[Federal Register Volume 62, Number 78 (Wednesday, April 23, 1997)]
[Proposed Rules]
[Pages 19704-19719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10130]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Parts 24, 111, 143, 162, and 163
RIN 1515-AB77
Recordkeeping Requirements
AGENCY: U.S. Customs Service; Department of the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document proposes to amend the Customs Regulations by
adding a new part which will cover recordkeeping requirements and
reflect legislative changes to the Customs laws regarding
recordkeeping, examination of books and witnesses, regulatory audit
procedures and judicial enforcement. These statutory amendments are
contained in the Customs Modernization provisions of the North American
Free Trade Agreement Implementation Act. The new provisions are being
incorporated into the new part with the existing recordkeeping
requirements (presently in Part 162) which remain effective, although
they are being updated to permit the use of new technology and
alternative methods for record maintenance. The proposed amendment also
contains provisions establishing a voluntary recordkeeping compliance
program.
DATES: Comments must be submitted on or before June 23, 1997.
ADDRESSES: Written comments on the proposed regulation (preferably in
triplicate) must be submitted to the U.S. Customs Service, ATTN:
Regulations Branch, Franklin Court, 1301 Constitution Avenue, NW.,
Washington, D.C. 20229, and may be inspected at the Regulations Branch,
1099 14th Street, NW, Suite 4000, Washington, D.C.
Copies of the Recordkeeping Compliance Handbook are available from
the public access Customs Electronic Bulletin Board (703)-440-6155 or
by requests addressed or faxed to the following: U.S. Customs Service,
Regulatory Audit Division, Miami Branch 909 S.E. First Street, Suite
710, Miami, FL 33131, Attention: Recordkeeping Compliance Program, Fax:
(305-536-7442).
Written comments on the Recordkeeping Compliance Handbook may be
sent by facsimile or mail to the following address: U.S. Customs
Service, Regulatory Audit Division, Atlanta Branch 1691 Phoenix
Boulevard, Suite 250A, College Park, GA 30349, Attention: Recordkeeping
Compliance Program, Fax: (770-994-2270).
FOR FURTHER INFORMATION CONTACT: For questions relating to
recordkeeping in general, and the voluntary Recordkeeping Compliance
Program, call Stan Hodziewich, Regulatory Audit Division, Washington,
D.C. at (202-927-0999) or Howard Spencer, Regulatory Audit Division,
Atlanta Branch at (770-994-2273, Ext.158).
For questions relating to the Appendix ((a)(1)(A) list), its
underlying documents and other entry records/information call Rychelle
Ingram, Office of Trade Compliance 202-927-1131.
SUPPLEMENTARY INFORMATION:
Background
On December 8, 1993, the President signed Public Law 103-182, the
North American Free Trade Agreement Implementation Act (NAFTA
Implementation Act)(107 Stat. 2057). Title VI of this Act, known as the
Customs Modernization Act (the Mod Act), amended certain Customs laws.
Sections 614, 615, and 616 of the Mod Act amended Secs. 508, 509, and
510 of the Tariff Act of 1930, as amended (19 U.S.C. 1508, 1509, and
1510) which pertain to recordkeeping requirements established for
importers and others. Title II of the NAFTA Implementation Act,
entitled ``Customs Provisions'', also amended Secs. 508 and 509 of the
Tariff Act of 1930, as amended, to include recordkeeping requirements
for exportations to Canada and Mexico.
Part 162 of the Customs Regulations which addresses records,
recordkeeping and its associated requirements also covers unrelated
subjects. Because of the enhanced importance of recordkeeping, Customs
believes that a new part devoted solely to this subject is appropriate.
Accordingly, Customs is proposing to create a new Part 163 regarding
recordkeeping.
Recordkeeping Requirements
Before its amendment by the Mod Act, Sec. 508 of the Tariff Act of
1930 (19 U.S.C. 1508) limited recordkeeping requirements to any owner,
importer, consignee, or agent thereof who imported, or knowingly caused
to be imported any merchandise into the Customs territory of the United
States. Section 614 of the Mod Act amended
[[Page 19705]]
these requirements and expanded the parties subject to Customs
recordkeeping requirements to include parties who file an entry or
declaration, transport or store merchandise carried or held under bond,
file drawback claims, or cause an importation, or transportation or
storage of merchandise carried or held under bond. Section 614 of the
Mod Act further amended section 508 of the Tariff Act of 1930 to
clarify that all parties who must keep records for Customs purposes are
subject to recordkeeping requirements. The Mod Act further
distinguished between those business, financial or other records that
pertain to activities listed in section 508 of the Tariff Act and are
maintained in the normal course of business and those that are
identified as ``(a)(1)(A) list'' or entry records. As discussed more
fully later in this document, these latter records are those which have
been identified by Customs as being necessary for the entry of
merchandise. The failure to maintain, or produce these records upon
Customs demand could subject the responsible party to substantial
administrative penalties.
Proposed Sec. 163.2 sets forth the parties who are subject to
recordkeeping requirements. It is noted that the parties who are
required to maintain records for purposes of the U.S.--Canada Free
Trade Agreement and NAFTA are set forth respectively in parts 10 and
181.
In Sec. 163.2(a), a provision concerning recordkeeping requirements
for records kept in the ordinary course of business is proposed to
reflect the expanded parties to whom recordkeeping requirements extend.
The proposed section provides that records are to be made and kept by
such parties as carriers, cartmen, bonded warehouse proprietors,
foreign trade zone operators and drawback claimants.
Because Customs recognizes that the likelihood it will require or
request records from travelers regarding their baggage or oral
declarations after they have physically cleared the Customs facility is
extremely small except for large purchases, and because Customs does
not wish to impose an unnecessary recordkeeping burden on the general
public, Customs, in Sec. 163.2(g), is proposing to not require that
such travelers retain the documentation which supports their
declaration when the merchandise acquired abroad is covered by the
traveler's personal exemption or by a flat rate of duty (See, for
example, subheadings 9804.00.65--9804.00.72, 9816.00.20 and 9816.00.40,
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), and
part 148 of the Customs Regulations). However, such travelers while not
being required to retain records for Customs purposes may deem it
advisable to retain them for other personal reasons, such as insurance
or warranty matters.
Section 163.4 of the proposed regulations provides that records
relating to drawback be retained for a period of three years from the
date the drawback claim is paid. Since entry records relating to the
merchandise for which the drawback claim was paid must be kept for five
years, it is possible that the total retention requirement could extend
to eight years' it is possible that the total retention requirement
could extend to eight years. All other records, except for packing
lists, that relate to filing an entry or declaration, transporting or
storing merchandise carried or held under bond, or causing an
importation, transportation or storage of merchandise carried or held
under bond into or from the Customs territory of the U.S. are required
to be kept for a five year period from the date of entry or
exportation, or other activity, as appropriate. An exception from the
normal retention period is made for packing lists because of the
limited period in which information contained on those lists would be
useful for either Customs or the importer.
The Mod Act also amended 19 U.S.C. 1508 to reflect the current
electronic environment in which both Customs and the importing and
exporting community operate and expanded the definition of ``records''
to include information and data maintained in the form of
electronically generated or machine readable data. The proposed
amendment reflects this expansion of the concept of what constitute
``records'' in Sec. 163.1(a).
Examination of Records
The Mod Act granted Customs authority not to require the
presentation of certain documentation or information at time of entry.
These provisions will allow Customs and the importing community to
reduce the documentation and information requirements at time of entry,
thereby facilitating the entry process without jeopardizing Customs
ability to obtain records from an importing party at a later date.
However, in exchange for not requiring presentation of documents at the
time of entry, Customs has the authority to require, after entry, the
production of any entry records whose presentation may not have been
requested at entry. Section 615 of the Mod Act amended Sec. 509 of the
Tariff Act of 1930 (19 U.S.C. 1509) to authorize Customs to examine any
records which are required by law for the entry of merchandise, whether
or not Customs required its presentation at the time of entry. Failure
to maintain or produce requested entry documents may result in the
imposition of substantial administrative penalties.
In the spirit of ``informed compliance'' and in fairness to those
who may be required to produce records, the Act requires Customs to
identify and make available to the importing community, by publication,
a list of all records, statements, declarations or documents required
by law or regulation for the entry of merchandise whose production may
or may not have been requested at time of entry and for which
substantial administrative penalties may be imposed for failure to
maintain or produce for Customs within a reasonable time. This list of
records has commonly been referred to as the ``(a)(1)(A) list'' because
of the section of the Mod Act which contained the requirement. This
list, which was published in the Customs Bulletin on January 3, 1996
(T.D. 96-1), and the Federal Register on July 15, 1996 (61 FR 36956) is
included as an Appendix to part 163.
It should be noted that while the ``(a)(1)(A) list'' pertains to
records or information required for the entry of merchandise, an owner,
importer, consignee, importer of record, entry filer, or other party
who imports merchandise, files a drawback claim, exports to a NAFTA
country or transports or stores bonded merchandise is also required to
make, keep and render for examination and inspection records
(including, but not limited to, statements, declarations, documents and
electronically generated or readable data) directly or indirectly
pertaining to such activity or to the information contained in the
records required by the Tariff Act of 1930, as amended, in connection
with any such activity and which are normally kept in the ordinary
course of business. Parties have the responsibility to maintain
supporting records, documents, and information which will demonstrate
that information on declarations regarding classification, valuation
and rate of duty at entry, as well as all other data on entry records
is accurate.
In the future, as Customs expands its electronic entry processes,
presentation of certain supporting paper documentation for entries may
be waived at the time of entry. However, importers shall be required to
maintain such documentation subject to this part. Before Customs
implements any new procedures which relate to the electronic entry of
goods, a Notice of
[[Page 19706]]
Proposed Rulemaking will be published in the Federal Register.
The present ``(a)(1)(A) list'' is based on existing entry
requirements. It contains a list of records that are required for the
entry of merchandise and that may be waived at the time of entry, but
that must be produced for Customs examination upon demand. A party who
fails to produce an ``(a)(1)(A) list'' record can be held liable for
penalties under the provisions of the Mod Act. Customs will presently
revise its processes relating to entry. It is expected that the
``(a)(1)(A) list'' will be extensively revised. The proposed
regulations incorporate Customs authority to waive the presentation of
certain documentation or information at the time of entry.
