[Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)]
[Unknown Section]
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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]
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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.
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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
