on prior EPA authorization. The 
following motor vehicles are exempt or excluded from applicable emission 
requirements if prior approval has been obtained in writing from EPA:
    (1) Importations for repairs. Any motor vehicle which is imported 
solely for repairs or alterations and which is not sold, leased, 
registered or licensed for use or operated on public roads or highways 
in the United States. 40 CFR 85.1511(b)(1);
    (2) Importations for testing. Any motor vehicle imported solely for 
testing. Test vehicles may be operated on and registered for use on 
public roads or highways provided that the operation is an integral part 
of the test. 40 CFR 85.1511(b)(2). This exemption is limited to a period 
not exceeding one year from the date of importation unless a request is 
made under 40 CFR 85.1705(f) for a one-year extension;
    (3) Prototype vehicles. Any motor vehicle imported for use as a 
prototype in applying for EPA certification. 40 CFR 85.1511(b)(3) and 
85.1706. In the case of an ICI, unless the vehicle is brought into 
conformity within 180 days from the date of entry it shall be exported 
or otherwise disposed of subject to paragraph (1) of this section;
    (4) Display vehicles. Any motor vehicle which is imported solely for 
display and which will not be sold, leased, registered or licensed for 
use on or operated on the public roads or highways in the United States. 
40 CFR 85.1511(b)(4);
    (5) Racing cars. Any motor vehicle which qualifies as a racing 
vehicle meeting one or more of the criteria found at 40 CFR 85.1703(a), 
and which will not be registered or licensed for use on or operated on 
public roads or highways in the United States. See also 40 CFR 
85.1511(c)(1);
    (6) National security importations. Any motor vehicle imported for 
purposes of national security by a manufacturer. 40 CFR 85.1511(c)(2), 
85.1702(a)(2) and 85.1708; and
    (7) Hardship exemption. Any motor vehicle imported by anyone 
qualifying for a hardship exemption. 40 CFR 85.1511(c)(3).
    (i) Documentation requirements--(1) Exception for manufacturers. The 
special documentation requirements of this

[[Page 239]]

paragraph do not apply to the entry of any motor vehicles shown to be in 
compliance with applicable emission requirements under paragraph (b)(1) 
of this section relating to labeling.
    (2) Declarations of other importers. Release from Customs custody 
shall be refused with respect to all other entries unless there is filed 
with the entry in duplicate a declaration in which the importer or 
consignee declares or affirms its status as an original equipment 
manufacturer, an ICI holding an applicable certificate of conformity, or 
other status, and further declares or affirms the status or condition of 
the imported vehicles and the circumstances concerning importation 
including a citation to the specific paragraph or subparagraph in this 
section upon which application for conditional or final release from 
Customs custody is applied for.
    (3) Other documentation and information. An importer's declaration 
shall include or be submitted with the following further information and 
documentation:
    (A) The importer's name and address and telephone number;
    (B) Identification of the vehicle or engine number, the vehicle 
owner's taxpayer identification number, and his or her current address 
and telephone number in the United States if different than as provided 
for in paragraph (3)(A) of this paragraph;
    (C) Identification, where applicable, of the place where the vehicle 
will be stored until EPA approval of the importer's application to EPA 
for final admission as required for vehicles imported under 40 CFR 
85.1505, 85.1509, or 85.1512 having reference to certain importations 
under paragraphs (c)(4) or (d)(1) of this section;
    (D) Authorization for EPA enforcement officers to conduct 
inspections or testing otherwise permitted by the Clean Air Act and 
regulations promulgated thereunder;
    (E) Identification, where applicable, of the certificate of 
conformity by means of which the vehicle is being imported;
    (F) The date of manufacture of the vehicle;
    (G) The date of entry;
    (H) Identification of the vessel or carrier on which the merchandise 
was shipped;
    (I) The entry number where applicable;
    (J) Where prior EPA authorization is required for an exemption or 
exclusion, a copy of that authorization; and
    (K) Such other further information as may be required by the EPA or 
the Customs Service.
    (4) Documentation from diplomats and foreign military personnel. For 
entries for which an exemption is claimed under paragraph (g)(2) of this 
section, there must also be attached to the declaration required under 
paragraph (i)(2) of this section a copy of the motor vehicle importer's 
official orders, if any, or if a qualifying member of the personnel of a 
foreign government on assignment in the United States, the name of the 
embassy to which the importer is accredited.
    (j) Release under bond. If a declaration filed in accordance with 
paragraph (i)(2) of this section states that the entry is being filed 
under circumstances described in either paragraph (c)(4), (h)(1), 
(h)(2), (h)(3) or (h)(4) of this section, the entry shall be accepted 
only if the importer or consignee gives a bond on Customs Form 301, 
containing the bond condition set forth in Sec. 113.62 of this chapter 
for the production of an EPA statement that the vehicle or engine is in 
conformity with Federal emission requirements. Within the period in 
paragraph (h)(2), (h)(3) or (c)(4) of this section, or in the case of 
paragraph (h)(1) or (h)(4) of this section, the period specified by EPA 
in its authorization for an exemption, or such additional period as the 
port director may allow for good cause shown, the importer or consignee 
shall deliver to the port director the prescribed statement. If the 
statement is not delivered to the director of the port of entry within 
the specified period, the importer or consignee shall deliver or cause 
to be delivered to the port director those vehicles which were released 
under a bond required by this paragraph. In the event that the vehicle 
or engine is not redelivered within five days following the date 
specified in the preceding sentence, liquidated damages shall be 
assessed in the full amount of

