97-8447. Duty-Free Stores  

  • [Federal Register Volume 62, Number 64 (Thursday, April 3, 1997)]
    [Rules and Regulations]
    [Pages 15831-15842]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-8447]
    
    
    
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    DEPARTMENT OF THE TREASURY
    
    Customs Service
    
    19 CFR Parts 19, 113 and 144
    
    [T.D. 97-19]
    RIN 1515-AB86
    
    
    Duty-Free Stores
    
    AGENCY: Customs Service, Department of the Treasury.
    
    ACTION: Final rule.
    
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    SUMMARY: This document amends the Customs Regulations principally with 
    respect to duty-free stores in order to reduce the overall paperwork 
    burden for proprietors thereof as well as for Customs. In particular, 
    for purposes of Customs audit of, and control over, such facilities, 
    greater reliance is placed on the use of records generated and 
    maintained by proprietors and importers in the ordinary course of 
    business, instead of on the use of specially prepared Customs forms. 
    The amendments provide benefits in this regard to other classes of 
    Customs bonded warehouses as well.
    
    EFFECTIVE DATE: May 5, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Steven T. Soggin, Program Officer, 
    Office of Field Operations, (202-927-0765).
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        By a final rule document published in the Federal Register as T.D. 
    92-81 on August 20, 1992 (57 FR 37692), the Customs Regulations were 
    amended to designate duty-free stores as a new class of Customs bonded 
    warehouse, and to incorporate operating procedures for the 
    administration of these facilities.
        However, in letters dated October 6 and 13, 1992, a major trade 
    association voiced a number of concerns with respect to the final rule. 
    Prompted by this correspondence, and following lengthy study, Customs 
    published a notice of proposed rulemaking in the Federal Register on 
    June 6, 1996, 61 FR 28808, setting forth specific revisions to the 
    duty-free store regulations. The proposed changes also provided some 
    benefits to other classes of bonded warehouses, and were intended to 
    reduce the overall paperwork burden both for warehouse proprietors and 
    for Customs.
        In brief, under the proposed rule, the following sections of the 
    Customs Regulations were to be affected: Secs. 19.1, 19.2, 19.4, 19.6, 
    19.11, 19.12, 19.35, 19.36, 19.37, 19.39, 113.63, 144.34, 144.36, 
    144.37, 144.39 and 144.41.
        Seven commenters responded to the notice of proposed rulemaking. A 
    description, together with Customs analysis, of the comments they made 
    is set forth below.
    
    Discussion of Comments (Part 19)
    
        Comment: Two commenters stated that the term ``exclusively'' in 
    proposed Sec. 19.1(a)(9) limits the operation of a warehouse to that of 
    a duty-free store providing only conditionally duty-free merchandise to 
    another duty-free store. It was requested that proposed Sec. 19.1(a)(9) 
    be amended by deleting ``exclusively'' to allow continued operations of 
    multi-class warehouses.
        Customs Response: The wording of Sec. 19.1(a)(9) is correct. 
    Section 19.1(a)(9) states: ``All distribution warehouses used 
    exclusively to provide individual duty-free sales locations and storage 
    cribs with conditionally duty-free merchandise are also Class 9 
    warehouses.'' While the term ``exclusively'' in this context defines a 
    warehouse solely distributing merchandise to a duty-free store as a 
    Class 9 warehouse, this does not preclude a multi-class warehouse which 
    distributes merchandise to duty-free stores from also conducting other 
    functions of a different class for which it is approved.
        Comment: One commenter suggested amending proposed Sec. 19.2(a) to 
    make specific provision for facilitating the approval of a common 
    inventory and recordkeeping system in use at multiple storage 
    locations. The commenter stated in this regard that Customs was 
    required to approve a proprietor's inventory and recordkeeping system 
    in every location, even though it might be the same system, which was 
    redundant.
        Customs Response: Customs believes that the commenter's concern is 
    already addressed in Sec. 144.34(c)(2), and that this matter need not 
    specifically be addressed as well in Sec. 19.2(a). Section 144.34(c)(2) 
    allows a proprietor to file a single application with the director of 
    the port in which the applicant's centralized inventory control system 
    is located, with copies to all affected port directors. This procedure 
    eliminates duplicative work for both Customs and the trade by 
    initiating the Customs approval process solely at the port where the 
    applicant's centralized inventory control system exists.
        Comment: One commenter objected to the proposed elimination from 
    Sec. 19.2(g) of the cross-reference therein to Sec. 19.3(f), which, as 
    such, provided for an administrative hearing in the case of a decision 
    by a port director to deny an initial application for a bonded 
    warehouse. This commenter stated that eliminating a hearing, though 
    rarely needed, would increase the chance of costly and time-consuming 
    litigation.
        Customs Response: Customs disagrees, to the extent that the 
    citation in Sec. 19.2(g) to Sec. 19.3(f) does arguably accord the right 
    to an administrative hearing as well in the case of the denial of an 
    application to bond a warehouse. Formal administrative hearings are 
    themselves costly to the Government, often requiring the services of an 
    administrative law judge. Customs believes that administrative 
    resources for such a hearing are best limited to those instances 
    involving the revocation or suspension of bonded warehouse status, as 
    expressly provided for under Sec. 19.3(f).
        Comment: One commenter recommended that proposed Sec. 19.4(b)(5) 
    reducing the storage time from 5 years to 6 months for original duty-
    free sales tickets be amended to eliminate all time requirements for 
    retention of original duty-free sales tickets.
        Customs Response: Customs disagrees. The record retention period of 
    6 months is already a marked time reduction from the current sales 
    ticket storage requirement of 5 years. Customs believes a 6-month time 
    period for storage of original duty-free sales tickets is the minimum 
    time necessary for both the trade and Customs to verify the accuracy of 
    original sales ticket information with sales information generated by 
    electronic or other approved alternative means.
        Comment: One commenter suggested that proposed Sec. 19.4(b)(7) 
    delete the requirement to establish and maintain aisles in bonded 
    warehouses. The commenter stated that space was a precious commodity, 
    and proposed an alternative, whereby Customs would give a proprietor a 
    reasonable time to produce merchandise subject to a spot check or 
    audit.
        Customs Response: Customs agrees. The second sentence of 
    Sec. 19.4(b)(7) is changed to read as follows: ``Doors and entrances 
    shall be left unblocked for access by Customs officers and warehouse 
    proprietor personnel.'' Also, to this end, Sec. 19.4(b)(2) is changed 
    to read as follows: ``The warehouse proprietor shall permit access to 
    the warehouse and present merchandise within a reasonable time after 
    request by any Customs officer.''
        Comment: One commenter asked that the last sentence of 
    Sec. 19.4(b)(8)(ii) be amended to include the term ``unique 
    identifier'', so that it would read as follows: ``The proprietor must 
    provide, upon request by a Customs officer, a record balance of goods, 
    specifying the quantity in each storage location,
    
