[Title 19 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 1999 Edition]
[From the U.S. Government Printing Office]


          19



          Customs Duties



[[Page i]]

          PARTS 1 TO 140

                         Revised as of April 1, 1999

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF APRIL 1, 1999
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1999



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[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........................     597

      Alphabetical List of Agencies Appearing in the CFR......     615

      Redesignation Tables....................................     625

      Chapter I Subject Index.................................     629

      List of CFR Sections Affected...........................     725



[[Page iv]]


      


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

                     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 
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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 
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HOW TO USE THE CODE OF FEDERAL REGULATIONS

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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 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
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the revision dates of the 50 CFR titles.

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in the Code of Federal Regulations.

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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, 1999.



[[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, 1999.

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

    For this volume, Ruth Reedy Green was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[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  



  --------------------------------------------------------------------
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...............         163
12              Special classes of merchandise..............         168
18              Transportation in bond and merchandise in 
                    transit.................................         226
19              Customs warehouses, container stations and 
                    control of merchandise therein..........         244
24              Customs financial and accounting procedure..         279
54              Certain importations temporarily free of 
                    duty....................................         324
101             General provisions..........................         325
102             Rules of origin.............................         339
103             Availability of information.................         378
111             Customs brokers.............................         398
112             Carriers, cartmen, and lightermen...........         419
113             Customs bonds...............................         427
114             Carnets.....................................         451
115             Cargo container and road vehicle 
                    certification pursuant to international 
                    customs conventions.....................         456
118             Centralized examination stations............         466
122             Air Commerce regulations....................         471
123             Customs relations with Canada and Mexico....         517
125             Cartage and lighterage of merchandise.......         541
127             General order, unclaimed, and abandoned 
                    merchandise.............................         545
128             Express consignments........................         552
132             Quotas......................................         556
133             Trademarks, trade names, and copyrights.....         563
134             Country of origin marking...................         579


  Editorial Note: Nomenclature changes to Chapter I appear at T.D. 95-
77, 60 FR 50021, Sept. 27, 1995.

[[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.
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  Foreign equipment purchases by, and repairs to, American vessels.
4.15  Fishing vessels touching and trading at foreign places.
4.16  Entry and clearance on board vessels.
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  Crew; passengers.
4.69  Shipping articles.
4.70  Pratique.
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.

                           Coastwise Procedure

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

[[Page 6]]

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. 158, 
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 4.65a 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.

    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:

[[Page 7]]

    (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) When any vessel which might have on board any article subject to 
Customs treatment comes within the limits of any port of entry or within 
Customs waters, Customs officers may board the vessel to inspect its 
manifest and other documents and papers and to examine, inspect, and 
search the vessel and the persons and articles on board.1
---------------------------------------------------------------------------

    \1\ ``Any officer of the customs may at any time go on board of any 
vessel or vehicle at any place in the United States or within the 
customs waters * * * and examine the manifest and other documents and 
papers and examine, inspect, and search the vessel or vehicle and every 
part thereof and any person, trunk, package, or cargo on board, and to 
this end may hail and stop such vessel or vehicle, and use all necessary 
force to compel compliance.'' (19 U.S.C. 1581(a))
    ``If the master of any vessel shall obstruct or hinder, or shall 
intentionally cause any obstruction or hindrance to any officer in 
lawfully going on board such vessel, for the purpose of carrying into 
effect any of the revenue or navigation laws of the United States, he 
shall for every such offense be liable to a penalty of not more than 
$2,000 nor less than $500.'' (R.S. 3068, sec. 307, 49 Stat. 528)
    2-24 [Reserved]

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

[[Page 8]]

    (b) Every vessel arriving at a Customs port directly from a point 
outside the Customs territory of the United States shall be boarded and 
shall be subject to such supervision while in port as the port director 
deems necessary. Boarding is required also whenever there is a 
preliminary entry. When he deems it desirable, the port director may 
detail Customs officers to remain on board a vessel to secure the 
enforcement of this part. Except as provided in paragraph (a) of this 
section, boarding of a vessel arriving at a Customs port directly from 
another port in the United States shall not be required.
    (c)(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 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 (c)(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.
    (d) 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.
    (e) 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.
    (f) [Reserved]
    (g) 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]



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

[[Page 9]]

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.
    (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.

    (a) Except as specified in section 441, Tariff Act of 1930, as 
amended, or as otherwise specified in this part, every American vessel 
arriving in the U.S. from a foreign port or place and every foreign 
vessel arriving at a port in the U.S. from another such port or from a 
foreign port or place shall make entry at the customhouse within 48 
hours after arrival of a vessel, in accordance with Sec. 4.9.
    (b) For the purposes of the vessel entry requirement in this section 
and Sec. 4.9, a ``foreign port or place'' includes a hovering vessel, as 
defined in 19 U.S.C. 1401(k), and any point in the 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, or a vessel on the 
high seas when the vessel arriving in the U.S. is returning from that 
vessel on the high seas after having transported merchandise out of the 
U.S. to the vessel on the high seas and there transshipped the 
merchandise to that vessel.
    (c) For purposes of the vessel entry requirement in this section and 
Sec. 4.9, a ``foreign port or place'' shall include a vessel on the high 
seas when the vessel arriving in the U.S. is returning from the vessel 
on the high seas after having--
    (1) Transported export merchandise out of the U.S. to the vessel on 
the high seas and there transshipped the merchandise to that vessel; or
    (2) Transported import merchandise to the U.S. from the vessel on 
the high seas after having there received the merchandise from that 
vessel.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 83-214, 48 FR 46511, 
Oct. 13, 1983; T.D. 85-91, 50 FR 21428, May 24, 1985; T.D. 85-123, 50 FR 
29952, July 23, 1985; T.D. 93-96, 58 FR 67316, Dec. 21, 1993]



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

    Violation of the arrival or entry reporting requirements provided 
for in this part may result in the master being liable for certain civil 
and criminal penalties, as provided under 19 U.S.C. 1436, in addition to 
other penalties applicable under other provisions of law. The penalties 
include civil monetary penalties for failure to report arrival or make 
entry, and any conveyance used in connection with any such

[[Page 10]]

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 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

[[Page 11]]

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 Master's Oath on Entry of Vessel in Foreign 
Trade, Customs Form 1300, a General Declaration, Customs Form 1301, 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 item 17-22 of the 
General Declaration, 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 13 of the General Declaration.
    (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.
    (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]

[[Page 12]]



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 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

[[Page 13]]

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:

    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


[[Page 14]]


    (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.

    Preliminary entry allows a U.S. or foreign vessel arriving under 
circumstances which require it to formally enter, to discharge cargo, 
passengers, or baggage prior to making formal entry. The granting of 
preliminary entry may be accomplished electronically pursuant to an 
authorized electronic data interchange system, or by other means of 
communication approved by the Customs Service. Preliminary entry must be 
made in compliance with Sec. 4.30 of this part. The granting of 
preliminary vessel entry by the Customs Service may be conditioned upon 
the presentation of a completed Customs Form 1300 (Master's Certificate 
on Preliminary Entry) to Customs during discretionary vessel boarding, 
or upon the filing with Customs of a Customs Form 1300 or its equivalent 
by electronic or other means in instances where vessels are not boarded.

[T.D. 96-11, 61 FR 2414, Jan. 26, 1996]



Sec. 4.9  Formal entry.

    (a) Section 4.3 provides which vessels are subject to formal entry 
and which are exempt from formal entry requirements. The formal entry of 
an American vessel from a foreign port or place (see Sec. 4.3(b) of this 
part) shall be in accordance with 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) of this 
part). The formal entry of a foreign vessel arriving within the limits 
of any Customs port shall be in accordance with section 434, Tariff Act 
of 1930 (19 U.S.C. 1434). The required oath on entry shall be executed 
on Customs Form 1300.
    (b) Upon the entry of an American vessel, the master shall present 
to the port director, in addition to the Crew Lists required under 
Sec. 4.7(a), the certified copy of the Crew List on Customs and 
Immigration Form I-418 obtained, in accordance with the provisions of 
Sec. 4.68(a), upon the last previous clearance outward from the United 
States. The master shall deposit the vessel's document with the port 
director before or at the time of entry. The document may be returned 
upon request to the master of a vessel of less than 100 gross tons 
engaged in taking out fishing parties.
    (c) The master of any foreign vessel shall 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 master may deliver it to the 
consul of the nation to which such vessel belongs, in which event he 
shall file with the port director the certificate required by section 
434, Tariff Act of 1930 (19 U.S.C. 1434). If not delivered to the 
consul, the document shall be deposited in the customhouse. Whether 
delivered to the foreign consul or deposited at the customhouse, the 
document shall not be delivered to the master of the foreign vessel 
until clearance is granted under Sec. 4.61. It shall 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 section 434 of this Act until such master shall 
produce to him a clearance in due form from the director of the port 
where

[[Page 15]]

such vessel has been entered. Any consul offending against the 
provisions of this section shall be liable to a fine of not more than 
$5,000. (Tariff Act of 1930, section 438, as amended; 19 U.S.C. 1434).
    (d) The master of every vessel required to make entry shall present 
on entry the pratique required by the pertinent regulations of the 
United States Public Health Service and shall pay all required fees and 
penalties incurred.
    (e) The master, licensed deck officer, or purser may appear in 
person at the customhouse to enter the vessel; or the 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 representatives of the master.
    (f) Any master who fails to make entry as required by this section 
or who presents any document required by this section which is forged, 
altered, or false, may be liable for certain civil penalties, as 
provided under 19 U.S.C. 1436, in addition to other 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. 71-169, 36 FR 12603, July 2, 1971, as amended by T.D. 83-214, 48 
FR 46511, Oct. 13, 1983; T.D. 83-214, 48 FR 56043, Dec. 19, 1983; T.D. 
85-91, 50 FR 21428, May 24, 1985; T.D. 93-96, 58 FR 67316, Dec. 21, 
1993; T.D. 94-24, 59 FR 13200, Mar. 21, 1994; T.D. 95-77, 60 FR 50010, 
Sept. 27, 1995]



Sec. 4.10  Request for overtime services.

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

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



Sec. 4.11  Sealing of stores.

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



Sec. 4.12  Explanation of manifest discrepancy.

    (a)(1) Vessel masters or agents shall notify the port director on 
Customs Form 5931 of shortages (merchandise manifested, but not found) 
or overages (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

[[Page 16]]

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 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]



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)

[[Page 17]]

Master of the___________________________________________________________
                                                        (Name of vessel)
_______________________________________________________________________
                                                      (Port of shipment)
                                                 ------------------ 19--
                                                                  (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 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  Foreign equipment purchases by, and repairs to, American vessels.

    (a) Dutiability of foreign repairs and equipment purchases--(1) 
Items subject to duty. The equipment, or any part thereof, including 
boats, purchased for, or the repair parts or materials to be used, or 
the expenses for repairs made, including the cost of labor incurred, 
outside the United States, upon any vessel documented under the laws of 
the United States with a registry, coastwise trade license, or Great 
Lakes license endorsement, or intended to be employed in such trade, are 
dutiable at the rate of 50 percent ad valorem on the actual cost in the 
country where the items are purchased or the repairs are made. Liability 
for declaration, entry, and payment of duties accrues at the time of the 
first arrival of the vessel in a port of the United States. For the 
purposes of this section, equipment, repair parts or materials 
purchased, or repairs made, in American Samoa, the Guantanamo Bay Naval 
Station, Guam, Puerto Rico, or the U.S. Virgin Islands are not 
considered to have been purchased or made outside the United States.
    (2) Dutiable costs on specific types of vessels--(i) Fishing 
vessels. Documented vessels of the United States with a fishery license 
endorsement having a permit to touch and trade (see Sec. 4.15)

[[Page 18]]

and documented vessels with a fishery license endorsement which lack a 
permit to touch and trade are subject to this section.
    (ii) Government-owned or chartered vessels. Vessels owned or 
chartered by the United States Government, if documented with a 
registry, coastwise trade, or Great Lakes trade endorsement, or if 
undocumented, intended to engage in foreign, coastwise or Great Lakes 
trade, are subject to this section. See paragraph (b)(2)(i) of this 
section with respect to entry procedures for Government vessels.
    (iii) Vessels outside U.S. for two years or more--(A) Requirements 
for declaration and entry of dutiable items. If a vessel which is 
documented with a registry, coastwise trade, or Great Lakes trade 
endorsement is operated in international or foreign waters two years or 
more after its last departure from the U.S., the only dutiable items are 
fish nets and nettings whenever purchased and any other items purchased 
or repairs made during the first six months after the vessel's last 
departure from the U.S. Under these circumstances, only those items 
(with the exception of fish nets and nettings) purchased and repairs 
made outside the U.S. during the first six months after the vessel's 
last departure from the U.S. shall be declared and entered. Fish nets 
and netting purchased or repaired outside the U.S. shall be declared and 
entered whether or not purchased or repaired during the first six months 
after departure.
    (B) Exception. The provisions of Sec. 4.14(a)(2)(iii)(A) do not 
apply to a vessel designed and used primarily for transporting 
passengers and property if such vessel departed the U.S. for the sole 
purpose of obtaining equipment, parts, materials, or repairs.
    (iv) LASH Barges. Lighter-aboard-ship (LASH) barges (see Secs. 4.81 
and 4.81a) and similar vessels documented with a registry, coastwise 
trade, or Great Lakes trade endorsement or, if undocumented, intended to 
engage in such trade, are subject to this section.
    (b) Declaration and repair entry--(1) Declaration. Upon first 
arrival of the vessel in the United States, the owner or master shall 
declare on Customs Form 226 all equipment, parts, or materials 
purchased, and all repairs made, outside the United States. Except as 
provided in Sec. 4.14(a)(2) (iii)(B), the declaration is required 
regardless of the dutiable status of such items or expenses. The 
declaration shall be ready for production on demand and for inspection 
by the boarding officer and shall be presented as part of the original 
manifest when formal entry of the vessel is made. Estimated duties shall 
be deposited or a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.64 of this chapter shall be filed 
before the departure of the vessel, except as provided in paragraph 
(b)(2)(i) of this section. The amount of the bond shall be determined by 
the port director as provided in Sec. 113.13 of this chapter. See 
paragraph (g) of this section for applicable penalties.
    (2) Entry. All equipment, parts, or materials purchased for, and all 
repairs made outside the United States to, any vessel subject to the 
provisions of this section shall be entered on Customs Form 226 by the 
master or owner of the vessel. The entry shall be filed with the 
appropriate Customs officer at the port of first arrival within five 
working days after arrival. The Customs officer with whom the entry is 
filed shall forward it to the appropriate vessel repair liquidation 
unit. The party filing the entry shall mark it to indicate whether it is 
a full and complete account or an incomplete account. See paragraph (g) 
of this section for applicable penalties.
    (i) Entry procedures for vessels owned or chartered by the United 
States. Whenever the appropriate Customs officer determines that a 
Government-owned or chartered vessel subject to the provisions of this 
section (see paragraph (a)(2)(ii)) is being operated by an agency of the 
United States, or that a Government-owned or chartered vessel is being 
operated by a private party for an agency of the United States under an 
agreement that obligates the Government agency to pay any duty on the 
costs of repairs or purchases, the vessel shall be allowed to depart the 
port of first arrival without depositing estimated duties or furnishing 
a bond to cover estimated duties. In all other cases, the vessel shall 
be treated as though privately owned.

[[Page 19]]

    (ii) Time period for submitting evidence of cost. Whenever a repair 
entry is submitted as a full and complete account, the entry papers 
shall include evidence showing the cost of each item listed on the 
entry. If a repair entry is submitted as an incomplete account, the 
evidence must be submitted within 90 days from the date of the vessel's 
arrival, except that evidence of estimated foreign shipyard cost in the 
possession of or known to the vessel operator must be submitted at the 
time entry is made. If before the end of the 90-day period, the party 
that is required to furnish the evidence of cost submits a written 
request for an extension of time beyond the 90-day period, together with 
a satisfactory explanation of the delay, to the appropriate vessel 
repair liquidation unit, that unit may grant an additional 30-day 
extension of time to submit cost evidence. Any request for a further 
extension of time to furnish evidence of cost shall be submitted to the 
appropriate vessel repair liquidation unit, which shall transmit the 
request to Headquarters, U.S. Customs Service, Attention: Entry 
Procedures and Carriers Branch, for approval. If the costs shown on the 
complete account differ from the costs declared on the entry, the 
appropriate Customs officer may permit amendment of the entry.
    (A) Investigation to obtain evidence. If the required evidence is 
not furnished timely, or is of doubtful authenticity, the appropriate 
vessel repair liquidation unit shall use all available means to obtain 
the necessary information and may refer the matter to the Office of 
Investigations. If an investigation is conducted, the Office of 
Investigations shall obtain all available evidence on the cost of the 
repairs and any evidence with respect to the reason for the party's 
failure to submit the evidence in a timely fashion.
    (B) Concurrent time period for submission of costs and filing 
application for relief. The 90-day time period to submit evidence of 
cost on the entry is concurrent with the 90-day time period to submit an 
application for relief under paragraph (d)(1)(ii) of this section and 
will not operate to provide additional time to submit an application for 
relief. A request for additional time to submit evidence of cost may 
include a request for additional time to submit an application for 
relief.
    (c) Remission or refund of duty--(1) Vessel repair liquidation 
units. Vessel Repair Liquidation Units (VRLUs) are located in New York, 
New York; New Orleans, Louisiana; and San Francisco, California. The New 
York unit processes and liquidates vessel repair entries filed at ports 
on the Great Lakes and on the Atlantic Coast of the U.S. north of, but 
not including Norfolk, Virginia. The New Orleans unit processes and 
liquidates vessel repair entries filed at ports on the Atlantic Coast of 
the U.S. from Norfolk, Virginia, southward, and all U.S. ports on the 
Gulf of Mexico, including ports in Puerto Rico. The San Francisco unit 
processes and liquidates vessel repair entries filed at all ports on the 
Pacific Coast of the U.S., including those in Alaska and Hawaii. After 
entries are processed and liquidated, bulletin notices of liquidation 
are returned to original ports of entry for posting.
    (2) Authority. In cases in which both clearly applicable 
Headquarters precedent exists, and the resulting refund or remission of 
duty will be less than $50,000, the proper VRLU may approve or deny 
Applications for Relief. In cases in which clearly applicable precedent 
does not exist, or the resulting refund or remission will be $50,000 or 
greater, the Application for Relief will be referred for action to the 
Entry and Carrier Rulings Branch, Customs Headquarters.
    (3) Basis for remission or refund. Remission or refund of duty is 
authorized if good and sufficient evidence is furnished which shows any 
of the following circumstances exist:
    (i) Stress of weather or other casualty. The vessel, while in the 
regular course of its voyage, was compelled, by stress of weather or 
other casualty, while outside the United States, to purchase such 
equipment or make such repairs, to secure the safety and seaworthiness 
of the vessel to enable it to reach its port of destination in the 
United States. However, only the duty on the cost of the minimal repairs 
needed for the safety and seaworthiness of the vessel is subject to 
remission or refund. For the purposes of this section, the

[[Page 20]]

term ``casualty'' does not include any purchases or repairs necessitated 
by ordinary wear and tear, but does include a part's failure to function 
if satisfactory evidence shows that the specific part was repaired or 
serviced immediately before starting the voyage from the United States 
port and that the part failed to function within six months of such 
repair or servicing.
    (ii) United States parts and equipment installed with American 
labor. The equipment, equipment parts, repair parts or materials used on 
the vessel were manufactured or produced in the United States and 
purchased by the owner of the vessel in the United States, and the labor 
necessary to install such equipment or to make such repairs was 
performed by residents of the United States or by members of the regular 
crew of the vessel.
    (iii) Dunnage. The equipment, equipment parts, materials or labor 
were used as dunnage for cargo, or for the packing or shoring thereof, 
or in the erection of temporary bulkheads or other similar devices for 
the control of bulk cargo, or in the preparation (without permanent 
repair or alteration) of tanks for the carriage of liquid cargo.
    (d) Procedure for remission or refund of duties--(1) Application for 
relief--(i) Form and contents. The application for relief need not be in 
any particular form. The application for relief should allege that an 
item or a repair expense covered by the entry is not subject to duty 
under paragraph (a) of this section, or that the articles purchased or 
the repair expenses are within the provisions of paragraph (c) of this 
section, or that both conditions are present. The application for relief 
also shall certify that all foreign equipment, parts, or materials 
purchased for, and all foreign repairs made to, the vessel within one 
year immediately preceding the application have been declared as 
required by this section, or the application shall be deemed incomplete. 
The application for relief shall be signed by the master, owner, or 
operator of the vessel, or their authorized agent. If the application 
for relief is filed by a corporation, it shall be signed by an 
authorized corporate officer.
    (ii) Place and time of filing. The application for relief shall be 
filed with the appropriate Customs officer at the port where the vessel 
repair entry was made or with the appropriate vessel repair liquidation 
unit (see paragraph (c)(1) of this section). If filed at the port where 
the entry was made, the Customs officer who receives the application 
shall promptly forward it, together with his comments, if any, to the 
appropriate vessel repair liquidation unit. The application for relief, 
with supporting evidence, shall be filed within 90 days from the date of 
first arrival of the vessel. However, if good cause is shown, the 
appropriate vessel repair liquidation unit may authorize one 30-day 
extension of time to file beyond the 90-day filing period.
    (iii) Supporting evidence. Unless such evidence is already filed 
with Customs, each application for relief shall include duplicate copies 
of the following evidence, in addition to any other documents the 
applicant wishes to submit in support of the application:
    (A) All itemized bills, receipts, and invoices covering items 
specified in paragraph (a)(1) of this section, segregating the cost of 
those items for which relief is sought from all other items listed in 
the vessel repair entry.
    (B) Full and complete photocopies of the relevant parts of the 
vessel's logs.
    (C) Photocopies of any American Bureau of Shipping or other 
classification society report of the cause and type of damage and the 
nature of the remedial action taken, together with photocopies of any 
certifications of seaworthiness.
    (D) A certification by the master or other responsible vessel 
officer with personal knowledge of the facts relating to the relief 
sought, including, but not limited to, details of the claimed stress of 
weather or other casualty, when and where it occurred, the damages due 
to such stress of weather or other casualty, and the place and date 
where the vessel was repaired or the equipment for the vessel was 
purchased.
    (E) A certification by the master as to whether the repairs or 
equipment purchases were necessary for the safety and seaworthiness of 
the vessel to enable it to reach its port of destination in the United 
States.

[[Page 21]]

    (F) A written description of the circumstances involved by the 
master or other responsible vessel officer having knowledge of the facts 
when remission or refund is sought under the provisions of paragraph 
(c)(3)(ii) (relating to the use of American equipment and labor) or 
(c)(3)(iii) (relating to dunnage) of this section.
    (G) In the case of LASH barges and similar unmanned vessels, the 
evidence required in paragraphs (d)(1)(iii) (B), (D), (E), and (F) of 
this section may be omitted, and in lieu thereof, the owner or operator 
of each vessel shall submit evidence showing that: (1) The vessel was 
inspected immediately prior to its lading aboard the vessel which 
transported it to a foreign port on the voyage in which the damage 
occurred, (2) the vessel was then found to be in seaworthy condition, 
(3) the damage was discovered during the course of the foreign voyage, 
and (4) the repairs were necessary for the safety and seaworthiness of 
the vessel to enable it to reach its port of destination in the United 
States.
    (iv) Documentary evidence. All documents submitted in support of an 
application must be certified by the master or owner of the vessel to be 
originals or copies of originals. If a vessel is owned or operated by a 
corporation, the master or an authorized corporate officer shall certify 
the documents. Documents in a foreign language shall be accompanied by 
an English translation that is certified for accuracy by the translator.
    (v) Action. Within 60 days after receipt of an application for 
relief by a vessel repair liquidation unit, the appropriate vessel 
repair liquidation unit shall either approve or deny the application for 
relief or forward it to Headquarters, U.S. Customs Service, Attention: 
Entry Procedures and Carriers Branch, for advice, as provided in 
paragraph (c)(2) of this section. The appropriate vessel repair 
liquidation unit shall give prompt written notice of any final decision 
to the party who submitted the application. The notice shall advise the 
party of its right to petition for review of the decision under 
paragraph (d)(2) of this section. If the entry has been liquidated, 
reliquidation is required.
    (vi) Suspension of liquidation. If an application for relief has 
been filed within the time period provided in paragraph (d)(1)(ii) of 
this section, liquidation of the vessel repair entry shall be suspended 
until 30 days after the date of the written notice provided for in 
paragraph (d)(1)(v) of this section.
    (2) Petition for review on a denial of an application for relief--
(i) Form. If an applicant is dissatisfied with the decision on its 
application for relief, the applicant may file a petition for review of 
that decision. The petition for review need not be in any particular 
form. The petition for review must identify the decision on the 
application for relief and must detail the exceptions taken to that 
decision. The petition shall be signed by the master, owner, or operator 
of the vessel, or their authorized agent. If the petition for review is 
filed by a corporation, it must be signed by a duly authorized corporate 
officer.
    (ii) Place and time of filing. The petition for review shall be 
addressed to the Commissioner of Customs and shall be filed with the 
appropriate vessel repair liquidation unit within 30 days after the date 
of the written notice to the party of the decision on the application 
for relief, as provided in paragraph (d)(1)(v) of this section. However, 
if good cause is shown, the appropriate vessel repair liquidation unit 
may authorize one additional 30-day extension of time.
    (iii) Action. The appropriate vessel repair liquidation unit 
promptly shall transmit a copy of the petition for review, any comments 
and recommendations he may have on the petition for review, and the 
entire file on the application for relief to Headquarters, U.S. Customs 
Service, Attention: Entry Procedures and Carriers Branch, for decision. 
After notification of the decision by Headquarters, the appropriate 
vessel repair liquidation unit shall give written notification of that 
decision to the party who filed the petition for review. The notice will 
inform the party that no further suspension of liquidation will be 
permitted.
    (iv) Suspension of liquidation. If an original petition for review 
is filed within the time provided for in paragraph (d)(2)(ii) of this 
section, liquidation of the vessel repair entry shall be

[[Page 22]]

suspended further until the vessel repair liquidation unit notifies the 
party who filed the petition of the decision on the petition. Following 
notification of the Headquarters decision to the party who filed the 
petition, the vessel repair liquidation unit shall promptly initiate 
liquidation of the entry in accordance with that decision.
    (e) Liquidation of vessel repair entries, time limits. If evidence 
of cost is available and the appropriate vessel repair liquidation unit 
receives written notification from the master, owner, or operator of the 
vessel, or their authorized agent, that an application for relief will 
not be filed, the vessel repair liquidation unit promptly shall initiate 
liquidation of the entry. In all other cases in which the evidence of 
cost is available, the entry may be liquidated 60 days after arrival of 
the vessel, or at the expiration of any extension of time granted under 
paragraph (b)(2)(ii) of this section to furnish evidence of cost, unless 
an application for relief is filed timely as provided in paragraph 
(d)(1)(ii) of this section. If an application for relief is filed 
timely, the vessel repair entry may be liquidated 30 days after the date 
of the written notice to the party who filed the application for relief, 
as provided in paragraph (d)(1)(v), unless a petition for review is 
filed timely under paragraph (d)(2)(ii) of this section. If a petition 
for review is filed timely, the vessel repair entry may be liquidated 
after the date of the notification of the decision on the petition to 
the party who filed the petition.
    (f) Protests. Following liquidation of an entry, a protest under 
part 174 of this chapter may be filed against the decision to treat an 
item or a repair as dutiable under paragraph (a) of this section, or 
against the decision denying the remission or refund of vessel repair 
duties under paragraph (c) of this section.
    (g) Penalties--(1) Failure to report, enter, or pay duty. If the 
owner or master of a vessel subject to the provisions of paragraph (a) 
of this section willfully or knowingly neglects or fails to report, make 
entry, and pay duties as required, or if he makes any false statement in 
respect of the purchases or repairs described in this section without 
reasonable cause to believe the truth of the statements, or aids or 
procures the making of any false statement as to any material matter 
without reasonable cause to believe the truth of the statement, the 
vessel, with its tackle, apparel, and furniture, or a monetary amount up 
to the value thereof as determined by the Secretary of the Treasury, to 
be recovered from the owner, shall be subject to seizure and forfeiture.
    (2) False declaration. If any person required to file a declaration 
on Customs Form 226, by paragraph (b)(1) of this section, or to file an 
entry on Customs Form 226, by paragraph (b)(2) of this section, 
willfully and knowingly provides any false information, or willfully and 
knowingly omits any required information, that person shall be subject 
to the criminal penalties provided for in 18 U.S.C. 1001.

[T.D. 80-237, 45 FR 64565, Sept. 30, 1980, as amended by T.D. 82-227, 47 
FR 54065, Dec. 1, 1982; T.D. 83-214, 48 FR 46511, Oct. 13, 1983; T.D. 
84-149, 49 FR 28698, July 16, 1984; T.D. 84-213, 49 FR 41163, Oct. 19, 
1984; T.D. 85-123, 50 FR 29952, July 23, 1985; T.D. 91-77, 56 FR 46114, 
Sept. 10, 1991; T.D. 93-57, 58 FR 39655, July 26, 1993; T.D. 93-65, 58 
FR 44128, Aug. 19, 1993; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; T.D. 
94-41, 59 FR 18481, Apr. 19, 1994; T.D. 95-77, 60 FR 50010, Sept. 27, 
1995; T.D. 99-27, 64 FR 13675, Mar. 22, 1999]



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

[[Page 23]]

of such equipment, whether intended at the time of departure or not, are 
subject to declaration, entry, and payment of duty pursuant to section 
466 of the Tariff Act of 1930, as amended (19 U.S.C. 1466). The duty may 
be remitted if it is established that the purchases resulted from stress 
of weather or other casualty.
---------------------------------------------------------------------------

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

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

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



Sec. 4.16  Entry and clearance on board vessels.

    (a) A master, owner, or agent of a vessel described in the Act of 
June 16, 1937, who desires that arrival may be reported, entry made, and 
clearance obtained on board the vessel shall file with the 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 the port director deems 
appropriate but not less than $1,000.
    (b) If the application is approved, the port director or such 
Customs officer as may be designated by him shall receive the report of 
arrival and the entry of the vessel and grant it clearance on board the 
vessel.
    (c) For the purposes of the said act the term ``at night'' shall 
include the hours from 5 p.m. of one day to 8 a.m. of the following day, 
and the term ``holiday'' shall include only national holidays.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 68-247, 33 FR 15021, 
Oct. 8, 1968; T.D. 84-213, 49 FR 41163, Oct. 19, 1984; 49 FR 44867, Nov. 
9, 1984; T.D. 95-77, 60 FR 50010, Sept. 27, 1995]



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

[[Page 24]]

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 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.


[[Page 25]]

    (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 
master's oath, 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.
    (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]



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.

[[Page 26]]

    (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.
    (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.

[[Page 27]]

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.
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 in the Finding Aids section of 
this volume.



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

[[Page 28]]

this section shall be filed with the Customs officer to whom payment was 
made. After verification of the pertinent facts asserted in the claim, 
the application shall be forwarded with any necessary report or 
recommendation to the appropriate port director. Applications for refund 
of special tonnage tax and light money (see Sec. 4.20(c)) with the 
reports and recommendations submitted therewith shall be forwarded by 
the port director to the Commissioner of Customs for decision. Any 
refund authorized by the Port Director under paragraph (a) of this 
section or any refund of special tonnae tax or light money authorized by 
the Commissioner of Customs shall be made by the appropriate Customs 
officer. The records of tonnage tax shall be clearly noted to show each 
refund authorized.
    (c) The application shall be a direct request for the refund of a 
definite sum, showing concisely the reasons therefor, the nationality 
and name of the vessel, and the date, place, and amount of each payment 
for which refund is requested. The application shall be made within 1 
year from date of the payment. A protest against a payment shall not be 
accepted as an application for its refund.
    (d) When the application is based upon a claim that more than five 
payments of regular tax at either the 2-cent or the 6-cent rate have 
been made during a tonnage year, the application shall be supported by a 
statement from the appropriate Customs officer at the port where the 
application is submitted and from the appropriate Customs officer at 
each port at which any claimed payment was made verifying the facts and 
showing in each case whether refunds have been authorized.
    (e) The application shall include a certificate by the owner or by 
the owner's agent that payment of tonnage tax at the applicable rate has 
been or will be made for each entry of the vessel on a voyage on which 
that rate is applicable before the end of the current tonnage year, 
exclusive of any payment which has been refunded or which may be 
refunded as a result of such application.
    (f) The owner or operator of the vessel involved, or other party in 
interest, may file with the port Director a petition addressed to the 
Commissioner of Customs for a review of the port director's decision on 
an application for refund of regular tonnage tax. Such petition shall be 
filed in duplicate within 30 days from the date of notice of the initial 
decision, shall completely identify the case, and shall set forth in 
detail the exceptions to the decision.