Penalties
The proposed regulations incorporate Customs authority to assess
administrative penalties for failure to produce entry records for
Customs examination within a reasonable time. In determining a
reasonable time, Customs proposes to take into account the number,
type, and age of the item asked to be produced. Included in the
proposed regulation is a chart that is intended to provide general
guidelines so the public will know the time frames within which Customs
expects documents to be produced. It is expected that all parties will
discuss the expected production date of any items Customs has requested
when that item has been requested. It is also expected that any party
anticipating difficulty in meeting the expected production date will
immediately inform Customs of that difficulty. Parties who have been
assessed administrative penalties for failure to produce demanded
``(a)(1)(A) list'' records will be able to petition for mitigation of
the penalties under the provisions of part 171 of the Customs
Regulations. In addition to administrative penalties, the Mod Act has
granted courts the authority to impose monetary penalties for the
failure to produce records summoned by Customs. These provisions are
contained in Sec. 163.12.
Requests for Production of Records, Summons
The proposed regulations contain provisions in Secs. 163.6 through
163.11 that are similar to existing regulations regarding Customs
ability to request and summon records when audits, inquiries, reviews
or investigations are being conducted or when such information is
otherwise necessary to verify information submitted to Customs or to
complete Customs processing of an entry. However, the regulations have
been expanded to include additional parties who are subject to Customs
summons authority.
Regulatory Audit Procedures
The proposed Sec. 163.13 details the role and responsibility of
Customs regulatory auditors and formally sets forth regulatory audit
procedures for conducting a regulatory audit that have been in place by
directive for several years. The regulations provide for time lines for
conducting an audit as well as issuance of audit reports.
Recordkeeping Compliance Program
The proposed regulations contain provisions that describe a
voluntary recordkeeping compliance program available to all parties who
are required to maintain and produce records under the Customs
Regulations and are in compliance with Customs laws and regulations.
Applicants to the program may have Customs review their recordkeeping
procedures and methods. If Customs determines that the party meets the
program requirements, Customs may certify that fact and permit him to
participate in the program. To assist the public in meeting Customs
recordkeeping requirements, Customs has prepared a Recordkeeping
Compliance Handbook which can be obtained from the Customs Electronic
Bulletin Board or by faxing or writing the Regulatory Audit Division,
Miami Field Office. Refer to the beginning of this document for the
address and/or fax number. Participants in the program are eligible for
alternatives to penalties and may be entitled to greater mitigation of
any recordkeeping penalty the party might be assessed should he be
unable to produce a requested record. However, repeated or willful
failure to produce records or failure to exercise reasonable care in
the maintenance of records or be in compliance with the recordkeeping
requirements may cause a party's removal from the program and subject
him to penalties. The recordkeeping compliance program will also permit
participants to receive approval of recordkeeping formats that are
tailored to the needs of their operations or involve conversion of
records from one format to another.
Other Sections Affected
In order to establish uniform recordkeeping requirements for
parties who transact business with Customs in accordance with
objectives of the Mod Act, the retention period for records relating to
user fees for arrivals by railcar, which are contained in
Sec. 24.22(d)(5), and those for passengers aboard commercial vessels
and commercial aircraft in Sec. 24.22(g)(6) is being amended to the
same five year period that other recordkeepers must observe.
However, it must be noted that while the regulations establish a
minimum requirement for the maintenance for records, this does not
preclude Customs auditors from examining fee remitters' records, if
records exist, to determine whether fees are owed for periods prior to
the record retention period. Under section 19 CFR 162.1d (proposed
163.6), and 19 U.S.C. 1508 and 1509, Customs officers currently have
the authority to examine records to determine the liability of any
person from whom duties, fees, and taxes are due, or that may be due,
and to determine compliance with the laws or regulations enforced by
the Customs Service. If a fee remitter refuses to supply records to
verify user fees, the Customs Service has the authority to summon those
records pursuant to 19 U.S.C. 1509 or, if Customs possesses information
to determine fee payments, collection action may be initiated. It
should be pointed out that there is no language in 19 U.S.C. 58c or in
the current regulations or other Customs laws that limits the liability
for fees owed to a particular period. All fee remitters are liable for
fees that are accrued on or after the effective dates of the statutes
enacting the fees. Statutory and regulatory requirements for keeping
fee-related records are not equivalent to statutes of limitations on
collecting fees.
The document also proposes to make several changes to parts 111 and
143. The reference to Sec. 162.1a and Sec. 162.1b in the definition of
records in Sec. 111.1(f) will be changed to Sec. 163.1(a) and
Sec. 163.2. An addition is made to Sec. 111.21 to add new paragraphs
(b) and (c). Section 111.21(b) will require brokers to comply with the
provisions of Sec. 163 when maintaining records that reflect on their
transactions as a broker. Section 111.21(c) will require brokers to
designate a recordkeeping officer and also designate a back-up
recordkeeping officer. A change is proposed to Sec. 111.22 (b), (c),
(d), and (e) that will permit requests for exemptions for recordkeeping
formats to be granted by the Field Director, Regulatory Audit
responsible for the geographical area in which the designated broker's
recordkeeping officer is located rather than requiring that the request
be referred to port directors.
A change is being proposed to Sec. 111.23(a)(1) that will permit
brokers to consolidate all records they are required to maintain if
their proposed consolidation plan is approved by the
[[Page 19707]]
Field Director of Regulatory Audit who has responsibility for the
geographical area in which the designated broker's recordkeeping
officer is located. This potentially shortens the approval time by
removing port directors from the review and approval process. The
current regulations permit brokers to centralize only accounting
records and requires they maintain entry records within the district to
which they relate. Brokers will also be permitted to store powers of
attorney in alternative formats, if such storage has been approved in
accordance with Part 163. These proposed changes will give brokers more
flexibility in their record maintenance options.
The document contains proposals to amend Secs. 143.35 and 143.36 to
reflect Customs present practice relating to the submission of paper
documents when entries are transmitted electronically through the ACS
system. As Customs and the business community proceed into the
paperless, electronic operating environment it is anticipated that
actual transfer of documentation will occur less frequently and usually
only at Customs request. However, Customs decision not to request
presentation or submission of documents at the time of entry does not
relieve the filer from the responsibility of maintaining those
documents or records in accordance with the provisions of this part.
Amendments to Sec. 143.37 are also proposed. A new proposed section
(a) will require all brokers and importers to maintain records in
accordance with the new part 163. The proposed language means that hard
copy or electronic documentation supporting electronic immediate
delivery, entry, and entry summary must be retained in the condition as
received by the filer or importer, unless the filer has received
permission to store such documentation in accordance with Sec. 163.5.
This change establishes uniform procedures for storing records in
alternative formats. It is also proposed that Sec. 143.37(c) be amended
to permit filers to consolidate and store records and electronic data
in alternative formats if their proposed plan is approved by the Field
Director, Regulatory Audit who has responsibility for the geographical
area in which the designated broker's recordkeeping officer is
situated. Appeals from the decision of the Field Director would be to
the Director of the Regulatory Audit Division in Washington, DC. This
eliminates the need to refer the request to the Assistant Commissioner,
Field Operations, as the current regulations require.
Other language changes to Sec. 143.37(c) are proposed. The term
``centralized locations'' is replaced with ``consolidated locations''.
This proposed change is intended to give filers more flexibility in
their record maintenance. Finally, Sec. 143.39 is being amended to
state that the failure to produce records in a timely manner could
subject importers to penalties pursuant to part 163 and brokers to
penalties pursuant to parts 111 and 163.
Comments
Before adopting this proposal, consideration will be given to any
written comments (preferably in triplicate) that are timely submitted
to Customs. All such comments received from the public pursuant to this
notice of proposed rulemaking will be available for public inspection
in accordance with the Freedom of Information Act (5 U.S.C. 552),
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular
business days between the hours of 9:00 a.m. and 4:30 p.m. at the
Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, DC.
Regulatory Flexibility Act
Insofar as the proposed regulation closely follows legislative
direction, pursuant to the provisions of the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.), it is certified that the amendment, if adopted,
will not have a significant economic impact on a substantial number of
small entities. Accordingly, it is not subject to the regulatory
analysis or other requirements of 5 U.S.C. 603 and 604.
Executive Order 12866
The proposed amendment does not meet the criteria for a
``significant regulatory action'' under E.O. 12866.
Paperwork Reduction Act
The collection of information contained in this rulemaking has been
submitted to the Office of Management and Budget (OMB) in accordance
with the Paperwork Reduction Act of 1995. (44 U.S.C. 3507).
An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless the collection of
information displays a valid control number.
The collection of information in these regulations is in
Secs. 163.2, 163.3 and 163.14. Although other parts of the Customs
Regulations are being amended, all information required by this
proposed amendment is contained or identified in the above-cited
sections. This information is to be maintained in the form of records
which are necessary to ensure that the Customs Service will be able to
effectively administer the laws it is charged with enforcing while, at
the same time, imposing a minimum burden on the public it is serving.
Respondents or recordkeepers are already required by statute or
regulation to maintain the vast majority of the information covered in
this proposed regulation. The likely respondents or recordkeepers are
business organizations including importers, exporters and
manufacturers.
Estimated total annual reporting and/or recordkeeping burden:
732,600 hours.
Estimated average annual burden per respondent/recordkeeper: 117.2.
Estimated number of respondents and/or recordkeepers: 6250.
Estimated annual frequency of responses: 4.
Comments concerning the collections of information should be sent
to the Office of Management and Budget, Attention: Desk Officer of the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, D.C. 20503. A copy should also be sent to the
Regulations Branch, Office of Regulations and Rulings, U.S. Customs
Service, 1301 Constitution Avenue, N.W., Washington, D.C. 20229.
Comments should be submitted within the time frame that comments are
due regarding the substance of the proposal.
Comments are invited on: (a) whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information shall have practical utility; (b) the
accuracy of the agency's estimate of the burden of the collection of
information; (c) ways to enhance the quality, utility, and clarity of
the information to be collected; and (d) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
technology.
Drafting Information
The principal authors of this document are Peter T. Lynch,
Regulations Branch, Office of Regulations and Rulings and Cindy Covell,
Regulatory Audit Division, U.S. Customs Service. However, personnel
from other offices participated in its development.
List of Subjects
19 CFR Part 24
Accounting, Customs duties and inspection, Reporting and
recordkeeping requirements, Harbors, Taxes.
[[Page 19708]]
19 CFR Part 111
Administrative practice and procedures, Customs duties and
inspection, Brokers, Reporting and recordkeeping requirements,
Penalties.
19 CFR Part 143
Customs duties and inspection, Reporting and recordkeeping
requirements.
19 CFR Part 162
Administrative practice and procedure, Customs duties and
inspection, Recordkeeping and reporting requirements, Trade agreements.
