[Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-25152] [[Page Unknown]] [Federal Register: October 12, 1994] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Customs Service 19 CFR Parts 19, 112, 113, 118, 125, 146 and 178 [T.D. 94-81] RIN 1515-AB57 Authorization of Bonded Carriers to Transport Cargo Within Port Limits Without Obtaining Cartman's License AGENCY: Customs Service, Treasury. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This document amends the Customs Regulations to allow bonded carriers to transport merchandise within port limits without having to obtain a cartman's license. It also amends the regulations to allow the operators of foreign trade zones, container station and centralized examination stations and the proprietors of bonded warehouses to transport merchandise from within the district to their respective facilities. These amendments will result in savings of time and money for both the trade and Customs. EFFECTIVE DATE: November 14, 1994. FOR FURTHER INFORMATION CONTACT: Ernie Cunningham, Office of Cargo Enforcement and Facilitation, Office of Inspection and Control, at 202- 927-0510. SUPPLEMENTARY INFORMATION: Background Customs requires that the carriage of imported merchandise, for which duty has not yet been paid, only be accomplished by certain bonded carriers. A cartman is one who undertakes to transport goods or merchandise within the limits of a port. A lighterman is one who transports goods or merchandise on a barge, scow, or other small vessel to or from a vessel within the port or from place to place within a port. The regulations regarding cartage and lighterage of merchandise are set forth in Part 125 of the Customs Regulations (19 CFR Part 125). The regulations regarding the bonding of carriers which receive merchandise for transportation in bond, and the licensing of cartmen and lightermen are set forth in Part 112 of the Customs Regulations (19 CFR Part 112). Currently, pursuant to Secs. 112.2(b) and 112.21, Customs Regulations, Customs requires a bond and a license to transact business as a cartman or a lighterman for the cartage or lighterage of merchandise entered for warehouse, designated for examination, taken to container stations, or taken into custody as unclaimed. On October 29, 1992, Customs published a Notice of Proposed Rulemaking (NPRM) in the Federal Register (57 FR 49049) proposing to consider within port transfers by cartmen and lightermen like other in- bond movements and to allow bonded carriers, in most instances, to carry in-bond cargo within a port without requiring them to obtain cartman or lighterman licenses. According to the document, it was proposed that cartage and lighterage of merchandise designated for examination, taken to container stations, taken into custody as unclaimed or destined for admission to a foreign trade zone either may be done under the bond of a licensed cartman or lighterman, or if approved by the district director, under the bond of a foreign trade zone operator, container station operator, centralized examination station operator, or a bonded carrier. However, a license would still be necessary to obtain to carry in-bond merchandise within a port for the cartage of merchandise entered for warehouse; the reason for this exception was that 19 U.S.C. 1565 contained a statutory requirement that a cartman be licensed for cartage of merchandise entered for warehouse. Customs issued the proposal because it believes that the elimination of the license requirement will save Customs and the trade time and money. Statutory Change Since Proposal On December 8, 1993, the President signed the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057). Section 666 of Title VI (Customs Modernization) amended 19 U.S.C. 1565 to allow the cartage of merchandise entered for warehouse by bonded carriers as well as by licensed cartmen. Accordingly, the statement in the proposal that a license is required to transact business as a cartman and lighterman for the cartage or lighterage of merchandise entered for warehouse is no longer consistent with the statute. The statutory impediment to allowing the cartage of merchandise entered for warehouse by bonded carriers that existed at the time the proposal was published no longer exists. Analysis of Comments A total of 19 entities responded to the proposal. Generally, each respondent supported the proposal and stated that, if adopted, the proposal would eliminate unnecessary and redundant paperwork for both Customs and the trade, would expedite the movement of cargo within port limits, and would be a positive step in simplifying Customs procedures. Of the 19 commenters, seven fully supported the measure. The remaining commenters, although generally supportive of the purpose of the proposed amendments, suggested some changes. Some sought clarification regarding the types of cartage authorized to be performed by the operators of foreign trade zones, centralized examination stations and container stations. Specific