[[Page 240]]

the bond, if it is a single entry bond, or if a continuous bond is used, 
the amount that would have been taken under a single entry bond.
    (k) Notices of inadmissibility or detention. If a motor vehicle is 
determined to be inadmissible before release from Customs custody, or 
inadmissible after release from Customs custody, the importer or 
consignee shall be notified in writing of the inadmissibility 
determination and/or redelivery requirement. However, if a motor vehicle 
cannot be released from Customs custody merely because the importer has 
failed to attach to the entry the documentation required by paragraph 
(i) of this section, the vehicle shall be held in detention by the 
director of a period not to exceed 30 days after filing of the entry at 
the risk and expense of the importer pending submission of the missing 
documentation. An additional 30-day extension may be granted by the port 
director upon application for good cause shown. If at the expiration of 
a period not over 60 days the documentation has not been filed, a notice 
of inadmissibility will be issued.
    (l) Disposal of vehicles not entitled to admission. A motor vehicle 
denied admission under any provision of this section shall be disposed 
of in accordance with applicable Customs laws and regulations. However, 
a motor vehicle or engine will not be disposed of in a manner in which 
it may ultimately either directly or indirectly reach a consumer in a 
condition in which it is not in conformity with applicable EPA emission 
requirements.
    (m) Prohibited importations. The importation of motor vehicles 
otherwise than in accordance with this section and the regulations of 
EPA in 40 CFR parts 80, 85, 86 and 600 is prohibited.

[T.D. 88-40, 53 FR 26240, July 12, 1988, as amended by T.D. 01-14, 66 FR 
8767, Feb. 2, 2001]



Sec. 12.74  Nonroad engine compliance with Federal antipollution emission requirements.

    (a) Applicability of EPA regulations. The requirements governing the 
importation of nonroad engines subject to conformance with applicable 
emissions standards of the U.S. Environmental Protection Agency (EPA) 
are contained in EPA regulations, issued under the Clean Air Act, as 
amended (42 U.S.C. 7401 et seq.). These EPA regulations should be 
consulted for detailed information as to the admission requirements for 
subject nonroad engines, as follows:
    (1) For nonroad compression-ignition engines at or above 37 
kilowatts, see 40 CFR part 89, subpart G;
    (2) For nonroad spark-ignition engines at or below 19 kilowatts, see 
40 CFR part 90, subpart G; and
    (3) For marine spark-ignition engines, see 40 CFR part 91, subpart 
H.
    (b) Admission of nonconforming nonroad engines. (1) EPA declaration 
required. EPA Form 3520-21, ``Importation of Nonroad Engines and Nonroad 
Engines Incorporated Into Nonroad Equipment or Vehicles, Subject to 
Federal Air Pollution Regulations'', must be completed by the importer 
and retained on file by him before making a customs entry for such 
nonroad engines/equipment/vehicles.
    (2) Retention and submission of records to Customs. Documents 
supporting the information required in the EPA declaration must be 
retained by the importer for a period of at least 5 years in accordance 
with Sec. 163.4 of this chapter and shall be provided to Customs upon 
request.
    (c) Release under bond. (1) Conditional admission. If the EPA 
declaration states that the entry for a nonconforming nonroad engine is 
being filed under one of the exemptions described in paragraphs 
(c)(3)(i) through (c)(3)(iv) of this section, under which the engine 
must be conditionally admitted under bond, the entry for such engine 
shall be accepted only if a bond is given on Customs Form 301 containing 
the conditions set forth in Sec. 113.62 of this chapter for the 
presentation of an EPA statement that the engine has been brought into 
conformity with Federal emissions requirements.
    (2) Final admission. Should final admission be sought and granted 
pursuant to EPA regulations for an engine conditionally admitted 
initially under one of the exemptions described in paragraphs (c)(3)(i) 
through (c)(3)(iv) of this section, the importer or consignee shall 
deliver to the port director the prescribed statement. The statement