19 CFR Part 163
Administrative practice and procedure, Customs duties and
inspection, Recordkeeping and reporting requirements, Trade agreements.
Proposed Amendments to the Regulations
It is proposed to amend Chapter I of Title 19, Code of Federal
Regulations (19 CFR Chapter I) by amending parts 24, 111, 143 and 162,
and by adding a new part 163 to read as follows:
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
1. The general authority citation for Part 24 continues to read in
part as follows:
Authority: 5 U.S.C. 301, 19 U.S.C. 58a-58c, 66, 1202 (General
Note 20, Harmonized Tariff Schedule of the United States), 1624; 31
U.S.C. 9701.
* * * * *
2. It is proposed to amend Sec. 24.22(d)(5) by removing the phrase
``shall be maintained for a period of 3 years'' and adding, in its
place, the phrase ``shall be maintained in the United States for a
period of 5 years''.
3. It is proposed to amend Sec. 24.22(g)(6) by removing the phrase
``shall be maintained for a period of 2 years'' and adding, in its
place, the phrase ``shall be maintained in the United States for a
period of 5 years''.
PART 111--CUSTOMS BROKERS
1. The general authority citation for Part 111 continues to read in
part as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20 Harmonized Tariff
Schedule of the United States), 1624, 1641.
* * * * *
2. In Sec. 111.1, it is proposed to remove the section references
``Sec. 162.1a'' and ``Sec. 162.1b'' in the definition of ``Records''
and add, in their place, respectively, the following section
references: ``Sec. 163.1a'' and ``Sec. 163.2''.
3. Section 111.21 is proposed to be amended by designating the
existing paragraph as paragraph (a) and adding new paragraphs (b) and
(c) to read as follows:
Sec. 111.21 Record of transactions.
(a) * * *
(b) Each broker shall comply with the provisions of part 163 of
this chapter when maintaining records that reflect on his transactions
as a broker.
(c) Each broker will designate a knowledgeable company employee to
be the broker's recordkeeping officer as well as a back-up
recordkeeping officer for broker-wide entry and financial recordkeeping
requirements.
Sec. 111.22 [Amended]
4. Section 111.22 is proposed to be amended by removing the titles
of ``port director'' and ``director of the port'' and adding, in their
place, the phrase, ``Field Director of Regulatory Audit responsible for
the geographical area in which the broker's designated recordkeeping
officer is located.''
5. Section 111.23 is proposed to be amended by revising paragraphs
(a)(1) and (b) to read as follows, by removing paragraphs (c) and (d),
and by redesignating paragraph (e) as paragraph (c) and revising it by
removing the word ``centralized'' and adding the word ``consolidated''
each time it appears, and by removing the words ``office of Field
Operations, Headquarters'' and adding the words ``Field Director,
Regulatory Audit Division responsible for the geographic area in which
the broker's designated recordkeeping officer is located'' in its
place.
Sec. 111.23 Retention of records.
(a) Place and period of retention--(1) Place. The records, as
defined in Sec. 111.1(f), and required by Sec. 111.21 and Sec. 111.22
to be kept by the broker, shall be retained within the broker district
that covers the Customs port to which they relate unless approval for
consolidation of records by the broker has been received from the Field
Director of Regulatory Audit responsible for the geographical area in
which the broker's designated recordkeeping officer is located. Appeals
from a denial of consolidation privileges shall be filed with the
Director, Regulatory Audit Division, U.S. Customs Service, Washington,
DC 20229 within 30 days from the mailing of the Field Director's
decision.
* * * * *
(b) Maintenance of records. All records must be maintained in
accordance with standards set forth in part 163 of this chapter.
* * * * *
PART 143--SPECIAL ENTRY PROCEDURES
1. The general authority citation for part 143 continues to read as
follows:
Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.
2. Section 143.31 is proposed to be amended by removing the
reference to Sec. 162.1a(a) in paragraph (n) and replacing it with
``Part 163''.
3. Section 143.35 is proposed to be revised to read as follows:
Sec. 143.35 Procedure for electronic entry summary.
In order to obtain entry summary processing electronically, the
filer will submit certified entry summary data electronically through
ABI. Data will be validated and, if found error-free, will be accepted.
If it is determined through selectivity criteria and review of data
that documentation is required for further processing of the entry
summary, Customs will so notify the filer. Documentation submitted
before being requested by Customs will not be accepted or retained by
Customs. The entry summary will be scheduled for liquidation once
payment is made under statement processing (see Sec. 24.25 of this
chapter).
4. Section 143.46 is proposed to be amended by revising the first
sentence of paragraph (a), and the first sentence of paragraph (c) to
read as follows:
Sec. 143.36 Forms of immediate delivery, entry and entry summary.
(a) Electronic form of data. If Customs determines that the
immediate delivery, entry or entry summary data is satisfactory under
Secs. 143.34 and 143.35, the electronic form of the immediate delivery,
entry or entry summary through ABI shall be deemed to satisfy all
filing requirements under this part. * * *
(b) * * *
(c) Submission of invoice. The invoice will be retained by the
filer unless requested by Customs. If the invoice is submitted by the
filer before a request is made by Customs, it will not be accepted or
retained by Customs. When Customs requests presentation of the invoice,
invoice data must be submitted in one of the following forms:
* * * * *
5. Section 143.37(a) is proposed to be revised to read as follows:
[[Page 19709]]
Sec. 143.37 Retention of records.
(a) Record maintenance requirements. All records received or
generated by a broker or importer must be maintained in accordance with
part 163 of this chapter.
* * * * *
6. In Sec. 143.37, paragraph (c) is proposed to be amended by
removing the words ``Assistant Commissioner, Field Operations, U.S.
Customs Service, Washington, D.C.'' and adding the phrase ``Field
Director, Regulatory Audit Division responsible for the geographical
area in which the broker's designated recordkeeping officer is located
for consolidation of entry and/or financial records by the broker'' in
its place and removing the word ``centralized'' wherever it appears and
replacing it with the word ``consolidated'.
Sec. 143.37 [Amended]
7. Section 143.37 (d) is proposed to be amended by removing the
title ``Assistant Commissioner, Field Operations'' each time it appears
and adding in its place, the title ``Director, Regulatory Audit
Division''.
8. Section 143.39 is proposed to be revised to read as follows:
Sec. 143.39 Penalties.
(a) Brokers. Brokers unable to produce documents requested by
Customs within a reasonable time will be subject to penalties pursuant
to parts 111 and/or 163 of this chapter.
(b) Importers. Importers unable to produce documents requested by
Customs within a reasonable time will be subject to penalties pursuant
to part 163 of this chapter.
PART 162--INSPECTION, SEARCH, AND SEIZURE
1. The authority citation for Part 162 continues to read in part as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1624.
* * * * *
2. The heading of Part 162 is proposed to be revised to read as set
forth above.
3. Section 162.0 is proposed to be revised to read as follows:
Sec. 162.0 Scope.
This part contains provisions for the inspection, examination, and
search of persons, vessels, aircraft, vehicles, and merchandise
involved in importation, for the seizure of property, and for the
forfeiture and sale of seized property. It also contains provisions for
Customs enforcement of the controlled substances, narcotics and
marihuana laws. Provisions relating to petitions for remission or
mitigation of fines, penalties, and forfeitures incurred are contained
in part 171 of this chapter.
4. In Subpart A, the Subpart heading is proposed to be revised to
read as follows:
Subpart A--Inspection, Examination, and Search
5. In Subpart A, Secs. 162.1a through 162.1i are proposed to be
removed.
6. Part 163 is proposed to be added to read as follows:
PART 163--RECORDKEEPING
Sec.
163.0 Scope.
163.1 Definitions.
163.2 Parties required to maintain records.
163.3 Entry records.
163.4 Record retention period.
163.5 Alternate methods for storage of records.
163.6 Notices for production and examination of records and
witnesses; penalties.
163.7 Summons.
163.8 Contents of summons.
163.9 Service of summons.
163.10 Third-party recordkeeper.
163.11 Enforcement of summons.
163.12 Failure to comply with court order; penalties.
163.13 Regulatory audit procedures.
163.14 Recordkeeping compliance program.
163.15 Denial, Suspension, Revocation, and Appeal Procedures.
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1508, 1509, 1510, 1624.
Sec. 163.0 Scope.
This part sets forth the recordkeeping requirements and procedures
governing the maintenance, production, and examination of records. It
also sets forth the procedures governing the examination of persons in
connection with any audit, compliance assessment or other inquiry or
investigation conducted for the purposes of ascertaining the
correctness of any entry, for determining the liability of any person
for duties, fees and taxes due or that may be due, for determining
liability for fines, penalties and forfeitures, or for insuring
compliance with the laws and regulations administered or enforced by
Customs. Additional provisions concerning records maintenance and
examination applicable to U.S. importers, exporters, and producers
under the U.S. Canada Free Trade Agreement and the North American Free
Trade Agreement are contained in parts 10 and 181 of this chapter,
respectively.
Sec. 163.1 Definitions.
When used in this part, the following terms shall have the meaning
indicated:
(a) Records. The term ``records'' means any information made or
kept in the ordinary course of business that pertain directly or
indirectly to the activities listed in paragraph (a)(1) of this
section. Further, the term includes any information required for the
entry of merchandise (the ``(a)(1)(A) List'') and other information
pertaining directly or indirectly to any information element set forth
in a collection of information required by the Tariff Act of 1930, as
amended, in connection with any activity listed in paragraph (a)(1) of
this section.
(1) Activities. The following are activities for purposes of the
definition of ``records'' in paragraph (a) of this section:
(i) any importation, declaration or entry;
(ii) the transportation or storage of merchandise carried or held
under bond into or from the customs territory of the United States;
(iii) the filing of a drawback claim;
(iv) any exportation to a NAFTA country;
(v) the collection or payment of fees and taxes to Customs; or
(vi) any other activity required to be undertaken pursuant to the
laws or regulations administered by the Customs Service.
(2) Examples. Examples of information which are considered records
include but are not limited to: statements, declarations, documents or
electronically generated or machine readable data, books, papers,
correspondence, accounts, financial accounting data, technical data,
computer programs necessary to retrieve information in a usable form,
and entry records (contained on the ``(a)(1)(A)'' list).
(b) ``(a)(1)(A) list''. See Entry Records.
(c) Audit. ``Audit'' means a Customs regulatory audit verification
of records and other information required to be maintained and produced
by parties listed in Sec. 163.2 or other applicable laws and
regulations administered by the Customs Service. The purpose of an
audit is to determine that information submitted or required is
accurate, complete and in accordance with laws and regulations
administered by the Customs Service.