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    covered by any warehouse entry, general order, seizure, or unique 
    identifier so a physical count can be made to verify the accuracy of 
    the record balance.''
        Customs Response: Customs agrees, and the section is so changed.
        Comment: One commenter stated that proposed Sec. 19.4(b)(9) should 
    be amended to delete the word ``destruction'', because miscellaneous 
    requirements for destruction pertain only to a few classes of 
    warehouses. The commenter further observed that, should general order 
    merchandise remain in a warehouse beyond 6 months, responsibility 
    should not rest with the warehouse to maintain destruction records.
        Customs Response: Customs disagrees. The term ``destruction'' needs 
    to remain in this section. An owner of merchandise in any warehouse 
    may, at any time, lawfully request that merchandise be destroyed under 
    Customs supervision. Requests for the destruction of merchandise in a 
    warehouse must be accounted for by the warehouse proprietor.
        Comment: Two commenters requested that proposed Sec. 19.6(a)(1) 
    granting a 5-day time limit within which to file a copy of any joint 
    discrepancy report with the port director, be amended so as to allow 
    warehouse proprietors a 30-day limit in which to do so. The commenters 
    thought that this increased time extension would ease a restrictive 
    time burden by allowing a month to prepare a discrepancy report for 
    Customs.
        Customs Response: Customs believes that the 5-day time requirement 
    for filing a joint discrepancy report is not unduly burdensome. Indeed, 
    this 5-day time limit itself represents a reasonable extension from the 
    previous requirement in the Customs Regulations that such discrepancy 
    reports be filed within 2 days. However, a 30-day time limit within 
    which to submit these reports is too long. A joint discrepancy report 
    involves sensitive custody transfers, and Customs believes the 
    reasonably prompt reporting of discrepancies in this regard is 
    essential.
        Comment: One commenter called for the deletion of the requirement 
    for a procedures manual in proposed Sec. 19.12(b), on the basis that 
    the preparation and maintenance of such a manual constituted an 
    unjustified paperwork burden.
        Customs Response: Customs disagrees. The proprietor's certification 
    at the time of application to bond that a procedures manual describing 
    the warehouse's inventory and recordkeeping system meets the 
    requirements of 19 CFR 19.12 plays a significant role in the license 
    approval process. The importance of this requirement extends into the 
    areas of compliance and audit activities. The manual serves as a 
    critical tool to Customs by demonstrating the proprietor has 
    established a methodology for inventory control and recordkeeping.
        Comment: One commenter observed that proposed Sec. 19.12(d)(2)(ii) 
    would in effect require a warehouse proprietor to maintain as part of 
    an inventory recordkeeping system the cost or value of general order 
    merchandise, and that a proprietor would often have no idea as to the 
    cost or value of such merchandise.
        Customs Response: Customs agrees. Section 19.12(d)(2)(ii) is 
    changed by adding at the beginning thereof the phrase, ``Except for 
    merchandise in general order,''.
        Comment: Two commenters recommended that Customs amend proposed 
    Sec. 19.12(d)(3) to allow the option of accelerated payment of revenue 
    for non-extraordinary shortages prior to the filing of the annual CF 
    300 or certification of annual reconciliation.
        Customs Response: Customs agrees. The last sentence of 
    Sec. 19.12(d)(3) is changed to allow a proprietor the option of 
    submitting payment of duties and fees for non-extraordinary shortages 
    any time prior to the annual filing of the CF 300 or certified annual 
    reconciliation.
        Comment: One commenter advocated, with respect to proposed 
    Sec. 19.12(d)(5), that there be no physical inventory requirement to 
    account for merchandise, because non-government bonded warehouses did 
    not have such a requirement. One commenter asserted that an annual 
    reconciliation required in proposed Sec. 19.12(h) need not be 
    undertaken at the same time as the physical inventory.
        Customs Response: The physical inventory requirement in 
    Sec. 19.12(d)(5) requires that a proprietor conduct at least one 
    physical inventory during the year. This need not necessarily take 
    place at the time of the annual reconciliation. Customs believes that 
    an annual physical inventory is necessary to gauge the accuracy of the 
    proprietor's inventory control system. Section 19.12(h) does not itself 
    deal with the requirement for a physical inventory.
        Comment: One commenter stated that proposed Sec. 19.12(f)(3) 
    prohibited the application of First-In-First-Out (FIFO) procedures to 
    various types of merchandise, including quota and restricted 
    merchandise. Specifically, the commenter declared that Headquarters 
    Ruling 225837 exempted textile quota requirements on merchandise for 
    export; therefore, no basis existed to prohibit use of FIFO procedures 
    to such merchandise subject to textile quotas.
        Customs Response: Customs agrees, to the extent that such 
    merchandise is for export only. To this end, accordingly, the following 
    sentence is added to Sec. 19.12(f)(2): ``Fungible textile and textile 
    products which are withdrawn from a Class 9 warehouse may be accounted 
    for using FIFO inventory procedures, inasmuch as such articles would be 
    exempt from textile quotas.'' In this regard, a Class 9 warehouse 
    (duty-free store) may only sell and deliver merchandise for export to 
    individuals departing the Customs territory.
        The Committee for the Implementation of Textile Agreements (CITA), 
    U.S. Department of Commerce, has been consulted and agrees with Customs 
    treatment of textiles in Class 9 bonded warehouses or duty-free stores 
    as not being subject to quota and visa requirements.
        However, it is understood that any textile articles exported from a 
    Class 9 warehouse and thereafter reimported into the U.S. would be 
    subject to the laws and regulations of the U.S. affecting imported 
    merchandise, including any applicable quotas.
        Comment: One commenter suggested that Customs amend proposed 
    Sec. 19.12(h)(2) to allow a proprietor to reconcile merchandise under 
    an item's unique identifier number for annual reconciliation, instead 
    of tracking by entry number. The commenter explained that it was not 
    possible to comply with the proposed section under the FIFO inventory 
    because units transferred to warehouses in other ports could not be 
    posted or identified to an entry until disposed of.
        Customs Response: All merchandise accounted for as sold, damaged, 
    short, or otherwise disposed of, receive a designated entry number. For 
    annual reconciliation of FIFO eligible merchandise not disposed of, a 
    list of all open and closed warehouse entries shall be presented to 
    Customs to account for merchandise.
        Comment: One commenter requested that the address requirement be 
    eliminated from proposed Secs. 19.39(c)(5)(i) and 144.37(h)(2)(v) for 
    Class 9 warehouses at airports. The commenter noted in this connection 
    that few duty-free stores routinely obtained the address of a purchaser 
    and that the address requirement had little utility in the context of 
    airport duty-free store operations.
        Customs Response: Customs agrees with this request. The risk of 
    diversion
    
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    of goods purchased at an airport duty-free store is minimal. Hence, 
    Secs. 19.39(c)(5)(i) and 144.37(h)(2)(v) are changed to eliminate any 
    requirement that an airport duty-free store submit to Customs upon 
    request the address of a purchaser.
    
    Warehouse Withdrawals And Rewarehouse Entries
    
        Comment: One commenter asked that proposed Sec. 144.34(c) be 
    amended to permit all classes of warehouses to participate in 
    alternative transfer procedures as opposed to only Class 2 and Class 9 
    warehouses. The commenter stated that as long as the warehouse is owned 
    by the same legal entity maintaining a centralized inventory control 
    system, and has the consent of the surety, such transfer operations 
    could easily be controlled in the same manner as those for Class 2 and 
    Class 9 warehouses.
        Customs Response: Various custody transfer and liability issues are 
    primary concerns preventing the extension of transfer procedures under 
    Sec. 144.34(c) to other classes of Customs bonded warehouses.
        Comment: One commenter suggested that Customs delete the 
    requirements in paragraphs (c)(4)(iv) and (c)(4)(vi) of proposed 
    Sec. 144.34, respectively, that a warehouse proprietor operating 
    multiple storage locations under a centralized inventory system 
    document all intracompany transfers of merchandise by means of the 
    appropriate warehouse entry number, as well as maintain a subordinate 
    permit file folder at all intracompany locations where merchandise is 
    transferred. The commenter stated that under FIFO inventory procedures, 
    units cannot be assigned an entry number, there being no withdrawal or 
    rewarehouse entry made at the time of transfer to place in the 
    subordinate permit file.
        Customs Response: Customs disagrees. Customs does not require an 
    assigned entry number at the time of transfer. Section 144.34(c)(4)(vi) 
    allows up to 7 days to provide required warehouse entry documentation 
    after transfer. Maintaining records in a subordinate permit file allows 
    a proprietor to account for transactions such as shortages, overages, 
    damages, and the like, resulting from intracompany movements. The 
    documents required are set forth in Sec. 19.12(d)(4).
        Comment: Two commenters observed that proposed 
    Secs. 144.34(c)(6)(ii), 144.36(c)(2), and 144.41(c)(2) appeared to 
    suggest that ``restricted'' merchandise could not be included in the 
    alternative inventory control system. The commenters believed that it 
    was not intended to exclude alcoholic products from this privilege.
        Customs Response: The commenters are correct that alcohol and 
    tobacco products may be included as part of an approved alternative 
    inventory control and transfer system. To make this clear, 
    Secs. 144.34(c)(6)(ii), 144.36(c)(2) and 144.41(c)(2) are revised to 
    state: ``With the exception of alcohol and tobacco products* * *''.
        Comment: One commenter recommended that proposed Sec. 144.34(c) 
    include transfers of merchandise from a foreign trade zone to a Class 9 
    warehouse.
        Customs Response: Customs has such a proposal under active 
    consideration. Such proposal will be a subject of a separate 
    publication, if Customs decides to proceed therewith.
    
    Conclusion
    
        In view of the foregoing, and following careful consideration of 
    the comments received and further review of the matter, Customs has 
    concluded that the proposed amendments with the modifications discussed 
    above should be adopted.
        In addition, Sec. 19.35(e)(2) is changed to reflect current 
    statutory law (19 U.S.C. 1555(b), as amended by sections 3(a)(8) and 
    29, Pub. L. 104-295), which permits merchandise purchased in a duty-
    free store, if thereafter returned to the United States, to be subject 
    to the personal exemption of the arriving party under either item 
    9804.00.65, 9804.00.70 or 9804.00.72, Harmonized Tariff Schedule of the 
    United States.
        Also, Sec. 19.12(d)(3) is changed to provide that the amount of 
    duty, taxes, and any interest applicable to each warehouse entry 
    involved in multiple shortages detected in a warehouse must be 
    separately specified, even though such duty and taxes may have been 
    tendered in one consolidated payment. This provision is needed because 
    such duty may be claimed for drawback, and Customs must have this 
    information in order to process the claim.
        Furthermore, for the sake of editorial clarity, the last two 
    sentences of Sec. 19.12(d)(5) are moved to Sec. 19.12(d)(3), and a 
    cross reference to Sec. 19.4(b)(8)(ii) is added thereto, in order to 
    properly reflect the fact that the terms ``unique identifier'' and 
    ``inventory category'' are interrelated. Also, for editorial clarity 
    and consistency, the term ``specific identifier, wherever it appeared 
    in the document, is changed to ``unique identifier''.
    