[[Page 241]]

shall be delivered within the period authorized by EPA for the specific 
exemption, or such additional period as the port director of Customs may 
allow for good cause shown. Otherwise, the importer or consignee shall 
deliver or cause to be delivered to the port director the subject 
engine, either for export or other disposition under applicable Customs 
laws and regulations (see paragraph (e) of this section). If such engine 
is not redelivered within 5 days following the allotted period, 
liquidated damages shall be assessed in the full amount of the bond, if 
a single entry bond, or if a continuous bond, the amount that would have 
been taken under a single entry bond (see 40 CFR 89.612-96(d), 90.613(c) 
& (d), 91.705(c) & (d)).
    (3) Exemptions. The specific exemptions under which a nonconforming 
nonroad engine may be conditionally admitted, and for which a Customs 
bond is required, are as follows:
    (i) Repairs or alterations (see 40 CFR 89.611-96(b)(1), 
90.612(b)(1), 91.704(b)(1));
    (ii) Testing (see 40 CFR 89.611-96(b)(2), 90.612(b)(2), 
91.704(b)(2));
    (iii) Precertification (see 40 CFR 89.611-96(b)(3), 89.906); and
    (iv) Display (see 40 CFR 89.611-96(b)(4), 90.612(b)(3), 
91.704(b)(3)).
    (d) Notice of inadmissibility or detention. If an engine is found to 
be inadmissible either before or after release from Customs custody, the 
importer or consignee shall be notified in writing of the 
inadmissibility determination and/or redelivery requirement. However, an 
engine which cannot be released merely due to a failure to furnish with 
the entry any documentary information as required by EPA shall be held 
in detention by the port director for a period not to exceed 30 days 
after filing of the entry at the risk and expense of the importer 
pending submission of the missing information. An additional 30-day 
extension may be granted by the port director upon application for good 
cause shown. If at the expiration of a period not over 60 days the 
required documentation has not been filed, a notice of inadmissibility 
will be issued.
    (e) Disposal of engines not entitled to admission; prohibited 
importations. A nonroad engine denied admission under EPA regulations 
shall be disposed of consistent with such EPA regulations and in 
accordance with applicable Customs laws and regulations. The importation 
of nonroad engines otherwise than as prescribed under EPA regulations is 
prohibited.

[T.D. 98-50, 63 FR 29122, May 28, 1998, as amended by T.D. 01-14, 66 FR 
8767, Feb. 2, 2001]

  Motor Vehicles and Motor Vehicle Equipment Manufactured On or After 
                             January 1, 1968



Sec. 12.80  Federal motor vehicle safety standards.