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

                      Landing and Delivery of Cargo



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

    (a) Except as prescribed in paragraph (f), (g), or (k) of this 
section or in Sec. 123.8 of this chapter, and except in the case of a 
vessel exempt from entry or clearance 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

[[Page 29]]

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 shall 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 shall specifically indicate the type of service desired at that 
time, unless a term permit or term special license has been issued. 
Arrangements, in the case of a term permit or term special license, 
shall be 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. 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 shall 
be specifically noted on the application.
    (c) The request for a permit or a special license shall not be 
approved (previously issued term permits or special licenses shall be 
revoked) unless the carrier complies with the provisions of paragraphs 
(l) and (m) of this section regarding terminal facilities and employee 
lists, and the required cash deposit or bond has been filed on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.64 of 
this chapter relating to international carriers.62 When a 
carrier has on file a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.63 of this chapter relating to basic 
custodial bond conditions, no further bond shall be required solely by 
reason of the unlading or lading at night or on a Sunday or holiday of 
merchandise or baggage covered by bonded transportation 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

[[Page 30]]

revoked by the port director, terminated by the carrier, or 
automatically cancelled by termination of the supporting continuous 
bond, to unlade merchandise, passengers, or baggage, or to lade 
merchandise or baggage during overtime hours or on a Sunday or holiday 
when Customs supervision is required. (See Sec. 24.16 of this chapter 
regarding pleasure vessels.)
    (h) A special license for the unlading or lading of a vessel at 
night or on a Sunday or holiday shall be refused by the port director if 
the character of the merchandise or the conditions or facilities at the 
place of unlading or lading render the issuance of such special license 
dangerous to the revenue. In no case shall a special license for 
unlading or lading at night or on a Sunday or holiday be granted except 
on the ground of commercial necessity.
    (i) The port director shall not issue a permit or special license to 
unlade cargo or equipment of vessels arriving directly or indirectly 
from any port or place outside the United States, except on compliance 
with one or more of the following conditions:
    (1) The merchandise shall have been duly entered and permits issued; 
or
    (2) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.64 of this chapter relating to international carriers, 
or cash deposit shall have been given; or
    (3) The merchandise is to be discharged into the custody of the port 
director as provided for in section 490(b), Tariff Act of 1930.
    (j) Bonds are not required under this section for vessels owned by 
the United States and operated for its account.
    (k) In the case of vessels of 5 net tons or over which are used 
exclusively as pleasure vessels and which arrive from any country, the 
port director in his discretion and under such conditions as he deems 
advisable may allow the required application for unlading passengers and 
baggage to be made orally, and may authorize his inspectors to grant 
oral permission for unlading at any time, and to grant requests on 
Customs Form 3171 for overtime services.
    (l) A permit to unlade pursuant to this part 4 or part 122 of this 
chapter shall not be granted unless the port director determines that 
the applicant provides or the terminal at which the applicant will 
unlade the cargo provides (1) sufficient space, capable of being locked, 
sealed, or otherwise secured, for the storage immediately upon unlading 
of cargo whose weight-to-value ratio renders it susceptible to theft or 
pilferage and of packages which have been broken prior to or in the 
course of unlading; and (2) an adequate number of vehicles, capable of 
being locked, sealed, or otherwise secured, for the transportation of 
such cargo or packages between the point of unlading and the point of 
storage. A term permit to unlade shall be revoked if the port director 
determines subsequent to such issuance that the requirements of this 
paragraph have not been met.
    (m) A permit to unlade pursuant to this part 4 or part 122 of this 
chapter shall not be granted to an importing carrier, and a term permit 
to unlade previously granted to such a carrier 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

[[Page 31]]

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]



Sec. 4.31  Unlading or transshipment due to casualty.

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

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



Sec. 4.32  Vessels in distress; landing of cargo.

    (a) When a vessel from a foreign port arrives in distress at a port 
other than that to which it is destined, a permit to land merchandise or 
baggage may be issued if such action is necessary. Merchandise and 
baggage so unladen shall be taken into Customs custody and, if it has 
not been transported in violation of the coastwise laws, may be entered 
and disposed of in the same manner as any other imported merchandise or 
may be reladen without entry to be carried to its destination on the 
vessel from which it was unladen, subject only to charges for storage 
and safekeeping.
    (b) A bond on Customs Form 301, containing the bond conditions set 
forth in 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;

[[Page 32]]

    (2) Treated as unclaimed and stored at the risk and expense of its 
owner; or
    (3) Reladen upon the same vessel without entry, for transportation 
to its original destination.
    (c) Substitution of ports of discharge on manifest. After entry, the 
Cargo Declaration, Customs Form 1302, of a vessel may be changed at any 
time to permit discharge of manifested cargo at any domestic port in 
lieu of any other port shown on the Cargo Declaration, if:
    (1) A written application for the diversion is made on the amended 
Cargo Declaration by the master, owner, or agent of the vessel to the 
director of the port where the vessel is located, after entry of the 
vessel at that port;
    (2) An amended Cargo Declaration, under oath, covering the cargo, 
which it is desired to divert, is furnished in support of the 
application and is filed in such number of copies as the port director 
shall require for local Customs purposes; and
    (3) The certified traveling manifest is not altered or added to in 
any way by the master, owner, or agent of the vessel. When an 
application under paragraph (c)(1) of this section is approved, the port 
director shall securely attach an approved copy of the amended manifest 
to the traveling manifest and shall send one copy of the amended Cargo 
Declaration to the director of the port where the vessel's bond was 
filed.
    (d) Retention of cargo on board for later return to the United 
States. If, as the result of a strike or other emergency at a United 
States port for which inward foreign cargo is manifested, it is desired 
to retain the cargo on board the vessel for discharge at a foreign port 
but with the purpose of having the cargo returned to the United States, 
an application may be made by the master, owner, or agent of the vessel 
to amend the vessel's Cargo Declaration, Customs Form 1302, under a 
procedure similar to that described in paragraph (c) of this section, 
except that a foreign port shall be substituted for the domestic port of 
discharge. If the application is approved, it shall be handled in the 
same manner as an application filed under paragraph (c) of this section. 
However, before approving the application, the port director is 
authorized to require such bond as he deems necessary to insure that 
export control laws and regulations are not circumvented.

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



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

    (a) Prematurely landed cargo. Upon receipt of a satisfactory written 
application from the owner or agent of a vessel establishing that cargo 
was prematurely landed and left behind by the importing vessel through 
error or emergency, the port director may permit inward foreign cargo 
remaining on the dock to be reladen on the next available vessel owned 
or chartered by the owner of the importing vessel for transportation to 
the destination 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

[[Page 33]]

shown on the Cargo Declaration, Customs Form 1302, of the importing 
vessel, provided the importing vessel actually entered the port of 
destination.67
---------------------------------------------------------------------------

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

    (c) Inaccessibly stowed cargo. Cargo so stowed as to be inaccessible 
upon arrival at destination may be retained on board, carried forward to 
another domestic port or ports, and returned to the port of destination 
in the importing vessel or in another vessel owned or chartered by the 
owner of the importing vessel in the same manner as other overcarried 
cargo.
    (d) Application for forwarding cargo. When it is desired that 
prematurely landed cargo, overcarried cargo, or cargo so stowed as to be 
inaccessible, be forwarded to its destination by the importing vessel or 
by another vessel owned or chartered by the owner of the importing 
vessel in accordance with paragraph (a), (b), or (c) of this section, 
the required application shall be filed with the local director of the 
port of premature landing or overcarriage by the owner or agent of the 
vessel. The application shall be supported by a Cargo Declaration, 
Customs Form 1302, in such number of copies as the port director may 
require. Whenever practicable, the application shall be made on the face 
of the Cargo Declaration below the description of the merchandise. The 
application shall specify the vessel on which the cargo was imported, 
even though the forwarding to destination is by another vessel owned or 
chartered by the owner of the importing vessel, and all ports of 
departure and dates of sailing of the importing vessel. The application 
shall be stamped and signed to show that it has been approved.
    (e) Manifesting prematurely landed or overcarried cargo. One copy of 
the Cargo Declaration, Customs Form 1302, shall be certified by Customs 
for use as a substitute traveling manifest for the prematurely landed or 
overcarried cargo being forwarded as residue cargo, whether or not the 
forwarding vessel is also carrying other residue cargo. If the 
application for forwarding is made on the Cargo Declaration, the new 
substitute traveling manifest shall be stamped to show the approval of 
the application. If the application is on a separate document, a copy 
thereof, stamped to show its approval, shall be attached to the 
substitute traveling manifest. An appropriate cross-reference shall be 
placed on the original traveling manifest to show that the vessel has 
one or more substitute traveling manifests. A permit to proceed endorsed 
on a General Declaration, Customs Form 1301, 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

[[Page 34]]

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]



Sec. 4.35  Unlading outside port of entry.

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

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



Sec. 4.36  Delayed discharge of cargo.

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

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

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

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



Sec. 4.37  General order.

    (a) Any merchandise or baggage regularly landed but not covered by a 
permit for its release shall be allowed to remain at the place of 
unlading until 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

[[Page 35]]

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 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]
---------------------------------------------------------------------------

    \74\ [Reserved]
---------------------------------------------------------------------------



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

[[Page 36]]

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

[[Page 37]]

[GRAPHIC] [TIFF OMITTED] TC14NO91.167


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

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



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

    (a) The provisions of Sec. 4.30 relating to unlading under a permit 
on Customs Form 3171 are applicable to the unlading of articles, other 
than cargo or baggage, which have been laden on a vessel outside the 
Customs territory of the United States, regardless of the trade in which 
the vessel may be engaged at the time of unlading, except that such 
provisions do not apply to such articles which have already been 
entered.
    (b) Any articles other than cargo or baggage landed for delivery for 
consumption in the United States shall be treated in the same manner as 
other imported articles. A notation as to the landing of such articles, 
together with the number of the entry made therefor, shall be made on 
the vessel's store list, but such notation shall not subject the 
articles to the requirement of being included in a post entry to the 
manifest.
    (c) Bags or dunnage constituting equipment of a vessel may be landed 
temporarily and reladen on such vessel under Customs supervision without 
entry.
    (d) Articles claimed to be sea or ships' stores which are in excess 
of the reasonable requirements of the vessel

[[Page 38]]

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.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 93-66, 58 FR 44130, Aug. 
19, 1993]



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

    Ship's or sea stores, supplies, and equipment of a vessel wrecked 
either in the waters of the United States or outside such waters, on 
being recovered and brought into a United States port, and like articles 
landed from a vessel dismantled in a United States port shall be subject 
to the same Customs treatment as would apply if the articles were landed 
from a vessel arriving in the ordinary course of trade. Parts of the 
hull and fittings recovered from a vessel which arrived in the United 
States in the course of navigation and was wrecked in the waters of the 
United States or was dismantled in this country are free of duties and 
import taxes, but if such articles are recovered from vessels outside 
the waters of the United States and brought into a United States port, 
they shall be treated as imported merchandise.



Sec. 4.41  Cargo of wrecked vessel.

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

[[Page 39]]

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 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) Except as otherwise provided for in this section, every vessel 
bound for a foreign port or ports shall 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.
    (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

[[Page 40]]

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 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]



Sec. 4.61  Requirements for clearance.

    (a) Application for clearance for a vessel intending to depart for a 
foreign port shall be made by filing the oath, Customs Form 1300, and a 
General Declaration, Customs Form 1301, by or on behalf of the master at 
the customhouse. The master, licensed deck officer, or purser may appear 
in person to clear the vessel, or the 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. Clearance shall be granted on 
Customs Form 1378.
    (b) Before clearance is granted to a vessel bound to a foreign port, 
the port director shall verify compliance with the requirements in 
respect of the following matters which are more fully stated in the 
provisions of law or of these regulations indicated in the list:
    (1) Accounting for inward cargo (Sec. 4.62).
    (2) Outward Cargo Declarations; shippers export declarations 
(Sec. 4.63).
    (3) Documentation (Sec. 4.64).
    (4) Verification of nationality and tonnage (Sec. 4.65).
    (5) Verification of inspection (Sec. 4.66).
    (6) Inspection under State laws (46 U.S.C. App. 97).
    (7) Closed ports or places (Sec. 4.67).
    (8) Crew; passengers (Sec. 4.68).
    (9) Shipping articles and enforcement of Seamen's Act (Sec. 4.69).
    (10) Medicine and slop chests.
    (11) Load line regulations (Sec. 4.65a).
    (12) Carriage of United States securities, etc.97
---------------------------------------------------------------------------

    \97\ ``All vessels belonging to citizens of the United States, and 
bound from any port in the United States to any other port therein, or 
to any foreign port, or from any foreign port to any port in the United 
States shall, before clearance, receive on board all such bullion, coin, 
United States notes and bonds and other securities, as the Government of 
the United States or any department thereof, or any minister, consul, 
vice consul, or other agent of the United States abroad, shall offer, 
and shall securely convey and promptly deliver the same to the proper 
authorities or consignees, on arriving at the port of destination; and 
shall receive for such service such reasonable compensation as may be 
allowed to other carriers in the ordinary transactions of business.'' 
(46 U.S.C. 98)
    98 [Reserved]
---------------------------------------------------------------------------

    (13) Carriage of mail.
    (14) Pratique (Sec. 4.70).
    (15) Inspection of vessels carrying livestock (Sec. 4.71).
    (16) Inspection of meat, meat-food products, and inedible fats 
(Sec. 4.72).
    (17) Tobacco seed and plants.99
---------------------------------------------------------------------------

    \99\ ``It shall be unlawful to export any tobacco seed and/or live 
tobacco plants from the United States or any Territory subject to the 
jurisdiction thereof, to any foreign country, port, or place, unless 
such exportation and/or transportation is in pursuance of a written 
permit granted by the Secretary of Agriculture. Such permit shall be 
granted by the Secretary only upon application therefor and after proof 
satisfactory to him that such seed or plants are to be used for 
experimental purposes only.'' (7 U.S.C. 516)

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

[[Page 41]]

    (18) Neutrality exportation of arms and munitions (Sec. 4.73).
    (19) 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).
    (20) Orders restricting shipping (Sec. 4.74).
    (21) Estimated duties deposited or a bond given to cover duties on 
foreign repairs and equipment for vessels of the United States (Sec. 
4.14).
    (22) Illegal discharge of oil (Sec. 4.66a).
    (23) Attached or arrested vessel.100a
---------------------------------------------------------------------------

    \100\ [Reserved]
    100a See Federal Rules of Civil Procedure, Supplemental 
Rule (Admiralty and Maritime) E(4)(b) (28 U.S.C. Appendix).
---------------------------------------------------------------------------

    (24) Immigration laws.100b
---------------------------------------------------------------------------

    \100b\ See 8 U.S.C. 1221, 1223, 1227, 1253, 1281, 1283-1286, 1322, 
and 1323; 8 C.F.R. 280 (CRA 17-18-A).
---------------------------------------------------------------------------

    (c) A new vessel built in the United States for foreign account 
shall be cleared under a certificate of record, Coast-Guard Form 1316, 
in lieu of a marine document.
    (d) Clearance shall 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.101
---------------------------------------------------------------------------

    \101\ ``It shall be unlawful for any vessel belonging to or 
operating under the jurisdiction of any foreign state to use the flag of 
the United States thereon, or to make use of any distinctive signs or 
markings, indicating that the same is an American vessel.'' (22 U.S.C. 
454a)
    102-103 [Reserved]

[28 FR 14696, Dec. 31, 1963, as amended by T.D. 68-217, 33 FR 12308, 
Aug. 31, 1968; T.D. 69-210, 34 FR 14733, Sept. 24, 1969; T.D. 70-213, 35 
FR 15637, Oct. 6, 1970; T.D. 71-169, 36 FR 12603, July 2, 1971; T.D. 73-
250, 38 FR 24354, Sept. 7, 1973; T.D. 75-133, 40 FR 24518, June 9, 1975; 
T.D. 77-255, 42 FR 56321, Oct. 25, 1977; T.D. 82-145, 47 FR 35475, Aug. 
16, 1982; T.D. 95-77, 60 FR 50010, Sept. 27, 1995]



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 properly 
executed Master's Oath on Entry of Vessel in Foreign Trade, 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 
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

[[Page 42]]

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]



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.
    (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-

[[Page 43]]

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 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.

[[Page 44]]

    (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  Crew; passengers.

    (a) Clearance shall not be granted to any vessel bound on a foreign 
voyage or engaged in the whale fishery until a crew list has been 
delivered to the port director in duplicate on Customs and Immigration 
Form I-418. The port director shall certify the duplicate copy and 
return it to the master for later presentation to Customs (see 
Sec. 4.9(b)).
    (b) No vessel shall be granted a clearance while it has on board any 
citizen of the United States except in accordance with the rules and 
regulations prescribed by the Secretary of State pursuant to 
Proclamation 2523 issued by the President on November 14, 1941 (3 CFR, 
1943 Cum. Supp.).
    (c) No vessel having berth or stateroom accommodations for 50 or 
more passengers and embarking passengers at U.S. ports shall 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 evidencing compliance with sections 2 
and 3 of Pub. L. 89-777 (46 U.S.C. 817d, 817e).

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 67-214, 32 FR 13186, 
Sept. 16, 1967; T.D. 83-214, 48 FR 46512, Oct. 13, 1983]



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  Pratique.

    No clearance shall be granted to a vessel subject to the foreign 
quarantine regulations of the Public Health Service unless it has been 
issued a certificate of free pratique or has been remanded to another 
port in the United States.



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

[[Page 45]]

pertinent regulations of the U.S. Department of Agriculture, Food Safety 
and Inspection Service, Meat and Poultry Inspection (9 CFR part 322). If 
such certificate has been obtained but is unavailable at the scheduled 
time of a vessel's departure, the vessel may be cleared on the basis of 
the receipt of a statement, under the shipper's or shipper's agent's 
letterhead, certifying the number of boxes, the number of pounds, the 
product name and the U.S. Department of Agriculture export certificate 
number that covers the shipment of the product. If such statement has 
been used as the basis for obtaining vessel clearance, the duplicate of 
the certificate must be filed with Customs within the time period 
prescribed by Sec. 4.75.
    (b) No clearance shall be granted to any vessel carrying tallow, 
stearin, oleo oil, or other rendered fat derived from cattle, sheep, 
swine, or goats for export from the United States, which has not been 
inspected, passed, and marked by the United States Department of 
Agriculture, unless the port director is furnished with a certificate by 
the exporter that the article is inedible.

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



Sec. 4.73  Neutrality; exportation of arms and munitions.

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

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

    (b) The port director shall refuse clearance for and detain any 
vessel manifestly built for warlike purposes and about to depart from 
the United States with a cargo consisting principally of arms and 
munitions of war 105 when the number of men intending to sail 
or other circumstances render it probable that the vessel is intended to 
commit hostilities against the subjects, citizens, or property or any 
foreign country, with which the United States is at peace, until the 
decision of the President thereon is received, or until the owners shall 
have given bond 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

[[Page 46]]

forma manifest) on the General Declaration, Customs Form 1301, 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 legend, ``This incomplete 
Cargo Declaration is filed in accordance with Sec. 4.75, Customs 
Regulations,'' shall be inserted in item 16 of the General Declaration. 
The form shall be appropriately modified to indicate that it is an 
incomplete Cargo Declaration, and the Master's Oath on Entry of Vessel 
in Foreign Trade, Customs Form 1300 (see Sec. 4.63(a)), shall be 
executed.
    (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 General Declaration on Customs Form 1301. The oath of the 
master or agent on the Master's Oath on Entry of Vessel in Foreign 
Trade, Customs Form 1300 (see Sec. 4.63(a)), shall be properly executed 
before acceptance. 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]

                           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

[[Page 47]]

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 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.

[[Page 48]]

    (g) Certain vessels not documented under the laws of the United 
States which are acquired by or made available to the Secretary of 
Commerce may be documented under section 3 of the Act of August 9, 1954 
(50 U.S.C. 198). Such vessels shall not engage in the coastwise trade 
unless in possession of a valid unexpired permit to engage in that trade 
issued by the Secretary of Commerce under authority of section 3(c) of 
the said Act.
    (h) A vessel which is at least 50 percent owned by a citizen as 
defined in 46 CFR subpart 68.05, and which, except for citizenship 
requirements, is otherwise entitled to be documented with a coastwise 
endorsement, may be documented with a limited coastwise endorsement, 
provided the vessel is owned by a not-for-profit oil spill response 
cooperative or by one or more members of such a cooperative who dedicate 
the vessel to the use of the cooperative (46 U.S.C. 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

[[Page 49]]

other foreign port) and the passenger disembarks at a coastwise port 
other than the port of embarkation, there is a violation of the 
coastwise law.
    (3) If the passenger is on a voyage to one or more coastwise ports 
and a distant foreign port or ports (whether or not the voyage includes 
a nearby foreign port or ports) and the passenger disembarks at a 
coastwise port, there is no violation of the coastwise law provided the 
passenger has proceeded with the vessel to a distant foreign port.
    (c) An exception to the prohibition in this section is the 
transportation of passengers between ports in Puerto Rico and other 
ports in the U.S. on passenger vessels not qualified to engage in the 
coastwise trade. Such transportation is permitted until there is a 
finding under 46 U.S.C. 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

[[Page 50]]

the port where the vessel first departs directly for a foreign port.
    (e) Before any foreign vessel shall depart 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 shall 
apply to the port director for a permit to proceed by filing a General 
Declaration, Customs Form 1301, in duplicate. If a vessel is proceeding 
in ballast and therefore Cargo Declaration, Customs Form 1302, is 
omitted, the word ``None'' shall be inserted in item 17 of the General 
Declaration and the words ``No merchandise on board'' shall be inserted 
in item 13 of the General Declaration. However, articles to be 
transported in accordance with Sec. 4.93 shall be manifested on Cargo 
Declaration, as required by Sec. 4.93(c). Three copies of the Cargo 
Declaration shall be filed with the port director. The required master's 
oath shall be executed on the Master's Oath on Entry of Vessel in 
Foreign Trade, Customs Form 1300 (see Sec. 4.63(a)). When the port 
director grants the permit by making an appropriate endorsement on the 
General Declaration, (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, shall be returned to the 
master. The traveling Crew's Effects Declaration Customs Form 1304 and 
all unused crewmembers' declarations on Customs Form 5129 shall 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 shall execute a receipt for all unused crewmembers' 
declarations which are returned to him. Immediately upon arrival at the 
next United States port the master shall report his arrival to the port 
director. He shall make entry within 48 hours by filing with the port 
director the permit to proceed on General Declaration received at the 
previous port, a newly executed General Declaration, 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 required master's oath shall be 
executed on The Master's Oath on Entry of Vessel in Foreign Trade (see 
Sec. 4.63(a)). The traveling Crew's Effects Declaration and all unused 
crewmembers' declarations on Customs Form 5129 returned at the prior 
port to the master shall 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 Customs Form 1301 must 
be obtained. The required oath shall be executed on Customs Form 1300. 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 and a Customs 
Form 7512-C must be prepared for 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, Form 7512-C obtained at the preceding port, a new 
master's oath, and a new General Declaration (Customs Form 1301). If 
only

[[Page 51]]

part of the inward foreign cargo is unladen, a new permit to proceed 
must be obtained, the inward foreign manifests shall be attached to it, 
the master's oath shall be filed, a new Form 7512-C shall be prepared.
    (2) At the port where a LASH-type barge begins a coastwise movement 
with export cargo, a permit to proceed on Customs Form 1301 and a 
master's oath must be presented to the appropriate Customs officer. A 
single permit to proceed and master's oath may be presented for all the 
barges proceeding from the same port of lading in the same tow. Required 
shipper's export declarations for LASH-type barges must be filed at the 
port where the barges will be taken aboard a barge-carrying vessel. 
Where a complete manifest is not available at the port of lading, the 
permit to proceed must include a statement that a complete manifest and 
shipper's export declaration for each barge will be filed at the port 
where the barge will be taken aboard a barge-carrying vessel, and that 
port must be identified in the statement. 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, a newly executed General Declaration 
(Customs Form 1301), and a master's oath.
    (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]



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

[[Page 52]]

the continental United States and noncontiguous States, districts, 
territories, and possessions embraced within the coastwise laws. The 
permit to proceed shall include a statement that the unqualified LASH-
type barge is owned or leased by the owner or operator of the LASH-type 
barge from which the merchandise was transferred.
    (b) The following nations have been found to extend privileges 
reciprocal to those provided in paragraph (a) of this section to LASH-
type barges of the United States:

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

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



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

    (a) A documented vessel with a registry or, where appropriate, a 
Great Lakes license endorsement 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 
112 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.)
---------------------------------------------------------------------------

    \112\ ``Any vessel, on being duly registered in pursuance of the 
laws of the United States, may engage in trade between one port in the 
United States and one or more ports within the same, with the privilege 
of touching at one or more foreign ports during the voyage, and land and 
take in thereat merchandise, passengers, and their baggage, and letters, 
and mails. All such vessels shall be furnished by the collectors of the 
ports at which they shall take in their cargoes in the United States, 
with certified manifests, setting forth the particulars of the cargoes, 
the marks, number of packages, by whom shipped, to whom consigned, at 
what port to be delivered; designating such merchandise as is entitled 
to drawback, or to the privilege of being placed in the warehouse; and 
the masters of all such vessels shall, on their arrival at any port of 
the United States from any foreign port at which such vessel may have 
touched, as herein provided, conform to the laws providing for the 
delivery of manifests of cargo and passengers taken on board at such 
foreign port, and all other laws regulating the report and entry of 
vessels from foreign ports, and be subject to all the penalties therein 
prescribed.'' (19 U.S.C. 293)
---------------------------------------------------------------------------

    (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.113
---------------------------------------------------------------------------

    \113\ ``Any foreign merchandise taken in at one port of the United 
States to be conveyed in registered vessels to any other port within the 
same, either under the provisions relating to warehouses, or under the 
laws regulating the transportation coastwise of merchandise entitled to 
drawback, as well as any merchandise not entitled to drawback, but on 
which the import duties chargeable by law shall have been duly paid, 
shall not become subject to any import duty by reason of the vessel in 
which they may arrive having touched at a foreign port during the 
voyage.'' (19 U.S.C. 294)
    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]

[[Page 53]]



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, 
except that the Customs Form 1378 shall be modified by striking out ``to 
a foreign port'' and substituting ``to noncontiguous territory of the 
United States'' or ``to the United States,'' as the case may be, unless 
the vessel is simultaneously engaged in one or more of the transactions 
listed in Sec. 4.90(a) (4), (5), or (6) of the regulations of this part. 
In the latter case, clearance shall be granted only on Customs Form 
1301; Sec. 4.90(b) of the regulations 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

[[Page 54]]

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 Master's Oath on Entry of Vessel in Foreign Trade, 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 General Customs Declaration, 
Customs Form 1301, 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 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]



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.

[[Page 55]]

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 General Declaration, Customs Form 1301:
---------------------------------------------------------------------------

    \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) 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 shall present to the director of such port of 
departure an application in triplicate on Customs Form 1301 for a permit 
to proceed to the next port. The required oath shall be executed on 
Customs Form 1300 (see Sec. 4.63(e)). When a port director grants the 
permit on Customs Form 1301, the following legend shall be endorsed on 
the form:

_______________________________________________________________________
Port                    Date
    Permission is granted to proceed to the port named in item 6.
_______________________________________________________________________
                                                     Signature and title

The duplicate shall be attached to the traveling manifest and the 
triplicate (the permit to proceed to be delivered at the next port) 
shall 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 shall be 
indicated on Customs Form 1301 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, shall be 
placed in a sealed envelope addressed to the appropriate Customs officer 
at the next port and given to the master for delivery.
    (c) 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 shall immediately report its arrival and make entry within 48 
hours. To make such entry, he shall deliver to the port director the 
vessel's document, the permit to proceed (Customs Form 1301 endorsed in 
accordance with paragraph (b) of this section), the traveling manifest, 
and the traveling Crew's Effects Declaration Customs Form 1304, together 
with the crewmembers' declarations received on departure from the 
previous port. The master shall also present an abstract manifest 
consisting of (1) a newly executed General Declaration Customs Form 
1301, (2) 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. (3) a Crew's Effects Declaration 
in duplicate of all unentered articles acquired abroad by officers and 
crewmembers which are still on board, (4) a Ship's Stores Declaration, 
Customs Form 1303, in duplicate of the sea or ship's stores remaining on 
board, and (5) 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 shall be placed in item 
12 of the General Declaration:

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


The required oath shall be executed on Master's Oath on Entry of Vessel 
in Foreign Trade, Customs Form 1300 (see Sec. 4.63(e)). The traveling 
manifest, together with a copy of the newly executed General 
Declaration, shall 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

[[Page 56]]

(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]



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

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

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



Sec. 4.87  Vessels proceeding foreign via domestic ports.

    (a) Any foreign vessel or documented vessel with a registry 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 shall present to the port director a General 
Declaration, Customs Form 1301, 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 
General Declaration shall clearly indicate all previous ports of lading. 
The required master's oath shall be executed on the Master's Oath on 
Entry of Vessel in Foreign Trade, Customs Form 1300 (see Sec. 4.63 (a)).
    (c) Upon compliance with the applicable provisions of Sec. 4.61, the 
port director shall grant the permit to proceed by making the 
endorsement prescribed by Sec. 4.85(b) on the General Declaration, 
Customs Form 1301. One copy shall 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, shall 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 shall immediately report arrival. He shall also make entry within 
48 hours by presenting the vessel's document,

[[Page 57]]

the permit to proceed on the General Declaration, Customs Form 1301, 
received by him upon departure from the last port a Crew's Effects 
Declaration, Customs Form 1304, in duplicate listing all unentered 
articles acquired abroad 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 shall also 
execute a General Declaration. The required master's oath shall be on 
the Master's Oath on Entry of Vessel in Foreign Trade, Customs Form 1300 
(see Sec. 4.63(e)). The traveling Crew's Effects Declaration, together 
with any unused crewmembers' declarations returned to the master at the 
prior port, shall 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 General Declaration, Customs Form 1301 
(Customs Form 1378 at the last port) 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 shall 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), an oath on Customs Form 1300, 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]



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, 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]

[[Page 58]]



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 General Declaration, Customs Form 1301, 
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 General Declaration, Customs Form 1301, 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]



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 is engaged in his application for clearance on Customs 
Form 1301. 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]



Sec. 4.91  Diversion of vessel; transshipment of cargo.

    (a) If any vessel granted a permit to proceed from one port in the 
United

[[Page 59]]

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 1301),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 1301 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 1378 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 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]



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]

[[Page 60]]



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:

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.

[[Page 61]]

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 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 in the Finding Aids section of 
this volume.

[[Page 62]]

                                 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 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:

[[Page 63]]

          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 in the Finding Aids section of 
this volume.



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. [MCLs \8/42\; \22/42\ FACLs 78, 
Supp. \2/42\; 84, Supp. \2/42\. TDs 50617, 52258, 52583, 52608, 52681, 
52958, 53336, 54421.] These records shall be open to public inspection.

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



Sec. 4.96  Fisheries.