comments requesting changes and clarifications and Customs responses are set forth below. Comment: Seven commenters requested that the measure be expanded to include transfers between foreign trade zones and subzones, whether within or adjacent to the same port of entry. Response: The regulations currently provide that cargo movements carried out outside the port limits but within the district boundaries may be accomplished by a bonded carrier. This applies to transfers between foreign trade zones and subzones. The final regulation set forth in this document provides that cargo destined for a foreign trade zone or subzone may be picked up within the district by the operator of the foreign trade zone or subzone to which it is going. This is specified by the new language for Sec. 112.2(b). Comment: One commenter requested a more liberal wording of the proposed language for 19 CFR 112.2. The language for 19 CFR 112.2 reads, in part: ``Cartage * * * may be done under the bond of a cartman, * * * or, if approved by the district director, a bonded carrier * * *.'' The commenter felt that the proposed language would still require companies with extensive route systems to submit an application of some sort in every Customs district where they anticipate performing the cartman function. Response: In the future, approval of the bond of a bonded carrier by the district director would indicate approval by Customs for the bonded carrier to engage in cartage. The rule would permit bonded carriers to transfer merchandise within port limits without the need for an application or a cartman or lighterman license; therefore, there is no need to further amend or adopt a more liberal wording of the proposed language in 19 CFR 112.2. Comment: Three commenters requested that 19 U.S.C. 1565 be amended to eliminate the requirement for cartmen licenses for cargo movements into bonded warehouses. They suggested that such an amendment could be accomplished through the Customs Modernization Act. Response: As noted previously in this document, section 666 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182) amends 19 U.S.C. 1565 to eliminate the requirement for a cartman's license for cargo movements into bonded warehouses. Any carrier designated as a carrier of bonded merchandise may cart merchandise destined for entry into a bonded warehouse. The final regulation has been amended to reflect the statutory amendment. Comment: One commenter suggested that Customs clarify whether a foreign trade zone operator is only entitled to engage in cartage for a foreign trade zone, a container station operator only for a container station, a centralized examination station (CES) operator only for a CES, and a bonded warehouse proprietor only for a bonded warehouse, while a licensed cartman or bonded carrier would be entitled to engage in cartage for any of those facilities, and whether district directors would be allowed some discretion in this matter. Response: Customs agrees that the best policy is that a foreign trade zone operator would be limited to the transportation of merchandise to his foreign trade zone, a container station operator to his container station, a CES operator to his CES, and a bonded warehouse proprietor to his bonded warehouse. A licensed cartman or a bonded carrier would be entitled to engage in transporting merchandise for any of those facilities, the cartman within the port limits and the carrier within the district boundaries. Language to this effect has been inserted in the new Sec. 112.2(b). Once a district director has approved the respective entity's bond, that entity may engage in transporting merchandise as provided for in these regulations. Comment: The commenter suggests that the conditions of the custodial bond in 19 CFR 113.63 and the foreign trade zone operators bond in 19 CFR 113.73 should be revised to conform with the proposed change in 19 CFR 112.2(b). Response: Section 113.63, Customs Regulations, has been altered slightly to conform with the changes. Regarding the foreign trade zone operator's bond, Customs agrees that the current foreign trade zone operator's bond is inadequate to secure the operator's performance with respect to movement of goods from one zone to another. Changes have been made to 19 CFR 113.73 in the final rule. Comment: A commenter suggested that conforming changes referring to bonded carriers under 19 CFR 112.2(b) should be added to 19 CFR 125.11 (a) and (b). Response: Conforming changes have been made in the final rule. Comment: One commenter suggested that the procedures in part 125 seem to refer principally to cartmen, lightermen and, as proposed in the NPRM, bonded carriers. He suggests that procedures pertaining to bonded warehouse proprietors and to operators of container stations, centralized examination stations, and foreign trade zones should be made clear in the final rule. Response: Customs agrees that procedures pertaining to cartage and lighterage by bonded warehouse proprietors and operators of