    Regulatory Flexibility Act and Executive Order 12866
    
        This final rule document is intended to simplify recordkeeping 
    requirements for duty-free stores and other Customs bonded warehouses. 
    To this end, greater reliance is placed on the use of records generated 
    and maintained by proprietors and importers in the ordinary course of 
    business, instead of on the use of specially prepared Customs forms. As 
    such, pursuant to the provisions of the Regulatory Flexibility Act (5 
    U.S.C. 601 et seq.), it is certified that this rule does 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 or 604. Nor does the rule result in a 
    ``significant regulatory action'' under E.O. 12866.
    
    Paperwork Reduction Act
    
        The collection of information in this final rule document is 
    contained in Secs. 19.2, 19.4, 19.6, 19.11, 19.12, 19.36, 19.37, 19.39, 
    144.36, 144.37 and 144.41. This information is required and will be 
    used to ensure the exportation of merchandise from duty-free stores and 
    other Customs bonded warehouses, and to otherwise satisfy the 
    requirements of law and the protection of the revenue. The rule is 
    intended to simplify recordkeeping requirements for duty-free stores 
    and other Customs bonded warehouses. The likely respondents and/or 
    recordkeepers are business or other for-profit institutions.
        The collection of information contained in this final rule document 
    has already been approved by the Office of Management and Budget (OMB) 
    under 1515-0005. The estimated average annual burden associated with 
    this collection is 10 hours per respondent or recordkeeper. Comments 
    concerning the accuracy of this burden estimate and suggestions for 
    reducing this burden should be directed to the Office of Management and 
    Budget, Attention: Desk Officer of the Department of the Treasury, 
    Office of Information and Regulatory Affairs, Washington, DC 20503.
    
    Drafting Information
    
        The principal author of this document was Russell Berger, 
    Regulations Branch, U.S. Customs Service. However, personnel from other 
    offices participated in its development.
    
    List of Subjects
    
    19 CFR Part 19
    
        Customs duties and inspection, Imports, Exports, Warehouses.
    
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    19 CFR Part 113
    
        Customs bonds.
    
    19 CFR Part 144
    
        Customs duties and inspection, Imports, Warehouses.
    
    Amendments to the Regulations
    
        Parts 19, 113 and 144, Customs Regulations (19 CFR parts 19, 113 
    and 144) are amended as set forth below.
    
    PART 19--CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF 
    MERCHANDISE THEREIN
    
        1. The general authority citation for part 19 and the specific 
    authority for Secs. 19.1, 19.6, 19.11, and 19.35--19.39 continue to 
    read as follows:
    
        Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
    Harmonized Tariff Schedule of the United States), 1624;
        Section 19.1 also issued under 19 U.S.C. 1311, 1312, 1555, 1556, 
    1557, 1560, 1561, 1562;
        Section 19.6 also issued under 19 U.S.C. 1555;
    * * * * *
        Section 19.11 also issued under 19 U.S.C. 1556, 1562;
    * * * * *
        Sections 19.35-19.39 also issued under 19 U.S.C. 1555;
    * * * * *
        2. Section 19.1 is amended by adding a sentence at the end of 
    paragraph (a)(9) to read as set forth below, and by removing paragraph 
    (c).
    
    
    Sec. 19.1  Classes of customs warehouses.
    
        (a) * * *
        (9) * * * All distribution warehouses used exclusively to provide 
    individual duty-free sales locations and storage cribs with 
    conditionally duty-free merchandise are also Class 9 warehouses.
    * * * * *
        3. Section 19.2 is amended by revising its heading, by adding three 
    sentences at the end of paragraph (a), and by revising paragraphs 
    (b)(2) and (g), to read as follows:
    
    
    Sec. 19.2  Applications to bond.
    
        (a) * * * The applicant must prepare and have available at the 
    warehouse a procedures manual describing the inventory control and 
    recordkeeping system that will be used in the warehouse. A 
    certification by the proprietor that the inventory control and 
    recordkeeping system meets the requirements of Sec. 19.12 will be 
    submitted with the application. The physical security of the facility 
    must meet the approval of the port director.
        (b) * * *
        (2) A description of the store's procedures, which includes 
    inventory control, recordkeeping, and delivery methods. These 
    procedures must be set forth in the proprietor's procedures manual. 
    Such manual and subsequent changes therein must be furnished to the 
    port director upon request. The procedures in the manual shall provide 
    reasonable assurance that conditionally duty-free merchandise sold 
    therein will be exported;
    * * * * *
        (g) The port director shall promptly notify the applicant in 
    writing of his decision to approve or deny the application to bond the 
    warehouse. If the application is denied the notification shall state 
    the grounds for denial. The decision of the port director will be the 
    final Customs administrative determination in the matter.
        4. Section 19.4 is revised to read as follows:
    
    
    Sec. 19.4  Customs and proprietor responsibility and supervision over 
    warehouses.
    
        (a) Customs supervision. The character and extent of Customs 
    supervision to be exercised in connection with any warehouse facility 
    or transaction provided for in this part shall be in accordance with 
    Sec. 161.1 of this chapter. Independent of any need to appraise or 
    classify merchandise, the port director may authorize a Customs officer 
    to supervise any transaction or procedure at the bonded warehouse 
    facility. Such supervision may be performed through periodic audits of 
    the warehouse proprietor's records, quantity counts of goods in 
    warehouse inventories, spot checks of selected warehouse transactions 
    or procedures or reviews of conditions of recordkeeping, storage, 
    security, or safety in a warehouse facility.
        (b) Proprietor responsibility and supervision--(1) Supervision. The 
    proprietor shall supervise all transportation, receipts, deliveries, 
    sampling, recordkeeping, repacking, manipulation, destruction, physical 
    and procedural security, conditions of storage, and safety in the 
    warehouse as required by law and regulations. Supervision by the 
    proprietor shall be that which a prudent manager of a storage and 
    manipulation facility would be expected to exercise.
        (2) Customs access. The warehouse proprietor shall permit access to 
    the warehouse and present merchandise within a reasonable time after 
    request by any Customs officer.
        (3) Safekeeping of merchandise and records. The proprietor is 
    responsible for safekeeping of merchandise and records concerning 
    merchandise entered in Customs bonded warehouses. The proprietor or his 
    employees shall safeguard and shall not disclose proprietary 
    information contained in or on related documents to anyone other than 
    the importer, importer's transferee, or owner of the merchandise to 
    whom the document relates or their authorized agent.
        (4) Records maintenance.--(i) Maintenance. The proprietor shall:
        (A) Maintain the inventory control and recordkeeping system in 
    accordance with the provisions of Sec. 19.12 of this part;
        (B) Retain all records required in this part and defined in 
    Sec. 162.1(a) of this chapter, pertaining to bonded merchandise for 5 
    years after the date of the final withdrawal under the entry; and
        (C) Protect proprietary information in its custody from 
    unauthorized disclosure.
        (ii) Availability. Records shall be readily available for Customs 
    review at the warehouse. In addition, a proprietor may keep records at 
    another location for Customs review, but only if the proprietor first 
    receives written approval for such storage from the port director.
        (5) Record retention in lieu of originals. A warehouse proprietor 
    may utilize alternative storage methods in lieu of maintaining records 
    in their original formats, if such storage is approved by Customs under 
    paragraph (b)(5)(i) of this section. For Customs purposes, original 
    records may be stored in alternate form at any time after the final 
    withdrawal under the entry number to which these records pertain, 
    except that duty-free store operators may store original sales tickets 
    in alternate form at any time beginning six months after date of sale. 
    If the proprietor chooses to use alternative storage methods, the 
    following conditions must be met:
        (i) Approval. The proprietor may request approval to maintain 
    records in an alternative format by writing and describing the system 
    of storage, the conversion techniques used and the security safeguards 
    to be employed to prevent alteration, to the director of the regulatory 
    audit field office closest to the party's headquarters operation. If 
    satisfied that the alternative storage proposed will ensure the 
    accuracy and availability of the records when required, the director 
    will grant written approval.
        (ii) Retention of reproductions. The proprietor shall retain and 
    keep available an original and one duplicate
    