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

[[Page 64]]

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 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

[[Page 65]]

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 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))

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

[[Page 66]]

    (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 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:

[[Page 67]]

    (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 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.

[[Page 68]]

    (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, 1301, 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, 1301, 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]



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

    (a) The application for a license to import merchandise in a vessel 
of less than 30 net tons in accordance with section 6, Anti-Smuggling 
Act of August 5, 1935, shall be addressed to the Secretary of the 
Treasury and delivered to the directors of the ports where foreign 
merchandise is to be imported in such vessel.
    (b) The application shall contain the following information:
    (1) Name of the vessel, rig, motive power, and home port.
    (2) Name and address of the owner.
    (3) Name and address of the master.
    (4) Net tonnage of the vessel.
    (5) Kind of merchandise to be imported.
    (6) Country or countries of exportation.
    (7) Ports of the United States where the merchandise will be 
imported.
    (8) Whether the vessel will be used to transport and import 
merchandise from a hovering vessel.
    (9) Kind of document under which the vessel is operating.
    (c) If the port director finds that the applicant is a reputable 
person and that the revenue would not be jeopardized by the issuance of 
a license, he may issue the license for a period not to exceed 12 
months, incorporating therein any special conditions he believes to be 
necessary or desirable, and deliver it to the licensee.
    (d) The master or owner shall keep the license on board the vessel 
at all times and exhibit it upon demand of any duly authorized officer 
of the United States. This license is personal to the licensee and is 
not transferable.
    (e) The Secretary of the Treasury or the port director at whose 
office the license was issued may revoke the license if any of its terms 
have been willfully or intentionally violated or for any other cause 
which may be considered prejudicial to the revenue or otherwise against 
the interest of the United States.

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



Sec. 4.101  Prohibitions against Customs officers and employees.

    No Customs officer or employee shall:

[[Page 69]]

    (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 20, 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 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

[[Page 70]]

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 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

[[Page 71]]

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 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

[[Page 72]]

    (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
----------------------------------------------------------------------------------------------------------------
 
 
 
 
 
 
----------------------------------------------------------------------------------------------------------------

    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____.


[[Page 73]]


_______________________________________________________________________
(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 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.

[[Page 74]]

    (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.
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.

[[Page 75]]

            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.

              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.

[[Page 76]]

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.

                        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.

                       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.

                         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.

                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 20, 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 10.178 also issued under 19 U.S.C. 2461 et 
seq.;
    Sections 10.191 through 10.198 also issued under 19 U.S.C. 2701 et 
seq.;
    Sections 10.201 through 10.207 also issued under 10 U.S.C. 3203.

    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

[[Page 77]]

returned without having been advanced in value or improved in condition 
by any process of manufacture or other means.

----------------------------------------------------------------------------------------------------------------
      Marks              Number            Quantity              Description              Value, in U.S. coin
----------------------------------------------------------------------------------------------------------------
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................                               ..........................
  ...............        (Date)                                                         (Signature)
                   .................  .................                               ..........................
  ...............       (Address)                                                        (Capacity)
----------------------------------------------------------------------------------------------------------------

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

[[Page 78]]

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 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.

[[Page 79]]

    (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 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

[[Page 80]]

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

[[Page 81]]

    (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 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

[[Page 82]]

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.
    (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

[[Page 83]]

is filed in connection with the entry a certificate of the foreign 
shipper in the form prescribed by paragraph (c) of this section.
    (c) The certificate to be furnished by the foreign shipper for the 
use of the director of the port of entry shall be in the following form:

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

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

_______________________________________________________________________
                                                           Shipper      

    (d) The port director, after verification of the foreign shipper's 
certificate with the records of the director of the port of exportation 
in this country, shall allow free entry to the extent the basis for such 
allowance is verified. The procedure in the last two sentences of 
Sec. 10.6 shall be applicable.
    (e) If claim for exemption from duty for such containers or holders 
of foreign production previously imported duty paid is made at the time 
of entry, the certificate of the foreign shipper may be accepted if 
produced at any time prior to the liquidation of the entry.
    (f) When such containers or holders of foreign production previously 
imported duty paid are reimported empty, they may be admitted without 
entry if readily identifiable as having been previously imported duty 
paid.

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



Sec. 10.8  Articles exported for repairs or alterations.

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

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

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

[[Page 84]]

________________, 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.
    (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

[[Page 85]]

---------------------- (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 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)


[[Page 86]]


    (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 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),

[[Page 87]]

from the full value of the assembled article.
    (d) Fabricated component. ``Fabricated component'' means a 
manufactured article ready for assembly in the condition as exported 
except for operations incidental to the assembly.
    (e) Product of the United States. A ``product of the United States'' 
is an article manufactured within the Customs territory of the United 
States and may consist wholly of United States components or materials, 
of United States and foreign components or materials, or wholly of 
foreign components or materials. If the article consists wholly or 
partially of foreign components or materials, the manufacturing process 
must be such that the foreign components or materials have been 
substantially transformed into a new and different article, or have been 
merged into a new and different article.

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



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

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

    Example 1. A transistor radio is assembled abroad from foreign-made 
components and American-made transistors. Upon importation, the 
transistor radio is subject to the ad valorem rate of duty applicable to 
transistor radios upon the value of the radio less the cost or value of 
the American-made transistors assembled therein.
    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

[[Page 88]]

wearing apparel, are regarded as fabricated components.
    Example 2. Prestamped metal lead frames for semiconductor devices 
exported in multiple unit strips in which the individual frame units are 
connected to each other, or integrated circuit wafers containing 
individual integrated circuit dice which have been scribed or scored in 
the United States, are regarded as fabricated components. The separation 
of the individual frames by cutting, or the segmentation of the wafer 
into individual dice by flexing and breaking along scribed or scored 
lines, is regarded as an operation incidental to the assembly process.
    Example 3. Wires of various type, electrical conductors, metal 
foils, insulating tapes, ribbons, findings used in dressmaking, and 
similar products, which are in a finished state when exported from the 
United States, and are ready for use in the assembly of the imported 
article, are regarded as fabricated components if they are only cut to 
length or subjected to operations incidental to the assembly process 
while abroad.
    Example 4. Uncut textile fabrics exported in bolts from which 
wearing apparel components will be cut according to a pattern are not 
regarded as fabricated components. Similarly, other materials, such as 
lumber, leather, sheet metal, plastic sheeting, exported in basic shapes 
and forms to be fabricated into components for assembly, are not 
eligible for treatment as fabricated components.

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

    Example 1. A cast metal housing for a valve is made in the United 
States from imported copper ingots, the product of a foreign country. 
The housing is a product of the United States because the manufacturing 
operations performed in the United States to produce the housing 
resulted in a substantial transformation of the foreign copper ingots.
    Example 2. An integrated circuit device is assembled in a foreign 
country and imported into the United States where its leads are formed 
by bending them to a specified angle. It is then tested and marked. The 
imported article does not become a product of the United States because 
the operations performed in the United States do not result in a 
substantial transformation of the foreign integrated circuit device.
    Example 3. A circuit board assembly for a computer is assembled in 
the United States by soldering American-made and foreign-made components 
onto an American-made printed circuit board. The finished circuit board 
assembly has a distinct electronic function and is ready for 
incorporation into 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

[[Page 89]]

considered a product of the United States, no exemption may be given for 
the value of the electric motors, since they were exported after 
manufacture or production in the United States under the provision of 
subheading 9813.00.05, HTSUS (19 U.S.C. 1202).

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



Sec. 10.16  Assembly abroad.

    (a) Assembly operations. The assembly operations performed abroad 
may consist of any method used to join or fit together solid components, 
such as welding, soldering, riveting, force fitting, gluing, laminating, 
sewing, or the use of fasteners, and may be preceded, accompanied, or 
followed by operations incidental to the assembly as illustrated in 
paragraph (b) of this section. The mixing or combining of liquids, 
gases, chemicals, food ingredients, and amorphous solids with each other 
or with solid components is not regarded as an assembly.

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

    (b) Operations incidental to the assembly process. Operations 
incidental to the assembly process whether performed before, during, or 
after assembly, do not constitute further fabrication, and 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

[[Page 90]]

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, 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]

[[Page 91]]



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 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).
_______________________________________________________________________

[[Page 92]]

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 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,

[[Page 93]]

1996, the value of the textile component shall not be included in the 
dutiable value of the article. For purposes of determining whether a 
reduction in the dutiable value of an imported article may be allowed 
under this section:
    (a) The terms ``textile component'' and ``fabric'' have reference 
only to goods covered by the definition of ``textile or apparel 
product'' set forth in Sec. 102.21(b)(5) of this chapter;
    (b) The operations performed abroad on the textile component shall 
conform to the requirements and examples set forth in Sec. 10.16 insofar 
as they may be applicable to a textile component; and
    (c) The valuation and documentation provisions of 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

[[Page 94]]

and unloading and activities necessary to preserve the component, 
material, ingredient, or article in good condition.

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

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



Sec. 10.30c  [Reserved]

                    Temporary Importations Under Bond



Sec. 10.31  Entry; bond.

    (a)(1) Entry of articles brought into the United States temporarily 
and claimed to be exempt from duty under Chapter 98, Subchapter XIII, 
Harmonized Tariff Schedule of the United States (HTSUS), unless covered 
by an A.T.A. carnet or a TECRO/AIT carnet as provided in part 114 of 
this chapter, shall be made on Customs Form 3461 or 7533, supported by 
the documentation required by Sec. 142.3 of this chapter. However, when 
Sec. 10.36 or Sec. 10.36a is applicable, or the aggregate value of the 
article is not over $250, the form prescribed for the informal entry of 
importations by mail, in baggage, or by other means, may be used. When 
entry is made on Customs Form 3461 or 7533, an entry summary. Customs 
Form 7501, shall be filed within 10 days after time of entry, in 
accordance with subpart B, part 142 of this chapter.
    (2) If Customs Form 7501 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

[[Page 95]]

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 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]

[[Page 96]]



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.

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

[[Page 97]]

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 
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]

[[Page 98]]



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 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

[[Page 99]]

suspended for the duration of the seizure. The articles shall be 
exported promptly after release from seizure.

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



Sec. 10.39  Cancellation of bond charges.

    (a) Charges against bonds taken pursuant to Chapter 98, Subchapter 
XIII, Harmonized Tariff Schedule of the United States, (HTSUS), may be 
canceled in the manner prescribed in Sec. 113.55 of this chapter. A 
completed reexportation counterfoil on a carnet establishes that the 
articles covered by the carnet have been exported, and no claim shall be 
brought against the guaranteeing association under the carnet for 
failure to export, except under the provisions of Sec. 114.26 of this 
chapter. In the case of articles entered under subheading 9813.00.30, 
HTSUS, which are destroyed because of their use for the purposes of 
importation, the bond charge shall not be canceled unless there is 
submitted to the 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

[[Page 100]]

proof is not furnished within the 6-month period, the guaranteeing 
association shall forthwith pay the liquidated damages provided for 
above. The payment shall be refunded if the guaranteeing association 
within 3 months from the date of payment furnishes the proof referred to 
above. No claim for payment under a carnet covering a temporary 
importation may be made against the guaranteeing association more than 1 
year after the expiration of the period for which the carnet was valid.
    (3) Demand for return to Customs custody. When the demand for return 
to Customs custody is made in the case of merchandise entered under 
Chapter 98, subchapter XIII, HTSUS (19 U.S.C. 1202), liquidated damages 
in an amount equal to double the estimated duties on the merchandise not 
returned shall be demanded, except that in the case of samples solely 
for use in taking orders, motion-picture advertising films, professional 
equipment, tools of trade, and repair components for professional 
equipment and tools of trade, the liquidated damages demanded shall be 
in an amount equal to 110 percent of the estimated duties.
    (e) If there has been a default with respect to all the articles 
covered by the bond and a written petition for relief has been timely 
filed as provided in part 172 of this chapter, it shall be reviewed by 
the Fines, Penalties, and Forfeitures Officer if the full amount of the 
claim does not exceed $100,000 and by the Director, International Trade 
Compliance Division, Office of Regulations and Rulings, Customs 
Headquarters, if the full amount of the claim exceeds $100,000. If the 
full amount of liquidated damages demanded does not exceed $100,000 and 
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 port director may cancel the liability for the payment of 
liquidated damages 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

[[Page 101]]

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) If there has been compliance with the terms of the bond with 
respect to part of but not all the articles covered thereby and a 
written petition for relief is filed as provided in part 172 of this 
chapter, and if that part of the liability for liquidated damages which 
represents double the duty or 110 percent of the duty, as required under 
Sec. 10.31(f), on the articles in respect of which there has been a 
default does not exceed $100,000, the Fines, Penalties, and Forfeitures 
Officer may cancel the total liability for payment of liquidated damages 
in any amount upon the payment of an amount equal to double the duty or 
110 percent of the duty, as appropriate, on the articles in respect of 
which the default occurred, or, under the circumstances enumerated in 
paragraphs (e)(1), (2), or (3) of this section, upon payment of such 
lesser amount as the Fines, Penalties, and Forfeitures Officer may deem 
appropriate, provided 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.
    (g) Anticipatory breach. If an importer anticipates that the 
merchandise entered under a Temporary Importation Bond will not be 
exported or destroyed in accordance with the terms of the bond, the 
importer may indicate to Customs in writing before the bond period has 
expired of the anticipatory breach. At the time of written notification 
of the breach, the importer shall pay to Customs the full amount of 
liquidated damages that would be assessed at the time of breach of the 
bond, and the entry will be closed. The importer shall notify the surety 
in writing of the breach and payment. By this payment, the importer 
waives his right to receive a notice of claim for liquidated damages as 
required by Sec. 172.1(a) of this chapter.
    (h) 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]



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]

[[Page 102]]

                          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 vehicle, aircraft, or undocumented boat 
brought into the United States for the purpose of carrying merchandise 
or passengers between points in the United States for hire or as an 
element of a commercial transaction, except as provided at 
Sec. 123.14(c), is subject to treatment as an importation of merchandise 
from a foreign country and a regular entry therefor shall be made. The 
use of any such vehicle, aircraft, or boat without a proper entry having 
been made may result in liabilities being incurred under section 592, 
Tariff Act of 1930, as amended (19 U.S.C. 1592).
    (e) [Reserved]
    (f) Material for the maintenance or repair of international cables 
under the high seas, if requiring storage in special tanks for 
preservation, may be placed in tanks specially bonded for the purpose 
and withdrawn therefrom for high-seas installation without the payment 
of duty and without limitation of the storage period to the usual 3-year 
warehousing period. International cables laid under the territorial 
waters of the United States but not brought on shore in the United 
States shall be admitted without entry or the payment of duty. With 
respect to international cables laid under the territorial waters of the 
United States but brought on shore in the United States, only that part 
of the cable in the United States between the point of entry into the 
territorial waters of the United States and the first point of support 
on land in the United States shall be admitted without the payment of 
duty.

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



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.

[[Page 103]]

    (b) The reexportation of a container, as defined in Article 1 of the 
Customs Convention on Containers, which has become badly damaged, shall 
not be required in the case of a duly authenticated accident if the 
container (1) is subjected to applicable import duties and import taxes, 
or (2) is abandoned free of all expense to the Government or destroyed 
under Customs supervision at the expense of the parties concerned, 
following the procedure outlined in Sec. 158.43(c) of this chapter. Any 
salvaged parts and materials shall be subjected to applicable import 
duties and import taxes. Replaced parts which are not reexported shall 
be subjected to import duties and import taxes except where abandoned 
free of expense to the Government or destroyed under Customs supervision 
at the expense of the parties concerned.
    (c) The instruments of international traffic designated in paragraph 
(a) of this section may be released in accordance with the provisions of 
that paragraph only after the applicant for such release has filed a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.66 of this chapter. The required application may be filed at 
the port of arrival or at a subsequent port to which an instrument shall 
have been transported in bond or to which a container shall have been 
moved under cover of a TIR carnet (see part 114 of this chapter) showing 
the characteristics and value of the container on the Goods Manifest of 
the carnet. If the container is listed on the Goods Manifest of the 
carnet, the application may be filed at the port of arrival or at the 
subsequent port. If the container is not listed on the Goods Manifest, 
the application shall be filed at the port of arrival. When the 
application is filed at a port other than the port at which the bond is 
on file, the following procedure applies:
    (1) When the application is filed before the fact of approval of the 
applicant's bond has been established, the applicant must submit with 
the application, or the Customs officer to whom the application is made 
must obtain, evidence that a current bond is on file at another port. 
That evidence may consist of a certified copy of the bond, or any other 
evidence which will satisfy the Customs officer to whom the application 
is made that a current bond is on file at another port.
    (2) If the application is filed after the fact of approval of the 
applicant's bond has been established, a certified copy of that bond 
need not be filed at the port of release. Upon determination by the 
appropriate Customs officer that the fact of approval of the applicant's 
bond has been established, and the bond has not been subsequently 
discontinued, the instruments of international traffic will be released 
as provided for in paragraph (a) of this section.
    (3) Upon the request of the applicant, the appropriate Customs 
officer at the port at which the instruments of international traffic 
are to be released will determine whether or not the fact of approval of 
the applicant's bond has been established. If the approval has not been 
established, the Customs officer with whom the application has been 
filed will advise the applicant of the nature of the evidence required 
to establish the fact that a current bond is on file at another port.
    (d) If an instrument of foreign origin, or of United States origin 
which has been increased in value or improved in condition by a process 
of manufacture or other means while abroad, is released under this 
section and is subsequently diverted to point-to-point local traffic 
within the United States, or is otherwise withdrawn in the United States 
from its use as an instrument of international traffic, it becomes 
subject to entry and the payment of any applicable duties. An instrument 
of United States origin which has not been increased in value or 
improved in condition by a process of manufacture or other means while 
abroad and which 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

[[Page 104]]

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:
    (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

[[Page 105]]

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 in the Finding Aids 
section of this volume.



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

    (a) The holders and containers described in this section may be 
released without entry or the payment of duty, subject to the provisions 
of this section.
    (b) Subject to the approval of a port director pursuant to the 
procedures described in this paragraph, certain foreign- or U.S.-made 
shipping devices arriving from Canada or Mexico, including racks, 
holders, pallets, totes, boxes and cans, need not be serially numbered 
or marked if they are always transported on or within either intermodal 
and similar containers or containers which are themselves vehicles or 
vehicle appurtenances and accessories such as twenty and forty foot 
containers of general use and ``igloo'' air freight containers. The 
following or similar notation shall appear on the vehicle or vessel 
manifest in relation to such shipping devices which are exempt from 
serial numbering or marking requirements pursuant to this paragraph: 
``The shipping devices transported herein, which are not serially 
numbered or marked, have been exempted from such requirement pursuant to 
an application approved under 19 CFR 10.41b(b).'' Also, pallets and 
other solid wood shipping devices must be accompanied by an importer 
document, to the extent that this is required by the U.S. Department of 
Agriculture, Animal and Plant Health Inspection Service, attesting to 
the admissibility of such devices as regards plant pest risk, as 
provided for in 7 CFR 319.40-3.
    (1) An importer or his agent, regardless of whether the importer is 
the owner of the foreign- or U.S.-manufactured shipping devices, may 
apply to a port director of Customs at one of the importer's chiefly 
utilized Customs ports or the port within which the importer's or 
agent's recordkeeping center is located for permission to have such 
shipping devices arriving from Canada or Mexico released without entry 
and payment of duty at the time of arrival and without the devices being 
serially 13 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 14 (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

[[Page 106]]

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 15 application within 90 days of its 
receipt, unless this period is extended for good cause and the applicant 
is so informed in writing. Approval of the application by the port 
director with whom it is filed shall be binding on all Customs ports 
nationwide.
    (5) If the decision is to deny the application, in whole or in part, 
the port director shall specify the reason for the denial in a written 
reply, and inform the applicant that such denial may be appealed to the 
Assistant Commissioner, Office of Field Operations, Customs 
Headquarters, within 21 days of its date. The Assistant Commissioner's 
decision shall be issued, in writing, within 30 days of the receipt of 
the appeal, and shall constitute the final Customs determination 
concerning the application.
    (6) If the application is approved, an importer may later apply to 
amend his application to add or delete particular types of shipping 
devices listed in the application in which the procedures set forth in 
the application may be utilized. If a requested amendment to an approved 
application should be denied, or if an approved application should be 
revoked, in whole or in part, by the port director, the procedures 
described in paragraph (b)(5) of this section shall apply.
    (7) Application for and approval of a reporting program shall not 
limit or restrict the use of other alternative means for obtaining the 
release of holders, containers and shipping devices.
    (c) In the case of serially numbered holders or containers of United 
States manufacture for which free clearance under subheading 9801.00.10, 
Harmonized Tariff Schedule of the United States, is claimed, the owner 
shall place thereon the following markings:
    (1) 9801.00.10, unless the holder or container has permanently 
attached thereto the manufacturer's metal tag or plate showing, among 
other things, the name and address of the manufacturer who is located in 
the United States.
    (2) The name of the owner, either positioned as indicated in the 
example below, or elsewhere conspicuously shown on the holder or 
container.
    (3) The serial number assigned by the owner, which shall be one of 
consecutive numbers and not to be duplicated. For example: 9801.00.10 * 
* * Zenda * * * 2468.
    (d)(1) In the case of serially numbered holders or containers of 
foreign 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.

[[Page 107]]

    (iv) The serial number assigned by the owner, which shall be one of 
consecutive numbers and not to be duplicated. For example: 9803.00.50 * 
* * 10-1-366-63 * * * Zenda * * * 2468.
    (2) In the case of substantial holders or containers of either U.S. 
or foreign manufacture, specially designed and equipped to facilitate 
the carriage of goods by one or more modes of transport without 
intermediate reloading, each having a gross mass rating of at least 
18,120 kilograms, for which duty-free entry is requested under either 
the first or the second proviso in subheading 9803.00.50, HTSUS (19 
U.S.C. 1202), is claimed, only the following clear, conspicuous and 
durable markings are required to be on the container:
    (i) The identity of the owner or operator of the container.
    (ii) The serial number assigned by the owner or operator of the 
container, which shall be one of consecutive numbers and shall not be 
duplicated.
    (e) The prescribed markings shall be clear and conspicuous, that is, 
they shall appear on an exposed side of the holder or container in 
letters and figures of such size as to be readily discernible. The 
markings will be stricken out or removed when the holders or containers 
are taken out of service or when ownership is transferred, except that 
appropriate changes may be made if a new owner wishes to use the holders 
and containers under this procedure.
    (f) The owner shall keep adequate records open to inspection by 
Customs officers, which shall show the current status of the serially 
numbered holders and containers in service and the disposition made of 
such holders and containers taken out of service.
    (g) Nothing in this procedure shall be deemed to affect:
    (1) The requirements for outward or inward manifesting of such 
holders or containers. The manifests will show for each holder or 
container its markings as provided for herein.
    (2) The requirements of the Department of Commerce on exportation 
with respect to the filing of ``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]

                        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

[[Page 108]]

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 
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.

[[Page 109]]

    (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 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

[[Page 110]]

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 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 in the Finding Aids section of 
this volume.



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

[[Page 111]]

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 
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

[[Page 112]]

and any other part of the United States or between Alaska and any other 
part of the United States;
    (3) Departing in ballast (without cargo or passengers) from one port 
for another, domestic or foreign, for the purpose of lading passengers 
or cargo at the port of destination for carriage in a class of trade 
specified in section 309(a), Tariff Act of 1930, as amended, for which 
class of trade the vessel is suitable and substantially ready for 
service with necessary fittings, outfit, and equipment already installed 
on its departure in ballast, and from which it is not diverted prior to 
carriage of passengers or cargo in such trade. A written declaration of 
the owner or agent of the vessel may be required in connection with the 
withdrawal, certifying to the vessel's suitableness and substantial 
readiness with necessary fittings, outfit, and equipment already 
installed on its departure in ballast for service in a class of trade 
specified in section 309 and agreeing to notify the port director if it 
is laid up or diverted from such class of trade prior to the carriage of 
cargo or passengers in such trade.
    (b) A withdrawal of articles may not be made under section 309, 
Tariff Act of 1930, as amended, for use on a trial or test trip of a 
vessel preparatory to its actually engaging in trades.
    (c) The classes of articles which may be withdrawn as provided for 
by section 309, Tariff Act of 1930, as amended, include the containers 
in which the articles are withdrawn and laden even though for tariff 
purposes the containers are classifiable separately from their contents, 
except unusual containers within the purview of General Rule of 
Interpretation 5, Harmonized Tariff Schedule of the United States 
(HTSUS).
    (d) For the purpose of allowing the privileges of section 309, 
Tariff Act of 1930, as amended, to aircraft as provided for therein, an 
aircraft shall be deemed to be a vessel within the meaning of each 
provision of this section and of 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

[[Page 113]]

the assessment and collection of an amount equal to the duties and taxes 
that would have been assessed on the entire quantity of supplies 
withdrawn had such supplies been regularly entered, or withdrawn, for 
consumption.
    Exemption from internal-revenue tax on distilled spirits, alcohol, 
wines, and beer removed from any internal-revenue bonded warehouse, 
industrial alcohol premises, bonded wine cellar, or brewery; and 
drawback on taxpaid distilled spirits or wines removed from an export 
storage room, or on taxpaid beer removed from a brewery (or place of 
storage elsewhere), for use as supplies on vessels under section 309, 
Tariff Act of 1930, as amended, are governed by regulations of the 
Internal Revenue Service.
    (f) Pursuant to section 309(d) of the Tariff Act of 1930, as 
amended, the Department of Commerce has found and advised the Secretary 
of the Treasury of the foreign countries which allow privileges to 
aircraft registered in the United States substantially reciprocal to 
those described in sections 309 and 317 of the Tariff Act of 1930, as 
amended. Advices also have been received of changes and limitations of 
privileges allowed. In accordance with these advices, Treasury decisions 
are issued extending to the aircraft of foreign countries free 
withdrawal privileges reciprocal to those found by the Secretary of 
Commerce to be extended by those countries to aircraft registered in the 
United States or making changes in such privileges on the basis of new 
findings. Listed below by countries are the Treasury decisions issued 
pursuant to such findings which are currently in effect:

------------------------------------------------------------------------
                                       Treasury    Exceptions if any, as
              Country                Decision(s)          noted--
------------------------------------------------------------------------
Abu Dhabi..........................        95-45
Argentina..........................    54925 (1)  Applicable only as to
                                           92-20   aircraft equipment,
                                                   spare parts, and
                                                   supplies.
Australia..........................    54747 (1)  Not applicable to
                                                   ground equipment.
Austria............................        80-68
Bahamas............................    52798 (3)
Bahrain............................        95-45
Belgium............................    52846 (2)
Benin..............................   71-215,93-
Bermuda............................    49944 (4)
Brazil.............................    53281 (2)
Canada.............................       69-149  Not applicable to
                                          69-245   ground equipment
                                                   during period May 1
                                                   to September 16,
                                                   1969, inclusive.
Chile..............................   66-128 (2)
China*.............................        82-91
Colombia...........................   70-107 (1)
Costa Rica.........................    53658 (1)
Cuba...............................       81-198  Applicable only as to
                                                   aircraft supplies.
Czechoslovakia.....................   70-107 (1)
Denmark............................    51966 (3)
Dominican Republic.................    54522 (1)
Ecuador............................    52510 (4)
Egypt..............................         74-3
                                          85-141
El Salvador........................    54675 (1)
Finland............................   69-120 (2)
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

[[Page 114]]

 
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 in the Finding Aids section of 
this volume.



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.
    (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.

[[Page 115]]

    (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 on Customs 
Form 7506, 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

[[Page 116]]

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.
    (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]



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

[[Page 117]]

be commingled with domestic or other aircraft turbine fuel after such 
withdrawal only if such commingling is approved by the appropriate 
Customs official for the port where the commingling occurs. The 
appropriate Customs official may approve such commingling if the fueling 
system in which the commingling will occur contains adequate physical 
safeguards to prevent the possible unauthorized entry into the Customs 
territory of the bonded fuel. Such commingled fuel must be accounted for 
in the same 24-hour period in which it was commingled and must be--
    (1) Exported within that 24-hour period;
    (2) Used under section 309 within that 24-hour period; or
    (3) Entered or withdrawn for consumption, with duty deposited, as 
required under the applicable regulations (see part 144 of this 
chapter).
    (b) Duty-free withdrawal from warehouse of aircraft turbine fuel 
under section 557(a), Tariff Act of 1930, as amended (19 U.S.C. 
1557(a)). Turbine fuel intended for use as supplies on aircraft under 
section 309, Tariff Act of 1930, as amended, and withdrawn from a 
Customs bonded warehouse shall be entitled to the privileges provided 
for in section 309 if an amount equal to or exceeding the quantity of 
such fuel is established, as provided for in paragraph (c) of this 
section, to have been used on aircraft qualifying for the privileges 
provided for in section 309 within 30 days after the withdrawal of the 
fuel from the Customs bonded warehouse. Withdrawal of aircraft turbine 
fuel under this paragraph shall be in accordance with the procedures in 
Secs. 10.59 through 10.64, unless otherwise provided in this section. 
Withdrawals under this paragraph shall be annotated with the term 
``Withdrawal under 19 CFR 10.62b(b)''.
    (c) Establishment of use of fuel by qualifying aircraft. (1) The 
person withdrawing aircraft turbine fuel under paragraph (b) of this 
section shall establish that an aircraft qualifying for the privileges 
provided for in section 309, Tariff Act of 1930, as amended, used fuel 
in an amount equal to or exceeding the quantity of the fuel withdrawn 
which is not entered and upon which duties are not paid by submitting to 
Customs, within the time provided in paragraph (d) of this section, 
either--
    (i) Records prepared in the normal course of business effecting the 
transfer to identified (e.g., by aircraft company name, flight number, 
flight origin and destination, and date of flight) aircraft of fuel in 
an amount equal to or exceeding the quantity of the fuel withdrawn which 
is not entered and on which duties are not paid and objective evidence 
that the aircraft to which the fuel was transferred were actually used 
in trade qualifying for the privileges provided in section 309, Tariff 
Act of 1930, as amended; or
    (ii) A certification (documentary or electronic) that:
    (A) All of the fuel withdrawn was intended for use on aircraft 
entitled to the privileges provided for in section 309;
    (B) Within 30 days of the date of withdrawal from warehouse, an 
amount of fuel equal to or exceeding the quantity of the fuel withdrawn 
which is not entered and on which duties are not paid was transferred as 
supplies to aircraft entitled to the privileges provided for in section 
309;
    (C) All of the aircraft, to which the fuel which is not entered and 
on which duties are not paid was transferred as supplies, were used in a 
trade provided for in section 309; and
    (D) The person making the certification possesses evidence 
(documentary or electronic) available for Customs inspection at a named 
place which supports each of the above statements.
    (2) Upon request by Customs, the person who submits the 
certification provided for in paragraph (c)(1) of this section shall 
promptly provide the evidence required to support the claim for 
treatment under this section (including the records described in 
Sec. 10.62b(c)(1)(i)) and Secs. 10.62 and 19.6(d) and each of the 
statements in the certification.
    (d) Time for establishment of use of fuel by qualifying aircraft. 
The person withdrawing aircraft turbine fuel under paragraph (b) of this 
section shall submit the records or certification provided for in 
paragraph (c) of this section by the 40th day after the date of 
withdrawal of the fuel unless the fuel

[[Page 118]]

was withdrawn under a blanket withdrawal under paragraph (g) of this 
section. If the fuel was withdrawn under a blanket withdrawal, the 
person withdrawing aircraft turbine fuel under this section shall submit 
the records or certification provided for in paragraph (c) of this 
section by the 40th day after all of the fuel covered by the blanket 
permit to withdraw has been withdrawn.
    (e) Treatment of turbine fuel withdrawn but not used on qualifying 
aircraft within 30 days. If turbine fuel is withdrawn from a Customs 
bonded warehouse under paragraph (b) of this section but fuel in an 
amount less than the quantity withdrawn is established to have been used 
within 30 days of the date of withdrawal from warehouse on aircraft 
qualifying for the privileges provided for in section 309, Tariff Act of 
1930, as amended, a withdrawal for consumption shall be filed and duties 
shall be deposited for the excess of fuel so withdrawn over that used on 
aircraft so qualifying. Such withdrawal shall be filed and such duties 
shall be deposited by the 40th day after the date of withdrawal of the 
fuel in accordance with the procedures in Sec. 144.38 of this chapter. 
Interest shall be payable and deposited with such duties, calculated 
from the date of withdrawal at the rate of interest established under 26 
U.S.C. 6621.
    (f) Liquidated damages. Failure to account for turbine fuel 
withdrawn under paragraphs (b) through (h) of this section shall result 
in liquidated damages against the person withdrawing the turbine fuel, 
as provided for under Sec. 113.62 of this chapter. Such failure to 
account for turbine fuel includes:
    (1) The failure to timely file the withdrawal for consumption and 
payment of duty, with interest, on the quantity of fuel so withdrawn in 
excess of the quantity of fuel established to have been used on 
qualifying aircraft within 30 days of withdrawal, as provided for in 
paragraph (e) of this section;
    (2) The failure to timely file the evidence or certification 
establishing such use of the fuel which is not entered and on which 
duties are not paid, as provided for in paragraph (c) of this section; 
or
    (3) The failure to promptly provide the evidence required to support 
the claim for treatment under paragraph (b) of this section, upon 
request by Customs, as provided for in paragraph (c)(2) of this section.
    (g) Blanket withdrawals. Blanket withdrawals, as provided for in 
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

[[Page 119]]

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]



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

[[Page 120]]

or passengers in such trade, except as stated below:
_______________________________________________________________________
                                        (If no exception, note ``None'')

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

    Description of articles:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
                                                      (Name and title)  

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

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



Sec. 10.64a  [Reserved]



Sec. 10.65  Cigars and cigarettes.