container stations, centralized examination stations and foreign trade zones should be included within part 125. Part 125 is amended accordingly. Comment: One commenter observed that both bonded warehouses and foreign trade zones are facilities with specific boundaries. He suggested that Customs make clear whether receipt of merchandise by bonded warehouse proprietors for the purpose of cartage constitutes receipt into a bonded warehouse and whether receipt of merchandise by a foreign trade zone operator for the purpose of cartage constitutes receipt into an activated foreign trade zone area and the conferring of foreign trade zone status. Response: Receipt of merchandise for cartage purposes to a bonded warehouse by its proprietor or to a foreign trade zone by its operator constitutes receipt into the bonded warehouse or admission into the foreign trade zone. Customs approval of such transfers will continue to be accomplished through existing local procedures. Conclusion After careful consideration of the comments received and further review of the matter, it has been determined that the proposed amendments, modified as discussed above, should be adopted. The final regulation will allow the cartage and lighterage of merchandise for all purposes by bonded carriers without the necessity of obtaining a cartage license. It will also allow bonded warehouse proprietors, foreign trade zone operators, container station operators and centralized examination station operators to engage in limited cartage and lighterage under their respective bonds and to transport merchandise to their respective facilities from anywhere in the district in which their facility is located. Regulatory Flexibility Act and Executive Order 12866 Pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) and based upon the information set forth above, it is certified that the regulations will not have a significant economic impact on a substantial number of small entities. The regulations eliminate duplicative or otherwise unnecessary paperwork requirements and thus reduce the regulatory burden. Accordingly, the regulations are not subject to the regulatory analysis or other requirements of 5 U.S.C. 603 and 604. This document does not meet the criteria for a ``significant regulatory action'' as specified in Executive Order 12866. Paperwork Reduction Act The collection of information requirements contained in these final regulations have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 3504(h)) under control number 1515-0193. The estimated average annual burden associated with this collection is .1666 hour per respondent and 1 hour per recordkeeper. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the U. S. Customs Service, Paperwork Management Branch, Room 6316, 1301 Constitution Avenue NW., Washington, DC 20229, or the Office of Management and Budget, Attention: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, D. C. 20503. Drafting Information The principal author of this document was Janet L. Johnson, Regulations Branch. However, personnel from other offices participated in its development. List of Subjects 19 CFR Part 19 Customs duties and inspection, Exports, Freight, Reporting and recordkeeping requirements, Surety bonds, Warehouses, Wheat. 19 CFR Part 112 Administrative practice and procedure, Canada, Common carriers, Customs duties and inspection, Exports, Freight, Harbors, Mexico, Reporting and recordkeeping requirements, Surety bond. 19 CFR Part 113 Common carriers, Customs duties and inspection, Exports, Freight, Laboratories, Reporting and recordkeeping requirements, Surety bonds. 19 CFR Part 118 Customs duties and inspection, Centralized examination stations, Imports. 19 CFR Part 125 Customs duties and inspection, Freight, Government contracts, Harbors, Reporting and recordkeeping requirements. 19 CFR Part 146 Administrative practice and procedure, Customs duties and inspection, Exports, Foreign trade zones, Penalties, Reporting and recordkeeping requirements. 19 CFR Part 178 Reporting and recordkeeping requirements. Amendments to the Regulations For the reasons set forth in the preamble, parts 19, 112, 113, 118, 125, 146 and 178 of the Customs Regulations (19 CFR parts 19, 112, 113, 118, 125, 146 and 178) are amended as set forth below. PART 19--CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF MERCHANDISE THEREIN 1. The general authority citation for part 19 is revised and the specific authority citations for Sec. 19.6 and Sec. 19.44 continue to read as follows: Authority: 5 U.S.C. 301, 19 U.S.C. 66, 1202 (General Note 17, Harmonized Tariff Schedule of the United States), 1624. * * * * * Section 19.6 also issued under 19 U.S.C. 1555. * * * * * Section 19.44 also issued under 19 U.S.C. 1448. * * * * * 2. Section 19.6(a)(1) is amended by revising the third sentence and by adding a new sentence at the end to read as follows: Sec. 19.6 Deposits, withdrawals, blanket permits to withdraw and sealing requirements. (a)(1) Deposit in warehouse. *** When