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    of each microfilm, microfiche, cd ROM (compact disk, Read-Only Memory), 
    or other storage medium used, for five years from the date of the final 
    withdrawal under the entry number to which these records pertain. Duty-
    free store operators must keep alternate storage media containing sales 
    tickets for five years from the date of the final withdrawal or five 
    years from the date of the sale, whichever is shorter.
        (iii) Hard-copy reproductions. The proprietor must have the 
    capability of making direct hard-copy reproductions of the data stored 
    on the microfilm, microfiche, cd ROM, or other storage medium. The 
    proprietor shall bear the expense of making hard-copy reproductions of 
    any or all records required by any proper official of the U.S. Customs 
    Service for the audit or inspection of books and records.
        (iv) Standards required for reproducing records. Proprietors shall 
    maintain the integrity of the original records by insuring that copies 
    are true reproductions of the original records and serve the purpose 
    for which such records were created. The following shall be observed: 
    Copies shall contain all significant record detail shown on the 
    original; copies of the record shall be so arranged, identified, and 
    indexed that any individual document or component of the records can be 
    located with reasonable facility; any indexes, registers, or other 
    finding aids shall be contained on the storage medium at the beginning 
    of the records to which they relate; each time reproductions are made, 
    a written certification will be executed by a responsible company 
    official (see Sec. 191.6(a) of this chapter; the same parties who have 
    authority to sign drawback documents are ``responsible company 
    officials'' for purposes of this section), stating that the 
    reproductions stored on the microfilm, microfiche, cd ROM, or other 
    storage medium constitute a true, complete and accurate reproduction of 
    the original documents; and the proprietor shall maintain and make 
    available a manual describing procedures for reproducing original 
    records on alternative storage media and controls in effect for 
    assuring completeness and accuracy of the reproductions. The procedures 
    shall incorporate reasonable controls for assuring accuracy and 
    completeness of alternative records. The proprietor is responsible for 
    assuring that these controls are executed each time original records 
    are reproduced.
        (v) Revocation of alternative record storage method. Failure to 
    maintain the records in accordance with these conditions and 
    requirements will constitute a breach of the proprietor's bond and may 
    result in the revocation by Customs of the privilege of maintaining 
    records in a form other than the original format.
        (6) Warehouse and merchandise security. The warehouse proprietor 
    shall maintain the warehouse facility in a safe and sanitary condition 
    and establish procedures adequate to ensure the security of all 
    merchandise under Customs custody stored in the facility. The warehouse 
    construction will be a factor that will be considered by the port 
    director in deciding whether to approve the application. The facility 
    shall be built in such a manner as to render it impossible for 
    unauthorized personnel to enter the premises without such violence as 
    to make the entry easy to detect. If a portion of the facility is to be 
    used for the storage of non-bonded merchandise, the port director shall 
    designate the means for effective separation of the bonded and non-
    bonded merchandise, such as a wall, fence, or painted line. All inlets 
    and outlets to bonded tanks shall be secured with locks and/or in-bond 
    seals.
        (7) Storage conditions. Merchandise in the bonded area shall be 
    stored in a safe and sanitary manner to minimize damage to the 
    merchandise, avoid hazards to persons, and meet local, state, and 
    Federal requirements applicable to specific kinds of goods. Doors and 
    entrances shall be left unblocked for access by Customs officers and 
    warehouse proprietor personnel.
        (8) Manner of storage. Packages shall be received in the warehouse 
    and recorded in the proprietor's inventory and accounting records 
    according to their marks and numbers. Packages containing weighable or 
    gaugeable merchandise not bearing shipping marks and numbers shall be 
    received under the weigher's or gauger's numbers. Packages with 
    exceptions due to damage or loss of contents, or not identical as to 
    quantity or quality of contents shall be stored separately until the 
    discrepancy is resolved with Customs. Merchandise received in the 
    warehouse shall be stored in a manner directly identifying the 
    merchandise with the entry, general order, or seizure number; using a 
    unique identifier for inventory categories composed of fungible 
    merchandise accounted for on a First-In-First-Out (FIFO) basis; or 
    using a unique identifier for inventory categories composed of fungible 
    merchandise accounted for using another approved alternative inventory 
    method.
        (i) Direct identification. The warehouse proprietor shall mark all 
    shipments for identification, showing the general order or warehouse 
    entry number or seizure number and the date of the general order, 
    entry, or delivery ticket in the case of seizures. Containers covered 
    by a given warehouse entry, general order or seizure shall not be mixed 
    with goods covered by any other entry, general order or seizure. 
    Merchandise covered by a given warehouse entry, general order or 
    seizure may be stored in multiple locations within the warehouse if the 
    proprietor's inventory control system specifically identifies all 
    locations where merchandise for each entry, general order or seizure is 
    stored and the quantity in each location. The proprietor must provide, 
    upon request by a Customs officer, a record balance of goods, 
    specifying the quantity in each storage location, covered by any 
    warehouse entry, general order, or seizure so a physical count can be 
    made to verify the accuracy of the record balance.
        (ii) FIFO. A proprietor may account for fungible merchandise on a 
    First-In-First-Out (FIFO) basis instead of specific identification by 
    warehouse entry number, provided the merchandise meets the criteria for 
    fungibility and the recordkeeping requirements contained in Sec. 19.12 
    of this part are met. As of the beginning date of FIFO procedures, each 
    kind of fungible merchandise in the warehouse under FIFO shall 
    constitute a separate inventory category. Each inventory category shall 
    be assigned a unique number or other identifier by the proprietor to 
    distinguish it from all other inventory categories under FIFO. All of 
    the merchandise in a given inventory category shall be physically 
    placed so as to be segregated from merchandise under other inventory 
    categories or merchandise accounted for under other inventory methods. 
    The unique identifier shall be marked on the merchandise, its 
    container, or the location where it is stored so as to clearly show the 
    inventory category of each article under FIFO procedures. Merchandise 
    covered by a given unique identifier may be stored in multiple 
    locations within the warehouse if the proprietor's inventory control 
    system specifically identifies all locations where merchandise for a 
    specific unique identifier is stored and the quantity in each location. 
    The proprietor must provide, upon request by a Customs officer, a 
    record balance of goods, specifying the quantity in each storage 
    location, covered by any warehouse entry, general order, seizure, or 
    unique identifier so a physical count can be made to verify the 
    accuracy of the record balance.
    
    [[Page 15836]]
    
        (iii) Other alternative inventory methods. Other alternative 
    inventory systems may be used, if Customs approval is obtained. 
    Importers or proprietors who wish to use an alternative inventory 
    method other than FIFO must apply to Customs Headquarters, Office of 
    Regulations and Rulings, for approval.
        (9) Miscellaneous responsibilities. The proprietor is responsible 
    for complying with requirements for transport to his warehouse, 
    deposit, manipulation, manufacture, destruction, shortage or overage, 
    inventory control and recordkeeping systems, and other requirements as 
    specified in this part.
        5. Section 19.6 is amended by revising the fourth sentence of 
    paragraph (a)(1), paragraph (d)(1), and the sixth sentence of paragraph 
    (d)(2), by redesignating paragraph (d)(4) as (d)(5) and by adding a new 
    paragraph (d)(4), to read as follows:
    
    
    Sec. 19.6  Deposits, withdrawals, blanket permits to withdraw and 
    sealing requirements.
    
        (a)(1) Deposit in warehouse. * * * A copy of any joint report of 
    discrepancy shall be made within five business days of agreement and 
    provided to the port director on the appropriate cartage documents as 
    set forth in Sec. 125.31 of this chapter. * * *
    * * * * *
        (d) Blanket permits to withdraw--(1) General. (i) Blanket permits 
    may be used to withdraw merchandise from bonded warehouses for:
        (A) Delivery to individuals departing directly from the Customs 
    territory for exportation under the sales ticket procedure of 
    Sec. 144.37(h) of this chapter (Class 9 warehouses only);
        (B) Aircraft or vessel supplies under Sec. 309 or 317, Tariff Act 
    of 1930, as amended (19 U.S.C. 1309, 1317); or
        (C) The personal or official use of personnel of foreign 
    governments and international organizations set forth in subpart I, 
    part 148 of this chapter; or
        (D) A combination of the foregoing.
        (ii) Blanket permits to withdraw may be used only for delivery at 
    the port where withdrawn and not for transportation in bond to another 
    port, except for a withdrawal for transportation to another port by a 
    duty-free sales enterprise which meets the requirements for exemption 
    as stated in Sec. 144.34(c) of this chapter. Blanket permits to 
    withdraw may not be used for delivery to a location for retention or 
    splitting of shipments under the provisions of Sec. 18.24 of this 
    chapter. A withdrawer who desires a blanket permit shall state in 
    capital letters on the warehouse entry, or on the warehouse entry/entry 
    summary when used as an entry, that ``Some or all of the merchandise 
    will be withdrawn under blanket permit per section 19.6(d), C.R.'' 
    Customs acceptance of the entry will constitute approval of the blanket 
    permit. A copy of the entry will be delivered to the proprietor, 
    whereupon merchandise may be withdrawn under the terms of the blanket 
    permit. The permit may be revoked by the port director in favor of 
    individual applications and permits if the permit is found to be used 
    for other purposes, or if necessary to protect the revenue or properly 
    enforce any law or regulation Customs is charged with administering. 
    Merchandise covered by an entry for which a blanket permit was issued 
    may be withdrawn for purposes other than those specified in this 
    paragraph if a withdrawal is properly filed as required in subpart D, 
    part 144, of this chapter.
        (2) Withdrawals under blanket permit. * * * A copy of the 
    withdrawal shall be retained in the records of the proprietor as 
    provided in Sec. 19.12(d)(4) of this part. * * *
    * * * * *
        (4) Withdrawals under blanket permit for aircraft or vessel 
    supplies. Multiple withdrawals under a blanket permit for aircraft or 
    vessel supplies, if consigned to the same daily aircraft flight number 
    or vessel sailing, may be filed on one Customs Form 7512; however, an 
    attachment form, developed by the warehouse proprietor and approved by 
    the port director may be used for all withdrawals. This attachment form 
    shall provide a sufficient summary of the goods being withdrawn, and 
    shall include the warehouse entry number, the quantity and weight being 
    withdrawn, the Harmonized Tariff Schedule of the United States 
    number(s), the value of the goods, import and export lading 
    information, the duty rate and amount, and any applicable Internal 
    Revenue tax calculation, for each warehouse entry being withdrawn. A 
    copy of Customs Form 7512 and the summary attachment must be attached 
    to each permit file folder unless the warehouse proprietor qualifies 
    for the permit file folder exemption under Sec. 19.12(d)(4)(iii) of 
    this part.
    * * * * *
        6. Section 19.11 is amended by revising paragraph (h) to read as 
    follows:
    