    (a) Imported cigars and cigarettes in bonded warehouse or otherwise 
in Customs custody, and such articles manufactured with the use of 
imported materials in a bonded manufacturing warehouse of class 6, may 
be withdrawn under section 317, Tariff Act of 1930, as amended, for 
consumption beginning beyond the 3-mile limit or international boundary, 
as the case may be, (1) on vessels actually engaged in the foreign, 
intercoastal, or noncontiguous territory trade within the purview of 
Sec. 10.59(a); (2) on vessels departing from the port where the 
withdrawal is made directly for a foreign port, a port on the opposite 
coast, or a port in one of the possessions of the United States; or (3) 
on vessels of war or other governmental activity.
    (b) The privilege shall not be granted to vessels stationed in 
American waters for an indefinite period without sailing schedules, nor 
shall it be granted to aircraft of foreign registry of a country for 
which there is not in effect a finding and advice by the Department of 
Commerce under section 309(d), Tariff Act of 1930, as amended, that such 
country allows privileges to aircraft registered in the United States 
substantially reciprocal to those described in section 317, Tariff Act 
of 1930, as amended. See section 10.59(f).
    (c) With the following additions and exceptions, the same procedure 
shall be followed as in the case of withdrawals under section 309(a), 
Tariff Act of 1930, as amended.
    (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.

[[Page 121]]

    (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 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

[[Page 122]]

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 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

[[Page 123]]

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 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

[[Page 124]]

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]



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

[[Page 125]]

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 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

[[Page 126]]

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. 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]

[[Page 127]]



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]

                           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'':


[[Page 128]]


    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 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

[[Page 129]]

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.
    (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]

[[Page 130]]



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 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

[[Page 131]]

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_____________________________________________________________________
_______________________________________________________________________
(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

[[Page 132]]

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.
    (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

[[Page 133]]

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 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

[[Page 134]]

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 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]

[[Page 135]]



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]



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

[[Page 136]]

used for the purposes stated in the HTSUS.

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



Sec. 10.135  Deposit of duties.

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

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



Sec. 10.136  Suspension of liquidation.

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

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



Sec. 10.137  Records of use.

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

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



Sec. 10.138  Proof of use.

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

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



Sec. 10.139  Liquidation.

    (a) In general. Upon satisfactory proof of timely use of the 
merchandise for the purpose specified by law, the entry shall be 
liquidated free of duty or at the lower rate of duty specified by law. 
When such proof is not filed within 3 years from the date of entry or 
withdrawal from warehouse for consumption, the entry shall be liquidated 
dutiable under the appropriate subheading of the Harmonized Tariff 
Schedule of the United States.
    (b) Exception for blackstrap molasses. An entry covering blackstrap 
molasses, as hereinafter defined, may be accepted and liquidated with 
duty at the lower rate after the filing of the declaration 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 sugars x 100/Brix

not in excess of 71. In the event of doubt, an ash determination may be 
made. An ash content of not less than

[[Page 137]]

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.
    (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

[[Page 138]]

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. 2461-2465) 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 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]

[[Page 139]]



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 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

[[Page 140]]

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 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

[[Page 141]]

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 502(a)(3), Trade Act of 1974, as amended (19 U.S.C. 
2462(a)(3)), 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 504, Trade 
Act of 1974, as amended (19 U.S.C. 2464), 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 504 of the Trade Act of 1974 (19 U.S.C. 
2464):

    The Bahamas
    Brunei Darussalam
    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]



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. Merchandise which is (1) the growth, product, manufacture, or 
assembly of (i) a beneficiary developing country or (ii) any two or more 
countries which are members of the same association of countries and (2) 
imported directly from such beneficiary developing country or member 
countries, may quality for duty-free entry under the Generalized System 
of Preferences (``GSP''). However, duty free entry under GSP may be 
accorded only if: (i) The sum of the cost or value of the materials 
produced in the beneficiary developing country or any two or more 
countries which are members of the same association of countries which 
is treated as one country under section 502(a)(3), Trade Act of 1974, as 
amended (19 U.S.C. 2462(a)(3)), plus (ii) the direct costs of processing 
operations performed in such beneficiary developing country or member 
countries, is not less than 35 percent of the appraised value of the 
article at the time of its entry into the customs territory of the 
United States.
    (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 502(a)(3) of the Trade 
Act of 1974 as amended (19 U.S.C. 2462(a)(3)) 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]



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

[[Page 142]]

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 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]

                        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:

[[Page 143]]

    (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, 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.

[[Page 144]]

    (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.
    (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

[[Page 145]]

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]

                       Caribbean Basin Initiative

    Authority: Sections 10.191 through 10.198 issued under R.S. 251, as 
amended, secs. 623, 624, 46 Stat. 759, 211 et seq., Gen. Hdnt. 11, sec. 
101, 76 Stat. 72 et seq., sec. 503(b), 88 Stat. 2069, 97 Stat. 384 et 
seq. (19 U.S.C. 66, 1202, 1623, 1624, 2463(b), 2701 et seq.))

    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. 10.198 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. The following merchandise shall not be considered eligible 
articles entitled to duty-free treatment under the CBI.
    (i) Textile and apparel articles which are subject to textile 
agreements.
    (ii) Footwear, handbags, luggage, flat goods, work gloves, and 
leather wearing apparel 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 2465).
    (iii) Tuna, prepared or preserved in any manner, in airtight 
containers.
    (iv) Petroleum, or any product derived from petroleum, provided for 
in Chapter 27, 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.

[[Page 146]]

    (vi) 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.
    (vii) 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)).
    (viii) 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) 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. 10.198, 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. 10.198, 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]



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. 10.198 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]



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. 10.198 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.

[[Page 147]]



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 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.

[[Page 148]]

    (b) Commonwealth of Puerto Rico and U.S. Virgin Islands. 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 
Virgin Islands must be included in the article prior to its final 
exportation from a beneficiary country to the U.S.
    (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]



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 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

[[Page 149]]

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, 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;

[[Page 150]]

    (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___________________________________________________________________

    (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

[[Page 151]]

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]

                         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);

[[Page 152]]

    (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:
    (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.

[[Page 153]]

    (b) Exceptions. No article shall be eligible for duty-free treatment 
under the ATPA by virtue of having merely undergone simple (as opposed 
to complex or meaningful) combining or packaging operations, or mere 
dilution with water or mere dilution with another substance that does 
not materially alter the characteristics of the article. The principles 
and examples set forth in Sec. 10.195(a)(2) of this part shall apply 
equally for purposes of this paragraph.



Sec. 10.206  Value content requirement.

    (a) General. An article may be eligible for duty-free treatment 
under the ATPA only if the sum of the cost or value of the materials 
produced in a beneficiary country or countries, plus the direct costs of 
processing operations performed in a beneficiary country or countries, 
is not less than 35 percent of the appraised value of the article at the 
time it is entered.
    (b) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI 
beneficiary countries. For purposes of determining the percentage 
referred to in paragraph (a) of this section, the term ``beneficiary 
country'' includes the Commonwealth of Puerto Rico, the U.S. Virgin 
Islands, and any CBI beneficiary country as defined in Sec. 10.191(b)(1) 
of this part. Any cost or value of materials or direct costs of 
processing operations attributable to the Virgin Islands or any CBI 
beneficiary country must be included in the article prior to its final 
exportation to the United States from a beneficiary country as defined 
in Sec. 10.202(a).
    (c) Materials produced in the United States. For purposes of 
determining the 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;

[[Page 154]]

    (C) The actual cost of waste or spoilage, less the value of 
recoverable scrap; and
    (D) Taxes and/or duties imposed on the materials by any beneficiary 
country or by the United States, provided they are not remitted upon 
exportation.
    (ii) Where a material is provided to the manufacturer without 
charge, or at less than fair market value, its cost or value shall be 
determined by computing the sum of:
    (A) All expenses incurred in the growth, production, or manufacture 
of the material, including general expenses;
    (B) An amount for profit; and
    (C) Freight, insurance, packing, and all other costs incurred in 
transporting the material to the manufacturer's plant.
    (iii) If the pertinent information needed to compute the cost or 
value of a material is not available, the appraising officer may 
ascertain or estimate the value thereof using all reasonable ways and 
means at his disposal.
    (e) Direct costs of processing operations--(1) Items included. For 
purposes of paragraph (a) of this section, the words direct costs of 
processing operations mean those costs either directly incurred in, or 
which can be reasonably allocated to, the growth, production, 
manufacture, or assembly of the specific merchandise under 
consideration. Such costs include, but are not limited to the following, 
to the extent that they are includable in the appraised value of the 
imported merchandise:
    (i) All actual labor costs involved in the growth, production, 
manufacture, 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

[[Page 155]]

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:________

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              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.

[[Page 156]]

    (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 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.

                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:

[[Page 157]]

    (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 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;

[[Page 158]]

    (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.
    (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

[[Page 159]]

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 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

[[Page 160]]

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 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;

[[Page 161]]

    (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 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,

[[Page 162]]

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 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

[[Page 163]]

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.
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 20 and 
21, 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.

[[Page 164]]

    (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]



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

[[Page 165]]

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).
    (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

[[Page 166]]

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 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

[[Page 167]]

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 (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

[[Page 168]]

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 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.
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.

[[Page 169]]

                    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.

                    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.

[[Page 170]]

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.

                         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 20, 
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(b);
    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;
    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.

[[Page 171]]

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 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.

    No food, drug, device, cosmetic, pesticide, hazardous substance, or 
dangerous caustic or corrosive substance, the subject of Sec. 12.1 shall 
be released except in accordance with the laws and regulations 
applicable thereto. Where any such merchandise is to be released under 
bond pursuant to regulations applicable thereto, a bond on Customs Form 
301, containing the bond conditions set forth in Sec. 113.62 of this 
chapter shall be required.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975, as amended by T.D. 84-213, 49 
FR 41167, Oct. 19, 1984]



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 withdrawn from 
warehouse, for consumption.

[[Page 172]]

    (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 173]]


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 $20,000, 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]



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 the Animal and Plant Health Inspection Service, Plant 
Protection and Quarantine Programs and all Customs requirements for the 
release of the

[[Page 174]]

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 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

[[Page 175]]

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]



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

[[Page 176]]

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 177]]

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 178]]

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 179]]

    (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 180]]

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 181]]

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 in the Finding Aids section of 
this volume.



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 or upon the bird itself, except (1) the

[[Page 182]]

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 183]]

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

[[Page 184]]

certificate is produced or the importer submits satisfactory evidence to 
show 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

[[Page 185]]

or before the close of a 60-day period beginning on the day after the 
day he receives a copy of the determination. A 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 on 
Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter in an amount determined by the International 
Trade Commission. However, 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 
shall be refused entry.
    (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 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

[[Page 186]]

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]



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 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]

[[Page 187]]

                            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]



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

[[Page 188]]

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 which 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 so as to come within the purview of the first sentence 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 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

[[Page 189]]

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]



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 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.

    Merchandise detained pursuant to Sec. 12.42 may be exported at any 
time before it is deemed to have been abandoned as hereinafter provided 
for. If it

[[Page 190]]

has not been exported within 3 months after the date of importation, the 
port director shall 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 so 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 shall 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 shall be deemed to 
have been abandoned and shall be destroyed, unless it has been exported 
or a protest has been filed as provided for in section 514, Tariff Act 
of 1930.



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 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

[[Page 191]]

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 
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

[[Page 192]]

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 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

[[Page 193]]

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 to which EPA 
emission requirements apply. 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 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:

[[Page 194]]

    (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 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

[[Page 195]]

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 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.

[[Page 196]]

    (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]



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. 162.1c 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 
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

[[Page 197]]

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]

  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.
    (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.

[[Page 198]]

    (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 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

[[Page 199]]

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 paragraph (e) 
of this section, which is not exported under Customs supervision within 
90 days from the date of the notice of denial of entry or date of 
redelivery, shall be disposed of under applicable Customs laws and 
regulations, except that disposition shall not result in the 
introduction of the vehicle or equipment item into the Customs territory 
of the United States in violation of the Act.

[T.D. 78-478, 43 FR 56659, Dec. 4, 1978, as amended by T.D. 84-213, 49 
FR 41167, Oct. 19, 1984; T.D. 86-203, 51 FR 42997, Nov. 28, 1986]

           Safety Standards for Boats and Associated Equipment



Sec. 12.85  Coast Guard boat and associated equipment safety standards.

    (a) Applicability of standards or regulations prescribed by the 
Commandant, U.S. Coast Guard. Boats and associated equipment (as 
hereinafter defined) are subject to U.S. Coast Guard safety regulations 
or standards when imported or, under certain conditions, brought into 
the United States after November 1, 1972. Those regulations or standards 
are prescribed by the Commandant, U.S. Coast Guard, pursuant to sections 
5, 7, and 39, Federal Boat Safety Act of 1971 (46 U.S.C. 1454, 1456, 
1488), as set forth in 33 CFR parts 181, 183.
    (1) The term ``boats'' includes:
    (i) All vessels manufactured or used primarily for noncommercial 
use.
    (ii) All vessels leased, rented, or chartered to another for the 
latter's noncommercial use.
    (iii) All vessels engaged in the carrying of six or fewer passengers 
(see section 4.80 of this chapter on prohibitions against foreign 
vessels transporting passengers in the coastwise trade).
    (2) For purposes of Sec. 12.85 the term ``boat'' does not include:

[[Page 200]]

    (i) Foreign vessels temporarily using waters subject to U.S. 
jurisdiction.
    (ii) Military or public vessels of the United States, except 
recreational type public vessels.
    (iii) A vessel whose owner is a State or subdivision thereof, which 
is principally used for governmental purposes, and which is clearly 
identifiable as such.
    (iv) Ships' lifeboats.
    (3) The term ``associated equipment'' means:
    (i) Any system, part, or component of a boat as originally 
manufactured, or a similar part or component manufactured or sold for 
replacement, repair, or improvement of such system, part, or component 
(excluding radio equipment).
    (ii) Any accessory or equipment for, or appurtenance to, a boat 
(excluding radio equipment).
    (iii) Any marine safety article, accessory, or equipment intended 
for use by a person on board a boat (excluding radio equipment).
    (4) The term ``product'' as used in this section, includes the terms 
``boats'' and ``associated equipment'' as defined in paragraphs (a) (1), 
(2), and (3) of this section.
    (b) Evidence of compliance with boating standards or regulations as 
condition of entry. A product for which entry is sought into the Customs 
territory of the United States will, subject to the exceptions specified 
in paragraph (c) of this section, be denied entry unless accompanied by 
evidence of compliance with standards or regulations as follows:
    (1) A product subject to standards prescribed in 33 CFR part 183 
will have affixed to it a compliance certification label in accordance 
with the requirements of subpart B, 33 CFR part 181.
    (2) A boat hull subject to subpart C, 33 CFR part 181 will have 
affixed to it a hull identification number affixed by the importer or 
the original manufacturer. The number shall comply with the format 
requirements of subpart C, 33 CFR part 181.
    (c) Products not in compliance with standards or regulations: 
Alternative evidence required as condition of entry and release. Certain 
products shall be permitted entry and release without a compliance 
certification label or hull identification number affixed, as is 
required by subparts B and C, 33 CFR part 181, if they fall within one 
of the following categories, and if the conditions for entry and release 
specified for each category of product are met:
    (1) Products manufactured before standards or regulations in effect. 
For certain products manufactured before an applicable standard or 
regulation was in effect, a declaration will be filed in accordance with 
the requirements of paragraph (d) of this section. The declaration will 
state that the product was manufactured before the applicable standard 
or regulation was in effect. If the port director believes that it is 
necessary in a particular case, he may communicate with the nearest 
Coast Guard district commander by the most expedient means to request 
that the Coast Guard determine that alteration of the product is not 
required.
    (2) Products exempted from standards or regulations by Coast Guard 
Grant of Exemption. For certain products specifically exempted from 
applicable standards or regulations by a Coast Guard Grant of Exemption, 
a declaration will be filed in accordance with paragraph (d) of this 
section. The declaration will state that the product has been 
specifically exempted from applicable standards or regulations by a U.S. 
Coast Guard Grant of Exemption, issued under the authority of section 9 
of the Federal Boat Safety Act of 1971 (46 U.S.C. 1458), and in effect 
on the date the product was manufactured. The declaration will also 
state that the product complies with all the terms and conditions of the 
exemption. A copy of the exemption, certified by the importer or 
consignee to be a true copy, shall be attached to each declaration.
    (3) Products to be brought into conformity. In the case of products 
that are not in conformity at the time of entry but will be brought into 
conformity, a declaration will be filed in accordance with paragraph (d) 
of this section. The declaration will state that the product does not 
conform with applicable safety standards or regulations, but that the 
importer or consignee will bring the product into conformity with safety 
standards or regulations, and will

[[Page 201]]

also state that the product will not be sold or offered for sale, or 
used on waters subject to the jurisdiction of the United States and on 
the high seas beyond the territorial seas for a vessel owned in the 
United States except for the purpose of bringing it into conformity, 
until the bond has been satisfied with respect to this obligation. To 
secure entry under this provision, bond must be given in accordance with 
paragraph (e)(1) of this section.
    (4) Certain products entering the United States for repair or 
alteration. In the case of a nonresident of the United States who wishes 
to enter a product for the purpose of making repairs or alterations to 
it for a period not exceeding 1 year from the date of entry, a 
declaration will be filed in accordance with paragraph (d) of this 
section. The declaration shall state that the importer or consignee is a 
nonresident of the United States, that the product is being brought in 
for the purpose of making repairs or alterations to it, that it will not 
remain in the Customs territory of the United States for more than 1 
year following the date of the entry, and that it will not be offered 
for sale, sold, or used for pleasure in waters subject to the 
jurisdiction of the United States during that time.
    (5) Products owned by certain foreign governments. In the case of an 
importer or consignee employed in one of the capacities set forth in 
this subparagraph, a declaration will be filed in accordance with 
paragraph (d) of this section. The declaration shall state that the 
importer or consignee is either 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 comes within the class of persons for whom free entry of 
boats has been authorized by the Department of State in accordance with 
general principles of international law, and that he is importing the 
product for purposes other than resale.
    (6) Certain products entered for tests, experiments, exhibits, or 
races. An importer or consignee seeking to enter a product for period 
not to exceed 1 year, for tests, experiments, exhibits, or races but not 
for sale in the United States, shall file a declaration in accordance 
with paragraph (d) of this section. The declaration shall state that the 
importer or consignee is importing the product solely for the stated 
purpose and that it will not be sold or operated in the United States, 
unless the operation is an integral part of the stated use for which the 
product was imported. The importer or consignee shall attach to the 
declaration a description of use for which the product is being 
imported, the time period estimated for completion, and disposition to 
be made of the product after completion. Entry under this paragraph may 
be authorized for a period not to exceed 1 year from the date of 
importation. However, this period may be extended at the discretion of 
the port director for one or more additional periods which, when added 
to the initial 1-year period, shall not exceed a total of 3 years.
    (d) Declaration requirements. All declarations submitted must:
    (1) Be filed at the time of entry, in duplicate on Form CG-5096.
    (2) Be signed by the importer or consignee.
    (3) State the name and U.S. address of the importer or consignee.
    (4) State the entry number and date.
    (5) Provide the make, model, and hull identification number, if 
affixed, or date of manufacture if hull identification number not 
affixed, of any boat, and a description of any equipment or component.
    (6) Identify, if known, the city or state in which the product will 
be principally located.
    (7) Be sent by the port director, to the Commandant (G-BBS-1/42), 
U.S. Coast Guard, Washington, D.C. 20593.
    (e) Release under bond--(1) When bond required. A bond will be 
required of the importer or consignee on Customs Form 301, containing 
the bond conditions set forth in Sec. 113.62 of this chapter, in such 
amount as the port director deems appropriate, when a declaration is 
made that a product is to be brought into conformity. When the importer 
or consignee of a product declares that it will be brought into 
conformity before being sold or offered for sale, or before being used 
on waters subject to the jurisdiction of the

[[Page 202]]

United States and on the high seas beyond the territorial seas for a 
vessel owned in the United States and seeks entry of the product under 
paragraph (c)(3) of this section, the entry shall be accepted only if 
bond is given for the production of a statement by either the importer 
or the consignee that the product described in the declaration is in 
conformity with applicable safety standards or regulations. The 
statement shall identify the person or firm who has brought the product 
into conformity with the standards or regulations and shall describe the 
nature and extent of the work performed.
    (2) Time limitation to produce statement for which bond is 
obligated. Within 180 days after entry, the importer or consignee shall 
deliver to both the port director and the Commandant, U.S. Coast Guard, 
a copy of the statement for production of which the bond was obligated. 
If the statement is not delivered to the director of the port of entry 
of the product within 180 days after the date of entry, the importer or 
consignee shall deliver or cause to be delivered to the port director 
the product that was released in accordance with this paragraph.
    (3) Damages to be assessed against bond. In the event that any 
product is not redelivered within 5 days following the date required by 
paragraph (e)(2) of this section, liquidated damages shall be assessed 
in the full amount of 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.
    (f) Products refused entry. If a product is denied entry under the 
provisions of this section, the port director shall refuse to release 
the product for entry into the United States and shall issue a notice of 
the refusal to the importer or consignee.
    (g) Disposition of products refused entry into the United States; 
redelivered products. Products which are denied entry under paragraph 
(b) of this section, or which are redelivered in accordance with 
paragraph (e)(2) of this section, and which are not exported under 
Customs supervision within 90 days from the date of notice of refusal of 
admission or date of redelivery, shall be disposed of under Customs laws 
and regulations. However, no such disposition shall result in an 
introduction into the United States of a product in violation of the 
Federal Boat Safety Act of 1971 (46 U.S.C. 1451-1489).

[T.D. 76-166, 41 FR 23398, June 10, 1976, as amended by T.D. 82-220, 47 
FR 52138, Nov. 19, 1982; T.D. 84-213, 49 FR 41168, Oct. 19, 1984; T.D. 
86-203, 51 FR 42997, Nov. 28, 1986]

                           Electronic Products



Sec. 12.90  Definitions.

    As used in Secs. 12.90 and 12.91, the term ``the Act'' shall mean 
the Public Health Service Act (42 U.S.C. 201 et seq.), as amended by the 
Radiation Control for Health and Safety Act of 1968 (42 U.S.C. 263b et 
seq.), and as further amended from time to time.

[T.D. 83-235, 48 FR 52436, Nov. 18, 1983]



Sec. 12.91  Electronic products offered for importation under the Act.

    (a) Standards prescribed by the Department of Health and Human 
Services. Electronic products offered for importation into the customs 
territory of the United States are subject to standards prescribed under 
section 358 of the Act (42 U.S.C. 263f) unless intended solely for 
export. Prescribed standards shall not apply to any electronic product 
intended solely for export if:
    (1) Such product and the outside of any shipping container used in 
the export of such product are labeled or tagged to show that it is 
intended for export, and
    (2) Such product meets all the applicable requirements of the 
country to which it is intended for export.

(See 21 CFR, chapter I, subchapter J.)

    (b) Requirements for entry and release. Electronic products subject 
to standards in effect under section 358 of the Act (42 U.S.C. 263f), 
when offered for importation into the customs territory of the United 
States, shall be refused entry unless there is filed with the entry, in 
duplicate, a declaration (FDA Form FD 2877) verified by the importer of 
record which identifies the products and affirms:
    (1) That the electronic products were manufactured before the date 
of any

[[Page 203]]

applicable electronic product performance standard (the date of 
manufacture shall be specified); or
    (2) That the electronic products comply with all standards in effect 
under section 358 of the Act (42 U.S.C. 263f), and chapter I, subchapter 
J, title 21, Code of Federal Regulations (21 CFR, chapter I, subchapter 
J), and that the certification required by section 360 of the Act (42 
U.S.C. 263h) in the form of a label or tag is attached to the product; 
or
    (3)(i) That the electronic products do not comply with all standards 
in effect under section 358 of the Act (42 U.S.C. 263f), and chapter I, 
subchapter J, title 21, Code of Federal Regulations (21 CFR, chapter I, 
subchapter J), but are being imported for the purpose of research, 
investigations, studied, demonstrations, or training, (ii) that the 
products will not be introduced into commerce and when the use for which 
they were imported is completed they will be destroyed or exported under 
Customs supervision, and (iii) that an exemption for these products has 
been or will be requested from the National Center for Devices and 
Radiological Health, Food and Drug Administration, in accordance with 
section 360B(b) of the Act (42 U.S.C. 263j); or
    (4) That the electronic products do not comply with all standards in 
effect under section 358 of the Act (42 U.S.C. 263f) and chapter I, 
subchapter J, Code of Federal Regulations (21 CFR, chapter I, subchapter 
J), but that a timely and adequate petition for permission to bring the 
products into compliance with applicable standards has been or will be 
filed with the Secretary of Health and Human Services in accordance with 
section 360 of the Public Health Service Act, as amended, and as 
implemented by 21 CFR 1005.21.
    (c) Notice of sampling. When a sampling of a product offered for 
importation has been requested by the Secretary of Health and Human 
Services, as provided for in 21 CFR 1005.10, the port director having 
jurisdiction over the shipment from which the sample is procured shall 
give to its owner or importer of record prompt notice of delivery of, or 
intention to deliver, the sample. If the notice so requires, the owner 
or importer of record shall hold the shipment of which the sample is 
typical and not release the shipment until notice of the results of the 
tests of the sample from the Secretary of Health and Human Services 
stating the product fulfills the requirements of the Act.
    (d) Release under bond. If a declaration filed in accordance with 
paragraph (b) of this section states that the entry is being made under 
circumstances described in paragraph (b)(4) of this section, the entry 
shall be accepted only if the owner or importer of record gives a bond 
on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter, for the production of a notification from 
the Secretary of Health and Human Services or his designee, in 
accordance with 21 CFR 1005.23, that the electronic product described in 
the declaration filed by the importer of record is in compliance with 
the applicable standards. The bond shall be in an amount deemed 
appropriate by the port director. Within 180 days after the entry of 
such additional period as the port director may allow for good cause 
shown, the importer of record shall take any action necessary to insure 
delivery to the port director of the notification described in this 
paragraph. If the notification is not delivered to the director of the 
port of entry of the electronic products within 180 days of the date of 
entry or such additional period as may be allowed by the port director, 
for good cause shown, the importer of record shall deliver or cause to 
be delivered to the port director those electronic products which were 
released. In the event that any electronic products are not redelivered 
to Customs custody or exported under Customs supervision within the 
period allowed by the port director in the Notice of Redelivery (Customs 
Form 4647), liquidated damages shall be assessed in the full amount of a 
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.
    (e) Release without bond--special exemptions. For certain electronic 
products the Director, National Center for Devices and Radiological 
Health, has granted special exemptions from the otherwise applicable 
standards under the Act. Such exempted products may

[[Page 204]]

be imported and released without bond if they meet all the criteria of 
the special exemption. If a special exemption is granted after the 
product has been imported under bond in accordance with paragraph (d) of 
this section, the bond conditions pertaining to the notification of 
compliance from the Secretary of Health and Human Services shall be 
deemed to have been satisfied.
    (f) Merchandise refused entry. If electronic products are denied 
entry under any provision of this section, the port director shall 
refuse to release the merchandise for entry into the United States.
    (g) Disposition of merchandise refused entry into the United States; 
redelivered merchandise. Electronic products which are denied entry 
under paragraph (b) of this section, or which are redelivered in 
accordance with paragraph (d) of this section, and which are not 
exported under Customs supervision within 90 days from the date of 
notice of refusal of admission or date of redelivery, shall be disposed 
of under Customs laws and regulations. However, no such disposition 
shall result in an introduction into the United States of an electronic 
product in violation of the Act (42 U.S.C. 263f, 263h).

[T.D. 83-235, 48 FR 52436, Nov. 18, 1983, as amended by T.D. 84-213, 49 
FR 41168, Oct. 19, 1984]

                           Switchblade Knives



Sec. 12.95  Definitions.

    Terms as used in Secs. 12.96 through 12.103 of this part are defined 
as follows:
    (a) Switchblade knife. ``Switchblade knife'' means any imported 
knife, or components thereof, or any class of imported knife, including 
``switchblade'', ``Balisong'', ``butterfly'', ``gravity'' or 
``ballistic'' knives, which has one or more of the following 
characteristics or identities:
    (1) A blade which opens automatically by hand pressure applied to a 
button or device in the handle of the knife, or any knife with a blade 
which opens automatically by operation of inertia, gravity, or both;
    (2) Knives which, by insignificant preliminary preparation, as 
described in paragraph (b) of this section, can be altered or converted 
so as to open automatically by hand pressure applied to a button or 
device in the handle of the knife or by operation of inertia, gravity, 
or both;
    (3) Unassembled knife kits or knife handles without blades which, 
when fully assembled with added blades, springs, or other parts, are 
knives which open automatically by hand pressure applied to a button or 
device in the handle of the knife or by operation of inertia, gravity, 
or both; or
    (4) Knives with a detachable blade that is propelled by a spring-
operated mechanism, and components thereof.
    (b) Insignificant preliminary preparation. ``Insignificant 
preliminary preparation'' means preparation with the use of ordinarily 
available tools, instruments, devices, and materials by one having no 
special manual training or skill for the purpose of modifying blade 
heels, relieving binding parts, altering spring restraints, or making 
similar minor alterations which can be accomplished in a relatively 
short period of time.
    (c) Utilitarian use. ``Utilitarian use'' includes but is not 
necessarily limited to use:
    (1) For a customary household purpose;
    (2) For usual personal convenience, including grooming;
    (3) In the practice of a profession, trade, or commercial or 
employment activity;
    (4) In the performance of a craft or hobby;
    (5) In the course of such outdoor pursuits as hunting and fishing; 
and
    (6) In scouting activities.

[T.D. 71-243, 36 FR 18859, Sept. 23, 1971, as amended by T.D. 90-50, 55 
FR 28192, July 10, 1990]



Sec. 12.96  Imports unrestricted under the Act.