(d) Certified recordkeeper. A ``certified recordkeeper'' is a
party, required to keep and maintain records, who is the primary
responsible participant of a Customs approved recordkeeping compliance
agreement in accordance with Sec. 163.14. An agent may not be a
certified recordkeeper unless the agent is the importer of record and
meets the requirements of Sec. 163.14;
[[Page 19710]]
however a Customs broker may be a certified recordkeeper's agent in its
own name and on its own account for records required by Sec. 111.21
without client participation. The parties who are certified by Customs
as participants in a recordkeeping compliance program with Customs will
consist of the following: Customs and a certified recordkeeper, or
Customs and a certified recordkeeper and its certified recordkeeping
agent, or Customs and a Customs broker who requests certification in
its own name and on its own account.
(e) Certified recordkeeper's agent. A ``certified recordkeeper's
agent'' is a party, other than a certified recordkeeper, who will keep
and maintain records on behalf of a certified recordkeeper, pursuant to
a Customs approved agreement, subject to the provisions of Sec. 163.14.
(f) Compliance assessment. A ``compliance assessment'' is the first
phase of an audit. During this phase, Customs officers review, examine
and test samples of an auditee's documentation (records normally kept
in the ordinary course of business that support statements and
declarations made to Customs), internal controls, operations, and
procedures to ensure compliance with laws and regulations administered
byCustoms. The completion of a compliance assessment does not
necessarily mandate that a detailed audit be performed. However, if a
compliance assessment is expanded, auditors will conduct detailed audit
steps to further examine non-compliant practices, to identify causes,
effects, and necessary corrective action, to implement corrective
action plans and to conduct follow-up of corrective actions.
(g) Entry records/``(a)(1)(A) list''. The terms ``entry records''
and ``(a)(1)(A) list'' refer to records or information required by law
or regulation for the entry of merchandise (whether or not Customs
required its presentation at the time of entry). The ``(a)(1)(A) list''
is contained in the Appendix.
(h) Original records/information. The terms ``original records'' or
``original information'' mean paper documents or electronic data
retained in the condition they were received by the party responsible
for maintaining records pursuant to 19 U.S.C. 1508. Electronic
information which was used to develop paper documents will be
considered the original record/information. Original electronic
information or paper documents must be provided to Customs within a
reasonable time if requested or demanded pursuant to Sec. 163.6.
Electronic information shall be provided to Customs officials in a
readable format such as in a facsimile paper format or an electronic or
hardcopy spreadsheet. If a paper record or document is part of a multi-
part form where all copies are made by the same impression, a carbon-
copy original form, a facsimile copy, or a photocopy of the original
will be acceptable. When an original record or document is provided to
another government agency which retains it, a certified copy will be
acceptable, and penalties will not be assessed for not having the
original information/records in accordance with Sec. 163.6. When
requested by Customs, a signed statement shall accompany the copy
certifying it to be a true copy of the original record or document.
(i) Summons. ``Summons'' means any summons issued that requires
either the production of records or the giving of testimony, or both.
(j) Technical data. ``Technical data'' are records which include
diagrams, and other data with regard to a business or an engineering or
exploration operation, whether conducted inside or outside the United
States, and whether on paper, cards, photographs, blueprints, tapes,
microfiche, film, magnetic storage or other media.
(k) Third-party recordkeeper. ``Third-party recordkeeper'' means
any attorney, any accountant or any Customs broker unless such Customs
broker is the importer of record on an entry.
Sec. 163.2 Parties required to maintain records.
(a) Recordkeeping required. The following parties shall make, keep,
and render for examination and inspection such records as defined in
Sec. 163.1(a):
(1) An owner, importer, consignee, importer of record, entry filer,
or other party who--
(i) imports merchandise into the customs territory of the United
States, files a drawback claim, or transports or stores merchandise
carried or held under bond, or
(ii) knowingly causes the importation or transportation or storage
of merchandise carried or held under bond into or from the customs
territory of the United States;
(2) An agent of any party described in paragraph (a)(1); or
(3) A person whose activities require the filing of a declaration
or entry, or both.
(b) Domestic transaction excluded. A person ordering merchandise
from an importer in a domestic transaction who does not knowingly cause
merchandise to be imported is not required to make and keep records
unless:
(1) The terms and conditions of the importation are controlled by
the person placing the order with the importer (e.g., the importer is
not an independent contractor but the agent of the person placing the
order. For example: The average consumer who purchases an imported
automobile would not be required to maintain records, but a transit
authority that prepared detailed specifications from which imported
subway cars or buses were manufactured would be required to maintain
records); or
(2) Technical data, molds, equipment, other production assistance,
material, components, or parts are furnished by the person placing the
order with the importer with knowledge that they will be used in the
manufacture or production of the imported merchandise.
(c) Recordkeeping required for exporters. Any party that exports to
Canada or Mexico pursuant to the North American Free Trade Agreement
must maintain records in accordance with the regulations as set forth
in part 181 of this chapter.
(d) Recordkeeping required for Customs brokers. Each Customs broker
shall maintain and produce records in accordance with parts 111 and 163
of this chapter.
(e) Recordkeeping required for parties filing drawback claims. A
party filing a drawback claim shall make, keep and render for
examination records required by the Customs Regulations and other
records which pertain to that activity and are ordinarily kept in the
normal course of business.
(f) Recordkeeping required for other activities. Each party who
transports or stores merchandise carried or held under bond into or
from the customs territory of the United States shall make, keep and
render for examination records which pertain to such Customs activity
and are ordinarily kept in the normal course of business or are
required by law or regulation for the entry of merchandise.
(g) Recordkeeping required for travelers. After having physically
cleared the Customs facility, a traveler who made a baggage or oral
declaration upon arrival in the United States will not be required to
maintain supporting records regarding non-commercial merchandise
acquired abroad which falls within the traveler's personal exemptions
or which is covered by a flat rate of duty.
Sec. 163.3 Entry records.
Any party described in Sec. 163.2(a) in connection with an import
transaction shall be prepared to produce or transmit
[[Page 19711]]
to Customs within a reasonable time after demand any records which are
required by law or regulation for the entry of merchandise (``(a)(1)(A)
list''). If the records are returned by Customs, or production at the
time of entry is waived by Customs, the party shall retain such
records. Copies of records which are kept ordinarily in the normal
course of business, must be retained whether or not a copy is retained
by Customs. In any situation, the responsible party shall, upon demand
by Customs, taking into consideration the number, type, and age of the
items demanded, produce such records within a reasonable time. (See
Sec. 163.6)
Sec. 163.4 Record retention period.
(a) General rule. Any record required to be made, kept, and
rendered for examination and inspection by Customs under Sec. 163.2
shall be kept for 5 years from the date of entry, if the record relates
to an entry, or 5 years from the date of the activity which required
creation of the record unless excepted pursuant to paragraph (b) of
this section.
(b) Exceptions. (1) Any record relating to a drawback claim shall
be kept until the third anniversary of the date of payment of the
claim.
(2) Packing Lists shall be retained for a period of 60 days from
the end of the release or conditional release period, or, if a demand
for recall has been issued, for a period of 60 days from the date the
goods are redelivered, or by the date specified in the notice as the
latest redelivery date.
(3) If another regulation in this chapter specifies a different
record retention period than this section for a specific type of
record, the other regulation controls.
Sec. 163.5 Methods of storage for records.
(a) Original Records/Information. All parties listed in Sec. 163.2
must maintain all records required by law and regulation for the
required retention periods, in the original formats as defined in
Sec. 163.1(h), whether paper or electronic, unless alternative storage
methods have been approved in writing by the director of the regulatory
audit field office who has responsibility for the geographical area in
which the designated requestor's recordkeeping officer resides. The
records must be capable of being retreived upon lawful request or
demand by Customs.
(b) Approval for alternative method of storage. Any of the parties
listed in Sec. 163.2 may request Customs approval to maintain any
records in an alternative format by writing to the director of the
regulatory audit field office who has audit oversight responsibility
for the geographical area in which the designated requestor's
recordkeeping officer resides and describing the proposed system of
storage, the conversion techniques to be used and the security
safeguards that will be employed to prevent alteration. If the
applicable director of the regulatory audit field office is satisfied
that the alternative methods proposed by the recordkeeper will insure
the accuracy and availability of the records when required, written
approval will be granted.
(c) Standards for alternative storage methods. Among methods
commonly used in standard business practice for storage of records are:
Machine readable data, CD ROM, and Microfiche. Methods that are in
compliance with generally accepted business standards will generally
satisfy Customs requirements provided that the method used is capable
of retrieving records requested within a reasonable time after the
request and that adequate provisions exist to prevent alteration,
destruction, or deterioration of the records. The following are minimum
standards that will be considered by Customs in evaluating proposals
for alternative storage methods:
(1) A responsible and knowledgeable recordkeeping officer and a
back up officer are designated to be accountable for the alternative
storage of records;
(2) Operational and written procedures are in place to ensure that
the imaging and/or other media storage process preserves the integrity,
readability, and security of the original records. Procedures must also
indicate and it must be certified (i) that documents that are required
by other Federal or state agencies and that are similar to Customs
records, are created and stored by the same procedures and (ii) that
there is a standardized retrieval process for such records.
Additionally, written procedures must document the electronic media
used to store records and the life cycle and disposition procedures.
(3) The medium to which the transfer will occur is shown to be
reliable. (Vendor specifications/documentation and benchmark data must
be available for Customs review.)
(4) The data retention and transfer procedures are documented and
provide reasonable assurance that the integrity, reliability, and
security of the original data will be maintained. Procedures must
include descriptions of authorized personnel access processes and back
up and recovery systems.
(5) There is an audit trail describing the data transfer.
(6) The medium cannot be destroyed, discarded, or written over. The
recordkeeper, after appropriate transition, and exception-reporting/
testing of accuracy and readability of information, will transfer all
information to non-erasable storage.
(7) The transfer process includes all relevant notes, worksheets,
and other papers necessary for reconstructing or understanding the
records (this also includes appropriate back-up procedures).
(8) There is an effective labeling, naming, filing, and indexing
system that will permit easy retrieval in a timely fashion of records/
information. Any indices, registers, or other finding aids shall be at
the beginning of the records to which they relate unless alternative
indexing is specifically authorized.
(9) There are adequate internal control systems, including
segregation of duties, particularly between those responsible for
maintaining and producing the original records and those responsible
for the transfer process.