    
    Sec. 19.11  Manipulation in bonded warehouses and elsewhere.
    
    * * * * *
        (h) Merchandise which has been entered for warehouse and placed in 
    a Class 9 warehouse (duty-free store) may be unpacked into its smallest 
    irreducible unit for sale without a prior permit issued by the port 
    director. The port director may issue a blanket permit to a duty-free 
    store for up to one year permitting the destruction of merchandise 
    covered by any entry and found to be nonsaleable, if the merchandise to 
    be destroyed is valued at less than 5 percent of the value of the 
    merchandise at time of entry or $1,250, whichever is less, in its 
    undamaged condition. Such permit may be revoked in favor of a permit 
    for each entry and/or destruction whenever necessary to assure proper 
    destruction and protection of the revenue. The proprietor shall 
    maintain a record of unpacking merchandise into saleable units and 
    destruction of nonsaleable merchandise in its inventory and accounting 
    records.
        7. Section 19.12 is revised to read as follows:
    
    
    Sec. 19.12  Inventory control and recordkeeping system.
    
        (a) Systems capability. The proprietor shall maintain either manual 
    or automated inventory control and recordkeeping systems or combination 
    manual and automated systems capable of:
        (1) Accounting for all merchandise transported, deposited, stored, 
    manipulated, manufactured, smelted, refined, destroyed in or removed 
    from the bonded warehouse and all merchandise collected by a proprietor 
    or his agent for transport to his warehouse. The records shall provide 
    an audit trail from deposit through manipulation, manufacture, 
    destruction, and withdrawal from the bonded warehouse either by 
    specific identification or other Customs authorized inventory method. 
    The records to be maintained are those which a prudent businessman in 
    the same type of business can be expected to maintain. The records are 
    to be kept in sufficient detail to permit effective and efficient 
    determination by Customs of the proprietor's compliance with these 
    regulations and correctness of his annual submission or reconciliation;
        (2) Producing accurate and timely reports and documents as required 
    by this part; and
        (3) Identifying shortages and overages of merchandise in sufficient 
    detail to determine the quantity, description, tariff classification 
    and value of the missing or excess merchandise so that appropriate 
    reports can be filed with Customs on a timely basis.
        (b) Procedures manual. (1) The proprietor shall have available at 
    the warehouse an English language copy of
    
    [[Page 15837]]
    
    its written inventory control and recordkeeping systems procedures 
    manual in accordance with the requirements of this part.
        (2) The proprietor shall keep current its procedures manual and 
    shall submit to the port director a new certification at the time any 
    change in the system is implemented.
        (c) Entry of merchandise into a warehouse.--(1) Identification. All 
    merchandise collected by a proprietor or his agent for transport to his 
    warehouse shall be receipted. In addition, all merchandise entered in a 
    warehouse will be recorded in a receiving report or document using a 
    Customs entry number or unique identifier if an alternate inventory 
    control method has been approved. All merchandise will be traceable to 
    a Customs entry and supporting documentation.
        (2) Quantity verification. Quantities received will be reconciled 
    to a receiving report or document such as an invoice with any 
    discrepancy reported to the port director as provided in Sec. 19.6(a).
        (3) Recordation. Merchandise received will be accurately recorded 
    in the accounting and inventory system records from the receiving 
    report or document using the Customs entry number or unique identifier 
    if an alternative inventory control method has been approved.
        (d) Accountability for merchandise in a warehouse.--(1) 
    Identification of merchandise. The Customs entry number or unique 
    identifier, as applicable under Sec. 19.4(b)(8), will be used to 
    identify and trace merchandise.
        (2) Inventory records. The inventory records will specify by 
    Customs entry number or unique identifier if an alternative inventory 
    control method is approved:
        (i) The location of the merchandise within the warehouse;
        (ii) Except for merchandise in general order, the cost or value of 
    the merchandise, unless the proprietor's financial records maintain 
    cost or value and the records are made available for Customs review; 
    and
        (iii) The beginning balance, cumulative receipts and withdrawals, 
    adjustments, destructions, and current balance on hand by date and 
    quantity.
        (3) Theft, shortage, overage or damage. Any theft or suspected 
    theft or overage or any extraordinary shortage or damage (equal to one 
    percent or more of the value of the merchandise in an entry or covered 
    by a unique identifier; or if the missing merchandise is subject to 
    duties and taxes in excess of $100) shall be immediately brought to the 
    attention of the port director, and confirmed in writing within five 
    business days after the shortage, overage, or damage has been brought 
    to the attention of the port director. An entry for warehouse must be 
    filed for all overages by the person with the right to make entry 
    within five business days of the date of discovery. The applicable 
    duties, taxes and interest on thefts and shortages so reported shall be 
    paid by the responsible party to Customs within 20 calendar days 
    following the end of the calendar month in which the shortage is 
    discovered. The port director may allow the consolidation of duties and 
    taxes applicable to multiple shortages into one payment; however, the 
    amount applicable to each warehouse entry is to be listed on the 
    submission and shall specify the applicable duty, tax and interest. 
    These same requirements shall apply when cumulative thefts, shortages 
    or overages under a specific entry or unique identifier total one 
    percent or more of the value of the merchandise or if the duties and 
    taxes owed exceed $100. Upon identification, the proprietor shall 
    record all shortages and overages in its inventory control and 
    recordkeeping system, whether or not they are required to be reported 
    to the port director at the time. The proprietor shall also record all 
    shortages and overages as required in the Customs Form 300 or annual 
    reconciliation report under paragraphs (f) or (g) of this section, as 
    appropriate. Duties and taxes applicable to any non-extraordinary 
    shortage or damage and not required to be paid earlier shall be 
    submitted to the port director at the time the Warehouse Proprietor's 
    Submission, Customs Form 300 is due or at the time the certification of 
    preparation of the annual reconciliation report is due, as prescribed 
    in paragraphs (g) and (h) of this section, or at any time prior to the 
    annual filing of the CF 300 or certified annual reconciliation. 
    Discrepancies found in a Class 9 warehouse with integrated locations as 
    set forth in Sec. 19.35(c) will be the net discrepancies for a unique 
    identifier (see Sec. 19.4(b)(8)(ii) of this part) such that overages 
    within one sales location will be offset against shortages in another 
    location that is within the integrated location. A Class 9 proprietor 
    who transfers merchandise between facilities in different ports without 
    being required to file a rewarehouse entry in accordance with 
    Sec. 144.34 of this chapter may offset overages and shortages within 
    the same unique identifier for merchandise located in stores in 
    different ports (see Sec. 19.4(b)(8)(ii) of this part).
        (4) Permit file folders.--(i) Maintenance. Permit file folders 
    shall be maintained and kept up to date by filing all receipts, damage 
    or shortage reports, manipulation requests, withdrawals, removals and 
    blanket permit summaries within five business days after the event 
    occurs. The permit file folders shall be kept in a secure area and 
    shall be made available for inspection by Customs at all reasonable 
    hours.
        (ii) Review. When the final withdrawal of merchandise relating to a 
    specific warehouse entry, general order or seizure occurs, the 
    warehouse proprietor shall: review the permit file folder to ensure 
    that all necessary documentation is in the file folder accounting for 
    the merchandise covered by the entry; notify Customs of any merchandise 
    covered by the warehouse entry, general order or seizure which has not 
    been withdrawn or removed; and file the permit file folder with Customs 
    within 30 calendar days after final withdrawal, except as allowed by 
    paragraph (b)(4)(iv) of this section. The permit file folder for 
    merchandise not withdrawn during the general order period shall be 
    submitted to the port director upon receipt from Customs of the Customs 
    Form 6043.
        (iii) Exemption to maintenance requirement. Maintenance of permit 
    file folders will not be required, if the proprietor has an automated 
    system capable of: satisfactorily summarizing all actions by Customs 
    warehouse entry; providing upon demand by Customs an entry activity 
    summary report which lists all individual receipts, withdrawals, 
    destructions, manipulations and adjustments by warehouse entry and is 
    cross-referenced to the source documents for each transaction; and 
    maintaining source documents so that the documents can be readily 
    retrieved upon request. Failure to provide the entry activity summary 
    report or documentation supporting the entry activity summary report 
    upon demand by the port director or the field director of regulatory 
    audit could result in reinstatement by the port director of the 
    requirement to maintain the permit file folder for all warehouse 
    entries. When final withdrawal is made, the proprietor must submit the 
    entry activity summary report to Customs. Prior to submission, the 
    proprietor must ensure the accuracy of the summary report and assure 
    that all supporting documentation is on file and available for review 
    if requested by Customs.
        (iv) Exemption to submission requirement. At the discretion of the 
    port director, a proprietor may be allowed to furnish formal 
    notification of final withdrawal in lieu of the
    