    (a) Standards prescribed by the Department of Transportation. Motor 
vehicles and motor vehicle equipment manufactured on or after January 1, 
1968, offered for sale, or introduction or delivery for introduction in 
interstate Commerce, or importation into the United States are subject 
to Federal motor vehicle safety standards (``safety standards'') 
prescribed by the Secretary of Transportation under sections 103 and 119 
of the National Traffic and Motor Vehicle Safety Act of 1966, as amended 
(15 U.S.C. 1392, 1407) (``the Act''), and set forth in 49 CFR part 571. 
A motor vehicle (``vehicle'') or item of motor vehicle equipment 
(``equipment item''), manufactured on or after January 1, 1968, is not 
permitted entry into the Customs territory of the United States unless 
(with certain exceptions set forth in paragraph (b) of this section) it 
is in conformity with applicable safety standards in effect at the time 
the vehicle or equipment item was manufactured.
    (b) Requirements for entry and release. (1) Unless the requirement 
for filing is waived by the port director as provided for in paragraph 
(f) of this section, each vehicle or equipment item offered for 
introduction into the Customs territory of the United States shall be 
denied entry unless the importer or consignee files with the entry a 
declaration, in duplicate, which declares or affirms one of the 
following:
    (i) The vehicle or equipment item was manufactured on a date when no 
applicable safety standards were in effect.

[[Page 242]]

    (ii) The vehicle or equipment item conforms to all applicable safety 
standards (or, the vehicle does not conform solely because readily 
attachable equipment items which will be attached to the vehicle before 
it is offered for sale to the first purchaser for purposes other than 
resale are not attached) and bears a certification label or tag to that 
effect permanently affixed by the original manufacturer to the vehicle 
or to the equipment item, or to the outside of the container in which 
the equipment item is delivered, in accordance with regulations issued 
by the Secretary of Transportation (49 CFR parts 555, 567, 568 and 571) 
under section 114 of the Act (15 U.S.C. 1403).
    (iii) The vehicle or equipment item was not manufactured in 
conformity to all applicable safety standards, but it has been or will 
be brought into conformity. Within 120 days after entry, or within a 
period not to exceed 180 days after entry, if additional time is granted 
by the Administrator, National Highway Traffic Safety Administration 
(``Administrator, NHTSA''), the importer or consignee will submit a true 
and complete statement to the Administrator, NHTSA, identifying the 
manufacturer, contractor, or other person who has brought the vehicle or 
equipment item into conformity, describing the exact nature and extent 
of the work performed, and certifying that the vehicle or equipment item 
has been brought into conformity, and that the vehicle or equipment item 
will not be sold or offered for sale until the Administrator, NHTSA, 
issues an approval letter to the port director stating that the vehicle 
or equipment item described in the declaration has been brought into 
conformity with all applicable safety standards.
    (iv) The vehicle or equipment item is intended solely for export, 
and the vehicle or equipment item, and the outside of the container of 
the equipment item, if any, bears a label or tag to that effect.
    (v) The importer or consignee is a nonresident of the United States, 
is importing the vehicle or equipment item primarily for personal use 
for a period not exceeding 1 year from the date of entry, will not sell 
it in the United States during that period, and has stated his passport 
number and country of issue, if he has a passport, on the declaration.
    (vi) The importer or consignee is a member of the armed forces of a 
foreign country on assignment in the U.S. or is a member of the 
personnel of a foreign government on assignment in the U.S. or other 
individual who is within the class of persons for whom free entry of 
vehicles has been authorized by the Department of State in accordance 
with general principles of international law, is importing the vehicle 
or equipment item for purposes other than resale; and a copy of his 
official orders, if any, is attached to the declaration (or, if a 
qualifying member of the personnel of a foreign government on assignment 
in the U.S., the name of the Embassy to which he is accredited is stated 
on the declaration).
    (vii) The vehicle or equipment item is imported solely for the 
purpose of show, test, experiment, competition (a vehicle the 
configuration of which at the time of entry is such that it cannot be 
licensed for use on the public roads is considered to be imported for 
the purpose of competition), repair or alteration, and the statement 
required by 19 CFR 12.80(c)(2) or (c)(3) is attached to the declaration.
    (viii) The vehicle was not manufactured primarily for use on the 
public roads and is not a ``motor vehicle'' as defined in section 102 of 
the Act (15 U.S.C. 1391).
    (ix) The vehicle is an ``incomplete vehicle'' as defined in 49 CFR 
part 568.
    (2) A vehicle imported solely for the purpose of test or experiment 
which is the subject of a declaration filed under paragraph (b)(1)(vii) 
of this section may be licensed for use on the public roads for a period 
not to exceed 1 year from the date of importation if use on the public 
roads is an integral part of the test or experiment. The vehicle may be 
licensed for use on the public roads for one or more further periods 
which, when added to the initial 1 year period, shall not exceed a total 
of 3 years, upon application to and approval by the Administrator, 
NHTSA.
    (c) Declaration; contents. (1) Each declaration filed under 
paragraph (b)(1) of this section shall include the name and