(10) All original records must be maintained for a minimum of one
year after the date of transfer and internal sampling-exception-
reporting/testing of accuracy and readability must be performed on a
quarterly basis. No original records will be destroyed after a year
unless there is acceptable proof that records/information are being
accurately transferred.
(11) There is a system of continuing surveillance over the medium
transfer system. Files of all internal reviews will be made available
to Customs within a reasonable time after demand is made and retained
for five years from the date of entry or the activity unless
maintenance of records is required for another time period.
(12) There are procedures for preventing the destruction of any
hard copy records that are required to be maintained by existing laws
or regulations.
(13) All parties listed in Sec. 163.2 who requested and were
granted permission to use alternative storage methods shall have the
capability to make hard-copy reproductions of alternatively stored
records. Parties shall bear the expense of the cost of making hardcopy
reproductions of any or all alternatively stored records required by
proper Customs officials for audit, inquiry, investigation, or
inspection of such records/information.
(d) Retention of records. All parties listed in Sec. 163.2 who
requested and were granted permission to use alternative storage
methods shall retain and keep available two copies of the records/
information on approved media
[[Page 19712]]
at different locations for the periods specified in Sec. 163.4.
(e) Retrievability of records. All parties listed in Sec. 163.2 who
requested and were granted permission to use alternative storage
methods shall produce records as specified by Sec. 163.6. A certified
hardcopy may be used when information is received and stored
electronically for Customs requests for information. Records shall be
kept of the frequency and to whom copies of the records were given.
(f) Changes to alternate storage procedures. No changes to
alternate recordkeeping procedures may be made without the approval of
the appropriate Field Director, Regulatory Audit.
(g) Notification of non-compliance. Notification of non-compliance
with the agreed upon alternative storage methods must be made within 10
business days to the applicable Field Director, Regulatory Audit.
Notification must be in writing and it must detail what corrective
action will take place.
(h) Penalties. All parties listed in Sec. 163.2 who requested and
were granted permission to use alternative storage methods who fail to
maintain or produce records in a reasonable time period shall be
subject to penalties pursuant to Sec. 163.6 for (a)(1)(A) records, and
sanctions pursuant to Secs. 163.11 and 163.12 for other records, and
will have their alternative storage privileges revoked immediately by
written notice.
(i) Revocation of privilege to maintain alternative records. All
parties listed in Sec. 163.2 who requested and were granted permission
to use alternative storage methods and who fail to meet regulatory
conditions and requirements shall, upon written notice, have the
privilege revoked by the applicable regulatory audit field office
director. The revocation shall be effective on the date of issuance of
the written notice and shall remain in effect pending any appeal.
Revocation requires the party immediately to begin to maintain original
records and subjects them to penalties provided for in Sec. 163.6 for
failure to do so.
(j) Appeal procedures for denial of alternate storage method or
revocation action taken. The denial of any proposed alternate method
for the storage of records required to be maintained or any revocation
of the privilege to store records in alternative formats may be
appealed. Any appeal of such denial or revocation shall be in writing
and directed to the Director, Regulatory Audit Division, Office of
Strategic Trade, U.S. Customs Service, Washington, DC 20229. Appeals
shall be filed within 30 days from the mailing of the Field Director's
decision.
Sec. 163.6 Notices for production and examination of records and
witnesses; penalties.
(a) Production of entry records. (1) Upon written, oral, or
electronic notice, Customs may require the production of records
required by law or regulation for the entry of merchandise, whether or
not presentation was requested at the time of entry. Any oral request
for records will be followed by a written request. The records shall be
produced timely taking into consideration the number, type, and age of
the item demanded. In order to provide the public with general
guidelines of the time frames within which Customs expects parties to
produce requested records, the following table shows various ages of
records and the maximum length of time Customs expects to wait for
their production. Should any recordkeeper from whom Customs has
requested records foresee the inability to comply with the given time
periods, Customs expects that they will immediately notify Customs,
provide an explanation for the inability to meet the deadline, and
provide Customs with a date on which the records will be produced.
------------------------------------------------------------------------
Maximum period
for production
Age of entry/entry summary of records
(business
days)
------------------------------------------------------------------------
1 day to 1 month........................................ 5
1 month to 6 months..................................... 10
6 months to 1 year...................................... 15
1 year to 3 years....................................... 20
3 years to 5 years...................................... 30
------------------------------------------------------------------------
(2) If the request includes records previously requested by Customs
and provided to a Customs officer, the recordkeeper will provide the
following information concerning the record: a copy of the Customs
notice letter which originally requested the record, the date the
record was provided to Customs, and the name and address of the person
to whom the record was provided.
(b) Nonproduction of entry records--(1) Penalties applicable for
failure to maintain or produce entry records. If the record Customs
wishes to have produced is required by law or regulation for the entry
of merchandise, the following penalties may be imposed if a person
described in Sec. 163.2(a) fails to comply with a lawful demand for the
record and is not excused from a penalty in accordance with paragraph
(b)(2) of this section:
(i) If the failure to comply is a result of the willful failure of
the person to maintain, store, or retrieve the demanded record, such
person shall be subject to a penalty for each release of merchandise
not to exceed $100,000, or an amount equal to 75 percent of the
appraised value of the merchandise, whichever amount is less.
(ii) If the failure to comply is a result of negligence of the
person in maintaining, storing, or retrieving the demanded information,
such person shall be subject to a penalty, for each release of
merchandise, not to exceed $10,000, or an amount equal to 40 percent of
the appraised value of the merchandise, whichever amount is less.
(2) Additional actions. In addition to any penalty imposed under
paragraph (b)(1)(i) and (b)(1)(ii) of this section, regarding demanded
records, if the demanded record relates to the eligibility of
merchandise for a column 1 special rate of duty in the Harmonized
Tariff Schedule of the United States, the entry of such merchandise,
unless subject to the exception in paragraph (b)(3) of this section:
(i) If unliquidated, shall be liquidated at the applicable column 1
general rate of duty; or
(ii) If liquidated within the 2-year period preceding the date of
the demand, shall be reliquidated, notwithstanding the time limitation
in 19 U.S.C. 1514 or 1520, at the applicable column 1 general rate of
duty;
(3) Exceptions. Any liquidation or reliquidation under paragraph
(b)(2)(i) or (b)(2)(ii) of this section shall be at the applicable
column 2 rate of duty if the Customs Service demonstrates that the
merchandise should be dutiable at such rate.
(4) Avoidance of penalties for failure to maintain or produce entry
records. No penalty may be assessed under paragraph (b)(1) of this
section if the person described in Sec. 163.2(a) who fails to comply
with a lawful demand for entry records can show:
(i) That the loss of the demanded information was the result of an
act of God or other natural casualty or disaster beyond the fault of
such person or an agent of the person;
(ii) On the basis of other evidence satisfactory to Customs, that
the demand was substantially complied with;
(iii) That the information demanded was presented to and retained
by the Customs Service at the time of entry or submitted in response to
an earlier demand; or
(iv) that he is a participant in the recordkeeping compliance
program (see Sec. 163.14(b)(1)) and that this is his first violation
and that it is a non-willful violation.
(5) Penalties for failure to maintain or produce entry records not
exclusive. Any penalty imposed under paragraph
[[Page 19713]]
(b)(1) of this section shall be in addition to any other penalty
provided by law except for:
(i) A penalty imposed under 19 U.S.C. 1592 for a material omission
of the demanded information, or
(ii) Disciplinary action taken under 19 U.S.C. 1641.
(6) Remission or mitigation of penalties for failure to maintain or
produce entry records. A penalty imposed under this section may be
remitted or mitigated under 19 U.S.C. 1618.
(7) Customs summons. In addition to assessing penalties, Customs
may issue a summons, pursuant to Sec. 163.7 or seek its enforcement,
pursuant to Secs. 163.11-163.12, to compel the furnishing of any
records required by law or regulation for the entry of merchandise.
(c) Examination of records--(1) Reasons for. Customs may initiate
an inquiry, audit, compliance assessment or investigation to:
(i) Determine the correctness of any entry, the liability of
duties, taxes and fees due or which may be due, or any liability for
fines, penalties and forfeitures; or
(ii) Insure compliance with the laws and regulations administered
or enforced by the Customs Service.
(2) Availability of records. During the course of any inquiry,
audit, compliance assessment or investigation, a Customs officer,
during normal business hours, and to the extent possible, at a time
mutually convenient to the parties, may examine or cause to be
examined, any relevant records, statements, declarations, or other
documents by providing the person responsible for such records with
notice, either electronically, orally or in writing, that describes the
records with reasonable specificity.
(3) Examination notice not exclusive. In addition to, or in lieu
of, issuing an examination notice under this section, Customs may issue
a summons pursuant to Sec. 163.7 and seek its enforcement, pursuant to
Secs. 163.11 and 163.12, to compel the furnishing of any records
required by law or regulation.
Sec. 163.7 Summons.
(a) Who may be served. During the course of any inquiry, audit,
compliance assessment, or investigation initiated for the reasons set
forth in Sec. 163.6, the Commissioner of Customs or his designee, but
no designee of the Commissioner below the rank of port director,
regulatory audit field director, or special agent in charge, may, upon
reasonable notice, issue a summons requiring certain persons to produce
records or to give testimony or both. Such summons may be issued to any
person who:
(1) Imported or knowingly caused to be imported merchandise into
the customs territory of the United States;
(2) Exported merchandise or knowingly caused merchandise to be
exported to Canada or Mexico pursuant to the North American Free Trade
Agreement Implementation Act (19 U.S.C. 3301(4)), or to Canada during
such time as the United States-Canada Free Trade Agreement was in force
with respect to, and the United States applied that Agreement to,
Canada;
(3) Transported, or stored merchandise that was or is carried or
held under customs bond, or knowingly caused such transportation or
storage;
(4) Filed a declaration, entry, or drawback claim with the Customs
Service;
(5) Is an officer, employee, or agent of any person described in
this paragraph; or
(6) Had possession, custody or care of records related to the
importation or other activity described in this paragraph or;
(7) Customs otherwise deems proper.
(b) Transcript of testimony under oath. Testimony of any person
taken pursuant to a summons may be taken under oath and when so taken
shall be transcribed. When testimony is transcribed, a copy shall be
made available on request to the witness unless for good cause shown
the issuing officer determines under 5 U.S.C. 555 that a copy should
not be provided. In that event, the witness shall be limited to
inspection of the official transcript of the testimony. The testimony
or transcript may be in the form of a written statement under oath
provided by the person examined at the request of the Customs officer.