merchandise is deposited in a proprietor's warehouse or is accepted and receipted for by a proprietor or his agent for transport to the proprietor's warehouse, the proprietor will be responsible for the quantity and condition of merchandise reflected on entry documentation adjusted by (i) any allowance made under part 158, subparts A and B, of this chapter by the district director, and (ii) any discrepancy report made jointly on the appropriate cartage documents as set forth in Sec. 125.31 of this chapter by the warehouse proprietor and the bonded carrier or licensed cartman or lighterman delivering the goods to the warehouse, or an independent weigher, gauger, measurer, and signed by an authorized representative of the above within 15 calendar days after deposit. *** If the proprietor of the bonded warehouse transports the goods to the warehouse, no discrepancy report shall be necessary. * * * * * 3. The first sentence of Sec. 19.12(a)(1) is revised to read as follows: Sec. 19.12 Warehouse recordkeeping, storage and security requirements. (a) *** (1) Record transactions. All merchandise collected by a proprietor or his agent for transport to his warehouse shall be receipted. All such merchandise and all merchandise entered, manipulated, manufactured, smelted, refined or removed from the bonded warehouse shall be recorded in the warehouse proprietor's accounting and inventory records by bond lot number. *** * * * * * 4. Section 19.44 is amended by adding a new paragraph (g) which reads as follows: Sec. 19.44 Carrier responsibility. * * * * * (g) If a container station operator chooses to collect merchandise from within the boundaries of the district in which the container station is located and transport the merchandise to his container station, the container station operator must formally receipt for the merchandise at the time of collection, and he becomes liable under his bond for proper safekeeping of the merchandise at that time. PART 112--CARRIERS, CARTMEN, AND LIGHTERMEN 1. The general authority citation for part 112 continues to read as follows: Authority: 19 U.S.C. 66, 1551, 1565, 1623, 1624. 2. The first sentence of Sec. 112.0 is revised to read as follows: Sec. 112.0 Scope. This part sets forth regulations providing for the bonding of carriers which will receive merchandise for transportation in bond, the licensing of cartmen and lightermen, and the procedures for applying for such bonds and licenses. * * * 3. Section 112.2(b) is revised to read as follows: Sec. 112.2 Bond or license required. * * * * * (b) Cartmen and lightermen.--(1) Necessity for bond. A bond, as provided for in this part, is required to transact business as a cartman or lighterman. The cartage or lighterage of merchandise designated for examination, entered for warehouse, taken to container stations or centralized examination stations, taken into custody as unclaimed or destined for admission to a foreign trade zone may be done under the bond of a cartman or lighterman who is licensed pursuant to the provisions of this part or that of a bonded carrier, as provided for in paragraph (a) of this section. Foreign trade zone operators, bonded warehouse proprietors, container station operators and centralized examination station operators may engage in limited cartage or lighterage under their respective bonds. A foreign trade zone operator may engage in cartage or lighterage under his bond only for merchandise destined for his foreign trade zone and may also transport merchandise to his zone from anywhere within the district boundaries where the foreign trade zone is located. A bonded warehouse proprietor may engage in cartage or lighterage under his bond only for merchandise destined for his bonded warehouse and may also transport merchandise to his warehouse from anywhere within the district boundaries where the bonded warehouse is located. A container station operator may engage in cartage or lighterage under his bond only for merchandise destined for his container station and may also transport merchandise to his container station from anywhere within the district boundaries where the container station is located. A centralized examination station operator may engage in cartage or lighterage under his bond only for merchandise destined for his centralized examination station and may also transport merchandise to his centralized examination station from anywhere within the district boundaries where the centralized examination station is located. (2) Necessity for license. A license, as provided for in this part, is required to transact business as a cartman or lighterman for the cartage or lighterage of merchandise. Bonded carriers may engage in cartage and lighterage under their bonds without obtaining a license. Foreign trade zone operators, bonded warehouse proprietors, container station operators and centralized examination station operators may engage, under their bonds, in the limited cartage and lighterage and other transportation described in this paragraph without obtaining a license. 