    (a) Common and special purpose knives. Imported knives with a blade 
style designed for a primary utilitarian use, as defined in 
Sec. 12.95(c), shall be admitted to unrestricted entry provided that in 
condition as entered the imported knife is not a switchblade knife as 
defined in Sec. 12.95(a)(1). Among admissible common and special purpose 
knives are

[[Page 205]]

jackknives and similar standard pocketknives, special purpose knives, 
scout knives, and other knives equipped with one or more blades of such 
single edge nonweapon styles as clip, skinner, pruner, sheep foot, spey, 
coping, razor, pen, and cuticle.
    (b) Weapons with fixed blades. Importations of certain articles 
having a fixed unexposed or exposed blade are not within the prohibition 
of 15 U.S.C. 1241 through 1245. However, upon release by Customs, 
possession of these admissible articles which include such weapons as 
sword canes, camel whips, swords, sheath knives, machetes and similar 
devices that may be capable of use as weapons may be in violation of 
State or municipal laws.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90-50, 55 
FR 28192, July 10, 1990]



Sec. 12.97  Importations contrary to law.

    Importations of switchblade knives, except as permitted by 15 U.S.C. 
1244, are importations contrary to law and are subject to forfeiture 
under 19 U.S.C. 1595a(c).

[T.D. 90-50, 55 FR 28192, July 10, 1990]



Sec. 12.98  Importations permitted by statutory exceptions.

    The importation of switchblade knives is permitted by 15 U.S.C. 
1244, when:
    (a) Imported pursuant to contract with a branch of the Armed Forces 
of the United States;
    (b) Imported by a branch of the Armed Forces of the United States or 
any member or employee thereof acting in the performance of his duty; or
    (c) A switchblade knife, other than a ballistic knife, having a 
blade not exceeding 3 inches in length is in the possession of and is 
being transported on the person of an individual who has only one arm.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90-50, 55 
FR 28192, July 10, 1990]



Sec. 12.99  Procedures for permitted entry.

    (a) Declaration required. The entry of switchblade knives, the 
importation of which is permitted under Sec. 12.98 shall be accompanied 
by a declaration, in duplicate, of the importer or consignee stating the 
facts of the import transaction as follows:
    (1) Importation pursuant to Armed Forces contract. (i) The names of 
the contracting Armed Forces branch and its supplier;
    (ii) The specific contract relied upon identified by its date, 
number, or other contract designation; and
    (iii) A description of the kind or type of knife imported, the 
quantity entered, and the aggregate entered value of the importation.
    (2) Importation by a branch, member, or employee of the Armed 
Forces. (i) The name of the Armed Forces branch by or for the account of 
which entry is made or the branch of the importing member or employee 
acting in performance of duty; and
    (ii) The description, quantity, and aggregate entered value of the 
importation.
    (3) Importation by a one-armed person. A statement that the knife 
has a blade not exceeding 3 inches in length and is possessed by and 
transported on the declarant's person solely for his necessary personal 
convenience, accommodation, and use as a one-armed individual.
    (b) Attachments to declaration. Details for purposes of a 
declaration required under paragraph (a) of this section may be 
furnished by reference in the declaration to attachment of the original 
or copy of the contract or other documentation which contains the 
information.
    (c) Execution of declaration. Declarations required by paragraph (a) 
of this section shall be executed as follows:
    (1) Contract supplier; Armed Forces branch; member or employee. 
Declarations made under paragraph (a) or (b) of Sec. 12.98 shall affirm 
that facts and data furnished are declared on knowledge, information, or 
belief of a signing officer, partner, or authorized representative of an 
importing contract supplier or of a commissioned officer, contracting 
officer, or employee authorized to represent an Armed Forces importing 
branch. The signature to a declaration shall appear over the declarant's 
printed or typewritten name, his title or rank, and the identity of the 
contract supplier or Armed Forces

[[Page 206]]

branch he represents or in which he has membership or employment.
    (2) One-armed person. Declarations made under paragraph (c) of 
Sec. 12.98, signed by the eligible person, shall be presented upon his 
arrival directly to a Customs officer who shall visually confirm the 
facts declared. An eligible knife shall be released only to the 
declarant.
    (d) Verification of declared information. The importer, consignee, 
or declarant of knives permitted entry under Sec. 12.98 upon request 
shall furnish Customs additional documentary evidence from an Armed 
Forces branch or other relevant source as Customs officers may require 
in order to:
    (1) Verify declared statements;
    (2) Resolve differences pertaining to quantity, description, value, 
or other discrepancy disclosed by the importation, entry, or related 
documentation;
    (3) Establish the declarant's authority to act; or
    (4) Authenticate a signature.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971]



Sec. 12.100  Importations in good faith; common or contract carriage.

    (a) Exportation in lieu of seizure. Upon a claim that the importer 
acted in good faith without knowledge of applicable laws and 
regulations, Customs officers may authorize detained inadmissible knives 
to be exported otherwise than in the mails, at no expense to the 
Government, under the procedures of Secs. 18.25 through 18.27 of this 
chapter.
    (b) Common or contract carriers. In accordance with 15 U.S.C. 
1244(1), excepted from the penalties of the Act are the shipping, 
transporting, or delivering for shipment in interstate commerce, in the 
ordinary course of business of common or contract carriage, of any 
switchblade knife. However, imported switchblade knives as defined in 
Sec. 12.95(a) so shipped or transported to a port of entry or place of 
Customs examination are prohibited importations subject to Secs. 12.95-
12.103 and disposition as therein required, authorized, or permitted.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90-50, 55 
FR 28192, July 10, 1990]



Sec. 12.101  Seizure of prohibited switchblade knives.

    (a) Importations contrary to law. Inadmissible importations which 
are not exported in accordance with Sec. 12.100(a) shall be seized under 
19 U.S.C. 1595a(c).
    (b) Notice of seizure. Notice of Customs seizure shall be sent or 
given to the importer or consignee, which shall inform him of his right 
to file a petition under section 618, Tariff Act of 1930, as amended (19 
U.S.C. 1618), for remission of the forfeiture and permission to export 
the seized switchblade knives. (See part 171 of this chapter.)

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90-50, 55 
FR 28192, July 10, 1990]



Sec. 12.102  Forfeiture.

    If the importer or consignee fails to submit, within 60 days after 
being notified of his right to do so, a petition under section 618, 
Tariff Act of 1930, as amended (19 U.S.C. 1618), for remission of the 
forfeiture and permission to export the seized importation, the seized 
prohibited knives shall be forfeited in accordance with applicable 
provisions of sections 602 through 611, Tariff Act of 1930, as amended 
(19 U.S.C. 1602 through 1611), and the procedures of part 162 of this 
chapter.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 78-99, 43 
FR 13060, Mar. 29, 1978]



Sec. 12.103  Report to the U.S. Attorney.

    Should circumstances and facts of the import transaction show 
evidence of deliberate violation of 15 U.S.C. 1241 through 1245, so as 
to present a question of criminal liability, the evidence, accompanied 
by reports of investigative disclosures, findings, and recommendation, 
shall be transmitted to the U.S. Attorney for consideration of criminal 
prosecution. The port director shall hold the seized switchblade knives 
intact pending disposition of the case.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 72-81, 37 
FR 5364, Mar. 15, 1972; T.D. 90-50, 55 FR 28192, July 10, 1990]

[[Page 207]]

                            Cultural Property

    Source: Sections 12.104 through 12.104i were issued under T.D. 86-
52, 51 FR 6907, Feb. 27, 1986, unless otherwise noted.



Sec. 12.104  Definitions.

    For purposes of Secs. 12.104 through 12.104i:
    (a) The term, archaeological or ethnological material of the State 
Party to the 1970 UNESCO Convention means--
    (1) Any object of archaeological interest. No object may be 
considered to be an object of archaeological interest unless such 
subject--
    (i) Is of cultural significance;
    (ii) Is at least 250 years old; and
    (iii) Was normally discovered as a result of scientific excavation, 
clandestine or accidental digging, or exploration on land or under 
water; or in addition to paragraphs (a)(1) (i) and (ii) of this section;
    (iv) Meets such standards as are generally acceptable as 
archaeological such as, but not limited to, artifacts, buildings, parts 
of buildings, or decorative elements, without regard to whether the 
particular objects are discovered by exploration or excavation;
    (2) Any object of ethnological interest. No object may be considered 
to be an object of ethnological interest unless such object--
    (i) Is the product of a tribal or nonindustrial society, and
    (ii) Is important to the cultural heritage of a people because of 
its distinctive characteristics, comparative rarity, or its contribution 
to the knowledge of the origins, development or history of that people;
    (3) Any fragment or part of any object referred to in paragraph (a) 
(1) or (2) of this section which was first discovered within, and is 
subject to export control by the State Party.
    (b) The term Convention means the Convention on the Means of 
Prohibiting and Preventing the Illicit Import, Export, and Transfer of 
Ownership of Cultural Property adopted by the General Conference of the 
United Nations Educational, Scientific, and Cultural Organization at its 
sixteenth session (823 U.N.T.S. 231 (1972)).
    (c) The term cultural property includes articles described in 
Article 1 (a) through (k) of the Convention, whether or not any such 
article is specifically designated by any State Party for the purposes 
of Article 1. Article 1 lists the following categories:
    (1) Rare collections and specimens of fauna, flora, minerals and 
anatomy, and objects of palaeontological interest;
    (2) Property relating to history, including the history of science 
and technology and military and social history, to the life of national 
leaders, thinkers, scientists and artists and to events of national 
importance;
    (3) Products of archaeological excavations (including regular and 
clandestine) or of archaeological discoveries;
    (4) Elements of artistic or historical monuments or archaeological 
sites which have been dismembered;
    (5) Antiquities more than 100 years old, such as inscriptions, coins 
and engraved seals;
    (6) Objects of ethnological interest;
    (7) Property of artistic interest, such as:
    (i) Pictures, paintings and drawings produced entirely by hand on 
any support and in any material (excluding industrial designs and 
manufactured articles decorated by hand);
    (ii) Original works of statuary art and sculpture in any material;
    (iii) Original engravings, prints and lithographs;
    (iv) Original artistic assemblages and montages in any material;
    (8) Rare manuscripts and incunabula, old books, documents and 
publications of special interest (historical, artistic, scientific, 
literary, etc.) singly or in collections;
    (9) Postage, revenue and similar stamps, singly or in collections;
    (10) Archives, including sound, photographic and cinematographic 
archives;
    (11) Articles of furniture more than 100 years old and old musical 
instruments.
    (d) The term designated archaeological or ethnological material 
means any archaeological or ethnological material of the State Party 
which--
    (1) Is--
    (i) Covered by an agreement under 19 U.S.C. 2602 that enters into 
force with respect to the U.S., or

[[Page 208]]

    (ii) Subject to emergency action under 19 U.S.C. 2603 and
    (2) Is listed by regulation under 19 U.S.C. 2604.
    (e) The term museum means a public or private nonprofit agency or 
institution organized on a permanent basis for essentially educational 
or esthetic purposes, which, utilizing a professional staff, owns or 
utilizes tangible objects, cares for them, and exhibits them to the 
public on a regular basis (Museum Services Act; Pub. L. 94-462; 20 
U.S.C. 968). For the purposes of these regulations, the term recognized 
museum under the Cultural Property Implementation Act shall be 
synonymous with museum.
    (f) The term Secretary means the Secretary of the Treasury or his 
delegate, the Commissioner of Customs.
    (g) The term State Party means any nation which has ratified, 
accepted, or acceded to the 1970 UNESCO Convention.
    (h) The term United States or U.S., includes the customs territory 
of the United States, the U.S. Virgin Islands and any territory or area 
the foreign relations for which the U.S. is responsible.

[T.D. 86-52, 51 FR 6907, Feb. 27, 1986; 51 FR 15316, Apr. 23, 1986; 51 
FR 17332, May 12, 1986]



Sec. 12.104a  Importations prohibited.

    (a) No article of cultural property documented as appertaining to 
the inventory of a museum or religious or secular public monument or 
similar institution in any State Party which was stolen from such 
museum, monument, or institution after April 12, 1983, or after the date 
of entry into force of the Convention for the State Party, whichever 
date is later, may be imported into the U.S.
    (b) No archaeological or ethnological material designated pursuant 
to 19 U.S.C. 2604 and listed in Sec. 12.104g, that is exported (whether 
or not such exportation is to the U.S.) from the State Party after the 
designation of such material under 19 U.S.C. 2604 may be imported into 
the U.S. unless the State Party issues a certificate or other 
documentation which certifies that such exportation was not in violation 
of the laws of the State Party.



Sec. 12.104b  State Parties to the Convention.

    (a) The following is a list of State Parties which have deposited an 
instrument of ratification, acceptance, accession or succession, the 
date of such deposit and the date of entry into force for each State 
Party:

----------------------------------------------------------------------------------------------------------------
             State party                             Date of deposit                  Date of entry into force
----------------------------------------------------------------------------------------------------------------
Algeria..............................  June 24, 1974 (R).........................  Sept. 24, 1974.
Angola...............................  Nov. 7, 1991 (R)..........................  Feb. 7, 1992.
Argentina............................  Jan. 11, 1973 (R).........................   Apr. 11, 1973.
Armenia, Republic of.................  Sept. 5, 1993 (S).........................  See Note 1.
Australia............................  Oct. 30, 1989 (Ac)........................  Jan. 30, 1990.
Bangladesh...........................  Dec. 9, 1987 (R)..........................  Mar. 9, 1988.
Belarus..............................  Apr. 28, 1988 (R).........................  July 28, 1988.
Belize...............................  Jan. 26, 1990 (R).........................  Apr. 26, 1990.
Bolivia..............................  Oct. 4, 1976 (R)..........................  Jan. 4, 1977.
Bosnia-Herzegovina...................  July 12, 1993 (S).........................  See Note 2.
Brazil...............................  Feb. 16, 1973 (R).........................  May 16, 1973.
Bulgaria.............................  Sept. 15, 1971 (R)........................  Apr. 24, 1972.
Burkina Faso.........................  Apr. 7, 1987 (R)..........................  July 7, 1987.
Cambodia.............................  Sept. 26, 1972 (R)........................  Dec. 26, 1972.
Cameroon.............................  May 24, 1972 (R)..........................  Aug. 24, 1972.
Canada...............................  Mar. 28, 1978 (Ac)........................  June 28, 1978.
Central African Republic.............  Feb. 1, 1972 (R)..........................  May 1, 1972.
China, People's Republic of..........  Nov. 28, 1989 (Ac)........................  Feb. 28, 1990.
Columbia.............................  May 24, 1988 (Ac).........................  Aug. 24, 1988.
Cote d'Ivoire........................  Oct. 30, 1990 (R).........................  Jan. 30, 1991.
Croatia..............................  July 6, 1992 (S)..........................  See Note 2.
Cuba.................................  Jan. 30, 1980 (R).........................  Apr. 30, 1980.
Cyprus...............................  Oct. 19, 1979 (R).........................  Jan. 19, 1980.
Czech Republic.......................  Mar. 26, 1993 (S).........................  See Note 4.
Dominican Republic...................  Mar. 7, 1973 (R)..........................  June 7, 1973.
Ecuador..............................  Mar. 24, 1971 (Ac)........................  Apr. 24, 1972.
Egypt................................  Apr. 5, 1973 (Ac).........................  July 5, 1973.
El Salvador..........................  Feb. 20, 1978 (R).........................  May 20, 1978.
Georgia, Republic of.................  Nov. 4, 1992 (S)..........................  See Note 1.
Greece...............................  June 5, 1981 (R)..........................  Sept. 5, 1981.

[[Page 209]]

 
Grenada..............................  Sept. 10, 1992 (Ac).......................  Dec. 10, 1992.
Guatemala............................  Jan. 14, 1985 (R).........................  Apr. 14, 1985.
Guinea...............................  Mar. 18, 1979 (R).........................  June 18, 1979.
Honduras.............................  Mar. 19, 1979 (R).........................  June 19, 1979.
Hungary..............................  Oct. 23, 1978 (R).........................  Jan. 23, 1979.
India................................  Jan. 24, 1977 (R).........................  Apr. 24, 1977.
Iran.................................  Jan. 27, 1975 (Ac)........................  Apr. 27, 1975.
Iraq.................................  Feb. 12, 1973 (Ac)........................  May 12, 1973.
Italy................................  Oct. 2, 1978 (R)..........................  Jan. 2, 1979.
Jordan...............................  Mar. 15, 1974 (R).........................  June 15, 1974.
Korea, Democratic People's Republic    May 13, 1983 (R)..........................  Aug. 13, 1983.
 of.
Korea, Republic of...................  Feb. 14, 1983 (Ac)........................  May 14, 1983.
Kuwait...............................  June 22, 1972 (Ac)........................  Sept. 22, 1972.
Lebanon..............................  Aug. 25, 1992 (R).........................  Nov. 25, 1992.
Libya................................  Jan. 9, 1973 (R)..........................  Apr. 9, 1973.
Madagascar...........................  June 21, 1989 (R).........................  Sept. 21, 1989.
Mali.................................  Apr. 6, 1987 (R)..........................  July 6, 1987.
Mauritania...........................  Apr. 27, 1977 (R).........................  July 27, 1977
Mauritius............................  Feb. 27, 1978 (Ac)........................  May 27, 1978.
Mexico...............................  Oct. 4, 1972 (Ac).........................  Jan. 4, 1973.
Mongolia.............................  June 23, 1991 (Ac)........................  Aug. 23, 1991.
Nepal................................  June 23, 1976 (R).........................  Sept. 23, 1976.
Nicaragua............................  Apr. 19, 1977 (R).........................  July 19, 1977.
Niger................................  Oct. 16, 1972 (R).........................  Jan. 16, 1973.
Nigeria..............................  Jan. 24, 1972 (R).........................  Apr. 24, 1972.
Oman.................................  June 2, 1978 (Ac).........................  Sept. 2, 1978.
Pakistan.............................  Apr. 30, 1978 (R).........................  July 30, 1981.
Panama...............................  Aug. 13, 1973 (Ac)........................  Nov. 13, 1973.
Peru.................................  Oct. 24, 1979 (Ac)........................  Jan. 24, 1980.
Poland...............................  Jan. 31, 1974 (R).........................  Apr. 30, 1974.
Portugal.............................  Dec. 9, 1985 (R)..........................  Mar. 9, 1986.
Qatar................................  Apr. 20, 1977 (Ac)........................  July 20, 1977.
Romania..............................  Dec. 6, 1993 (R)..........................  Mar. 6, 1994.
Russian Federation...................  Apr. 28, 1988 (R).........................  See Note 3.
Saudi Arabia.........................  Sept. 8, 1976 (Ac)........................  Dec. 8, 1976.
Senegal..............................  Dec. 9, 1984 (R)..........................  Mar. 9, 1985.
Slovak Republic......................  Mar. 31, 1993 (S).........................  See Note 4.
Slovenia, Republic of................  Oct. 10, 1992 (S).........................  See Note 2.
Spain................................  Jan. 10, 1986 (R).........................  Apr. 10, 1986.
Sri Lanka............................  Apr. 7, 1981 (Ac).........................  July 7, 1981.
Syria................................  Feb. 21, 1975 (Ac)........................  May 21, 1975.
Tadjikistan, Republic of.............  Aug. 11, 1992 (S).........................  See Note 1.
Tanzania.............................  Aug. 2, 1977 (R)..........................  Nov. 2, 1977.
Tunisia..............................  Mar. 10, 1975 (R).........................  June 10, 1975.
Turkey...............................  Apr. 21, 1981 (R).........................  July 21, 1981.
Ukraine..............................  Apr. 28, 1988 (R).........................  July 28, 1988.
United States of America.............  Sept. 2, 1983 (Ac)........................  Dec. 2, 1983.
Uruguay..............................  Aug. 9, 1977 (R)..........................  Nov. 9, 1977.
Yugoslavia...........................  Oct. 3, 1972 (R)..........................  Jan. 3, 1973.
Zaire................................  Sept. 23, 1974 (R)........................  Dec. 23, 1974.
Zambia...............................  June 21, 1985 (R).........................  Sept. 21, 1985.
----------------------------------------------------------------------------------------------------------------
Code for reading second column: Ratification (R); Acceptance (Ac); Accession (A); Succession (S).
Notes:
1. The Republic of Armenia, the Republic of Georgia, and the Republic of Tadjikistan each deposited a
  notification of succession in which each declared itself bound by the Convention as ratified by the USSR on
  April 28, 1988 and which entered into force on July 28, 1988.
2. Bosnia-Herzegovina, Croatia and the Republic of Slovenia each deposited notification of succession in which
  each declared itself bound by the Convention as ratified by Yugoslavia on Oct. 3, 1972 and entered into force
  on January 3, 1973.
3. The Government of the Russian Federation informed the Director General of UNESCO that the Russian Federation
  continues without interruption the participation of the USSR in all UNESCO Conventions. The instrument of
  ratification was deposited by the former USSR on April 28, 1988. and entered into force on July 28, 1988.
4. The Czech Republic and the Slovak Republic each deposited a notification of succession in which each declared
  itself bound by the Convention as accepted by Czechoslovakia on Feb. 14, 1977 and which entered into force on
  May 14, 1977.

    (b) Additions to and deletions from the list of State Parties will 
be accomplished by Federal Register notice, from time to time, as the 
necessity arises.

[T.D. 86-52, 51 FR 6907, Feb. 27, 1986, as amended by T.D. 88-59, 53 FR 
38287, Sept. 30, 1988; T.D. 90-13, 55 FR 4996, Feb. 13, 1990; T.D. 95-
71, 60 FR 47467, Sept. 13, 1995]

[[Page 210]]



Sec. 12.104c  Importations permitted.

    Designated archaeological or ethnological material for which entry 
is sought into the U.S., will be permitted entry if at the time of 
making entry:
    (a) A certificate, or other documentation, issued by the Government 
of the country of origin of such material in a form acceptable to the 
Secretary is filed with the port director, such form being, but not 
limited to, an affidavit, license, or permit from an appropriate, 
authorized State Party official under seal, certifying that such 
exportation was not in violation of the laws of that country, or
    (b) Satisfactory evidence is presented to the port director that 
such designated material was exported from the State Party not less than 
10 years before the date of such entry and that neither the person for 
whose account the material is imported (or any related person) 
contracted for or acquired an interest, directly or indirectly, in such 
material more than 1 year before that date of entry, or
    (c) Satisfactory evidence is presented to the port director that 
such designated material was exported from the State Party on or before 
the date on which such material was designated under 19 U.S.C. 2604.
    (d) The term ``satisfactory evidence'' means--
    (1) For purposes of paragraph (b) of this section--
    (i) One or more declarations under oath by the importer, or the 
person for whose account the material is imported, stating that, to the 
best of his knowledge--
    (A) The material was exported from the State Party not less than 10 
years before the date of entry into the U.S., and
    (B) Neither such importer or person (or any related person) 
contracted for or acquired an interest, directly or indirectly, in such 
material more than 1 year before the date of entry of the material; and
    (ii) A statement provided by the consignor, or person who sold the 
material to the importer, which states the date, or, if not known, his 
belief, that the material was exported from the State Party not less 
than 10 years before the date of entry into the U.S. and the reasons on 
which the statement is based; and
    (2) For purposes of paragraph (c) of this section--
    (i) One or more declarations under oath by the importer or the 
person for whose account the material is to be imported, stating that, 
to the best of his knowledge, the material was exported from the State 
Party on or before the date such material was designated under 19 U.S.C. 
2604, and
    (ii) A statement by the consignor or person who sold the material to 
the importer which states the date, or if not known, his belief, that 
the material was exported from the State Party on or before the date 
such material was designated under 19 U.S.C. 2604, and the reasons on 
which the statement is based.
    (e) Related persons. For purposes of paragraphs (b) and (d) of this 
section, a person shall be treated as a related person to an importer, 
or to a person for whose account material is imported, if such person--
    (1) Is a member of the same family as the importer or person of 
account, including, but not limited to, membership as a brother or 
sister (whether by whole or half blood), spouse, ancestor, or lineal 
descendant;
    (2) Is a partner or associate with the importer or person of account 
in any partnership, association, or other venture; or
    (3) Is a corporation or other legal entity in which the importer or 
person of account directly or indirectly owns, controls, or holds power 
to vote 20 percent or more of the outstanding voting stock or shares in 
the entity.



Sec. 12.104d  Detention of articles; time in which to comply.

    In the event an importer cannot produce the certificate, 
documentation, or evidence required in Sec. 12.104c at the time of 
making entry, the port director shall take the designated archaeological 
or ethnological material into Customs custody and send it to a bonded 
warehouse or public store to be held at the risk and expense of the 
consignee until the certificate, documentation, or evidence is presented 
to

[[Page 211]]

such officer. The certificate, documentation, or evidence must be 
presented within 90 days after the date on which the material is taken 
into Customs custody, or such longer period as may be allowed by the 
port director for good cause shown.



Sec. 12.104e  Seizure and forfeiture.

    (a) Whenever any designated archaeological or ethnological material 
is imported into the U.S. in violation of 19 U.S.C. 2606, and the 
importer states in writing that he will not attempt to secure the 
certificate, documentation, or evidence required by Sec. 12.104c, or 
such certificate, documentation, or evidence is not presented to the 
port director before the expiration of the time provided in 
Sec. 12.104d, the material shall be seized and summarily forfeited to 
the U.S. in accordance with part 162 of this chapter.
    (1) Any designated archaeological or ethnological material which is 
forfeited to the U.S. shall, in accordance with the provisions of Title 
III of Pub. L. 97-446, 19 U.S.C. 2609(b):
    (i) First be offered for return to the State Party;
    (ii) If not returned to the State Party be returned to a claimant 
with respect to whom the designated material was forfeited if that 
claimant establishes--
    (A) Valid title to the material;
    (B) That the claimant is a bona fide purchaser for value of the 
material; or
    (iii) If not returned to the State Party under paragraph (a)(1)(i) 
of this section or to a claimant under paragraph (a)(1)(ii) of this 
section, be disposed of in the manner prescribed by law for articles 
forfeited for violation of the customs laws. No return of material may 
be made under paragraph (a)(1) (i) or (ii) of this section unless the 
State Party or claimant, as the case may be, bears the expenses incurred 
incident to the return and delivery, and complies with such other 
requirements relating to the return as the Secretary shall prescribe.
    (b) Whenever any stolen article of cultural property is imported 
into the U.S. in violation of 19 U.S.C. 2607, such cultural property 
shall be seized and forfeited to the U.S. in accordance with part 162 of 
this chapter.
    (1) Any stolen article of cultural property which is forfeited to 
the U.S. shall, in accordance with the provisions of Title III of Pub. 
L. 97-446, 2609(c):
    (i) First be offered for return to the State Party in whose 
territory is situated the institution referred to in 19 U.S.C. 2607 and 
shall be returned if that State Party bears the expenses incident to 
such return and delivery and complies with such other requirements 
relating to the return as the Secretary prescribes; or
    (ii) If not returned to such State Party, be disposed of in the 
manner prescribed by law for articles forfeited for violation of the 
customs laws.



Sec. 12.104f  Temporary disposition of materials and articles.

    Pending a final determination as to whether any archaeological or 
ethnological material, or any article of cultural property, has been 
imported into the U.S. in violation of 19 U.S.C. 2606 or 19 U.S.C. 2607, 
the Secretary may permit such material or article to be retained at a 
museum or other cultural or scientific institution in the U.S. if he 
finds that sufficient safeguards will be taken by the museum or 
institution for the protection of such material or article; and 
sufficient bond is posted by the museum or institution to ensure its 
return to the Secretary.



Sec. 12.104g  Specific items or categories designated by agreements or emergency actions.

    (a) The following is a list of agreements imposing import 
restrictions on the described articles of cultural property of State 
Parties. The listed Treasury Decision contains the Designated Listing 
with a complete description of specific items or categories of 
archaeological or ethnological material designated by the agreement as 
coming under the protection of the Convention on Cultural Property 
Implementation Act. Import restrictions listed below shall be effective 
for no more than five years beginning on the date on which the agreement 
enters into force with respect to the United States. This period may be 
extended for additional periods of not more than five years if it is 
determined that the factors which

[[Page 212]]

justified the initial agreement still pertain and no cause for 
suspension of the agreement exists. Any suchextension is indicated in 
the listing.

----------------------------------------------------------------------------------------------------------------
                  State party                            Cultural  Property                   T.D. No.
----------------------------------------------------------------------------------------------------------------
Canada.........................................  Archaeological Artifacts and                         T.D. 97-31
                                                  Ethnological Material Culture of
                                                  Canadian Origin.
El Salvador....................................  Archaeological material                              T.D. 95-20
                                                  representing Prehispanic
                                                  cultures of El Salvador.
Guatemala......................................  Archaeological material from                         T.D. 97-81
                                                  sites in the Peten Lowlands of
                                                  Guatemala, and related Pre-
                                                  Columbian material from the
                                                  Highlands and the Southern Coast
                                                  of Guatemala.
Mali...........................................  Archaeological material from the                     T.D. 97-80
                                                  Niger River Valley Region, Mali,
                                                  and the Bandiagara Escarpment
                                                  (Cliff) forming part of the
                                                  remains of the sub-Sahara
                                                  culture.
Peru...........................................  Archaeological artifacts and                         T.D. 97-50
                                                  ethnological material from Peru.
----------------------------------------------------------------------------------------------------------------

    (b) The following is a list of emergency actions imposing import 
restrictions on the described articles of cultural property of State 
Parties. The listed Treasury Decision contains a complete description of 
specific items or categories of archaeological or ethnological material 
designated by the emergency actions as coming under the protection of 
the Convention on Cultural Property Implementation Act. Import 
restrictions listed below shall be effective for no more than five years 
from the date on which the State Party requested those restrictions. 
This period may be extended for three more years if it is determined 
that the emergency condition continues to apply with respect to the 
archaeological or ethnological material. Any such extension is indicated 
in the listing.

----------------------------------------------------------------------------------------------------------------
                  State party                            Cultural property                    T.D. No.
----------------------------------------------------------------------------------------------------------------
Bolivia........................................  Antique ceremonial textiles from       89-37, extended by 93-34
                                                  Coroma.
----------------------------------------------------------------------------------------------------------------


[T.D. 86-52, 51 FR 6907, Feb. 27, 1986, as amended by T.D. 90-3, 55 FR 
1810, Jan. 19, 1990; T.D. 90-37, 55 FR 19030, May 7, 1990; T.D. 91-34, 
56 FR 15182, Apr. 15, 1991; T.D. 92-28, 57 FR 9975, Mar. 23, 1992; T.D. 
93-34, 58 FR 29349, May 20, 1993; T.D. 93-74, 58 FR 49430, Sept. 23, 
1993; T.D. 94-54, 59 FR 32903, June 27, 1994; T.D. 94-84, 59 FR 54818, 
Nov. 2, 1994; T.D. 95-20, 60 FR 13360, 13361, Mar. 10, 1995; T.D. 97-31, 
62 FR 19492, Apr. 22, 1997; T.D. 97-50, 62 FR 31721, June 11, 1997; T.D. 
97-80, 62 FR 49596, Sept. 23, 1997; T.D. 97-81, 62 FR 51774, Oct. 3, 
1997]



Sec. 12.104h  Exempt materials and articles.