Sec. 163.8 Contents of summons.
(a) Summons for person. Any summons issued under Sec. 163.7 to
compel appearance shall state:
(1) The name, title, and telephone number of the Customs officer
before whom the appearance shall take place;
(2) The address where the person shall appear, not to exceed 100
miles from the place where the summons was served;
(3) The time of appearance; and
(4) The name, address, and telephone number of the Customs officer
issuing the summons.
(b) Summons of records. If the summons requires the production of
records, the summons, in addition to containing the information
required by paragraph (a) of this section, shall describe the records
with reasonable specificity.
Sec. 163.9 Service of summons.
(a) Who may serve. Any Customs officer is authorized to serve a
summons issued under Sec. 163.7.
(b) Method of service.--(1) Natural person. Service upon a natural
person shall be made by personal delivery.
(2) Corporation, partnership, or association. Service shall be made
upon a domestic or foreign corporation, or upon a partnership or other
unincorporated association which is subject to suit under a common
name, by delivery to an officer, managing or general agent, or any
other agent authorized by appointment or law to receive service of
process.
(c) Certificate of service. On the hearing of an application for
the enforcement of a summons, the certificate of service signed by the
person serving the summons is prima facie evidence of the facts it
states.
Sec. 163.10 Third-party recordkeeper.
(a) Notice. Except as provided by paragraph (f) of this section, if
a summons issued under Sec. 163.7 to a third-party recordkeeper
requires the production of records or testimony relating to
transactions of any person other than the person summoned, and the
person is identified in the description of the records in the summons,
notice of the summons shall be provided to the person identified in the
description of the records contained in the summons.
(b) Time of notice. Notice of service of summons required by
paragraph (a) of this section should be provided by the issuing officer
immediately after service of summons is obtained under Sec. 163.9, but
in no event shall notice be given less than 10 business days before the
date set in the summons for the examination of records or persons.
(c) Contents of notice. The issuing officer shall insure that any
notice issued under this section includes a copy of the summons and
contains the following information:
(1) That compliance with the summons may be stayed if written
direction is given by the person receiving notice to the person
summoned not to comply with the summons;
(2) That a copy of the direction not to comply and a copy of the
summons shall be mailed by registered or certified mail to the person
summoned at the addresses in the summons and to the issuing Customs
officer; and
(3) That the actions under paragraphs (c)(1) and (c)(2) of this
section shall be accomplished not later than the day before the day
fixed in the summons as
[[Page 19714]]
the day upon which the records are to be examined or testimony given.
(d) Service of notice. The issuing officer shall serve the notice
required by paragraph (a) of this section in the same manner as is
prescribed in Sec. 163.9 for the service of a summons, or by certified
or registered mail to the last known address of the person entitled to
notice.
(e) Examination precluded. If notice is required by this section,
no record may be examined and no testimony may be taken before the date
fixed in the summons as the date to examine the records or to take the
testimony. If the owner, importer, consignee, or their agent, or any
other person concerned issues a stay of the summons, no examination
shall take place, and no testimony shall be taken, without the consent
of the person staying compliance, or without an order issued by a U.S.
district court.
(f) Exceptions to notice --(1) Personal liability for duties, fees
and taxes. This section does not apply to any summons served on the
person, or any officer or employee of the person, with respect to whose
liability for duties, fees, and taxes the summons is issued.
(2) Verification. This section does not apply to any summons issued
to determine whether or not records of the transactions of an
identified person have been made or kept.
(3) Court order. Notice shall not be given if a U.S. district court
determines, upon petition by the issuing Customs officer, that
reasonable cause exists to believe giving notice may lead to an
attempt:
(i) To conceal, destroy, or alter relevant records;
(ii) To prevent the communication of information from other persons
through intimidation, bribery, or collusion; or,
(iii) To flee to avoid prosecution, testifying, or production of
records.
Sec. 163.11 Enforcement of summons.
Whenever any person does not comply with a summons issued under
Sec. 163.7, the issuing officer may request the appropriate U.S.
attorney to seek an order requiring compliance from the U.S. district
court for the district in which the person is found or resides or is
doing business.
Sec. 163.12 Failure to comply with court order; Penalties.
(a) Monetary penalties. The U.S. district court of the United
States for any district in which a party who has been served with a
Customs summons is found or resides or is doing business may order a
party to comply with the summons. Upon the failure of a party to obey a
court order to comply with a Customs summons, the court may find such
party in contempt, assess a monetary penalty, or do both.
(b) Importations prohibited. If a person fails to comply with a
court order enforcing the summons and is adjudged guilty of contempt,
the Commissioner of Customs, with the approval of the Secretary of the
Treasury, for so long as that person remains in contempt:
(1) May prohibit importation of merchandise by that person,
directly or indirectly, or for that person's account; and
(2) May withhold delivery of merchandise imported by that person,
directly, or indirectly, or for that person's account.
(c) Sale of merchandise. If any person remains in contempt for more
than 1 year after the Commissioner issues instructions to withhold
delivery, the merchandise shall be considered abandoned, and shall be
sold at public auction or otherwise disposed of in accordance with
Subpart E of part 162.
Sec. 163.13 Regulatory audit procedures.
(a) Conduct of a Customs regulatory audit. In conducting an audit
under this section (which does not include a quantity verification for
a customs bonded warehouse or general purpose foreign trade zone or an
inquiry), Customs auditors, except as provided in paragraph (b) of this
section, shall:
(1) Provide notice, telephonically and in writing, to the person
being audited, in advance of the audit with a reasonable estimate of
the time required for the audit;
(2) Inform the party to be audited, in writing, before commencing
an audit, of his right to an entrance conference at which time the
purpose of the audit and the estimated termination date would be given;
(3) Provide a further estimate of such additional time if in the
course of an audit it becomes apparent that additional time will be
required;
(4) Schedule a compliance assessment (first phase of an audit)
closing conference upon completion of the assessment to explain the
preliminary results of the assessment;
(5) Write a compliance assessment report if, after the assessment,
it is determined that no audit will be performed and all on-site work
will end;
(6) At the conclusion of the compliance assessment, if it is
determined that an audit is warranted, schedule and hold an audit
entrance conference to explain the objectives, records requirements,
and time required. If it is decided that an audit will be conducted, it
will not be necessary for a formal compliance assessment report to be
prepared for the party being audited;
(7) Schedule a closing conference to explain preliminary results of
the audit upon completion of the audit field work;
(8) Complete the formal written audit report within 90 days
following the closing conference, provided paragraph (b) of this
section is not applicable, unless the Director, Regulatory Audit
Division, at Customs Headquarters provides written notice to the person
being audited of the reason for any delay and the anticipated
completion date; and
(9) After application of any exception contained in 5 U.S.C. 552,
send a copy of the formal written audit report to the person audited
within 30 days following completion of the report unless a formal
investigation has commenced. All pertinent details should be explained
at the compliance assessment closing conference and reiterated in the
final audit report.
(b) Exception to procedures. Paragraphs (a)(4) through (a)(6) and
(a)(8) through (a)(9) and (c) of this section shall not apply after
Customs commences a formal investigation with respect to the issue
involved.
(c) Petitioning procedures for the failure to conduct closing
conference. Except as provided in paragraph (b) of this section, if the
estimated or actual termination date for an audit passes without a
Customs auditor providing a closing conference to explain the results
of the audit, the person being audited may petition in writing for such
a conference to the Director, Regulatory Audit Division, at Customs
Headquarters. Upon receipt of such a request, the Director shall
provide for such a conference to be held within 15 days after the date
of receipt.
Sec. 163.14 Recordkeeping Compliance Program.
The Recordkeeping Compliance Program is a voluntary program under
which certified recordkeepers are eligible for alternatives to
penalties and may be entitled to greater mitigation of any
recordkeeping penalty that might be assessed should they be unable to
produce a requested record.
(a) Certification procedures.--(1) Who may apply. Any party
described in Sec. 163.2 (a) and (c), and any person or organization
designated to maintain entry records for those entities previously
listed may apply to participate in Customs Recordkeeping Compliance
Program. Participation in Customs Recordkeeping Compliance Program is
voluntary.
[[Page 19715]]
(2) Where to apply. Applications shall be submitted to the U.S.
Customs Service, Field Director, Regulatory Audit Division, 909 S.E.
First Street, Miami, Florida 33131. Applications shall be submitted in
accordance with guidelines in the Recordkeeping Compliance Handbook.
(3) Certification requirements. A recordkeeper may be certified and
enter into a recordkeeping agreement with Customs as a participant in
the recordkeeping compliance program after meeting the general
recordkeeping requirements established by Customs or after negotiating
an alternative program suited to the needs of the recordkeeper and
Customs. To be certified, a recordkeeper must be in compliance with
Customs laws and regulations. Customs will take into account, the size
and nature of the importing business, volume of imports and Customs
workload constraints, prior to proceeding with any certification. In
order to be certified, a recordkeeper is required to:
(i) Comply with the requirements set forth in the applicable
Customs Recordkeeping Compliance Handbook;
(ii) Understand the legal requirements for recordkeeping, including
the nature of the records required to be maintained and produced and
the required time periods;
(iii) Have in place procedures to explain the recordkeeping
requirements to those employees who are involved in the preparation,
maintenance and production of required records;
(iv) Have in place procedures regarding the preparation and
maintenance of required records, and the production of such records to
Customs;
(v) Have designated a dependable individual or individuals to be
responsible for recordkeeping compliance under the program whose duties
include maintaining familiarity with the recordkeeping requirements of
Customs;
(vi) Have a record maintenance procedure approved by Customs for
original records, or, if approved by Customs, for alternative records
or recordkeeping formats other than original records; and
(vii) Have procedures for notifying Customs of occurrences of
variances to, and violations of, the requirements of the recordkeeping
compliance program or negotiated alternative program, and for taking
corrective action when notified by Customs of violations or problems
regarding such program. The term ``variance'' means a deviation from
the signed recordkeeping agreement that does not involve a failure to
maintain or produce records or a failure to maintain the requirements
set forth in this paragraph. The term ``violation'' means a deviation
from the signed agreement that involves a failure to maintain or
produce records or a failure to maintain the requirements set forth in
this paragraph.
(b) Benefits of participation.--(1) Alternatives to penalties.