    [[Page 15838]]
    
    requirement to submit the permit file folder or entry activity summary 
    within 30 calendar days of each final withdrawal. If approved to use 
    this procedure the proprietor could be required by the port director to 
    submit permit file folders or entry activity summaries on a selective 
    basis. Failure to promptly provide the permit file folder or entry 
    activity summary upon request by the port director or the field 
    director of regulatory audit could result in withdrawal of this 
    privilege.
        (5) Physical inventory. The proprietor shall take at least an 
    annual physical inventory of all merchandise in the warehouse, or 
    periodic cycle counts of selected categories of merchandise such that 
    each category is counted at least once during the year, with prior 
    notification of the date(s) given to Customs so that Customs personnel 
    may observe or participate in the inventory if deemed necessary. If the 
    proprietor of a Class 2 or Class 9 warehouse has merchandise covered by 
    one warehouse entry, but stored in multiple warehouse facilities as 
    provided for under Sec. 144.34 of this chapter, the facility where the 
    original entry was filed must reconcile the on-hand balances at all 
    locations with the record balance for those entries with merchandise in 
    multiple locations. The proprietor shall notify the port director of 
    any discrepancies, record appropriate adjustments in the inventory 
    control and recordkeeping system, and make required payments and 
    entries to Customs, in accordance with paragraph (d)(3) of this 
    section.
        (e) Withdrawal of merchandise from a warehouse. All bonded 
    merchandise withdrawn from a warehouse will be accurately recorded 
    within the inventory control and recordkeeping system. The inventory 
    control and recordkeeping system must have the capability to trace all 
    withdrawals back to a Customs entry and to ultimate disposition of the 
    merchandise by the proprietor.
        (f) Special provisions for use of FIFO inventory procedures.--(1) 
    Notification. A proprietor who wishes to use FIFO procedures for all or 
    part of the merchandise in a bonded warehouse shall provide the port 
    director a written certification that: The proprietor has read and 
    understands Customs FIFO procedures set forth in this section; the 
    proprietor's procedures are in accordance with Customs FIFO procedures, 
    and the proprietor agrees to abide by those procedures; and the 
    proprietor of a public warehouse will obtain the written consent of any 
    importer using the warehouse before applying FIFO procedures to their 
    merchandise.
        (2) Qualifying merchandise. FIFO inventory procedures may be used 
    only for fungible merchandise. For purposes of this section, ``fungible 
    merchandise'' means merchandise which is identical and interchangeable 
    for all commercial purposes. While commercial interchangeability is 
    usually decided between buyer and seller or between proprietor and 
    importer, Customs is the final arbiter of fungibility in bonded 
    warehouses. The criteria for determining whether merchandise is 
    fungible include, but are not limited to, Governmental and recognized 
    industrial standards, part numbers, tariff classification, value, brand 
    name, unit of quantity (such as barrels, gallons, pounds, pieces), 
    model number, style and same kind and quality. Fungible textile and 
    textile products which are withdrawn from a Class 9 warehouse may be 
    accounted for using FIFO inventory procedures, inasmuch as such 
    articles would be exempt from textile quotas.
        (3) Merchandise specifically excluded. FIFO procedures cannot be 
    applied to the following merchandise, as well as any other merchandise 
    which does not comply with the requirements of paragraph (f)(2) of this 
    section:
        (i) Merchandise subject to quota, visa or export restrictions 
    chargeable to different countries of origin;
        (ii) Textile and textile products of different quota categories;
        (iii) Merchandise with different tariff classifications or rates of 
    duty, except where the difference is within the merchandise itself 
    (such as kits, merchandise in unusual containers) or where the tariff 
    classification or dutiability is determined only by conditions upon 
    withdrawal (for example, withdrawal for vessel supplies, bonded wool 
    transactions);
        (iv) Merchandise with different legal requirements for marking, 
    labeling or stamping;
        (v) Merchandise with different trademarks;
        (vi) Merchandise of different grades or qualities;
        (vii) Merchandise with different importers of record;
        (viii) Damaged or deteriorated merchandise;
        (ix) Restricted merchandise; or
        (x) General order, abandoned or seized merchandise.
        (4) Maintenance of FIFO. FIFO procedures used for merchandise in 
    any inventory category, must be used consistently throughout the 
    warehouse storage and recordkeeping practices and procedures for the 
    merchandise. For example, merchandise may not be added to inventory by 
    FIFO but withdrawn by bypassing certain inventory layers to reach a 
    specific warehouse entry other than the oldest one. However, this does 
    not preclude the use of specific identification for some merchandise in 
    a warehouse entry and FIFO for other merchandise, so long as they are 
    segregated in physical storage and clearly distinguished in the 
    inventory and accounting records.
        (5) FIFO recordkeeping. In the inventory and accounting records, 
    the proprietor shall establish an inventory layer for each warehouse 
    entry represented in each inventory category. The layers shall be 
    established in the order of time of acceptance of the entry or by the 
    date of importation of merchandise covered by each applicable warehouse 
    entry. There shall be no mixing of layering both by time of acceptance 
    and date of importation in the same warehouse. Records for each layer 
    shall, as a minimum, show the warehouse entry number, date of 
    acceptance, date of importation, quantity and unit of quantity. They 
    shall also show for each entry the type of warehouse withdrawal number 
    or other specific removal event charged against the entry, by date and 
    quantity. Each addition to or deduction from the inventory category 
    shall be posted in the appropriate inventory category within 2 business 
    days after the event occurs. All FIFO records and documentation shall 
    consistently use the same unit of quantity within each inventory 
    category.
        (6) Entry requirements. Warehouse entries covering any merchandise 
    to be accounted for under FIFO must be prominently marked ``FIFO'' on 
    the face of the entry document. The entry document or an attachment 
    thereto shall show the unique identifier of each inventory category to 
    be accounted for under FIFO, the quantity in each inventory category 
    and the unit of quantity.
        (7) Receipts. Any shortages, overages, or damage found upon receipt 
    shall be attributed to the entry under which the merchandise was 
    received. FIFO procedures will not take effect until the merchandise is 
    physically placed in the storage location for the inventory category 
    represented in the entry.
        (8) Manipulation. When manipulation results in a product with a 
    different unique identifier, the inventory and accounting records shall 
    show the quantities of merchandise in each inventory category appearing 
    in the product covered by the new unique identifier. The withdrawal 
    shall show the unique identifiers of both the materials used in the 
    manipulation and the product as manipulated. The quantities of the 
    original unique
    