[[Page 243]]

address in the United States of the importer or consignee, the date and 
the entry number (if applicable), the make, model, and engine and body 
serial numbers, or other identification number (if a vehicle), or a 
description of the item (if an equipment item), and shall be signed by 
the importer or consignee.
    (2) Each declaration filed under paragraph (b)(1)(vii) of this 
section which relates to a vehicle or equipment item reported for the 
purpose of show, competition, repair, or alteration shall have attached 
a statement fully describing the use to be made of the vehicle or 
equipment item and its ultimate disposition.
    (3) Each declaration filed under paragraph (b)(1)(vii) of this 
section which relates to a vehicle imported solely for the purpose of 
test or experiment shall have attached a statement fully describing the 
test or experiment, the estimated period of time necessary to use the 
vehicle on the public roads, and the disposition to be made of the 
vehicle after completion of the test or experiment.
    (4) Any declaration filed under paragraph (b)(1) of this section 
may, if appropriate, relate to more than one vehicle or equipment item 
imported on the same entry.
    (d) Declaration; disposition. The port director shall forward the 
original of each declaration submitted to him under paragraph (b)(1) of 
this section as soon as practicable to the Director, Office of Vehicle 
Safety Compliance, National Highway Traffic Safety Administration, 
Washington, DC 20590.
    (e) Release under bond. (1) If a declaration is filed under 
paragraph (b)(1)(iii) of this section, the entry shall be accepted only 
if the importer or consignee gives a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this chapter. 
An approval letter shall be issued upon approval by the Administrator, 
NHTSA, of the conformity statement submitted by the importer or 
consignee as provided for in paragraph (b)(1)(iii) of this section. The 
approval letter shall be forwarded by the Administrator, NHTSA, to the 
port director with a copy to the importer or consignee. Upon receipt of 
the approval letter the port director shall cancel the charge against 
the bond.
    (2) If the approval letter is not received by the port director 
within 180 days after entry, the port director shall issue a Notice of 
Redelivery, Customs Form 4647, requiring the redelivery to Customs 
custody of the vehicle or equipment item. If the vehicle or equipment 
item is not redelivered to Customs custody or exported under Customs 
supervision within the period allowed by the port director in the Notice 
of Redelivery, liquidated damages shall be assessed in the full amount 
of a bond if it is single entry bond or if a continuous bond is used, 
the amount that would have been taken under a single entry bond.
    (f) Waiver of declaration requirements. The requirement that a 
declaration be filed under paragraph (b)(1)(i), (b)(1)(ii), or (b)(1)(v) 
of this section as a condition to the introduction of a vehicle or 
equipment item into the Customs territory of the United States may be 
waived by the port director for a United States, Canadian, or Mexican 
registered vehicle arriving via land borders.
    (g) Vehicle or equipment item introduced by means of a fraudulent or 
false declaration. Any person who enters, introduces, attempts to enter 
or introduce, or aids or abets the entry, introduction, or attempted 
entry or introduction, of a vehicle or equipment item into the Customs 
territory of the United States by means of a fraudulent entry 
declaration, or by means of a false entry declaration made without 
reasonable cause to believe the truth of the declaration, may incur 
liabilities under section 592, Tariff Act of 1930, as amended (19 U.S.C. 
1592).
    (h) Vehicle or equipment item denied entry. If a vehicle or 
equipment item is denied entry under the provisions of paragraph (b) of 
this section, the port director shall refuse to release the vehicle or 
equipment item for entry into the Customs territory of the United States 
and shall issue a notice of that refusal to the importer or consignee.
    (i) Disposition of vehicle or equipment item denied entry; 
redelivery. A vehicle or equipment item denied entry under paragraph (b) 
of this section, or redelivered to Customs custody under

[[Page 244]]

paragraph (e) of this section, which is not exported