    The provisions of these regulations shall not apply to--
    (a) Any archaeological or ethnological material or any article of 
cultural property which is imported into the U.S. for temporary 
exhibition or display, if such material or article is rendered immune 
from seizure under judicial process by the U.S. Information Agency, 
Office of the General Counsel and Congressional Liaison, pursuant to the 
Act entitled ``An Act to render immune from seizure under judicial 
process certain objects of cultural significance imported into the 
United States for temporary display or exhibition, and for other 
purposes'', approved October 19, 1965 (22 U.S.C. 2459); or
    (b) Any designated archaeological or ethnological material or any 
article of cultural property imported into the U.S. if such material or 
article--
    (1) Has been held in the U.S. for a period of not less than 3 
consecutive years by a recognized museum or religious or secular 
monument or similar institution, and was purchased by that institution 
for value, in good faith, and without notice that such material or 
article was imported in violation of these regulations, but only if--
    (i) The acquisition of such material or article has been reported in 
a publication of such institution, any regularly published newspaper or 
periodical with a circulation of at least 50,000, or

[[Page 213]]

a periodical or exhibition catalog which is concerned with the type of 
article or materials sought to be exempted from these regulations,
    (ii) Such material or article has been exhibited to the public for a 
period or periods aggregating at least 1 year during such 3-year period, 
or
    (iii) Such article or material has been cataloged and the catalog 
material made available upon request to the public for at least 2 years 
during such 3-year period;
    (2) If paragraph (b)(1) of this section does not apply, has been 
within the U.S. for a period of not less than 10 consecutive years and 
has been exhibited for not less than 5 years during such period in a 
recognized museum or religious or secular monument or similar 
institution in the U.S. open to the public;
    (3) If paragraphs (b) (1) and (2) of this section do not apply, has 
been within the U.S. for a period of not less than 10 consecutive years 
and the State Party concerned has received or should have received 
during such period fair notice (through such adequate and accessible 
publication, or other means, as the Secretary or his designee shall 
prescribe) of its location within the U.S.; and
    (4) If none of the preceding subparagraphs apply, has been within 
the U.S. for a period of not less than 20 consecutive years and the 
claimant establishes that it purchased the material or article for value 
without knowledge or reason to believe that it was imported in violation 
of law.



Sec. 12.104i  Enforcement.

    In the customs territory of the United States, and in the U.S. 
Virgin Islands, the provisions of these regulations shall be enforced by 
appropriate customs officers. In any other territory or area within the 
U.S., but not within such customs territory or the U.S. Virgin Islands, 
such provisions shall be enforced by such persons as may be designated 
by the President.

     Pre-Columbian Monumental and Architectural Sculpture and Murals



Sec. 12.105  Definitions.

    For purposes of Secs. 12.106 through 12.109:
    (a) The term pre-Columbian monumental or architectural sculpture or 
mural means any stone carving or wall art listed in paragraph (b) of 
this section which is the product of a pre-Columbian Indian culture of 
Belize, Bolivia, Columbia, Costa Rica, Dominican Republic, Ecuador, El 
Salvador, Guatemala, Honduras, Mexico, Panama, Peru, or Venezuela.
    (b) The term stone carving or wall art includes:
    (1) Such stone monuments as altars and altar bases, archways, ball 
court markers, basins, calendars, and calendrical markers, columns, 
monoliths, obelisks, statues, stelae, sarcophagi, thrones, zoomorphs;
    (2) Such architectural structures as aqueducts, ball courts, 
buildings, bridges, causeways, courts, doorways (including lintels and 
jambs), forts, observatories, plazas, platforms, facades, reservoirs, 
retaining walls, roadways, shrines, temples, tombs, walls, walkways, 
wells;
    (3) Architectural masks, decorated capstones, decorative beams of 
wood, frescoes, friezes, glyphs, graffiti, mosaics, moldings, or any 
other carving or decoration which had been part of or affixed to any 
monument or architectural structure, including cave paintings or 
designs;
    (4) Any fragment or part of any stone carving or wall art listed in 
the preceding subparagraphs.
    (c) The term country of origin, as applied to any pre-Columbian 
monumental or architectural sculpture or mural, means the country where 
the sculpture or mural was first discovered.

[T.D. 73-119, 38 FR 10807, May 2, 1973, as amended by T.D. 73-151, 38 FR 
14677, June 4, 1973; T.D. 73-165, 38 FR 16044, June 20, 1973; 42 FR 
42684, Aug. 24, 1977; T.D. 82-145, 47 FR 35477, Aug. 16, 1982]

[[Page 214]]



Sec. 12.106  Importation prohibited.

    Except as provided in section 12.107, no pre-Columbian monumental or 
architectural sculpture or mural which is exported (whether or not such 
exportation is to the United States) from its country of origin after 
June 1, 1973, may be imported into the United States.

[T.D. 78-273, 43 FR 36055, Aug. 15, 1978]



Sec. 12.107  Importations permitted.

    Pre-Columbian monumental or architectural sculpture or mural for 
which entry is sought into the Customs territory of the United States 
will be permitted entry if at the time of making entry:
    (a) A certificate, issued by the Government of the country of origin 
of such sculpture or mural, in a form acceptable to the Secretary, 
certifying that such exportation was not in violation of the laws of 
that country, is filed with the port director; or
    (b) Satisfactory evidence is presented to the port director that 
such sculpture or mural was exported from the country of origin on or 
before June 1, 1973; or
    (c) Satisfactory evidence is presented to the port director that 
such sculpture or mural is not an article listed in Sec. 12.105.

[T.D. 73-119, 38 FR 10807, May 2, 1973, as amended by T.D. 82-145, 47 FR 
35477, Aug. 16, 1982]



Sec. 12.108  Detention of articles; time in which to comply.

    If the importer cannot produce the certificate or evidence required 
in Sec. 12.107 at the time of making entry, the port director shall take 
the sculpture or mural into Customs custody and send it to a bonded 
warehouse or public store to be held at the risk and expense of the 
consignee until the certificate or evidence is presented to such 
officer. The certificate or evidence must be presented within 90 days 
after the date on which the sculpture or mural is taken into Customs 
custody, or such longer period as may be allowed by the port director 
for good cause shown.

[T.D. 73-119, 38 FR 10807, May 2, 1973]



Sec. 12.109  Seizure and forfeiture.

    (a) Whenever any pre-Columbian monumental or architectural sculpture 
or mural listed in Sec. 12.105 is detained in accordance with 
Sec. 12.108 and the importer states in writing that he will not attempt 
to secure the certificate or evidence required, or such certificate or 
evidence is not presented to the port director prior to the expiration 
of the time provided in Sec. 12.108, the sculpture or mural shall be 
seized and summarily forfeited to the United States in accordance with 
part 162 of this chapter.
    (b) Any pre-Columbian monumental or architectural sculpture or mural 
which is forfeited to the United States shall in accordance with the 
provisions of Title II of Pub. L. 92-587, 19 U.S.C. 2093(b):
    (1) First be offered for return to the country of origin, and shall 
be returned if that country presents a request in writing for the return 
of the article and agrees to bear all expenses incurred incident to such 
return; or
    (2) If not returned to the country of origin, be disposed of in 
accordance with law, pursuant to the provisions of section 609, Tariff 
Act of 1930, as amended (19 U.S.C. 1609), and Sec. 162.46 of this 
chapter.

[T.D. 73-119, 38 FR 10807, May 2, 1973, as amended by T.D. 82-145, 47 FR 
35477, Aug. 16, 1982]

                         Pesticides and Devices



Sec. 12.110  Definitions.

    Except as otherwise provided below, the terms used in Secs. 12.111 
through 12.117 shall have the meanings set forth for those terms in the 
Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 
U.S.C. 136 et seq.), hereinafter referred to as ``the Act.'' The term 
Administrator shall mean the Administrator of the Environmental 
Protection Agency.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975]



Sec. 12.111  Registration.

    All imported pesticides are required to be registered under the 
provisions of section 3 of the Act, and under the regulations (40 CFR 
162.10) promulgated thereunder by the Administrator before being 
permitted entry into the

[[Page 215]]

United States. Devices, although not required to be registered, must not 
bear any statement, design, or graphic representation that is false or 
misleading in any particular.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975]



Sec. 12.112  Notice of arrival of pesticides and devices.

    (a) General. An importer desiring to import pesticides or devices 
into the United States shall submit to the Administrator a Notice of 
Arrival of Pesticides and Devices (Environmental Protection Agency Form 
3540-1), hereinafter referred to as a Notice of Arrival, prior to the 
arrival of the shipment in the United States. The Administrator shall 
complete the Notice of Arrival, indicating the disposition to be made of 
the shipment of pesticides or devices upon its arrival in the United 
States, and shall return the completed Notice of Arrival to the importer 
or his agent.
    (b) Chemicals imported for use other than as pesticides. Chemicals 
which can be used as pesticides but which are not imported for such use 
and are not shown on the Abbreviated List of Pesticides compiled by the 
Environmental Protection Agency, may be entered without the submission 
of the Notice of Arrival.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975]



Sec. 12.113  Arrival of shipment.

    (a) Notice of arrival presented. Upon the arrival of a shipment of 
pesticides or devices, the importer or his agent shall present to the 
director of the port of entry the Notice of Arrival completed by the 
Administrator and indicating the Customs action to be taken with respect 
to the shipment. The port director shall compare entry documents for the 
shipment of pesticides or devices with the Notice of Arrival and notify 
the Administrator of any discrepancies.
    (b) Notice of arrival not presented. When a shipment of pesticides 
or devices arrives in the United States without the presentation by the 
importer or his agent of the Notice of Arrival completed by the 
Administrator, the shipment shall be detained by the director of the 
importer's risk and expense until the completed Notice of Arrival is 
presented or until other disposition is ordered by the Administrator, 
but not to exceed a period of 30 days, or such extended period, not in 
excess of 30 additional days, as the port director for good cause may 
specially authorize. An application of the importer or his agent 
requesting an extension of the initial 30-day period shall be filed with 
the director of the port of entry.
    (c) Disposition of pesticides or devices remaining under detention. 
A shipment that remains detained or undisposed of due to failure of 
presentment of a completed Notice of Arrival or nonreceipt of an order 
of the Administrator as to its disposition shall be treated as a 
prohibited importation. The port director shall cause the destruction of 
any such shipment not exported by the consignee within 90 days after the 
expiration of the detention period specified or authorized pursuant to 
Sec. 12.113(b).

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975]



Sec. 12.114  Release or refusal of delivery.

    If the completed Notice of Arrival directs the port director to 
release the shipment of pesticides or devices, the shipment shall be 
released to the consignee. If the completed Notice of Arrival directs 
the port director to refuse delivery of the shipment, the shipment shall 
be refused delivery and treated as a prohibited importation. The port 
director shall cause the destruction of any shipment refused delivery 
and not exported by the consignee within 90 days after notice of such 
refusal of delivery.

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975]



Sec. 12.115  Release under bond.

    If the completed Notice of Arrival so directs, a shipment of 
pesticides or devices shall be detained at the importer's expense by the 
port director pending an examination by the Administrator to determine 
whether the shipment complies with the requirements of the Act. However, 
a shipment detained for examination may be released to the consignee 
prior to a determination by the Administrator provided a bond is 
furnished on Customs Form 301, containing the bond conditions set

[[Page 216]]

forth in Sec. 113.62 of this chapter, for the return of the merchandise 
to Customs custody. The bond shall be in an amount deemed appropriate by 
the port director. When a shipment of pesticides or devices is released 
to the consignee under bond, the shipment shall not be used or otherwise 
disposed of until the determination is made by the Administrator.

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975, as amended by T.D. 84-213, 49 
FR 41168, Oct. 19, 1984]



Sec. 12.116  Samples.

    Upon the request of the Administrator, either on the completed 
Notice of Arrival or otherwise, the port director shall deliver to the 
Administrator samples of the imported pesticides or devices, together 
with all accompanying labels, circulars, and advertising matter 
pertaining to such merchandise. The port director shall notify the 
consignee, in writing, that the samples of imported pesticides or 
devices, together with all accompanying labels, circulars, and 
advertising matter pertaining to such merchandise have been delivered to 
the Administrator.

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975]



Sec. 12.117  Procedure after examination.

    (a) Merchandise complying with the Act. If, upon examination or 
analysis of a sample from a shipment of pesticides or devices, the 
sample is found to be in compliance with the Act, the Administrator 
shall notify the port director that the shipment may be released to the 
consignee.
    (b) Merchandise not complying with the Act. If, upon examination or 
analysis of a sample from a shipment of pesticides or devices, the 
sample is found to be in violation of the Act, the consignee shall be 
notified promptly by the Administrator of the nature of the violation 
and be given a reasonable time, not to exceed 20 days, to submit written 
material or, at his option, to appear before the Administrator and 
introduce testimony, to show cause why the shipment should not be 
destroyed or refused entry. If, after consideration of all the evidence 
presented, it is still the opinion of the Administrator that the 
merchandise is in violation of the Act, the Administrator shall notify 
the port director of this opinion and the port director shall either (1) 
refuse delivery to the consignee, or (2) if the shipment has been 
released to the consignee under bond, demand redelivery of the shipment 
under the terms of the bond. If the merchandise is not redelivered 
within 30 days after the date of demand by the port director, the port 
director shall issue a demand for liquidated damages in the full amount 
of 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. 
The port director shall cause the destruction of any merchandise refused 
delivery to the consignee, or redelivered by the consignee pursuant to a 
demand therefor, and not exported by the consignee within 90 days after 
notice of such refusal of delivery or within 90 days after such 
redelivery, as applicable.

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975, as amended by T.D. 84-213, 49 
FR 41168, Oct. 19, 1984]

    Chemical Substances in Bulk and as Part of Mixtures and Articles

    Source: Sections 12.118 through 12.127 were issued under T.D. 83-
158, 48 FR 34739, Aug. 1, 1983, unless otherwise noted.



Sec. 12.118  Toxic Substances Control Act.

    The importation into the customs territory of the United States of a 
chemical substance in bulk or as part of a mixture, or article 
containing a chemical substance or mixture, is governed by the Toxic 
Substances Control Act (``TSCA'') (15 U.S.C. 2601 et seq.), and by 
regulations issued under the authority of section 13(b), TSCA (15 U.S.C. 
2612(b)) by the Secretary of the Treasury in consultation with the 
Administrator, Environmental Protection Agency (``EPA'').



Sec. 12.119  Scope.

    Sections 12.120 through 12.127 apply to the importation into the 
customs territory of the United States of chemical substances in bulk 
and as part of mixtures under TSCA. Sections 12.120 through 12.127 also 
apply to articles containing a chemical substance or

[[Page 217]]

mixture if so required by the Administrator by specific rule under TSCA.



Sec. 12.120  Definitions.

    Except as otherwise provided below, the terms used in Secs. 12.121 
through 12.127 have the meanings set forth for those terms in TSCA.
    (a) Article--(1) Article means a manufactured item which:
    (i) Is formed to a specific shape or design during manufacture,
    (ii) Has end use functions dependent in whole or in part upon its 
shape or design during the end use, and
    (iii) Has either no change of chemical composition during its end 
use or only those changes of composition which have no commercial 
purpose separate from that of the article and that may occur as 
described in Sec. 12.120(a)(2); except that fluids and particles are not 
considered articles regardless of shape or design.
    (2) The allowable changes of composition, referred to in 
Sec. 12.120(a)(1), are those which result from a chemical reaction that 
occurs upon the end use of other chemical substances, mixtures, or 
articles such as adhesives, paints, miscellaneous cleaners or other 
household products, fuels and fuel additives, water softening and 
treatment agents, photographic films, batteries, matches, and safety 
flares in which the chemical substance manufactured upon end use of the 
article is not itself manufactured for distribution in commerce or for 
use as an intermediate.
    (b) Chemical substance in bulk form means a chemical substance 
(other than as part of a mixture or article) in containers used for 
purposes of transportation or containment, provided that the chemical 
substance is intended to be removed from the container and has an end 
use or commercial purpose separate from the container.



Sec. 12.121  Reporting requirements.

    (a) All chemical substances in bulk or mixtures. The importer of a 
chemical substance, imported in bulk or as part of a mixture, shall 
certify to the director of the port of entry that the chemical shipment 
is subject to TSCA and complies with all applicable rules and orders 
thereunder, or is not subject to TSCA. The importer, or his authorized 
agent, shall sign one of the following statements:

    I certify that all chemical substances in this shipment comply with 
all applicable rules or orders under TSCA and that I am not offering a 
chemical substance for entry in violation of TSCA or any applicable rule 
or order thereunder.
    I certify that all chemicals in this shipment are not subject to 
TSCA.


The certification, which shall be filed with the director of the port of 
entry before release of the shipment, may appear as a typed or stamped 
statement:
    (1) On an appropriate entry document or commercial invoice, or on a 
preprinted attachment to such entry or invoice.
    (2) On the commercial invoice or an attachment to the invoice, in 
the event of release under a special permit for an immediate delivery, 
as provided for in Sec. 142.21 of this chapter, or entry, as provided 
for in Sec. 142.3 of this chapter.
    (b) Chemical substance or mixture as part of articles. Each importer 
of a chemical substance or mixture as part of an article shall meet the 
reporting requirements set forth in paragraph (a) of this section only 
if required by a rule or order under TSCA.
    (c) Facsimile signatures. The certification statements in paragraph 
(a) of this section may be signed by means of an authorized facsimile 
signature.



Sec. 12.122  Detention of certain shipments.

    (a) The director of the port of arrival shall detain, at the 
importer's risk and expense, shipments of chemical substances, mixtures, 
or articles:
    (1) Which have been banned from the customs territory of the United 
States by a rule or order issued under section 5 or 6 of TSCA (15 U.S.C. 
2604 or 2605) or
    (2) Which have been ordered seized because of imminent hazards as 
specified under section 7 of TSCA (15 U.S.C. 2606).
    (b) The director of the port of entry shall detain shipments of 
chemical substances, mixtures, or articles at the importer's risk and 
expense, in the following situations:
    (1) Whenever the Administrator has reasonable grounds to believe 
that the shipment is not in compliance with

[[Page 218]]

TSCA and notifies the port director to detain the shipment.
    (2) Whenever the port director has reasonable grounds to believe 
that the shipment is not in compliance with TSCA; or
    (3) Whenever the importer fails to certify compliance with TSCA as 
required by Sec. 12.121.
    (c) Upon detention of a shipment, the port director shall give 
prompt notice to the Administrator and the importer. The notice shall 
include the reasons for detention.
    (d) A detained shipment shall not be held in the custody of the port 
director for more than 48 hours after the date of detention. Thereafter, 
the shipment shall be promptly turned over to the Administrator for 
storage or disposition as provided for in Secs. 12.127 and 127.28(i), 
unless previously released to the importer under bond as provided in 
Sec. 12.123(b). Notice of intent to abandon the shipment by the importer 
shall constitute a waiver of all time periods specified in parts 12 and 
127.



Sec. 12.123  Procedure after detention.

    (a) Submission of written documentation. If a shipment is detained 
by a port director under Sec. 12.122, the importer may submit written 
documentation to the Administrator with a copy to the port director 
within 20 days from the date of notice of detention, to show cause why 
the shipment should not be refused entry. If an importer submits that 
documentation, the Administrator shall allow or deny entry of the 
shipment within 10 days of receipt of the documentation, and in any case 
shall allow or deny entry of the shipment within 30 days of the date of 
notice of detention.
    (b) Release under Bond. The port director may release to the 
importer a shipment detained for any of the reasons given in Sec. 12.122 
when the port director has reasonable grounds to believe that the 
shipment may be brought into compliance, or when the port director deems 
it appropriate under Sec. 141.66 of this chapter. Any such release shall 
be conditioned upon furnishing a bond on Customs Form 7551, 7553, or 
7595 for the return of the shipment to Customs custody. The bond shall 
be for the full amount required in Sec. 113.14 of this chapter. If a 
shipment of chemical substance, mixture, or article is released to the 
importer under bond, the shipment shall be held intact and shall not be 
used or otherwise disposed of until the Administrator makes a final 
determination on entry as provided for in paragraph (c) of this section.
    (c) Determination by the Administrator. After consideration of the 
available evidence and within 30 days from the notice of detention, the 
Administrator shall notify the port director and the importer of his 
decision either to permit or refuse entry of the shipment. If the 
Administrator finds that the shipment is in compliance with TSCA, the 
port director shall release the shipment to the importer. If the 
Administrator finds that the shipment is not in compliance, the port 
director shall:
    (1) Refuse delivery to the importer, giving reasons for such 
refusal, or
    (2) If the shipment has been released on bond, demand its redelivery 
under the terms of the bond, giving reasons for such demand. If the 
merchandise is not redelivered within 30 days from the date of the 
redelivery notice, the port director shall assess liquidated damages in 
the full amount of the bond.



Sec. 12.124  Time limitations and extensions.

    (a) Time limitations. The importer of a shipment of chemical 
substances, mixtures, or articles which has been detained under 
Sec. 12.122 shall bring the shipment into compliance with TSCA or export 
the shipment from the customs territory of the United States within 90 
days after notice of detention or 30 days of demand for redelivery, 
whichever comes first.
    (b) Time extensions. The port director, upon notification by the 
Administrator, may grant an extension of not more than 30 days if, due 
to delays caused by the Environmental Protection Agency or the Customs 
Service:
    (1) The importer is unable, for good cause shown, to bring a 
shipment into compliance with the Act within the required time period; 
or
    (2) The importer is unable to export the shipment from the customs 
territory of the United States within the required time period.

[[Page 219]]



Sec. 12.125  Notice of exportation.

    Whenever the Administrator directs the port director to refuse entry 
under Sec. 12.123 and the importer exports the non-complying shipment 
within the 30 day period of notice of refusal of entry or within 90 days 
of demand for redelivery, the importer shall give written notice of the 
fact of exportation to the Administrator and the port director. The 
importer shall include the following information in the notice of 
exportation:
    (a) The name and address of the exporter or his agent;
    (b) A description of the chemical substances, mixtures, or articles 
exported;
    (c) The destination (country);
    (d) The port of arrival at the destination;
    (e) The carrier;
    (f) The date of exportation; and
    (g) The bill of lading or the air way bill number.



Sec. 12.126  Notice of abandonment.

    If the importer intends to abandon the shipment after receiving 
notice of refusal of entry, the importer shall present a written notice 
of intent to abandon to the port director and the Administrator. 
Notification under this section is a waiver of any right to export the 
merchandise. The importer shall remain liable for any expense incurred 
in the storage and/or disposal of abandoned merchandise.



Sec. 12.127  Decision to store or dispose.

    (a) A shipment detained under Sec. 12.122 shall be considered to be 
unclaimed or abandoned and shall be turned over to the Administrator for 
storage or dispositon as provided for in Sec. 127.28(i) of this chapter 
if the importer has not brought the shipment into compliance with TSCA 
and has not exported the shipment within time limitations or extensions 
specified according to Sec. 12.124. The importer shall remain liable for 
any expenses in the storage and/or disposal of abandoned merchandise.

                      Textiles and Textile Products



Sec. 12.130  Textiles and textile products country of origin.

    (a) General. Textile or textile products subject to section 204, 
Agricultural Act of 1956, as amended (7 U.S.C. 1854), include 
merchandise which is subject to the provisions of the International 
Arrangement Regarding Trade in Textiles (The Multi-Fiber Arrangement).
    (1) Is in chief value of cotton, wool, or man-made fibers, or any 
textile fibers subject to the terms of any textile trade agreement, or 
any combination thereof; or
    (2) Contains 50 percent or more by weight of cotton or man-made 
fibers, or any textile fibers subject to the terms of any textile trade 
agreement; or
    (3) Contains 17 percent or more by weight of wool; or
    (4) If in chief value of textile fibers or textile materials, 
contains a blend of cotton, wool, or man-made fibers, or any textile 
fibers subject to the terms of any textile trade agreement, or any 
combination thereof, which fibers, in the aggregate amount to 50 percent 
or more by weight of all component fibers.
    (b) Country of origin. For the purpose of this section and except as 
provided in paragraph (c), a textile or textile product, subject to 
section 204, Agricultural Act of 1956, as amended, imported into the 
customs territory of the United States, shall be a product of a 
particular foreign territory or country, or insular possession of the 
U.S., if it is wholly the growth, product, or manufacture of that 
foreign territory or country, or insular possession. However, except as 
provided in paragraph (c), a textile or textile product, subject to 
section 204, which consists of materials produced or derived from, or 
processed in, more than one foreign territory or country, or insular 
possession of the U.S., shall be a product of that foreign territory or 
country, or insular possession where it last underwent a substantial 
transformation. A textile or textile product will be considered to have 
undergone a substantial transformation if it has been transformed by 
means of substantial manufacturing or processing operations into a new 
and different article of commerce. However, the origin of products of 
Canada and Mexico, and the origin of textile and apparel products 
covered by Sec. 102.21

[[Page 220]]

of this chapter, are determined pursuant to the procedures set forth in 
part 102 of this chapter.
    (c) Articles exported for processing and returned--(1) Applicability 
to U.S. articles sent abroad. Chapter 98, Subchapter II, Note 2, 
Harmonized Tariff Schedule of the United States, provides that any 
product of the U.S. which is returned after having been advanced in 
value or improved in condition abroad, or assembled abroad, shall be a 
foreign article for the purposes of the Tariff Act of 1930, as amended. 
In order to have a single definition of the term ``product of'' and, 
therefore, a single country of origin for a textile or textile product, 
notwithstanding paragraph (b), merchandise which falls within the 
purview of Chapter 98, Subchapter II, Note 2, Harmonized Tariff Schedule 
of the United States, may not, upon its return to the U.S., be 
considered a product of the U.S.
    (2) Applicability to U.S. insular possession products processed 
outside the insular possession. Unless otherwise required by law, the 
rules of origin applicable to products of the U.S. shall also apply to 
products of insular possessions of the U.S. Accordingly, notwithstanding 
paragraph (b) of this section, for purposes of section 204, Agricultural 
Act of 1956, as amended, products of insular possessions of the U.S., if 
imported into the U.S. after having been advanced in value, improved in 
condition, or assembled, outside the insular possessions shall not be 
treated as products of those insular possessions.
    (d) Criteria for determining country of origin. The criteria in 
paragraphs (d) (1) and (2) of this section shall be considered in 
determining the country of origin of imported merchandise. These 
criteria are not exhaustive. One or any combination of criteria may be 
determinative, and additional factors may be considered. However, the 
origin of products of Canada and Mexico, and the origin of textile and 
apparel products covered by Sec. 102.21 of this chapter, are determined 
pursuant to the procedures set forth in part 102 of this chapter.
    (1) A new and different article of commerce will usually result from 
a manufacturing or processing operation if there is a change in:
    (i) Commercial designation or identity,
    (ii) Fundamental character or
    (iii) Commercial use.
    (2) In determining whether merchandise has been subjected to 
substantial manufacturing or processing operations, the following will 
be considered:
    (i) The physical change in the material or article as a result of 
the manufacturing or processing operations in each foreign territory or 
country, or insular possession of the U.S.
    (ii) The time involved in the manufacturing or processing operations 
in each foreign territory or country, or insular possession of the U.S.
    (iii) The complexity of the manufacturing or processing operations 
in each foreign territory or country, or insular possession of the U.S.
    (iv) The level or degree of skill and/or technology required in the 
manufacturing or processing operations in each foreign territory or 
country, or insular possession of the U.S.
    (v) The value added to the article or material in each foreign 
territory or country, or insular possession of the U.S., compared to its 
value when imported into the U.S.
    (e) Manufacturing or processing operations. (1) Except for products 
of which the origin is Canada or Mexico and except for textile and 
apparel products (the origin of such products is determined pursuant to 
the procedures set forth in part 102 of this chapter), an article or 
material usually will be a product of a particular foreign territory or 
country, or insular possession of the U.S., when it has undergone prior 
to importation into the U.S. in that foreign territory or country, or 
insular possession any of the following:
    (i) Dyeing of fabric and printing when accompanied by two or more of 
the following finishing operations: bleaching, shrinking, fulling, 
napping, decating, permanent stiffening, weighting, permanent embossing, 
or moireing;
    (ii) Spinning fibers into yarn;
    (iii) Weaving, knitting or otherwise forming fabric;
    (iv) Cutting of fabric into parts and the assembly of those parts 
into the completed article; or

[[Page 221]]

    (v) Substantial assembly by sewing and/or tailoring of all cut 
pieces of apparel articles which have been cut from fabric in another 
foreign territory or country, or insular possession, into a completed 
garment (e.g. the complete assembly and tailoring of all cut pieces of 
suit-type jackets, suits, and shirts).
    (2) An article or material usually will not be considered to be a 
product of a particular foreign territory or country, or insular 
possession of the U.S. by virtue of merely having undergone any of the 
following:
    (i) Simple combining operations, labeling, pressing, cleaning or dry 
cleaning, or packaging operations, or any combination thereof;
    (ii) Cutting to length or width and hemming or overlocking fabrics 
which are readily identifiable as being intended for a particular 
commercial use;
    (iii) Trimming and/or joining together by sewing, looping, linking, 
or other means of attaching otherwise completed knit-to-shape component 
parts produced in a single country, even when accompanied by other 
processes (e.g. washing, drying, mending, etc.) normally incident to the 
assembly process;
    (iv) One or more finishing operations on yarns, fabrics, or other 
textile articles, such as showerproofing, superwashing, bleaching, 
decating, fulling, shrinking, mercerizing, or similar operations; or
    (v) Dyeing and/or printing of fabrics or yarns.
    (f) Declaration of manufacturer, producer, exporter, or importer of 
textiles and textile products. All importations of textiles and textile 
products subject to section 204, Agricultural Act of 1956, as amended, 
shall be accompanied by the appropriate declaration(s) set forth in 
paragraph (f)(1) or (f)(2) of this section. Textiles or textile products 
subject to section 204 include that merchandise described in 
Sec. 12.130(a). All importations of textiles and textile products not 
subject to section 204 shall be accompanied by the declaration set forth 
in paragraph (f)(3) of this section. The declaration(s) shall be filed 
with the entry. The declaration(s) may be prepared by the manufacturer, 
producer, exporter or importer of the textiles and textile products. If 
multiple manufacturers, producers, or exporters are involved, a separate 
declaration prepared by each may be filed. A separate declaration may be 
filed for each invoice which is presented with the entry. The 
determination of country of origin, other than as set forth in paragraph 
(g) of this section, will be based upon information contained in the 
declaration(s). The declaration(s) shall not be treated as a missing 
document for which a bond may be filed. Entry will be denied unless 
accompanied by a properly executed declaration(s)
    (1) Single foreign territory or country, or U.S. insular possession. 
Textiles or textile products which are wholly the growth, product, or 
manufacture of a single foreign territory or country, or insular 
possession of the U.S., or assembled in a single foreign territory or 
country, or insular possession of the U.S. of fabricated components 
which are in whole the product of the U.S. and/or the single foreign 
territory or country, or insular possession of the U.S. shall be 
identified in a declaration which is substantially in the following 
form:

                       SINGLE COUNTRY DECLARATION

    I, -------------------- (name), declare that the articles listed 
below and covered by the invoice or entry to which this declaration 
relates are wholly the growth, product, or manufacture of a single 
foreign territory or country, or insular possession of the U.S., or were 
assembled in the single foreign territory or country, or insular 
possession of the U.S. of fabricated components which are in whole the 
product of the U.S. and/or the single foreign territory or country, or 
insular possession of the U.S. as identified below. I declare, that the 
information set forth in this declaration is correct and true to the 
best of my information, knowledge, and belief.

 
 
 
A........................................  (country*)
B........................................  (country*)
C........................................  (country*)
D........................................  (country*)
 

etc.

------------------------------------------------------------------------
      Marks of         Description of
   identification,       article and      Country* of        Date of
       numbers            quantity           origin        exportation
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------


[[Page 222]]

Date____________________________________________________________________
Name____________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________
Company_________________________________________________________________
Address_________________________________________________________________
    *Country when used in this declaration includes territories and U.S. 
insular possessions. If the entry or invoice to which the declaration 
relates covers merchandise from more than one country each country will 
be identified in the declaration by the alphabetical designation 
appearing next to the named country. In the case of an assembly 
operation of U.S. components, both the country of assembly and the U.S. 
shall be reported (e.g. Haiti/U.S.) along with the date of exportation 
from the country of assembly.

    (2) More than one foreign territory or country, or U.S. insular 
possession. Textiles and textiles products which were subjected to 
manufacturing or processing operations in, and/or incorporate materials 
originating in more than one foreign territory or country, or an insular 
possession of the U.S. or were assembled in, and/or incorporate 
fabricated components which are the product of the U.S. and more than 
one foreign territory, country or insular possession of the U.S., shall 
be identified in a declaration which is substantially in the following 
form:

                      MULTIPLE COUNTRY DECLARATION

    I, -------------------- (name), declare that the articles described 
below and covered by the invoice or entry to which this declaration 
relates were exported from the country* identified below on the dates 
listed and were subjected to assembling, manufacturing or processing 
operations in, and/or incorporate materials originating in, the foreign 
territory or country* or countries*, or the U.S. or an insular 
possession of the U.S., identified below. I declare that the information 
set forth in this declaration is correct and true to the best of my 
information, knowledge, and belief.