4. Section 112.21 is revised to read as follows: Sec. 112.21 License required. A customhouse cartage or lighterage license issued by the district director in accordance with this part or specific authorization of the Commissioner of Customs shall be required to perform Customs cartage or lighterage, except as provided in Secs. 18.3 and 125.12 of this chapter or, as provided in Sec. 112.2(b), when such merchandise is to be transported under the bond of the foreign trade zone operator, bonded warehouse proprietor, centralized examination station operator, container station operator, or a bonded carrier. 5. Section 112.25 is revised to read as follows: Sec. 112.25 Bonded carriers. A carrier or freight forwarder who has filed a bond on Customs Form 301 containing the bond conditions set forth in Sec. 113.63 of this chapter may transport merchandise within a port for which the bond provides coverage. PART 113--CUSTOMS BONDS 1. The general authority citation for part 113 continues to read as follows: Authority: 19 U.S.C. 66, 1623, 1624. 2. Section 113.63(a)(1) is revised to read as follows: Sec. 113.63 Basic custodial bond conditions. * * * * * (a) Receipt of merchandise. The principal agrees: (1) To operate as a custodian of any bonded merchandise received, including merchandise collected for transport to his facility, and to comply with all regulations regarding the receipt, carriage, safekeeping, and disposition of such merchandise; * * * * * 3. Section 113.73(a)(1) is revised to read as follows: Sec. 113.73 Foreign trade zone operator bond conditions. * * * * * (a) Receipt, Handling, and Disposition of Merchandise. The principal agrees to comply with: (1) The law and Customs Regulations relating to the receipt (including merchandise received and receipted for transport to his zone), admission, status, handling, transfer, and removal of merchandise from the foreign trade zone or subzone, and * * * * * PART 118--CENTRALIZED EXAMINATION STATIONS 1. The general authority citation for part 118 continues to read as follows: Authority: 19 U.S.C. 66, 1499, 1623, 1624. 2. Section 118.4 is amended by revising paragraph (g) and by adding a new paragraph (l) to read as follows: Sec. 118.4 Responsibilities of a CES operator. * * * * * (g) Maintain a Customs custodial bond in an amount set by the district director. The bond will include liability for transporting merchandise to the CES from within the district boundaries; such liability is assumed by the CES operator when he picks up merchandise for transportation to his facility. The operator also agrees to increase the amount of the bond if deemed appropriate by the district director. * * * * * (1) Provide transportation for merchandise to the CES from within the district boundaries. This responsibility is optional. If the CES operator chooses to provide transportation, he shall receipt for the merchandise when he picks it up and assume liability for the merchandise at that time. PART 125--CARTAGE AND LIGHTERAGE OF MERCHANDISE 1. The authority citation for part 125 continues to read as follows: Authority: 19 U.S.C. 66, 1565, and 1624. Section 125.31 also issued under 5 U.S.C. 301; 19 U.S.C. 1311, 1312, 1484, 1555, 1556, 1557, 1623, and 1646a. Section 125.32 also issued under 5 U.S.C. 301; 19 U.S.C. 1484. Section 125.33 also issued under 19 U.S.C. 1311, 1312, 1555, 1556, 1557, 1623, and 1646a. Sections 125.41 and 125.42 also issued under 19 U.S.C. 1623. 2. Section 125.0 is revised to read as follows: Sec. 125.0 Scope. This part is concerned with cartage and lighterage of merchandise and the duties and liabilities of cartmen and lightermen, as well as those parties authorized in Sec. 112.2(b) to engage in cartage. Provisions for licensing cartmen and lightermen are in part 112 of this chapter. 3. Section 125.1 is revised to read as follows: Sec. 125.1 Classes of cartage. (a) Government cartage. Government cartage must be done by a licensed customhouse cartman or other bonded carrier as provided in Sec. 112.2 of this chapter under contract or other specific authority for that purpose (except as provided for in Sec. 125.12). All government cartage must be contracted for using the procedures specified in Sec. 125.3. (b) Importers' cartage. Importers' cartage may be done by any licensed customhouse cartman or other bonded carrier as provided in Sec. 112.2 of this chapter. Sec. 125.11 [Amended] 4. Section 125.11(a) is amended by adding the words ``or a bonded carrier'' between the words ``cartman'' and ``under''. 5. Section 125.11(b) is amended by adding the words ``or a bonded carrier'' between the words ``cartman'' and ``designated''. 