Participants in the program are eligible for alternatives to the
recordkeeping penalties and to greater mitigation of any recordkeeping
penalty the party might be assessed should they be unable to produce a
requested entry record. If a certified participant does not produce a
demanded entry record or information for a specific release or provide
information by acceptable alternate means, Customs shall, in the
absence of willfulness or repeated violations and in lieu of a monetary
penalty, issue a written notice of violation to the party as described
in paragraph (b)(2) of this section. Willful failure to produce records
or repeated violations of the recordkeeping requirements with no
attempt to correct deficiencies and/or a failure to exercise reasonable
care in the maintenance of records or compliance with recordkeeping
requirements may cause a certified recordkeeper to be removed from the
program and may subject the recordkeeper to immediate penalty action
for failing to produce records.
(2) Contents of notice. A notice of violation issued for failure to
release or provide information to Customs by a participant in the
recordkeeping compliance program shall:
(i) State that the recordkeeper has violated the recordkeeping
requirements;
(ii) Indicate the record or information which was demanded and not
produced;
(iii) Warn the recordkeeper that future failures to produce
demanded records or information may result in the imposition of
monetary penalties; and
(iv) Warn the recordkeeper that noncompliance could result in the
removal of the participant from the recordkeeping compliance program.
(c) Application, approval and certification process.--(1)
Application procedures. Applicants must follow the guidance and
requirements contained in Customs Recordkeeping Compliance Handbook.
This handbook may be obtained by downloading it from the Customs
Electronic Bulletin Board (703-440-6155) or, by mail from the U.S.
Customs Service, Office of Strategic Trade, Regulatory Audit Division,
Recordkeeping Compliance Program, 909 S.E. First Street, Suite 710,
Miami, FL 33131.
(2) Action on applications. The regulatory audit field office
designee will process the application coordinating with the appropriate
Customs headquarters and field officials. The regulatory audit field
office will review and verify the information contained within the
application and may perform an on-site verification prior to
certification. If an on-site visit is warranted, the regulatory audit
field office shall inform the applicant. If additional information is
necessary to process the application, the applicant shall be notified.
Customs requests for information not submitted with the application or
additional explanation of details will cause delays in the
certification of applicants. Requests by Customs for information will
result in the suspension of the application certification process. Upon
receipt of satisfactory information the certification process will
recommence.
(3) Approval and certification. If, upon review, Customs determines
that certification shall be granted, the applicable Regulatory Audit
Field Director shall issue a certification with all the conditions
stated.
Sec. 163.15 Denial, suspension, revocation, and appeal procedures.
(a) General information. Applicants and program participants may
appeal the following decisions for administrative review:
(1) Denial of program participation application;
(2) Certification suspension; or
(3) Certification revocation.
(b) Denials of Program Eligibility or Certification--(1) Applicants
and participants may appeal Field Director application denials by
filing an appeal with the Director, Office of Regulatory Audit, U.S.
Customs Service, Washington, DC 20229.
(2) Appeals must be received by the Director, Office of Regulatory
Audit within 30 days after notice of the denial.
(3) The Director, Office of Regulatory Audit will review the appeal
and respond with a decision within 30 days. If a decision cannot be
made within 30 days, the Director will advise the appellant of the
reasons for the delay and further actions which will be carried out to
resolve the matter and the planned completion date.
(c) Certification suspension--(1) A Regulatory Audit Field Director
may suspend the program participation for a certified recordkeeper or a
certified recordkeeper's agent when Customs discovers that:
[[Page 19716]]
(i) The participant refuses or neglects to obey any proper Customs
order or request for records;
(ii) The participant is convicted of acts which would constitute a
felony or misdemeanor involving tax fraud, theft, smuggling or other
crime involving Customs business;
(iii) The participant commits repeated violations of its
recordkeeping compliance program agreement and fails to take corrective
action;
(iv) The participant repeatedly fails to produce and maintain
records;
(v) The participant's continuous bond has been terminated;
(vi) The participant has failed to file the biennial statement;
(vii) The participant fails to exercise reasonable care in the
maintenance of records subject to the recordkeeping requirements; or
(viii) The participant fails to comply with Customs requirements
generally.
(2) The suspension shall be effective on the date of issuance and
shall remain in effect pending any appeal. Suspension may immediately
subject parties to penalties pursuant to Sec. 163.6. Suspension of a
certified recordkeeper's agent for a single certified recordkeeper
shall also cause suspension for that certified recordkeeper. Suspension
of a certified recordkeeper's agent who is an agent for multiple
certified recordkeepers and has committed violations of the agreements
for multiple clients may also cause suspension for all certified
recordkeepers for whom the agent is acting or receiving reimbursement
for acting as an agent. Customs will review the agent's recordkeeping
procedures to determine whether such action is necessary. It shall be
the duty of the agent to provide notification of the suspension to all
certified recordkeepers and other recordkeepers for whom the agent is
acting or receiving reimbursement for acting as an agent. Failure of an
agent to provide such notification shall be grounds for revocation of
an agent's certification for all certified recordkeepers. Customs shall
publish in the Federal Register all agent suspensions.
(d) Certification revocation. (1) A Regulatory Audit Field Director
may revoke the program certification of a certified recordkeeper or a
certified recordkeeper's agent after appropriate notice when the
following conditions are discovered:
(i) The certification privilege was obtained through fraud or
mistake of fact;
(ii) The participant fails to take corrective action after
notification of a suspension by Customs;
(iii) The participant fails to provide entry information or
documents when requested by Customs on a recurring basis;
(iv) A certified recordkeeper's agent fails to notify all certified
recordkeepers for whom it acts as an agent that it has been suspended
for actions relating to one of the certified recordkeepers for whom it
acts;
(v) The participant is convicted of or has committed acts which
would constitute a felony, or a misdemeanor involving theft, smuggling,
or a theft-connected crime; or
(vi) The participant fails to exercise reasonable care in the
maintenance of records in accordance with the recordkeeping
requirements.
(2) The revocation shall be effective on the date of issuance and
shall remain in effect pending any appeal. Revocation subjects parties
to penalties pursuant to Sec. 163.6. Revocation of a certified
recordkeeper's agent for a single certified recordkeeper shall also
cause revocation for that certified recordkeeper. Revocation of a
certified recordkeeper's agent who is an agent for multiple certified
recordkeepers and has committed violations of the agreements for
multiple clients shall also cause revocation for all certified
recordkeepers for whom the agent is acting or receiving reimbursement
for acting as an agent. It shall be the duty of the agent to provide
notice of the revocation to all certified recordkeepers and other
recordkeepers for whom the agent is acting or receiving reimbursement
for acting as an agent. Customs shall publish in the Federal Register
all agent revocations.
(e) Procedures for revocation or suspension. A Regulatory Audit
Field Director may for due cause serve notice in writing to a certified
recordkeeper suspending or revoking certification. Such notice shall
advise the recordkeeper of the grounds for the action and shall inform
the recordkeeper of the procedures which should be followed should the
recordkeeper wish to appeal the suspension or revocation.
(f) Appeal of revocation or suspension. (1) A recordkeeper who has
received a notice of revocation or suspension of certification in the
recordkeeping compliance program may appeal the decision of the Field
Director to the Director, Regulatory Audit Division at Customs
Headquarters.
(2) The Director, Regulatory Audit Division at Customs Headquarters
shall consider the allegations and responses made by the recordkeeper
and shall render his decision, in writing, within 30 days.
Appendix to Part 163--Interim (a)(1)(A) List
List of Records Required for the Entry of Merchandise General
Information
Section 508 of the Tariff Act of 1930, as amended (19 U.S.C. 1508),
sets forth the general record keeping requirements for Customs-related
activities. Section 509 of the Tariff Act of 1930, as amended (19
U.S.C. 1509) sets forth the procedures for the production and
examination of those records (which includes, but is not limited to,
any statement, declaration, document, or electronically generated or
machine readable data).
Section 509(a)(1)(A) of the Tariff Act of 1930, as amended by title
VI of Public Law 103-182, commonly referred to as the Customs
Modernization Act (19 U.S.C. 1509(a)(1)(A)), requires the production,
within a reasonable time after demand by the Customs Service is made
(taking into consideration the number, type and age of the item
demanded) if ``such record is required by law or regulation for the
entry of the merchandise (whether or not the Customs Service required
its presentation at the time of entry)''. Section 509(e) of the Tariff
Act of 1930, as amended by Public Law 103-182 (19 U.S.C. 1509(e))
requires the Customs Service to identify and publish a list of the
records and entry information that is required to be maintained and
produced under subsection (a)(1)(A) of section 509 (19 U.S.C.
1509(a)(1)(A)). This list is commonly referred to as ``the (a)(1)(A)
list.''
The Customs Service has tried to identify all the presently
required entry information or records on the following list. However,
as automated programs and new procedures are introduced, these may
change. In addition, errors and omissions to the list may be discovered
upon further review by Customs officials or the trade. Pursuant to
section 509(g), the failure to produce listed records or information
upon reasonable demand may result in penalty action or liquidation or
reliquidation at a higher rate than entered. A record keeping penalty
may not be assessed if the listed information or records are
transmitted to and retained by Customs.
Other recordkeeping requirements: The importing community and
Customs officials are reminded that the (a)(1)(A) list only pertains to
records or information required for the entry of merchandise. An owner,
importer, consignee, importer of record, entry filer, or other party
who imports merchandise, files a drawback claim or transports or stores
bonded
[[Page 19717]]
merchandise, any agent of the foregoing, or any person whose activities
require them to file a declaration or entry, is also required to make,
keep and render for examination and inspection records (including, but
not limited to, statements, declarations, documents and electronically
generated or machine readable data) which pertain to any such activity
or the information contained in the records required by the Tariff Act
in connection with any such activity; and are normally kept in the
ordinary course of business. While these records are not subject to
administrative penalties, they are subject to examination and/or
summons by Customs officers. Failure to comply could result in the
imposition of significant judicially imposed penalties and denial of
import privileges.
The following list does not replace entry requirements, but is
merely provided for information and reference. In the case of the list
conflicting with regulatory or statutory requirements, the latter will
govern.
List of Records and Information Required for the Entry of
Merchandise
The following records (which includes, but is not limited to, any
statement, declaration, document, or electronically generated or
machine readable data) are required by law or regulation for the entry
of merchandise and are required to be maintained and produced to
Customs upon reasonable demand (whether or not Customs required its
presentation at the time of entry). Information may be submitted to
Customs at time of entry in a Customs authorized electronic or paper
format. Not every entry of merchandise requires all of the following
information. Only those records or information applicable to the entry
requirements for the merchandise in question will be required/
mandatory. The list may be amended as Customs reviews its requirements
and continues to implement the Customs Modernization Act. When a record
or information is filed with and retained by Customs, the record is not
subject to record keeping penalties, although the underlying backup or
supporting information from which it is obtained may also be subject to
the general record retention regulations and examination or summons
pursuant to 19 U.S.C. 1508 and 1509.