 
 
 
A........................................  (country*)
B........................................  (country*)
C........................................  (country*)
D........................................  (country*)
 

etc.

----------------------------------------------------------------------------------------------------------------
                                                   Date and country of                   Materials
                                Description of     manufacture and/or    ---------------------------------------
    Marks of       Description   manufacturing         processing
 identification,   of article       and/or     --------------------------  Description   Country of    Date of
     numbers      and quantity    processing                   Date of     of material   production  exportation
                                  operations      Country    exportation
----------------------------------------------------------------------------------------------------------------
 
 
 
 
 
----------------------------------------------------------------------------------------------------------------

Date____________________________________________________________________
Name____________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________
Company_________________________________________________________________
Address_________________________________________________________________
    *Country or countries when used in this declaration includes 
territories and U.S. insular possessions. The country will be identified 
in the above declaration by the alphabetical designation appearing next 
to the named country.

    (3) Textiles and textile products not subject to section 204. 
Textiles and textile products not subject to section 204, Agricultural 
Act of 1956, as amended, (see paragraph (a) of this section for products 
subject to section 204), shall be accompanied by the declaration set 
forth below:

                          NEGATIVE DECLARATION

    I, -------------------- (name), declare that the articles described 
below and covered by the invoice or entry to which this declaration 
relates are not subject to section 204, Agricultural Act of 1956, as 
amended (7 U.S.C. 1854) and the information set forth in this 
declaration is correct and true to the best of my information, 
knowledge, and belief.

------------------------------------------------------------------------
Marks of identification,  Description of article
         numbers               and quantity          Country of origin
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

Date____________________________________________________________________
Name____________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________
Company_________________________________________________________________
Address_________________________________________________________________


[[Page 223]]

________________________________________________________________________
    (g) Incomplete or insufficient information. If the port director is 
unable to determine the country of origin of an article from the 
information set forth in the declaration, the declarant shall submit 
such additional information as requested. Release of the article from 
Customs custody will be denied until the determination is made based 
upon the information provided or the best information available. In this 
regard if incomplete or insufficient information is provided, the port 
director may consider the experience and costs of domestic industry in 
similar manufacturing or processing operations.
    (h) Shipments covered by an informal entry. While a declaration is 
not required for shipments covered by an informal entry, the port 
director may require such other evidence of the country of origin as 
deemed necessary. The filing of the appropriate declaration will be 
required in a case involving consolidation of individual shipments under 
Secs. 12.131 and 143.22 of this chapter.
    (i) Date of exportation. For quota, visa or export license 
requirements, and statistical purposes, the date of exportation for 
textiles or textile products, subject to section 204, Agricultural Act 
of 1956, as amended, shall be the date the vessel or carrier leaves the 
last port in the country of origin, as defined by this section. 
Contingency of diversion in another foreign territory or country shall 
not change the date of exportation for quota, visa or export license 
requirements or for statistical purposes.

[T.D. 85-38, 50 FR 8723, Mar. 5, 1985, as amended by T.D. 86-57, 51 FR 
8315, Mar. 11, 1986; T.D. 89-1, 53 FR 51254, Dec. 21, 1988; T.D. 93-27, 
58 FR 19349, Apr. 14, 1993; T.D. 94-4, 59 FR 113, Jan. 3, 1994; T.D. 95-
69, 60 FR 46197, Sept. 5, 1995]



Sec. 12.131  Entry of textiles and textile products.

    Separate shipments of textiles and textile products, including 
samples, which originate from a country subject to visa or export 
license requirements for exports of textiles and textile products, 
arriving in the customs territory of the United States for one consignee 
on the same conveyance on the same day, the combined value of which is 
over $250, shall not be entered under the informal entry procedures set 
forth in subpart C, part 143 or procedures set forth in Sec. 141.52 of 
this chapter. Port directors shall refuse separate informal entries and 
require a formal entry and visa or export license, as appropriate, for 
all such merchandise. A consignee for purposes of this section is the 
ultimate consignee and does not include a freight forwarder or Customs 
broker not importing for its own account.

[T.D. 84-171, 49 FR 31253, Aug. 3, 1984]



Sec. 12.132  Textile and apparel goods under the North American Free Trade Agreement.

    (a) Country of origin declaration. The provisions of Sec. 12.130(f) 
of this part regarding submission of a country of origin declaration 
shall apply to all textile and apparel goods which are subject to the 
provisions of Annex 300-B of the North American Free Trade Agreement 
(NAFTA). Although a separate country of origin declaration shall not be 
required for such goods for NAFTA purposes, the following additional 
requirements shall apply for purposes of this section:
    (1) All commercial importations of textile and apparel goods shall 
be accompanied by the appropriate declaration;
    (2) A declaration by each U.S., Canadian, and/or Mexican 
manufacturer or producer of the goods, and, if there are multiple 
manufacturers or producers, a separate declaration by each manufacturer 
or producer shall be furnished by the importer. Packaging operations 
shall not be considered manufacture or production for purposes of this 
paragraph; and
    (3) If the port director is unable to determine the country of 
origin of the goods because the information contained in a declaration 
is incomplete, the shipment to which that declaration pertains shall not 
be entitled to preferential tariff treatment or any other benefit under 
the NAFTA for which it would otherwise be eligible.
    (b) Certificate of eligibility. In connection with a claim for NAFTA 
preferential tariff treatment involving non-originating textile and 
apparel goods subject to the tariff preference level provisions of 
appendix 6.B. to

[[Page 224]]

Annex 300-B of the NAFTA and Additional U.S. Notes 3 through 6 to 
Section XI, Harmonized Tariff Schedule of the United States, the 
importer shall submit to Customs a Certificate of Eligibility covering 
the goods. The Certificate of Eligibility shall be properly completed 
and signed by an authorized official of the Canadian or Mexican 
government and shall be presented to Customs at the time the claim for 
preferential tariff treatment is filed under Sec. 181.21 of this 
chapter.

[T.D. 94-1, 58 FR 69470, Dec. 30, 1993, as amended by T.D. 94-52, 59 FR 
31520, June 20, 1994; T.D. 95-98, 60 FR 58518, Nov. 28, 1995]

                       Softwood Lumber From Canada



Sec. 12.140  Entry of softwood lumber from Canada.

    The requirements set forth in this section are applicable for as 
long as the Softwood Lumber Agreement, entered into on May 29, 1996, by 
the Governments of the United States and Canada, remains in effect.
    (a) Encumbrance regarding export permit and export fee. In the case 
of softwood lumber first manufactured into a product classifiable in 
subheading 4407.10.00, 4409.10.10, 4409.10.20, or 4409.10.90, Harmonized 
Tariff Schedule of the United States (HTSUS), in the Province of 
Ontario, Quebec, British Columbia, or Alberta, the requirement that the 
Government of Canada issue an export permit and collect the appropriate 
export fees under the Softwood Lumber Agreement attaches to and 
encumbers the product when it is imported into the United States. Such 
imported merchandise remains subject to the encumbrance until the 
Government of Canada issues an export permit and collects the 
appropriate fees. The merchandise shall be released by Customs subject 
to the following conditions: The importer of record assumes an 
obligation to ensure within 20 working days of release that such export 
permit is issued by the Government of Canada and to provide sufficient 
information to satisfy U.S. Customs that the encumbrance no longer 
attaches or, if the merchandise remains encumbered at the expiration of 
20 working days, to pay any liquidated damages assessed under the 
Customs bond.
    (b) Reporting requirements. Except as otherwise provided in 
paragraph (d) of this section, in the case of a softwood lumber product 
classifiable in HTSUS subheading 4407.10.00, 4409.10.10, 4409.10.20, or 
4409.10.90 that is imported from Canada and that was manufactured (that 
is, subjected to any processing operation other than mere loading, 
unloading or processing necessary to maintain the condition of the 
product) in Canada, whether or not such product was previously subjected 
to any processing operation outside Canada, the following information 
shall be included on the entry summary, Customs Form 7501, or on an 
electronic equivalent:
    (1) The Canadian province or territory in which the product was 
first manufactured; and
    (2) In the case of a product first manufactured into a product 
classifiable in HTSUS subheading 4407.10.00, 4409.10.10, 4409.10.20, or 
4409.10.90 in the Province of Ontario, Quebec, British Columbia, or 
Alberta:
    (i) The export permit number issued by the Government of Canada for 
the product; and
    (ii) An indication of the export fee payment status of the product 
for which the permit was issued according to the following categories:
    (A) Category A: No payment of an export fee because the exported 
product falls within the base amount of 14.7 billion board feet. This 
category includes products for which the export permit was issued 
without an indication of the export fee status;
    (B) Category B: Payment of the export fee applicable to a product 
exported in excess of 14.7 billion board feet but not in excess of 15.35 
billion board feet;
    (C) Category C: Payment of the export fee applicable to a product 
exported in excess of 15.35 billion board feet; or
    (D) Category D: No payment of an export fee where the product was 
exported in excess of 14.7 billion board feet because the average price 
of a benchmark softwood lumber price exceeds a prescribed trigger price 
during any quarterly period as determined by

[[Page 225]]

the Governments of Canada and the United States. If the issued permit 
pertains to this category, the specific quarterly period shall also be 
indicated on the Customs Form 7501 or electronic equivalent.
    (c) Untimely issuance of export permit. If an export permit for the 
product has not been issued by the Government of Canada on or before the 
required date for filing the entry summary documentation as provided in 
Sec. 142.12(b) or Sec. 142.23 of this chapter, the importer shall have a 
maximum of 10 additional working days to file the entry summary 
documentation setting forth all of the information specified in 
paragraph (b)(2) of this section. If an export permit for the product 
has not been issued by the Government of Canada within the maximum time 
period specified in this paragraph, the entry summary or electronic 
equivalent shall be filed on the next business day and shall be 
completed in pertinent part as follows:
    (1) The export permit number field shall be completed by inserting 
as many eights as are necessary to complete the field; and
    (2) The export fee payment status field shall be completed by 
inserting an ``A'' followed by two zeros.
    (d) Absence of export permit number and fee status data for certain 
remanufactured softwood lumber products. In the case of a softwood 
lumber mill product classifiable in HTSUS subheading 4407.10.00, 
4409.10.10, 4409.10.20, or 4409.10.90 that is imported from Canada and 
that was first manufactured in Canada in the Province of Ontario, 
Quebec, British Columbia, or Alberta, if no export permit for the 
product is issued by the Government of Canada because the product was 
previously subjected to processing operations outside Canada, the entry 
summary, Customs Form 7501, or an electronic equivalent, shall include 
the Canadian province or territory in which the product was first 
manufactured and also shall be completed in pertinent part as follows:
    (1) The export permit number field shall be completed by inserting 
as many nines as are necessary to complete the field; and
    (2) The export fee payment status field shall be completed by 
inserting an ``A'' followed by two zeros.

[T.D. 97-9, 62 FR 8622, Feb. 26, 1997]

                Merchandise Subject to Economic Sanctions



Sec. 12.150  Merchandise prohibited by economic sanctions; detention; seizure or other disposition; blocked property.

    (a) Generally. Merchandise from certain countries designated by the 
President as constituting a threat to the national security, foreign 
policy, or economy of the United States shall be detained until the 
question of its release, seizure, or other disposition has been 
determined under law and regulations issued by the Treasury Department's 
Office of Foreign Assets Control (OFAC) (31 CFR Chapter V).
    (b) Seizure. When an unlicensed importation of merchandise subject 
to OFAC's regulations is determined to be prohibited, no entry for any 
purpose shall be permitted and, unless the immediate reexportation or 
other disposition of such merchandise under Customs supervision has 
previously been authorized by OFAC, the merchandise shall be seized.
    (c) Licenses. OFAC's regulations may authorize OFAC to issue 
licenses on a case-by-case basis authorizing the importation of 
otherwise prohibited merchandise under certain conditions. If such a 
license is issued subsequent to the attempted entry and seizure of the 
merchandise, importation shall be conditioned upon the importer:
    (1) Agreeing in writing to hold the Government harmless, and
    (2) Paying any storage and other Customs fees, costs, or expenses, 
as well as any mitigated forfeiture amount or monetary penalty imposed 
or assessed by Customs or OFAC, or both.
    (d) Blocked property. Merchandise which constitutes property in 
which the government or any national of certain designated countries has 
an interest may be blocked (frozen) pursuant to OFAC's regulations and 
may not be transferred, sold, or otherwise disposed of without an OFAC 
license.

[[Page 226]]

    (e) Additional information. For further information concerning 
importing merchandise prohibited under economic sanctions programs 
currently in effect, the Office of Foreign Assets Control of the 
Department of the Treasury should be contacted. The address of that 
office is 1500 Pennsylvania Ave., NW., Annex 2nd Floor, Washington, DC 
20220.

[T.D. 96-42, 61 FR 24889, May 17, 1996]



PART 18--TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT--Table of Contents




                           General Provisions

Sec.
18.1  Carriers; application to bond.
18.2  Receipt by carrier; manifest.
18.3  Transshipment; transfer by bonded cartman.
18.4  Sealing conveyances and compartments; labeling packages; warning 
          cards.
18.4a  Containers or road vehicles accepted for transport under customs 
          seal; requirements.
18.5  Diversion.
18.6  Short shipments; shortages; entry and allowance.
18.7  Lading for exportation, verification of.
18.8  Liability for shortage, irregular delivery, or nondelivery; 
          penalties.
18.9  Examination by inspectors of trunk line associations or agents of 
          the Interstate Commerce Commission.
18.10  Kinds of entry.
18.10a  Special manifest.

              Immediate Transportation Without Appraisement

18.11  Entry; classes of goods for which entry is authorized; form used.
18.12  Entry at port of destination.

                       Shipment of Baggage in Bond

18.13  Procedure; manifest.
18.14  Shipment of baggage in transit to foreign countries.

  Merchandise in Transit Through the United States to Foreign Countries

18.20  Entry procedure; forwarding.
18.21  Restricted and prohibited merchandise.
18.22  Procedure at port of exit.
18.23  Change of destination; change of entry.
18.24  Retention of goods on dock; splitting of shipments.

Exportation From Customs Custody of Merchandise Unentered or Covered by 
 an Unliquidated Consumption Entry, or Merchandise Denied Admission by 
                             the Government

18.25  Direct exportation.
18.26  Indirect exportation.
18.27  Port marks.

                   Merchandise Transported by Pipeline

18.31  Pipeline transportation of bonded merchandise.

  Merchandise Not Otherwise Subject to Customs Control Exported Under 
                          Cover of a TIR Carnet

18.41  Applicability.
18.42  Direct exportation.
18.43  Indirect exportation.
18.44  Abandonment of exportation.
18.45  Supervision of exportation.

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States), 1551, 1552, 1553, 
1623.
    Section 18.3 also issued under 19 U.S.C. 1565;
    Section 18.4 also issued under 19 U.S.C. 1322, 1323;
    Section 18.7 also issued under 19 U.S.C. 1557; 1646a;
    Section 18.8 also issued under 19 U.S.C. 1623;
    Section 18.10 also issued under 19 U.S.C. 1557;
    Section 18.11 also issued under 19 U.S.C. 1484;
    Section 18.12 also issued under 19 U.S.C. 1448, 1484, 1490;
    Section 18.13 also issued under 19 U.S.C. 1498(a);
    Section 18.14 also issued under 19 U.S.C. 1498.
    Section 18.31 also issued under 19 U.S.C. 1553a.

    Source: 28 FR 14755, Dec. 31, 1963, unless otherwise noted.

                           General Provisions



Sec. 18.1  Carriers; application to bond.

    (a)(1) Merchandise to be transported from one port to another in the 
United States in bond, except as provided for in paragraph (b) of this 
section, shall be delivered to a common carrier, contract carrier, 
freight forwarder, or private carrier bonded for that purpose, but such 
merchandise delivered to a common carrier, contract carrier, or freight 
forwarder may be transported

[[Page 227]]

with the use of facilities of other bonded or nonbonded carriers. For 
the purposes of this section, the term ``common carrier'' means a common 
carrier of merchandise owning or operating a railroad, steamship, 
pipeline, or other transportation line or route. Only vessels entitled 
to engage in the coastwise trade (see Sec. 4.80 of this chapter) shall 
be entitled to transport merchandise under this section.
    (2) Merchandise to be transported from one port to another in the 
United States under cover of a TIR carnet (see part 114 of this 
chapter), except merchandise not otherwise subject to Customs control, 
as provided in Secs. 18.41 through 18.45, shall be delivered to a common 
carrier or contract carrier bonded for that purpose, but the merchandise 
thereafter may be transported with the use of other bonded or nonbonded 
common or contract carriers. The TIR carnet shall be responsible for 
liability incurred in the carriage of merchandise under the carnet, and 
the carrier's bond shall be responsible as provided in Sec. 114.22(d) of 
this chapter.
    (3) Merchandise to be transported from one port to another in the 
United States under cover of an A.T.A. or TECRO/AIT carnet (see part 114 
of this chapter) shall be delivered to a common carrier or contract 
carrier bonded for that purpose, but the merchandise thereafter may be 
transported with the use of other bonded or nonbonded common or contract 
carriers. The A.T.A. or TECRO/AIT carnet shall be responsible for 
liability incurred in the carriage of merchandise under the carnet, and 
the carrier's bond shall be responsible as provided in Sec. 114.22(d) of 
this chapter.
    (b) Pursuant to Public Resolution 108, of June 19, 1936, (19 U.S.C. 
1551, 1551a) and subject to compliance with all other applicable 
provisions of this part, the port director, upon the request of the 
party in interest, may permit merchandise entered and examined for 
Customs purposes to be transported in bond between the ports named in 
the resolution by bonded cartmen or lightermen duly qualified in 
accordance with the provisions of part 112 of this chapter, if the port 
director is satisfied that the transportation of such merchandise in 
this manner will not endanger the revenue.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71-70, 36 FR 4485, Mar. 
6, 1971; T.D. 71-263, 36 FR 20291, Oct. 20, 1971; T.D. 73-140, 38 FR 
13550, May 23, 1973; T.D. 78-99, 43 FR 13061, Mar. 29, 1978; T.D. 82-
116, 47 FR 27261, June 24, 1982; T.D. 82-145, 47 FR 35478, Aug. 16, 
1982; 47 FR 39478, Sept. 8, 1982; T.D. 84-149, 49 FR 28698, July 16, 
1984; T.D. 89-1, 53 FR 51254, Dec. 21, 1988; T.D. 96-18, 61 FR 6779, 
Feb. 22, 1996; T.D. 98-10, 63 FR 4167, Jan. 28, 1998]



Sec. 18.2  Receipt by carrier; manifest.

    (a)(1) Merchandise other than from warehouse or foreign trade zone 
delivered to bonded carrier. Except as set forth in paragraphs (a)(2) 
and (a)(3) of this section, within 5 working days after presentation of 
an entry for merchandise to be transported in-bond, the forwarding 
carrier shall take receipt of the merchandise if no other entry is 
filed. If the forwarding carrier fails to take receipt of the 
merchandise within the prescribed period, the transportation entry shall 
be canceled and the merchandise shall be treated as unclaimed as of the 
date of original arrival.
    (2) When merchandise is delivered to a bonded carrier for 
transportation in-bond, the merchandise shall be laden on the conveyance 
under supervision of a Customs officer unless--
    (i) The transporting conveyance is not to be sealed with Customs 
seals, or
    (ii) The lading inspector accepts the check of the carrier as to the 
merchandise laden. The carrier's receipt shall be given immediately to 
the lading inspector on the Customs in-bond document (the appropriate 
Customs Form 7512, or the carnet) covering the merchandise. In the case 
of a carnet, the receipt shall be given on the appropriate vouchers in 
the following form:

    Received the cargo listed herein for delivery to Customs at the 
indicated port of destination or exportation, or for direct exportation.

Name of Carrier (or Exporter)___________________________________________
Attorney-in-fact or Agent of Carrier (or Exporter)______________________
_______________________________________________________________________
Date____________________________________________________________________

    (3) Merchandise delivered from warehouse. When merchandise is 
delivered from a warehouse to a bonded carrier for transportation in 
bond, supervision

[[Page 228]]

of lading shall be accomplished in accordance with the procedure set 
forth in Sec. 19.6(b) of this chapter.
    (4) Merchandise delivered from foreign trade zone. When merchandise 
is delivered from a foreign trade zone to a bonded carrier for 
transportation in bond, supervision of lading will be accomplished in 
accordance with the procedure set forth in Sec. 146.71(a) of this 
chapter.
    (b) A Customs in-bond document, containing a description of the 
merchandise, and Customs control card (Customs Form 7512-C), shall be 
prepared by the carrier or any of the parties named in Sec. 18.11(b), 
whenever merchandise is being transported in bond. The Customs in-bond 
document thus prepared shall then be signed by the carrier or any of the 
parties named in Sec. 18.11(b). All copies of the in-bond document shall 
be signed by the importing carrier or his agent and the in-bond carrier 
or his agent to indicate the quantity delivered for transportation in 
bond. When there is no discrepancy between the quantity manifested by 
the importing carrier and the quantity delivered to the in-bond carrier, 
the port director may authorize waiving the signature of the parties in 
interest as to delivered quantities. Quantities of goods transported in 
bond from a Customs bonded warehouse shall be accounted for under the 
procedures set forth in Sec. 19.6 of this chapter. Except as prescribed 
in subpart D of part 123 of this chapter, relating to merchandise in 
transit through the United States between ports in contiguous foreign 
territory, a separate set shall be prepared for each entry and, if the 
consignment is contained in more than one conveyance, a separate set 
shall be prepared for each conveyance.
    (c)(1) After the merchandise has been laden and the in-bond carrier 
or his agent has receipted the in-bond document, Customs Form 7512 (in 
duplicate), together with either the related Customs Form 7512-C 
(destination) or the carnet (which cannot be used in conjunction with 
Customs Form 7512-C) shall be delivered as a manifest to the conductor, 
master, or person in charge to accompany the merchandise to its port of 
destination or exportation. If more than one conveyance is used to 
transport the merchandise, the Customs Form 7512-C (destination) shall 
accompany the first conveyance, and two copies of Customs Form 7512 
shall accompany each conveyance as a manifest of the merchandise 
transported by that conveyance. A TIR carnet (see Sec. 18.3(b)) shall 
not be used if more than one conveyance is required.
    (2) Except transit air cargo provided for in Sec. 122.118 of this 
chapter, bonded merchandise destined to a final port of destination in 
the United States, or for export from the United States, shall be 
delivered to Customs at the port of destination or exportation within 30 
days after the date of receipt by the forwarding carrier at the port of 
origin, if transported on land. If the merchandise is transported on 
board a vessel engaged in the United States coastwise trade, delivery to 
Customs at the port of destination or exportation shall be within 60 
days after the date of receipt by the forwarding carrier at the port of 
origin. Failure to deliver the merchandise within the prescribed period 
shall constitute an irregular delivery and the initial bonded carrier 
shall be subject to applicable penalties (see Sec. 18.8).
    (d) Promptly, but no more than 2 working days after the arrival of 
any portion of the in-bond shipment at the port of destination, the 
delivering carrier shall surrender the in-bond manifest (the in-bond 
document and related Customs Form 7512-C (destination) or the carnet) to 
the port director as notice of arrival of the merchandise. If the in-
bond manifest is lost in transit, the in-bond carrier shall report the 
arrival of the merchandise within the prescribed period and shall be 
responsible for obtaining copies of the original in-bond manifest. 
Failure to surrender the in-bond manifest or report the arrival of 
bonded merchandise within the prescribed period shall constitute an 
irregular delivery and the initial bonded carrier shall be subject to 
applicable penalties (see Sec. 18.8).

[T.D. 71-70, 36 FR 4485, Mar. 6, 1971, as amended by T.D. 81-243, 46 FR 
45602, Sept. 14, 1981; T.D. 82-204, 47 FR 49368, Nov. 1, 1982; T.D. 84-
212, 49 FR 39046, Oct. 3, 1984; T.D. 86-16, 51 FR 5063, Feb. 11, 1986; 
T.D. 87-75, 52 FR 20067, May 29, 1987; T.D. 88-12, 53 FR 9315, Mar. 22, 
1988; T.D. 98-74, 63 FR 51288, Sept. 25, 1998]

[[Page 229]]



Sec. 18.3  Transshipment; transfer by bonded cartmen.

    (a) When bonded merchandise in one conveyance is to be transshipped 
under Customs supervision to another single conveyance while en route to 
the port of destination or exportation, the in-bond document which 
accompanied the merchandise shall be presented to the port director at 
the place of transshipment for execution of a certificate of transfer 
thereon. The in-bond document shall be returned to the carrier to 
accompany the merchandise to the port of destination or exportation. 
Except as provided in paragraph (c) of this section, merchandise covered 
by a TIR carnet shall not be transshipped if the transshipment involves 
the unlading of the merchandise from a container or road vehicle.
    (b) When bonded merchandise, other than merchandise covered by a TIR 
carnet, is to be transshipped to more than one conveyance, the carrier 
or any of the parties named in Sec. 18.11(b) shall prepare for each such 
conveyance two additional copies of the Customs Form 7512 which 
accompanied the merchandise to the place of transshipment. The Customs 
Form 7512 and Customs Form 7512-C (destination) which accompanied the 
shipment to the place of transshipment shall be presented to the port 
director there. The Customs officer supervising the transshipment shall 
execute a certificate of transfer on all copies of the Customs Form 
7512. The original copies of the Customs Form 7512 and the related 
Customs Form 7512-C (destination) shall be delivered to the conductor, 
master, or person in charge of the first conveyance. Two additional 
copies of the Customs Form 7512 shall be delivered to the person in 
charge of each additional conveyance in which the merchandise is 
forwarded for delivery to the director of the port of destination or 
exportation.
    (c) Merchandise covered by a TIR carnet may be transshipped in a 
case involving the unlading of the merchandise from a container or road 
vehicle only if the transshipment is necessitated by casualty en route. 
In the event of transshipment, a TIR approved container or road vehicle 
shall be used if available. If the transshipment takes place under 
Customs supervision, the Customs officer shall excute a certificate of 
transfer on the appropriate TIR carnet voucher.
    (d) If it becomes necessary at any point in transit to remove the 
Customs seals from a conveyance or container containing bonded 
merchandise for the purpose of transferring its contents to another 
conveyance or container, or to gain access to the shipment because of 
casualty or for other good reason, and it cannot be done under Customs 
supervision because of the element of time involved or because there is 
no Customs officer stationed at such point, a responsible agent of the 
carrier may remove the seals, supervise the transfer or handling of the 
merchandise, seal the conveyance or container in which the shipment goes 
forward, and make appropriate notation of his action on the conductor's 
or master's copy of the manifest, or the outside back cover of the TIR 
carnet, including the date, serial numbers of the new seals applied, and 
the reason therefor. This authorization shall not apply in any case not 
involving a real emergency.
    (e) All transfers to or from the conveyance or warehouse of 
merchandise undergoing transportation in bond shall be made under the 
provisions of part 125 of this chapter and at the expense of the parties 
in interest, unless the bond of the carrier on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.63 of this chapter 
or a TIR carnet is liable for the safekeeping and delivery of the 
merchandise while it is being transferred.

[T.D. 71-70, 36 FR 4486, Mar. 6, 1971, as amended by T.D. 82-204, 47 FR 
49368, Nov. 1, 1982; T.D. 84-212, 49 FR 39046, Oct. 3, 1984; T.D. 84-
213, 49 FR 41168, Oct. 19, 1984; T.D. 89-1, 53 FR 51254, Dec. 21, 1988]



Sec. 18.4  Sealing conveyances and compartments; labeling packages; warning cards.

    (a)(1) Conveyances or compartments in which carload lots of bonded 
merchandise are transported shall be sealed with commercial shipper 
seals, Customs red in-bond seals, or other accepted seals. High-security 
Customs seals will be required on carload or containerized shipments 
where the Customs officer reviewing the in-bond

[[Page 230]]

entry determines it is required to adequately protect the revenue and 
prevent violations of Customs laws. The bonded carrier will provide 
Customs with the necessary seals. When the compartment or conveyance 
cannot be effectively sealed, as in the case of merchandise shipped in 
open cars or barges, or on the decks of vessels, or when it is known 
that any seals would necessarily be removed outside the jurisdiction of 
the United States for the purpose of discharging or taking on cargo, or 
when it is known that the breaking of the seals will be necessary to 
ventilate the hatches, or in other similar circumstances, such sealings 
may be waived with the consent of the carrier and an appropriate 
notation of such waiver shall be made on the manifest. The Commissioner 
of Customs may authorize the waiver of sealing of conveyances or 
compartments in which bonded merchandise is transported in other cases 
when in his opinion the sealing thereof is unnecessary to protect the 
revenue or to prevent violations of the Customs laws and regulations.
    (2) The port director shall cause a Customs seal to be affixed to a 
container or road vehicle which is being used to transport merchandise 
under cover of a TIR carnet unless the container or road vehicle bears a 
customs seal (domestic or foreign). The port director shall likewise 
cause a Customs seal or label to be affixed to heavy or bulky goods 
being so transported. If, however, he has reason to believe that there 
is a discrepancy between the merchandise listed on the Goods Manifest of 
the carnet and the merchandise which is to be transported, he shall 
cause a Customs seal or label to be affixed only when the listing of the 
merchandise in the carnet and a physical inventory agree.
    (b) Ports at which the facilities are insufficient to maintain 
continuous customs supervision over vessels arriving with bonded cargo 
while the bonded merchandise is not under Customs seals shall permit the 
vessels to proceed to destination without further sealing and notation 
to this effect shall be made on the manifest.
    (c)(1) Merchandise not under bond may be transported in sealed 
conveyances or compartments containing bonded goods when destined for 
the same place or places beyond, but not when intended for intermediate 
places.
    (2) Merchandise moving under cover of a carnet may not be 
consolidated with other merchandise.
    (d) The seals to be used in sealing conveyances, compartments, or 
packages must meet Customs standards provided in Sec. 24.13a of this 
chapter, and may be obtained in accordance with Sec. 24.13 of this 
chapter.
    (e) Except as otherwise provided for in this paragraph, packages 
shipped in bond or by a carrier permitted to transport articles under 
the last sentence of section 553 of the tariff act, as amended, shall be 
corded and sealed or, in lieu thereof, the carrier shall furnish and 
attach to each such package a warning label on bright red paper, not 
less than 5 by 8 inches in size, containing the following legend in 
black or white lettering of a conspicuous size:

                              U.S. Customs

    This package is under bond and must be delivered intact to the 
Customs officer in charge at the port of destination or to such other 
place as authorized by Customs.

    Warning. Two years' imprisonment, $5,000 fine, or both, is the 
penalty for unlawful removal of this package or any of its contents.