6. Section 125.21 is revised to read as follows: Sec. 125.21 Cartage other than for examination. Any licensed customhouse cartman, including an importer licensed to cart his own imported merchandise and a bonded carrier provided for in Sec. 112.2 of this chapter, at the expense of the importer or other party in interest, may transfer merchandise from the importing vessel or other conveyance to a bonded warehouse, from one vessel or conveyance to another, from one bonded warehouse to another, from the public stores to a bonded warehouse, from warehouse for transportation or for exportation, and from an internal revenue warehouse for exportation under the internal revenue laws without payment of tax. Foreign trade zone operators, bonded warehouse proprietors, container station operators and centralized examination station operators may engage in limited cartage or lighterage under the conditions specified in Sec. 112.2 of this chapter. Nothing in this section shall apply to the cartage of examination packages to the place of examination. 7. Section 125.22 is revised to read as follows: Sec. 125.22 Designation of cartman or lighterman, or other bonded carrier. Importers and exporters shall designate on the entry and permit of bonded merchandise the bonded cartman, lighterman, or other bonded carrier as provided in Sec. 112.2 of this chapter by whom they wish their merchandise to be conveyed. An importer also may designate a foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator under the conditions specified in Sec. 112.2 of this chapter for limited cartage; if he does so, the importer must also designate that the merchandise is bound for the facility run by the operator he designates. Approval of a designation shall be indicated on the entry papers by the initials of the appropriate Customs officer placed in close proximity to the designation. 8. Section 125.23 is revised to read as follows: Sec. 125.23 Failure to designate. If an importer does not cart his merchandise or designate a licensed customhouse cartman, other bonded carrier, foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator, as provided for in Sec. 112.2 of this chapter, for the purpose, it shall be carted by a bonded carrier or by a public store cartman authorized by contract or designated by the district director for that purpose. The cost of such cartage shall be paid by the importer of the merchandise before its release from Customs custody. 9. Section 125.24 is revised to read as follows: Sec. 125.24 Failure of designated cartman, lighterman or other bonded carrier to appear. The cartman, lighterman, other bonded carrier, foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator designated to convey the merchandise shall be present to take the merchandise when the Customs officer in charge is ready to send it. If the designated vehicle or lighter is not present, after waiting a reasonable time, such officer shall send the merchandise by any available licensed cartman, lighterman, or qualifying bonded carrier. 10. Section 125.32 is revised to read as follows: Sec. 125.32 Merchandise delivered to a bonded store or bonded warehouse. When merchandise is carried, carted or lightered to and received in a bonded store or bonded warehouse, the proprietor or his representative shall check the goods against the accompanying delivery ticket, Customs Form 6043, or copy of the permit, Customs Form 7501, and countersign the document acknowledging receipt of the merchandise as listed thereon. If the proprietor or his agent has been designated to carry the merchandise to his own bonded warehouse, he shall check the goods against the accompanying delivery ticket, Customs Form 6043, or copy of the permit, Customs Form 7501, at the time he picks up the cargo. Receipt of merchandise by a bonded warehouse proprietor for the purpose of transportation to his own warehouse constitutes receipt into a bonded warehouse. 11. The first sentence of Sec. 125.33(a) is revised to read as follows: Sec. 125.33 Procedure on receiving merchandise. (a) From public or bonded store. A receipt shall be taken from the cartman, lighterman or bonded carrier for all goods delivered to him from public store or bonded store. * * * * * * * * 12. Section 125.34 is amended by revising the first sentence to read as follows: Sec. 125.34 Countersigning of documents and notation of bad order or discrepancy. When a cartman, lighterman, other bonded carrier, foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator, as provided for in Sec. 112.2, receives merchandise remaining in Customs custody, he shall countersign the appropriate document in the space provided and shall note thereon any bad order or discrepancy. * * * 13. Section 125.35 is revised to read as follows: Sec. 125.35 Report of loss, detention, or accident. Any loss or detention of bonded merchandise, or any accident happening to a vehicle or lighter while carrying bonded merchandise shall be immediately reported by the cartman, lighterman, qualified bonded carrier, foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator to the district director. Sec. 125.36 [Amended] 14. Section 125.36 is amended by adding the words ``or bonded carrier'' between the words ``cartman'' and ``shall'' in the first sentence. 