(All references, unless otherwise indicated, are to title 19, Code
of Federal Regulations, April 1, 1995 Edition, as amended by subsequent
Federal Register notices.)
I. General list or records required for most entries. Information
shown with an asterisk (*) is usually on the appropriate form and filed
with and retained by Customs:
141.11-.15 Evidence of right to make entry (airway bill/bill of lading
or *carrier certificate, etc.) when goods are imported on a common
carrier.
141.19 *Declaration of entry (usually contained on the entry summary
or warehouse entry)
141.32 Power of attorney (when required by regulations)
141.54 Consolidated shipments authority to make entry (if this
procedure is utilized)
142.3 Packing list (where appropriate)
142.4 Bond information (except if 10.101 or 142.4(c) applies)
Parts 4, 18, 122, 123 *Vessel, Vehicle or Air Manifest (filed by
the carrier)
II. The following records or information are required by 141.61 on
Customs Form (CF) 3461 or CF 7533 or the regulations cited. Information
shown with an asterisk (*) is contained on the appropriate form and/or
otherwise filed with and retained by Customs:
142.3, .3a *Entry Number
*Entry Type Code
*Elected Entry Date
*Port Code
142.4 *Bond information
141.61, 142.3a *Broker/Importer Filer Number
141.61, 142.3 *Ultimate Consignee Name and Number/street address of
premises to be delivered
141.61 *Importer of Record Number
*Country of Origin
141.11 *IT/BL/AWB Number and Code
*Arrival Date
141.61 *Carrier Code
*Voyage/Flight/Trip
*Vessel Code/Name
*Manufacturer ID Number (for AD/CVD must be actual mfr.)
*Location of Goods-Code(s)/Name(s)
*U.S. Port of Unlading
*General Order Number (only when required by the regulations)
142.6 *Description of Merchandise
142.6 *HTSUSA Number
142.6 *Manifest Quantity
*Total Value
*Signature of Applicant
III. In addition to the information listed above, the following
records or items of information are required by law and regulation for
the entry of merchandise and are presently required to be produced by
the importer of record at the time the Customs Form 7501 is filed.
141.61 *Entry Summary Date
141.61 *Entry Date
142.3 *Bond Number, Bond Type Code and Surety code
142.3 *Ultimate Consignee Address
141.61 *Importer of Record Name and Address
141.61 *Exporting Country and Date Exported
*I.T. (In-bond) Entry Date (for IT Entries only)
*Mode of Transportation (MOT Code)
141.61 *Importing Carrier Name
141.82 Conveyance Name/Number
*Foreign Port of Lading
*Import Date and Line Numbers
*Reference Number
*HTSUS Number
141.61 *Identification number for merchandise subject to Anti-dumping
or Countervailing duty order (ADA/CVD Case Number)
141.61 *Gross Weight
*Manifest Quantity
141.61 *Net Quantity in HTSUSA Units
141.61 *Entered Value, Charges, and Relationship
141.61 *Applicable HTSUSA Rate, ADA/CVD Rate, I.R.C. Rate, and/or
Visa Number, Duty, I.R. Tax, and Fees (e.g. HMF, MPF, Cotton)
141.61 Non-Dutiable Charges
141.61 *Signature of Declarant, Title, and Date
*Textile Category Number
141.83, .86 Invoice information which includes--e.g., date, number,
merchandise (commercial product) description, quantities, values, unit
price, trade terms, part, model, style, marks and numbers, name and
address of foreign party responsible for invoicing, kind of currency
Terms of Sale
Shipping Quantities
Shipping Units of Measurements
Manifest Description of Goods
Foreign Trade Zone Designation and Status Designation (if
applicable)
Indication of Eligibility for Special Access Program (9802/GSP/CBI)
141.89 CF 5523
141.89, et al Corrected Commercial Invoice
141.86(e) Packing List
177.8 *Binding Ruling Identification Number (or a copy of the ruling)
10.102 Duty Free Entry Certificate (9808.00.30009 HTS)
10.108 Lease Statement
IV. Documents/records or information required for entry of special
categories of merchandise (The listed documents or information is only
required for merchandise entered (or required to be entered) in
accordance with the provisions of the sections of 19 CFR (the Customs
Regulations) listed). These are In addition to any documents/records or
information required by other agencies in their regulations for the
entry of merchandise:
[[Page 19718]]
4.14 CF 226 Information for vessel repairs, parts and equipment
7.8(a) CF 3229 Origin certificate for insular possessions
7.8(b) CF 3311 and Shipper's declaration for insular possessions
Part 10 Documents required for entry of articles exported and
returned:
10.1-10.6 foreign shipper's declaration or master's certificate,
declaration for free entry by owner, importer or consignee
10.7 certificate from foreign shipper for reusable containers
10.8 declaration of person performing alterations or repairs
declaration for non-conforming merchandise
10.9 declaration of processing
10.24 declaration by assembler endorsement by importer
10.31, .35 Documents required for Temporary Importations Under Bond:
Information required, Bond or Carnet
10.36 Lists for samples, professional equipment, theatrical effects
Documents required for Instruments of International Traffic:
10.41 Application, Bond or TIR carnet
Note: additional 19 U.S.C. 1508 records: see 10.41b(e)
10.43 Documents required for exempt organizations
10.46 Request from head of agency for 9808.00.10 or 9808.00.20 HTSUS
treatment
Documents required for works of art
10.48 declaration of artist, seller or shipper, curator, etc.
10.49, .52 declaration by institution
10.53 declaration by importer
USFWS Form 3-177, if appropriate
10.59, .63 Documents/ CF 5125/ for withdrawal of ship supplies
10.66,.67 Declarations for articles exported and returned
10.68, .69 Documents for commercial samples, tools, theatrical effects
10.70, .71 Purebred breeding certificate
10.84 Automotive Products certificate
10.90 Master records and metal matrices: detailed statement of cost of
production
10.98 Declarations for copper fluxing material
10.99 Declaration of non-beverage ethyl alcohol, ATF permit
10.101-.102 Stipulation for government shipments and/or certification
for government duty-free entries, etc.
10.107 Report for rescue and relief equipment
15 CFR 301 Requirements for entry of scientific and educational
apparatus
10.121 Certificate from USIA for visual/auditory materials
10.134 Declaration of actual use (When classification involves actual
use)
10.138 End Use Certificate
10.171- Documents, etc. required for entries of GSP merchandise
10.173, 10.175 GSP Declaration (plus supporting documentation)
10.174 Evidence of direct shipment
10.179 Certificate of importer of crude petroleum
10.180 Certificate of fresh, chilled or frozen beef
10.183 Civil aircraft parts/simulator documentation and certifications
10.191-.198 Documents, etc. required for entries of CBI merchandise
CBI declaration of origin (plus supporting information)
10.194 Evidence of direct shipment
[10.306 Evidence of direct shipment for CFTA]
[10.307 Documents, etc. required for entries under CFTA
Certificate of origin of CF 353]
[CFTA provisions are suspended while NAFTA remains in effect.
See part 181]
12.6 European Community cheese affidavit
12.7 HHS permit for milk or cream importation
12.11 Notice of arrival for plant and plant products
12.17 APHIS Permit animal viruses, serums and toxins
12.21 HHS license for viruses, toxins, antitoxins, etc for treatment
of man
12.23 Notice of claimed investigational exemption for a new drug
12.26-.31 Necessary permits from APHIS, FWS & foreign government
certificates when required by the applicable regulation
12.33 Chop list, proforma invoice and release permit from HHS
12.34 Certificate of match inspection and importer's declaration
12.43 Certificate of origin/declarations for goods made by forced
labor, etc.
12.61 Shipper's declaration, official certificate for seal and otter
skins
12.73, 12.80 Motor vehicle declarations
12.85 Boat declarations (CG-5096) and USCG exemption
12.91 FDA form 2877 and required declarations for electronics products
12.99 Declarations for switchblade knives
12.104-.104i Cultural property declarations, statements and
certificates of origin
12.105-.109 Pre-Columbian monumental and architectural sculpture and
murals certificate of legal exportation evidence of exemption
12.110- Pesticides, etc. notice of arrival
12.118-.127 Toxic substances: TSCA statements
12.130 Textiles & textile products
Single country declaration
Multiple country declaration
VISA
12.132 NAFTA textile requirements
54.5 Declaration by importer of use of use of certain metal articles
54.6(a) Re-Melting Certificate
114 Carnets (serves as entry and bond document where applicable)
115 Container certificate of approval
128 Express consignments
128.21 *Manifests with required information (filed by carrier)
132.23 Acknowledgment of delivery for mailed items subject to quota
133.21(b)(6) Consent from trademark or trade name holder to import
otherwise restricted goods
134.25, .36 Certificate of marking; notice to repacker
141.88 Computed value information
141.89 Additional invoice information required for certain classes of
merchandise including, but not limited to:
Textile Entries: Quota charge Statement, if applicable including
Style Number, Article Number and Product
Steel Entries Ordering specifications, including but not limited
to, all applicable industry standards and mill certificates, including
but not limited to, chemical composition
143.13 Documents required for appraisement entries
bills, statements of costs of production
value declaration
143.23 Informal entry: commercial invoice plus declaration
144.12 Warehouse entry information
145.11 Customs Declaration for Mail, Invoice
145.12 Mail entry information (CF 3419 is completed by Customs but
formal entry may be required)
148 Supporting documents for personal importations
151 subpart B Scale Weight
151 subpart B Sugar imports sampling/lab information (Chemical
Analysis)
151 subpart C Petroleum imports sampling/lab information
Out turn Report 24. to 25.--Reserved
151 subpart E Wool and Hair invoice information, additional documents
151 subpart F Cotton invoice information, additional documents
181.22 NAFTA Certificate of origin and supporting records
19 USC 1356k Coffee Form O (currently suspended)
[[Page 19719]]
Other Federal and State Agency Documents
State and Local Government Records
Other Federal Agency Records (See 19 CFR Part 12, 19 U.S.C. 1484, 1499)
Licenses, Authorizations, Permits
Foreign Trade Zones
146.32 Supporting documents to CF 214
Approved: December 30, 1996.
Samuel H. Banks,
Acting Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 97-10130 Filed 4-22-97; 8:45 am]
BILLING CODE 4820-02-P