    [[Page 15839]]
    
    identifiers will be deducted from their respective warehouse entries on 
    a FIFO basis when the resultant product is withdrawn.
        (9) Discontinuance of FIFO. A proprietor may voluntarily 
    discontinue the use of FIFO procedures for all or part of the 
    merchandise currently under FIFO by providing written notification to 
    the port director. The notification shall clearly describe the 
    merchandise, by commercial names and unique identifiers, to be removed 
    from FIFO. Following notification, the merchandise shall be segregated 
    in both the recordkeeping system and the physical location by warehouse 
    entry number and the quantities so removed shall be deducted from the 
    appropriate FIFO inventory category balances. Merchandise so removed 
    shall be maintained under the specific identification inventory method. 
    FIFO procedures which were voluntarily discontinued may be reinstated, 
    but not for merchandise covered by any warehouse entry for which FIFO 
    was discontinued.
        (g) Warehouse proprietor submission. Except as otherwise provided 
    in paragraph (h) of this section or Sec. 19.19(b) of this part, the 
    warehouse proprietor shall file with the field director of regulatory 
    audit within 45 calendar days from the end of his business year a 
    Warehouse Proprietor's Submission on Customs Form 300. If the 
    proprietor of a Class 2 or Class 9 warehouse has merchandise covered by 
    one warehouse entry, but stored in multiple warehouse facilities as 
    provided for under Sec. 144.34 of this chapter, the CF 300 shall cover 
    all locations and warehouses of the proprietor. An alternative format 
    may be used for providing the information required on the CF 300, if 
    prior written approval is obtained from the field director of 
    regulatory audit.
        (h) Annual reconciliation.--(1) Report. Instead of filing Customs 
    Form 300 as required under paragraph (g) of this section, the 
    proprietor of a class 2, importers' private bonded warehouse, and 
    proprietors of classes 4, 5, 6, 7, 8, and 9 warehouses if the warehouse 
    proprietor and the importer are the same party, shall prepare a 
    reconciliation report within 90 days after the end of the fiscal year 
    unless the field director authorizes an extension for reasonable cause. 
    The proprietor shall retain the annual reconciliation report for 5 
    years from the end of the fiscal year covered by the report. The report 
    must be available for a spot check or audit by Customs, but need not be 
    furnished to Customs unless requested. There is no form specified for 
    the preparation of the report.
        (2) Information required. The report must contain the company name; 
    address of the warehouse; class of warehouse; date of inventory or 
    information on cycle counts; a description of merchandise for each 
    entry or unique identifier, quantity on hand at the beginning of the 
    year, cumulative receipts and transfers (by unit), quantity on hand at 
    the end of the year, and cumulative positive and negative adjustments 
    (by unit) made during the year. If the proprietor of a Class 2 or Class 
    9 warehouse has merchandise covered by one warehouse entry, but stored 
    in multiple warehouse facilities as provided for under Sec. 144.34 of 
    this chapter, the reconciliation shall cover all locations and 
    warehouses of the proprietor at the same port. If the annual 
    reconciliation includes entries for which merchandise was transferred 
    to a warehouse without filing a rewarehouse entry, as allowed under 
    Sec. 144.34, the annual reconciliation must contain sufficient detail 
    to show all required information by location where the merchandise is 
    stored. For example, if merchandise covered by a single entry is stored 
    in warehouses located in 3 different ports, the annual reconciliation 
    should specify individually the beginning and ending inventory 
    balances, cumulative receipts, transfers, and positive and negative 
    adjustments for each location.
        (3) Certification. The proprietor shall submit to the field 
    director of regulatory audit within 10 business days after preparation 
    of the annual reconciliation report, a letter signed by the proprietor 
    certifying that the annual reconciliation has been prepared, is 
    available for Customs review, and is accurate. The certification letter 
    must contain the proprietor's IRS number; date of fiscal year end; the 
    name and street address of the warehouse; the name, title, and 
    telephone number of the person having custody of the records; and the 
    address where the records are stored. Reporting of shortages and 
    overages based on the annual reconciliation will be made in accordance 
    with paragraph (d)(3) of this section. Any previously unreported 
    shortages and overages should be reported to the port director and any 
    unpaid duties, taxes and fees should be paid at this time.
        (i) System review. The proprietor shall perform an annual internal 
    review of the inventory control and recordkeeping system and shall 
    prepare and maintain on file a report identifying any deficiency 
    discovered and corrective action taken, to ensure that the system meets 
    the requirements of this part.
        (j) Special requirements. A warehouse proprietor submission (CF 
    300) or annual reconciliation must be prepared for each facility or 
    location as defined in Secs. 19.2(a) and 19.35(c) of this part. When 
    merchandise is transferred from one facility or location to another 
    without filing a rewarehouse entry, as provided for in Sec. 144.34(c) 
    of this chapter, the submission/reconciliation for the warehouse where 
    the entry was originally filed should account for all merchandise under 
    the warehouse entry, indicating the quantity in each location.
        8. Section 19.13 is amended by revising the fourth sentence of 
    paragraph (g) to read as follows:
    
    
    Sec. 19.13  Requirements for establishment of warehouses.
    
    * * * * *
        (g) Secure storage. * * * The areas for storage of bonded material 
    and manufactured products shall be secured in accordance with the 
    standards prescribed in Sec. 19.4(b)(6) of this part. * * *
    * * * * *
        9. Section 19.13a is amended by revising the first sentence of its 
    introductory text and by revising paragraph (b) to read as follows:
    
    
    Sec. 19.13a  Recordkeeping requirements.
    
        The proprietor of a manufacturing warehouse shall comply with the 
    recordkeeping requirements of Secs. 19.4(b) and 19.12. * * *
    * * * * *
        (b) Take an annual physical inventory of the merchandise as 
    provided in Sec. 19.12(d)(5) in conjunction with the annual submission 
    required by Sec. 19.12(g); and
    * * * * *
        10. Section 19.35 is amended by revising the introductory text of 
    paragraph (c) and by revising paragraphs (c)(2), (e)(2) and (f) to read 
    as follows:
    
    
    Sec. 19.35  Establishment of duty-free stores (Class 9 warehouses).
    
    * * * * *
        (c) Integrated locations. A Class 9 warehouse with multiple 
    noncontiguous sales and crib locations (see Sec. 19.37(a) of this part) 
    containing conditionally duty-free merchandise and requested by the 
    proprietor may be treated by Customs as one location if:
    * * * * *
        (2) The recordkeeping system is centralized up to the point where a 
    sale is made so as to automatically reduce the sale quantity by 
    location from centralized inventory or inventory records must be 
    updated no less
    
    [[Page 15840]]
    
    frequently than at the end of each business day to reflect that day's 
    activity.
    * * * * *
        (e) * * *
        (2) If brought back to the United States must be declared and is 
    subject to U.S. Federal duty and tax with personal exemption; and,
    * * * * *
        (f) Security of sales rooms and cribs. The physical and procedural 
    security requirements of Sec. 19.4(b)(6) of this part shall be applied 
    to the security of the sales rooms and cribs by the port director. The 
    proprietor shall establish procedures to safeguard the merchandise so 
    as to accommodate the movement of purchasers and prospective purchasers 
    of conditionally duty-free merchandise contained in duty-free sales 
    rooms and cribs.
    * * * * *
        11. Section 19.36 is amended by revising the last sentence of 
    paragraph (e) and the third sentence of paragraph (g) to read as 
    follows:
    
    
    Sec. 19.36  Requirements for duty-free store operations.
    
    * * * * *
        (e) Merchandise eligible for warehousing. * * * However, such 
    merchandise must be either identified or marked ``DUTY-PAID'' or 
    ``U.S.-ORIGIN'', or similar markings, as applicable, so that Customs 
    officers can easily distinguish conditionally duty-free merchandise 
    from other merchandise in the sales or crib area.
    * * * * *
        (g) Inventory procedure. * * * The inventory shall be reconcilable 
    with the accounting and inventory records and the permit file folder 
    requirements of Sec. 19.12 (d), (e) and (f) of this part. * * *
        12. Section 19.37 is amended by revising the first and fourth 
    sentences, and the fifth (and last) sentence of paragraph (a) to read 
    as follows:
    
    
    Sec. 19.37  Crib operations.
    
        (a) Crib. A crib means a bonded area, separate from the storage 
    area of a Class 9 warehouse, for the retention of a supply of articles 
    for delivery to persons departing from the United States. * * * The 
    quantity of goods in the crib may be an amount requested by the 
    proprietor which is commercially necessary for the delivery operations 
    for a period, if approved by the port director. The port director may 
    increase or decrease the quantity as deemed necessary for the 
    protection of the revenue and proper administration of U.S. laws and 
    regulations, or may order the return to the storage area of goods 
    remaining unsold.
    * * * * *
        13. Section 19.39 is amended by removing the last three sentences 
    of paragraph (c)(2); Sec. 19.39 is further amended by revising the 
    first sentence of paragraph (c)(3), by redesignating paragraphs 
    (c)(4)(ii), (c)(4)(iii) and (c)(4)(iv), as (c)(4)(iii), (c)(4)(iv) and 
    (c)(4)(v), respectively, and adding a new paragraph (c)(4)(ii), and by 
    revising paragraphs (c)(5) and (e), to read as set forth below:
    
    
    Sec. 19.39  Delivery for exportation.
    