15. Section 125.41 is revised to read as follows: Sec. 125.41 Liability for cartage. (a) Liability of cartman, lighterman or bonded carrier. The cartman, lighterman, or bonded carrier conveying the merchandise, including merchandise covered by a TIR carnet which has not been ``taken on charge'' (see Sec. 114.22(c)(2) of this chapter), shall be liable under his bond for its prompt delivery in sound condition, or in no worse than the damaged condition noted on the delivery ticket, if damage is so noted. (b) Liability of foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator. A foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station operator who picks up merchandise including merchandise covered by a TIR carnet which has not been ``taken on charge'', to transport the merchandise to his own facility shall be liable under his bond for the merchandise as soon as he collects the merchandise. The merchandise must be receipted as soon as it is picked up and must be delivered to either the respective foreign trade zone, bonded warehouse, container station or centralized examination station promptly after it is picked up in sound condition, or in no worse than the damaged condition noted on the delivery ticket, if damage is noted. 16. Section 125.42 is amended by revising the first sentence to read as follows: Sec. 125.42 Cancellation of liability. The district director may cancel liquidated damages not in excess of $100,000 incurred under the bond of the foreign trade zone operator, containing the bond conditions set forth in Sec. 113.73 of this chapter, or under the bond of the cartman, lighterman, bonded carrier, bonded warehouse proprietor, container station operator or centralized examination station operator on Customs Form 301, containing the bond conditions set forth in Sec. 113.63 of this chapter, upon the payment of such lesser amount, or without the payment of any amount, as the district director may deem appropriate under the circumstances. * * * PART 146--FOREIGN TRADE ZONES 1. The general authority citation for part 146 continues to read as follows: Authority: 19 U.S.C. 66, 81a-81u, 1202 (General Note 17, Harmonized Tariff Schedule of the United States), 1623, 1624. * * * * * 2. Section 146.4(h) is amended by adding two additional sentences, to read as follows: Sec. 146.4 Operator responsibility and supervision. * * * * * (h) * * * If the operator elects to transfer merchandise from within the district boundaries to his zone, he shall receipt for the merchandise at the time he picks it up for transportation to his facility. He becomes liable for the merchandise at that time. 3. Section 146.40 is amended by redesignating paragraph (b) as paragraph (c) and by adding a new paragraph (b) to read as follows: Sec. 146.40 Operator responsibilities for direct deliveries. * * * * * (b) Transportation by operator. If merchandise is transported to a subzone or zone site by the foreign trade zone operator from a location in the district in which the subzone or zone site is situated, the merchandise is deemed admitted at the time the foreign trade zone operator picks it up. At the time of pick-up, the operator is responsible for: (1) Receipting for the merchandise and recording on the appropriate document any discrepancies regarding quantity, condition or the status of the seals; (2) Transporting the merchandise to the zone or subzone; and (3) Ensuring that the zone records reflect that the merchandise is received in the zone. * * * * * 4. Section 146.66 (a) is amended by revising the first sentence to read as follows: Sec. 146.66 Transfer of merchandise from one zone to another. (a) At the same port. A transfer of merchandise to another zone with a different operator at the same port (including a consolidated port) will be by a licensed cartman or a bonded carrier as provided for in Sec. 112.2(b) of this chapter or by the operator of the zone for which the merchandise is destined under an entry for immediate transportation on Customs Form 7512 or other appropriate form with a Customs Form 214 filed at the destination zone. * * * * * * * * PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS 1. The authority for part 178 continues to read as follows: Authority: 5 U.S.C. 301, 19 U.S.C. 1624, 44 U.S.C. 3501 et seq. Sec. 178.2 [Amended] 2. Section 178.2 is amended by adding the following in the appropriate numerical sequence according to the section number under the columns indicated: ------------------------------------------------------------------------ OMB 19 CFR section Description control number ------------------------------------------------------------------------ ***** Secs. 125.22, 125.33, 125.34, Authorization of Bonded 1515-0193 125.35. Carriers to Transport Cargo Within Port Limits Without Obtaining Cartman's License. ***** ------------------------------------------------------------------------ Approved: October 5, 1994. Samuel H. Banks, Acting Commissioner of Customs. John W. Mangels, Acting Deputy Assistant Secretary of the Treasury. [FR Doc. 94-25152 Filed 10-11-94; 8:45 am] BILLING CODE 4820-02-P