Transportation Entry No. --------; From ----------To ----------; This 
package to be delivered to Customs at ---------------- (If other than 
port of destination)


A carrier at its option may omit the last three lines of the above 
legend from the warning label but if not omitted the information called 
for must be filled in. If the size of the package renders the use of a 5 
 x  8 inch warning label impracticable because of lack of space, a 3  x  
5 inch label may be used. A high visibility, pressure-sensitive warning 
label, whether as a continuous series in tape form or otherwise, but not 
less than 1\1/2\ by 3 inches in size, may be used on any size package. 
Such cording and sealing or labeling of the packages so shipped is not 
required either when the packages are transported in a conveyance or 
compartment sealed with Customs seals, or when the sealing of the 
conveyance or compartment in which the packages

[[Page 231]]

are transported is waived under paragraph (a) or (b) of this section. 
When the packages are shipped in a railroad car the sealing of which is 
practicable but which is not sealed because merchandise not being 
transported in bond is or may be carried in the same car, the packages 
being transported in bond shall be corded and sealed or labeled.
    (f) The warning label, when used, shall be pasted securely on the 
package under Customs supervision as close as practicable to the mark or 
number on the package. Additional labels may be required by the port 
director in such places on the package as he shall specify in any case 
where he is of the opinion that one is not adequate.
    (g) When, in the case of crates and similar packages, it is 
impossible to attach the warning labels by pasting, bright red shipping 
tags of convenient size, large enough to be conspicuous and containing 
the same legend as the labels, shall be used in lieu of labels. Such 
tags shall be wired or otherwise securely fastened to the packages in 
such manner as not to injure the merchandise.
    (h) Bonded carriers shall furnish and securely attach to the side 
doors of cars, to the doors of compartments, and on vehicles carrying 
bonded merchandise which are secured with Customs seals, bright red 
cards, 8 by 10\1/4\ inches in size, which shall be attached near such 
seals and on which shall be printed in large, clear, black letters the 
following:
    United States Customs. Two years' imprisonment, or $5,000 fine, or 
both, is the penalty for the unlawful removal of United States Customs 
seals on this car, vehicle, or compartment. United States Customs 
officers only are authorized to break these seals.

Car or vessel___________________________________________________________
Number or name__________________________________________________________
From____________________________________________________________________
To______________________________________________________________________
    Notice: The merchandise in this car, vehicle, or compartment shall 
be delivered to the chief officer of the customs at ----------.

    (i) Removal of seals. Except as provided in Sec. 18.3(d) and 
Sec. 19.6(e) of this chapter, seals affixed under this section shall be 
removed only under Customs supervision.

[28 FR 14755, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 18.4, 
see the List of CFR Sections Affected in the Finding Aids section of 
this volume.



Sec. 18.4a  Containers or road vehicles accepted for transport under customs seal; requirements.

    (a)(1) Containers covered by the Customs Convention on Containers 
shall be accepted for transport under Customs seal (see Sec. 18.4) if 
(i) durably marked with the name and address of the owner, particulars 
of tare, and identification marks and numbers, and (ii) constructed and 
equipped as outlined in Annex 1 to the Customs Convention on Containers, 
as evidenced by an accompanying unexpired certificate of approval in the 
form prescribed by Annex 2 to that Convention or by a metal plate 
showing design type approval by a competent authority.
    (2) Containers carrying merchandise covered by a TIR carnet shall be 
accepted for transport under Customs seal (see Sec. 18.4) if (i) durably 
marked with the name and address of the owner, particulars of tare, and 
identification marks and numbers, (ii) constructed and equipped as 
outlined in Annex 6 to the TIR Convention, as evidenced by an 
accompanying unexpired certificate of approval in the form prescribed by 
Annex 8 to that Convention, or by a metal plate showing design type 
approval by a competent authority, and (iii) if the container or road 
vehicle hauling the container has affixed to it a rectangular plate 
bearing the letters ``TIR'' in accordance with Article 31 of the TIR 
Convention.
    (b) Road vehicles carrying merchandise covered by a TIR carnet shall 
be accepted for transport under Customs seal if (1) durably marked with 
the name and address of the owner, particulars of tare, and 
identification marks and numbers, (2) constructed and equipped as 
outlined in Annex 3 to the TIR Convention, as evidenced by an 
accompanying unexpired certificate of approval in the form prescribed by 
Annex 5 to that Convention, or by a metal plate showing design type 
approval by a competent authority, and (3) if the road vehicle has 
affixed to it a rectangular plate bearing the letters ``TIR'' in 
accordance with Article 31 of the TIR Convention.

[[Page 232]]

    (c) The port director may refuse to accept for transport under 
Customs seal a container or road vehicle bearing evidence of approval 
if, in his opinion, the container or road vehicle no longer meets the 
requirements of the applicable Convention.
    (d) Containers or road vehicles which are not approved under the 
provisions of a Customs Convention may be accepted for transport under 
Customs seal only if the port director at the port of origin is 
satisfied that (1) the container or road vehicle can be effectively 
sealed and (2) no goods can be removed from or introduced into the 
container or road vehicle without obvious damage to it or without 
breaking the seal. A container or road vehicle so accepted shall not 
carry merchandise covered by a TIR carnet.

[T.D. 71-70, 36 FR 4486, Mar. 6, 1971, as amended by T.D. 89-1, 53 FR 
51254, Dec. 21, 1988]



Sec. 18.5  Diversion.

    (a) Merchandise forwarded under any class of transportation entry 
may be diverted to any port other than the port named in the entry at 
the option of the consignee or agent. Except as provided for in 
paragraphs (c), (d), (e) and (f) of this section, prior application or 
approval of such diversion is not required.
    (b) The director of the port to which merchandise is diverted may 
permit merchandise in transit under bond under any class of 
transportation entry to be entered at his port for consumption, 
warehouse, exportation, further transportation in bond, or under any 
provisions of the tariff laws.
    (c) When merchandise which has been delivered to the director of the 
port of original destination or port of diversion under any class of 
transportation entry is to be forwarded to another port or returned to 
the port of origin, a new transportation entry shall be required. If the 
merchandise is moving under cover of a carnet, the carnet may be 
accepted as a transportation entry.
    (d) If it is desired to split a shipment at a port of destination 
and to enter a portion for consumption or warehouse and forward the 
balance in bond, or to divert the entire shipment or a part thereof to 
more than one port, the director of the port where diversion takes place 
shall complete the original transaction and shall require the filing of 
a new transportation entry or entries for the portion or portions 
forwarded. In the case, however, of merchandise being transported under 
cover of a carnet, splitting up of a shipment shall not be permitted.
    (e) The diversion of shipments in bond which are subject on 
importation to restriction or prohibition under quarantines and 
regulations of the Agricultural Research Service of the Department of 
Agriculture shall be allowed only upon written permission or under 
regulations issued by the agency concerned.
    (f) The diversion of in-bond shipments, which contain textiles or 
textile products subject to section 204, Agricultural Act of 1956, as 
amended (7 U.S.C. 1854), during the in-bond movement shall be allowed 
only upon the prior written permission of the director of the port of 
origin.

[T.D. 71-70, 36 FR 4487, Mar. 6, 1971, as amended by T.D. 82-116, 47 FR 
27261, June 24, 1982; T.D. 84-207, 49 FR 38247, Sept. 28, 1984; T.D. 85-
38, 50 FR 8723, Mar. 5, 1985]



Sec. 18.6  Short shipments; shortages; entry and allowance.

    (a) When there has been a short shipment and the short-shipped 
packages are subsequently received, they may be forwarded only under a 
new transportation entry referenced to the original entry.
    (b) When there is a shortage of one or more packages, or nondelivery 
of an entire shipment, or delivery to unauthorized locations, or 
delivery to the consignee without the permission of Customs, the port 
director may demand return of the merchandise to Customs custody. The 
demand shall be made no later than 30 days after the shortage, delivery, 
or nondelivery is discovered by Customs. The demand for the return of 
the merchandise to Customs custody shall be made on the bonded carrier, 
cartman, or lighterman identified on the Transportation Entry and 
Manifest of Goods Subject to Customs Inspection and Permit, Customs Form 
7512, the Transit Air Cargo Manifest (TACM), or other appropriate 
document. The demand for the return of

[[Page 233]]

the merchandise shall be made on Customs Form 4647, Notice of 
Redelivery, or other appropriate form or by letter. A copy of the demand 
with the date of mailing or delivery noted thereon, shall be retained by 
the port director and made part of the in-bond entry record. Entry of 
the merchandise may be accepted if the merchandise can be recovered 
intact without any of the packages having been opened. In such cases, 
any shortage from the invoice quantity shall be presumed to have 
occurred while the merchandise was in the possession of the bonded 
carrier.
    (c) If the merchandise cannot be recovered intact, as specified 
above, entry shall be accepted in accordance with Sec. 141.4 of this 
chapter for the full manifested quantity unless a lesser amount is 
otherwise permitted in accordance with subpart A of part 158. Except as 
provided in paragraph (d) of this section, if the merchandise is not 
returned to Customs custody within 30 days of the date of mailing or 
date of delivery of the demand for redelivery, there shall be sent to 
the initial bonded carrier a demand for liquidated damages on Customs 
Form 5955-A, in the case of nondelivery of an entire shipment or on 
Customs Form 5931, in the case of a partial shortage.
    (d) If merchandise covered by a carnet cannot be recovered intact, 
as specified in paragraph (b) of this section, entry shall not be 
accepted; there shall be sent to the appropriate guaranteeing 
association a demand for liquidated damages, duties, and taxes as 
prescribed in Sec. 18.8(e); and, if appropriate, there shall also be 
sent to the initial bonded carrier a demand for any excess, as provided 
in Sec. 114.22(d) of this chapter. Demands shall be made on the forms 
specified in paragraph (c) of this section.
    (e) An allowance in duty on merchandise reported short at 
destination, including merchandise found by the appraising officer to be 
damaged and worthless, and animals and birds found by the discharging 
officer to be dead on arrival at destination, shall be made in the 
liquidation of the entry.
    (f) In the case of shipments arriving in the United States by rail 
or seatrain which are forwarded under Customs in-bond seals under the 
provisions of subpart D of part 123 of this chapter, and Sec. 18.11, or 
Sec. 18.20, a notation shall be made by the carrier or shipper on the 
in-bond manifest, Customs Form 7512, to show whether the shipment was 
transferred to the car designated in the manifest or whether it was 
laden in the car in the foreign country, which shall be named.

[T.D. 71-70, 36 FR 4487, Mar. 6, 1971, as amended by T.D. 82-116, 47 FR 
27261, June 24, 1982; T.D. 82-158, 47 FR 37881, Aug. 27, 1982; T.D. 84-
213, 49 FR 41168, Oct. 19, 1984; T.D. 85-180, 50 FR 42517, Oct. 21, 
1985; T.D. 97-82, 62 FR 51770, Oct. 3, 1997]



Sec. 18.7  Lading for exportation, verification of.

    (a) Promptly, but no more than 2 working days, after arrival of any 
portion of the in-bond shipment at the port of exportation, the 
delivering carrier shall surrender the in-bond manifest (the in-bond 
document and related Customs Form 7512-C (destination) or the carnet) to 
the port director as notice of arrival of the merchandise. If the in-
bond manifest is lost in transit, the in-bond carrier shall report the 
arrival of the merchandise within the prescribed period and shall be 
responsible for obtaining copies of the original in-bond manifest. 
Failure to surrender the in-bond manifest or report the arrival of 
bonded merchandise within the prescribed period shall constitute an 
irregular delivery and the initial bonded carrier shall be subject to 
applicable penalties (see Sec. 18.8).
    (b) The port director shall require only such supervision of the 
lading for exportation of merchandise covered by an entry or withdrawal 
for exportation or for transportation and exportation as is reasonably 
necessary to satisfy him that the merchandise has been laden on the 
exporting conveyance.
    (c) Whenever the circumstances warrant, and occasionally in any 
event, port directors shall request the Office of Enforcement to check 
export entries and withdrawals against the records of the exporting 
carriers. Such check or verification shall include an examination of the 
carrier's records of claims and settlement of export freight charges and 
any other records which may relate to the transaction. The exporting 
carrier shall maintain these

[[Page 234]]

records for 5 years from the date of exportation of the merchandise.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 79-159, 44 FR 31967, 
June 4, 1979; T.D. 84-212, 49 FR 39047, Oct. 3, 1984; T.D. 91-77, 56 FR 
46114, Sept. 10, 1991]



Sec. 18.8  Liability for shortage, irregular delivery, or nondelivery; penalties.

    (a) The initial bonded carrier shall be responsible for shortage, 
irregular delivery, or nondelivery at the port of destination or 
exportation of bonded merchandise received by it for carriage. An 
acceptable proof of proper delivery of bonded merchandise to Customs at 
the port of destination or exportation is a properly receipted copy of 
the in-bond document (the appropriate Customs Form 7512 or 7520, or the 
carnet). When sealing is waived, any loss found to exist at the port of 
destination or exportation shall be presumed to have occurred while the 
merchandise was in the possession of the carrier, unless conclusive 
evidence to the contrary is produced.
    (b) Carriers shall be liable for payment of liquidated damages under 
the carriers bond for any shortage, failure to deliver, or irregular 
delivery, as provided in such bond.
    (c) In addition to the penalties described in paragraph (b) of this 
section, the carrier shall pay any internal-revenue taxes, duties, or 
other taxes accruing to the United States on the missing merchandise, 
together with all costs, charges, and expenses caused by the failure to 
make the required transportation, report, and delivery.
    (d) In any case in which liquidated damages imposed in accordance 
with this section do not aggregate over $100,000 and the Fines, 
Penalties, and Forfeitures Officer is satisfied by evidence submitted to 
him with an application for relief from the payment thereof filed as 
provided in part 172 of this chapter that any shortage, irregular 
delivery, nondelivery, or any failure to obtain Customs supervision was 
without any intent to evade any law or regulation, the Fines, Penalties, 
and Forfeiture Officer may cancel such claim upon the payment of any 
lesser amount or without the payment of any amount, as he may deem 
appropriate under the law and in view of the circumstances.
    (e)(1) The domestic guaranteeing association shall be jointly and 
severally liable with the initial bonded carrier for duties and taxes 
accruing to the U.S., and any other charges imposed, in lieu thereof, as 
the result of any shortage, irregular delivery, or nondelivery at the 
port of destination or port of exit of merchandise covered by a TIR 
carnet. The liability of the domestic guaranteeing association is 
limited to $50,000 per TIR carnet for duties, taxes, and sums collected 
in lieu thereof. Penalties imposed as liquidated damages on the initial 
bonded carrier, and sums assessed the guaranteeing association in lieu 
of duties and taxes for any shortage, irregular delivery, or nondelivery 
shall be in accordance with this section. If a TIR carnet has not been 
discharged or has been discharged subject to a reservation, the 
guaranteeing association shall be notified within 1 year of the date 
upon which the carnet is taken on charge, including time for receipt of 
the notification, except that if the discharge shall have been obtained 
improperly or fraudulently the period shall be 2 years. However, in 
cases which become the subject of legal proceedings during the above-
mentioned period, no claim for payment shall be made more than 1 year 
after the date when the decision of the court becomes enforceable.
    (2) Within 3 months from the date demand for payment is made by the 
port director as provided by Sec. 18.6(d), the guaranteeing association 
shall pay the amount claimed, except that if the amount claimed exceeds 
the liability of the guaranteeing association under the carnet (see 
Sec. 114.22(d) of this chapter), the carrier shall pay the excess. The 
amount paid shall be refunded if, within a period of 1 year from the 
date on which the claim for payment was made, it is established to the 
satisfaction of the Commissioner of Customs that no irregularity 
occurred. The Fines, Penalties, and Forfeitures Officer may cancel 
liquidated damages assessed against the guaranteeing association to the 
extent authorized by paragraph (d) of this section.
    (3) The domestic guaranteeing association shall be jointly and 
severally

[[Page 235]]

liable with the initial bonded carrier for pecuniary penalties, 
liquidated damages, duties, and taxes accruing to the United States and 
any other charges imposed as the result of any shortage, irregular 
delivery, or nondelitery at the port of destination or port of exit of 
merchandise covered by an A.T.A. or TECRO/AIT carnet. However, the 
liability of the guaranteeing association shall not exceed the amount of 
the import duties by more than 10 percent. If an A.T.A. or TECRO/AIT 
carnet is unconditionally discharged with respect to certain goods, the 
guaranteeing association will no longer be liable on the carnet with 
respect to those goods unless it is subsequently discovered that the 
discharge of the carnet was obtained fraudulently or improperly or that 
there has been a breach of the conditions of temporary admission or of 
transit. No claim for payment shall be made more than one year following 
the date of expiration of the validity of the carnet. The guaranteeing 
association shall be allowed a period of six months from the date of any 
claim by the port director in which to furnish proof of the 
reexportation of the goods or of any other proper discharge of the 
A.T.A. or TECRO/AIT carnet. If such proof is not furnished within the 
time specified, the guranteeing association shall either deposit or 
provisionally pay the sums. The deposit or payment shall become final 
three months after the date of the deposit or payment, during which time 
the guaranteeing association may still furnish proof of the 
reexportation of the goods to recover the sums deposited or paid.

[28 FR 14755, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 18.8, 
see the List of CFR Sections Affected in the Finding Aids section of 
this volume.



Sec. 18.9  Examination by inspectors of trunk line associations or agents of the Interstate Commerce Commission.

    (a) Upon presentation of proper credentials showing the applicant to 
be a representative of the Trunk Line Association, the Interstate 
Commerce Commission, the Joint Rate Inspection Bureau of Chicago, or the 
Southern Weighing and Inspection Bureau of Atlanta, inspectors of 
Customs in charge shall permit such applicant to open and examine 
packages containing in-bond merchandise described in the manifest in 
general terms for the purpose of ascertaining whether the merchandise is 
properly classified under the interstate commerce laws.
    (b) The opening and examination of such packages shall be without 
expense to the Customs Service or the owner of the goods and shall be 
done in the presence of a Customs officer. The contents of the cases 
shall not be removed or disturbed further than is necessary to ascertain 
the character thereof. The Customs officer shall require the packages to 
be securely closed, and shall note on the manifest the packages so 
inspected, the date, and by whom inspected.



Sec. 18.10  Kinds of entry.

    (a) The following entries and withdrawals may be made for 
merchandise to be transported in bond:
    (1) Entry for immediate transportation without appraisement.
    (2) Warehouse or rewarehouse withdrawal for transportation.
    (3) Warehouse or rewarehouse withdrawal for exportation or for 
transportation and exportation.
    (4) Entry for transportation and exportation.
    (5) Entry for exportation.
    (b) The copy of each entry or withdrawal made in any of the classes 
named in paragraph (a) of this section which is retained in the office 
of the forwarding port director shall be signed by the party making the 
entry or withdrawal. In the case of shipments to the Virgin Islands 
(U.S.) under paragraph (a), (3), (4), or (5) of this section, one 
additional copy of the entry or withdrawal on Customs Form 7512 shall be 
filed and shall be mailed by the receiving port director to the port 
director, Charlotte Amalie, St. Thomas, Virgin Island (U.S.). Before 
shipping merchandise in bond to another port for the purpose of 
warehousing or rewarehousing, the shipper should ascertain whether 
warehouse facilities

[[Page 236]]

are available at the intended port of destination.

[28 FR 14755, Dec. 21, 1963, as amended by T.D. 89-1, 53 FR 51254, Dec. 
21, 1988]



Sec. 18.10a  Special manifest.

    (a) General. Merchandise for which no other type of bonded movement 
is appropriate (e.g., prematurely discharged or overcarried merchandise 
and other such types of movements whereby the normal transportation-in-
bond procedures are not applicable) may be shipped in bond from the port 
of unlading to the destination shown on the importing carrier's manifest 
(manifested port) when authorized by the port director having custody of 
the merchandise. For this purpose, Custom's Form 7512 prepared in 
quadruplicate shall be used as a special manifest.
    (b) Manifest procedures. (1) Written application shall be made to 
the port director where the merchandise is being held for permission to 
return it as a bonded shipment under a special manifest to the 
manifested port, including to the port of diversion (see section 4.33 of 
this chapter), when different from the original manifested port.
    (2) The application and accompanying completed Customs Form 7512 
shall identify the prematurely discharged or overcarried merchandise on 
the inward manifest of the importing carrier; and also identify the date 
and entry number of any entry made at the manifested port covering the 
merchandise to be returned, if known. If the port director is satisfied 
that the merchandise will be delivered to Customs custody at the 
manifest port before expiration of 90 days from the date of the entry 
identified, or 90 days from the date of the importing carrier's arrival 
at the manifested port when no entry is identified, the port director 
may approve the shipment under a special manifest.

[T.D. 83-218, 48 FR 48657, Oct. 20, 1983; 48 FR 49655, Oct. 27, 1983]

              Immediate Transportation Without Appraisement



Sec. 18.11  Entry; classes of goods for which entry is authorized; form used.

    (a) Entry for immediate transportation without appraisement may be 
made under section 552, Tariff Act of 1930, (1) for any merchandise, 
except explosives and prohibited merchandise, upon its arrival at a port 
of entry, or (2) for merchandise in general-order warehouse at any time 
within 6 months from the date of importation.
    (b) Entry for immediate transportation without appraisement may be 
made by (1) the carrier bringing the merchandise to the port of arrival, 
(2) the carrier who is to accept the merchandise under its bond or a 
carnet for transportation to the port of destination, or (3) any person 
shown by the bill of lading or manifest, a certificate of the importing 
carrier, or by any other document satisfactory to the port director, to 
have a sufficient interest in the merchandise for that purpose.
    (c) Before a shipment covered by an entry for immediate 
transportation, including a carnet, or a manifest of baggage shipped in 
bond (other than baggage to be forwarded in bond to a Customs station--
see Sec. 18.13(a)), shall be allowed to be transported directly to a 
place of deposit outside a port of entry for examination and release as 
contemplated by section 484(f), Tariff Act of 1930, as amended, the 
consent of the director of the port of entry designated in the 
transportation entry or baggage manifest (or in the event of diversion 
under Sec. 18.5, for the port of destination of the merchandise or 
baggage) must first be secured. Before consent may be given, the 
importer must furnish such port director with a stipulation that, 
promptly upon the arrival of any part of the merchandise or baggage at 
the place of deposit, he will file an entry for the shipment at the port 
of entry designated in the transportation entry or baggage manifest (or 
in the event of diversion under Sec. 18.5, at the port of

[[Page 237]]

destination of the merchandise or baggage) and will comply with the 
provisions of Sec. 151.9 of this chapter.
    (d) Carload shipments of livestock shall not be entered for 
immediate transportation without appraisement unless they will arrive at 
destination before it becomes necessary to remove the seals for the 
purpose of watering and feeding the animals, or unless the route be such 
that the removal of the seals and the watering, feeding, and reloading 
of the stock may be done under Customs supervision.
    (e) Entries for immediate transportation without appraisement 
covering merchandise subject to detention of supervision by any Federal 
agency shall contain a sufficient description of the merchandise to 
enable the representative of the agency concerned to determine the 
contents of the shipment. Such merchandise covered by quarantines and 
regulations administered by the Bureau of Entomology and Plant 
Quarantine shall be forwarded under such entries only upon written 
permission of or under regulations issued by that Bureau. Entries for 
immediate transportation without appraisement covering textiles and 
textile products subject to section 204, Agricultural Act of 1956, as 
amended (7 U.S.C. 1854), shall be described in such detail as to enable 
the port director to estimate the duties and taxes, if any, due. The 
port director may require evidence to satisfy him of the approximate 
correctness of the value and quantity stated in the entry (e.g. Detailed 
quantity description, 14 cartons, 2 dozen per carton); Detailed 
description of the textiles or textile products including type of 
commodity and chief fiber content (e.g., men's cotton jeans or women's 
wool sweaters); Net weight of the textiles or textile products 
(including immediate packing but excluding pallet); Total value of the 
textiles or textile products; Manufacturer or supplier; Country of 
orgin; Name(s) and address(es) of the person(s) to whom the textiles and 
textile products are consigned; Harmonized code tariff number (when 
available).
    (f) One or more entire packages of merchandise covered by an invoice 
from one consignor to one consignee may be entered for consumption or 
warehouse at the port of first arrival, and the remainder entered for 
immediate transportation without appraisement, provided all the 
merchandise covered by the invoice is entered simultaneously and any 
carnet which may cover such merchandise is discharged as to that 
merchandise.
    (g) Several importations may be consolidated in one immediate 
transportation without appraisement entry when bills of lading or 
carrier's certificates name only one consignee at the port of first 
arrival. However, merchandise moving under cover of a carnet may not be 
consolidated with other merchandise.
    (h) Either Customs Form 7512, a carnet, or an air waybill (see 
Sec. 122.92 of this chapter), shall be used as a combined transportation 
entry, invoice, and manifest. If Customs Form 7512 is used, a minimum of 
three copies shall be required at the port of origin. The port director, 
however, may require additional copies of Customs Form 7512 or the Goods 
Manifest of the carnet for use in connection with the delivery of the 
merchandise to the bonded carrier. In lieu of additional copies of the 
Goods Manifest, the port director may accept copies of a bill of lading 
covering the merchandise. The merchandise shall be described in such 
detail as to enable the port director to estimate the duties and taxes, 
if any, due. The port director may require evidence to satisfy him of 
the approximate correctness of the value or quantity stated in the 
entry. If a TIR carnet is used, and the duties and taxes estimated to be 
due exceed the maximum liability of the guaranteeing association under 
the carnet, the provisions of Sec. 114.22(d) of this chapter shall 
apply.
    (i) The value stated on the entry at the port of first arrival is 
not binding on the ultimate consignee making entry at the port of 
destination and does not relieve the importer of the obligation to show 
the correct value on entry.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71-70, 36 FR 4488, Mar. 
6, 1971; T.D. 73-175, 38 FR 17446, July 2, 1973; T.D. 82-116, 47 FR 
27262, June 24, 1982; T.D. 84-207, 49 FR 38247, Sept. 28, 1984; T.D. 85-
38, 50 FR 8723, Mar. 5, 1985; T.D. 89-1, 53 FR 51254, Dec. 21, 1988; 
T.D. 92-82, 57 FR 38275, Aug. 24, 1992; T.D. 98-74, 63 FR 51288, Sept. 
25, 1998]

[[Page 238]]



Sec. 18.12  Entry at port of destination.

    (a) Merchandise received under an immediate transportation without 
appraisement entry may be entered for transportation and exportation or 
for immediate transportation, or under any other form of entry, and 
shall be subject to all the conditions pertaining to merchandise entered 
at a port of first arrival if not more than 6 months have elapsed from 
the date of original importation. If more than 6 months have elapsed, 
only an entry for consumption shall be accepted. Such entry shall show 
the name of the port of first arrival, the transporting carrier, and the 
number of the immediate transportation entry. (See Sec. 127.2 of this 
chapter.)
    (b) The right to make entry at the port of destination shall be 
determined in accordance with the provisions of Sec. 141.11 of this 
chapter.
    (c) When a portion of a shipment is entered at the port of first 
arrival and the remainder is entered for consumption or warehouse at one 
or more subsequent ports, the entry at each subsequent port may be made 
on an extract of the invoice as provided for in Sec. 141.84 of this 
chapter.
    (d) All merchandise included in an immediate transportation without 
appraisement entry (including carnets) not entered within 15 calendar 
days after delivery at the port of destination shall be disposed of in 
accordance with the applicable procedures in Sec. 4.37 or Sec. 122.50 or 
Sec. 123.10 of this chapter.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71-70, 36 FR 4488, Mar. 
6, 1971; T.D. 73-175, 38 FR 17446, July 2, 1973; T.D. 74-114, 39 FR 
12091, Apr. 3, 1974; T.D. 82-116, 47 FR 27262, June 24, 1982; T.D. 98-
74, 63 FR 51288, Sept. 25, 1998]

                       Shipment of Baggage in Bond



Sec. 18.13  Procedure; manifest.

    (a) Baggage may be forwarded in bond to another port of entry, or to 
a Customs station listed in Sec. 101.4 of this chapter, at the request 
of the passenger, the transportation company, or the agent of either, 
with the use of a baggage manifest described in paragraph (b) of this 
section without examination or assessment of duty at the port or station 
of first arrival. For this purpose, the carrier shall furnish cards of 
bright red cardboard not less than 2\1/2\ by 4 inches in size with the 
following printed text, for attachment (by wire or cord) to the baggage:

                          United States Customs

Check No._______________________________________________________________
Baggage in bond:
Carrier_________________________________________________________________
From____________________________________________________________________

                            to port director

At (destination)________________________________________________________
    This baggage must be delivered by carrier to the director of the 
port of destination. Failure to do so renders the carrier liable to a 
fine.

    (b) A Customs manifest for baggage shipped in bond, Customs Form 
7512, shall be prepared in triplicate for each shipment. The related 
Customs Form 7512-C (destination) shall be delivered to the carrier to 
accompany the baggage and shall be delivered by the carrier to the 
director of the port of destination as a notice of arrival.
    (c) Baggage arriving in bond or otherwise at a port on the Atlantic 
or Pacific coast, destined to a port on the opposite coast, may be laden 
under Customs supervision, without examination and without being placed 
in bond, on a vessel proceeding to the opposite coast, provided the 
vessel will proceed to the opposite coast without stopping at any other 
port on the first coast.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 70-121, 35 FR 8222, May 
26, 1970; T.D. 77-241, 42 FR 54937, Oct. 12, 1977; T.D. 87-75, 52 FR 
20067, May 29, 1987]



Sec. 18.14  Shipment of baggage in transit to foreign countries.

    The baggage of any person in transit through the United States from 
one foreign country to another may be shipped over a bonded route for 
exportation. Such baggage shall be shipped under the regulations 
prescribed in Sec. 18.13, except that the card or poster shall be 
printed on yellow paper and shall read ``Baggage in bond for export.'' 
See Sec. 123.64 of this chapter for the regulations applicable to 
baggage shipped in transit through the United

[[Page 239]]

States between points in Canada or Mexico.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 70-121, 35 FR 8222, May 
26, 1970]

  Merchandise in Transit Through the United States to Foreign Countries



Sec. 18.20  Entry procedure; forwarding.

    (a) When an importation is entered for transportation and 
exportation, except as provided for in subparts D, E, F and G of part 
123 of this chapter (relating to merchandise in transit through the U.S. 
between two points in contiguous foreign territory), a carnet, three 
copies of an air waybill (see Sec. 122.92 of this chapter), or four 
copies of Customs Form 7512 shall be required. The port director, 
however, may require additional copies of Customs Form 7512 or the Goods 
Manifest of the carnet for use in connection with the delivery of the 
merchandise to, the bonded carrier. In lieu of additional copies of a 
Goods Manifest, the port director may accept copies of a bill of lading 
covering the merchandise. Acceptance of transportation and exportation 
entries shall be subject to the requirements prescribed in Sec. 18.11(b) 
for entry of merchandise for immediate transportation without 
appraisement.
    (b) Except in respect to merchandise covered by a carnet (see 
Sec. 18.1(a) (2) and (3)), in places where no bonded common carrier 
facilities are reasonably available and merchandise is permitted to be 
transported otherwise than by a bonded common carrier, the port director 
may permit entry in accordance with the procedure outlined in paragraph 
(a) of this section if he is satisfied that the revenue will not be 
endangered. A bond on Customs Form 301, containing the bond conditions 
set forth in Sec. 113.62 of this chapter in an amount equal to double 
the estimated duties shall be required when the port director deems such 
action necessary. (See Sec. 113.55 of this chapter for cancellation of 
export bonds.)
    (c) The merchandise shall be forwarded in accordance with the 
general provisions for transportation in bond, Secs. 18.1 through 18.8.

[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71-70, 36 FR 4489, Mar. 
6, 1971; T.D. 74-227, 39 FR 32015, Sept. 4, 1974; T.D. 82-116, 47 FR 
27262, June 24, 1982; T.D. 84-212, 49 FR 39047, Oct. 3, 1984; T.D. 84-
213, 49 FR 41168, Oct. 19, 1984; T.D. 89-1, 53 FR 51254, Dec. 21, 1988; 
T.D. 92-82, 57 FR 38275, Aug. 24, 1992]



Sec. 18.21  Restricted and prohibited merchandise.

    (a) Merchandise subject upon importation to examination, 
disinfection, or further treatment under quarantines and Quarantine 
Division, Agricultural Research Service, Department of Agriculture, 
shall be released for transportation or exportation only upon written 
permission of, or under regulations issued by, that Bureau. (See 
Secs. 12.10 to 12.15 of this chapter.)
    (b) Narcotics and other articles prohibited admission into the 
commerce of the United States shall not be entered for transportation 
and exportation and any such merchandise offered for entry for that 
purpose shall be seized, except that exportation or transportation and 
exportation may be permitted upon written authority from the proper 
govern