    * * * * *
        (c) * * *
        (3) Aircraft delivery. The merchandise will be delivered by a 
    licensed cartman for lading as baggage directly on the aircraft on 
    which the passenger will depart. * * *;
        (4) Unit-load delivery. * * *
        (ii) Merchandise shall be placed on the aircraft on which the 
    passenger departs the United States for carriage as passenger baggage;
    * * * * *
        (5) Cancelled or aborted flights or no-show passengers--(i) 
    Cancelled or aborted flights. The proprietor shall, upon request, make 
    available to Customs the purchaser's name, the purchaser's airline 
    ticket number and the identity and quantity of the merchandise 
    delivered by the proprietor to the purchaser (if the merchandise was 
    delivered to the airline rather than the passenger, the name of the 
    airline employee to whom the merchandise was delivered), and the date 
    and time of that delivery in lieu of retrieving the merchandise for 
    safekeeping until the purchaser actually departs.
        (ii) No-show passengers. A proprietor who delivers merchandise 
    directly to an airline for delivery to a passenger who does not board 
    the flight shall establish a procedure to obtain redelivery of that 
    merchandise from the airline.
    * * * * *
        (e) Delivery method. Delivery of conditionally duty-free 
    merchandise to persons for exportation will be made by licensed cartmen 
    or bonded carriers under the procedures in subpart D, part 125, and 
    Sec. 144.34(a), of this chapter, or under a local control system 
    approved by the port director wherein any discrepancy found in the 
    merchandise will be treated as if it occurred in the bonded warehouse.
    * * * * *
    
    PART 113--CUSTOMS BONDS
    
        1. The general authority citation for part 113 continues to read as 
    follows:
    
        Authority: 19 U.S.C. 66, 1623, 1624.
    * * * * *
        2. Section 113.63 is amended by redesignating paragraph (a)(4) as 
    (a)(5) and adding a new paragraph (a)(4), by removing the word ``and'' 
    from the end of paragraph (b)(2), and by adding the word ``and'' at the 
    end of paragraph (b)(3), by adding a new paragraph (b)(4), and by 
    revising the first sentence of paragraph (d), to read as follows:
    
    
    Sec. 113.63  Basic custodial bond conditions.
    
        (a) * * *
        (4) If authorized to use the alternative transfer procedure set 
    forth in Sec. 144.34(c) of this chapter, to operate as constructive 
    custodian for all merchandise transferred under those procedures, 
    thereby assuming primary responsibility for the continued proper 
    custody of the merchandise notwithstanding its geographical location;
    * * * * *
        (b) * * *
        (4) If authorized to use the alternative transfer procedure set 
    forth in Sec. 144.34(c) of this chapter, to keep safe any merchandise 
    so transferred.
    * * * * *
        (d) Agreement to Redeliver Merchandise to Customs. If the principal 
    is designated a bonded carrier, or licensed to operate a cartage or 
    lighterage business, or authorized to use the alternative transfer 
    procedure set forth in Sec. 144.34(c) of this chapter, the principal 
    agrees to redeliver timely, on demand by Customs, any merchandise 
    delivered to unauthorized locations or to the consignee without the 
    permission of Customs. * * *
    * * * * *
    
    PART 144--WAREHOUSE AND REWAREHOUSE ENTRIES AND WITHDRAWALS
    
        1. The general authority citation for part 144 and the specific 
    authority for Sec. 144.37 continue to read as follows:
    
        Authority: 19 U.S.C. 66, 1484, 1557, 1559, 1624;
    * * * * *
        Section 144.37 also issued under 19 U.S.C. 1555, 1562.
    
        2. Section 144.34 is amended by adding a new paragraph (c) to read 
    as follows:
    
    
    Sec. 144.34  Transfer to another warehouse.
    
    * * * * *
        (c) Transfers between integrated bonded warehouses--(1) 
    Eligibility. (i) Only an importer who will transfer warehoused 
    merchandise among Class 2 and 9 warehouses listed on the
    
    [[Page 15841]]
    
    application in paragraph (c)(2) of this section is eligible to 
    participate.
        (ii) The importer must have a centralized inventory control system 
    that shows the location of all of the warehoused merchandise at all 
    times, including merchandise in transit.
        (iii) The importer and its surety must sign the application. If the 
    application to use this alternative procedure is approved by the 
    appropriate port director, the importer's entry bond containing the 
    conditions provided under Sec. 113.62 of this chapter will continue to 
    attach to any merchandise transferred under these alternative 
    procedures.
        (iv) Each proprietor of a warehouse listed on the application and 
    each surety who underwrites that proprietor's custodial bond coverage 
    under Sec. 113.63 of this chapter shall sign the application.
        (2) Application. Application must be made in writing to the port 
    director of the port in which the applicant's centralized inventory 
    control system exists, with copies to all affected port directors, for 
    exemptions from the requirements for transfer of merchandise from one 
    bonded warehouse to another set forth in paragraphs (a) and (b) of this 
    section. The application must list all bonded warehouses to and from 
    which the merchandise may be transferred; all such warehouses must be 
    covered by the same centralized inventory control system. Only blanket 
    exemption requests will be considered; exemptions will not be 
    considered for individual transfers. The application may be in letter 
    form, signed by all participants, and contain a certification to the 
    port director by the applicant that he maintains accounting records, 
    documents and financial statements and reports that adequately support 
    Customs activities.
        (3) Operation. An importer who receives approval to transfer 
    merchandise between bonded warehouses in accordance with the provisions 
    of this section may, after entry into the first warehouse, transfer 
    that merchandise to any other warehouse without filing a withdrawal 
    from warehouse or a rewarehouse entry. The warehoused merchandise will 
    be treated as though it remains in the first warehouse so long as the 
    actual location of the merchandise at all times is recorded as provided 
    under the provisions of this section.
        (4) Inventory control requirements. The records required to be 
    maintained must include a centralized inventory control system and 
    supporting documentation which meets the following requirements:
        (i) Provide Customs upon demand with the proper on-hand balance of 
    each inventory item in each warehouse facility and each storage 
    location within each warehouse;
        (ii) Provide Customs upon demand with the proper on-hand balance 
    for each open warehouse entry and the actual quantity in each warehouse 
    facility;
        (iii) If an alternative inventory system has been approved, provide 
    Customs upon demand with the proper on-hand balance for each unique 
    identifier and the quantity related to each open warehouse entry and 
    the quantity in each warehouse facility;
        (iv) Maintain documentation for all intracompany movements, 
    including authorizations for the movement, shipping documents and 
    receiving reports. These documents must show the appropriate warehouse 
    entry number or unique identifier, the description and quantity of the 
    merchandise transferred, and must be properly authorized and signed 
    evidencing shipment from and delivery to each location;
        (v) Maintain a consolidated permit file folder at the location 
    where the merchandise was originally warehoused. The consolidated 
    permit file folder must meet the requirements of Sec. 19.12(d)(4) of 
    this chapter regardless of the warehouse facility in which the action 
    occurred. Documentation for all intracompany movements, including 
    authorizations for movement, shipping documents, receiving reports, as 
    well as documentation showing ultimate disposition of the merchandise 
    must be filed in the consolidated permit file folder within seven 
    business days;
        (vi) Maintain a subordinate permit file at all intracompany 
    locations where merchandise is transferred containing copies of 
    documentation required by Sec. 19.12(d)(4) of this chapter and by 
    paragraph (c)(3)(v) of this section relating to merchandise quantities 
    transferred to the location. A copy of all documents in the subordinate 
    permit file folder must be filed in the consolidated permit file folder 
    within seven business days; no exceptions will be granted to this 
    requirement. When the final withdrawal is made on the respective entry, 
    the subordinate permit file shall be considered closed and filed at the 
    intracompany location to which the merchandise was transferred; and
        (vii) File the withdrawal from Customs custody at the original 
    warehouse location at which the merchandise was entered.
        (5) Waiver of permit file folder requirements. The permit file 
    folder requirements of paragraphs (c)(3)(v) and (c)(3)(vi) of this 
    section may be waived if the proprietor's recordkeeping and inventory 
    control system qualifies under the requirements of 
    Sec. 19.12(d)(4)(iii) of this chapter at all locations where bonded 
    merchandise is stored.
        (6) Procedure not available--(i) Liens. The transfer procedures 
    permitted under paragraph (c) of this section shall not be available 
    for merchandise with respect to which Customs is notified of the 
    existence of a lien, as prescribed in Sec. 141.112 of this chapter (see 
    19 U.S.C. 1564), until proof shall be produced at the original 
    warehouse location that the lien has been satisfied or discharged.
        (ii) Restricted merchandise. With the exception of alcohol and 
    tobacco products, merchandise subject to a restriction on release such 
    as covered by a licensing, quota or visa requirement, is not eligible.
        3. Section 144.36 is amended by revising paragraphs (c) and (f), by 
    removing the word ``or'' from the end of paragraph (g)(4), and by 
    adding the word ``or'' at the end of paragraph (g)(5) and adding a new 
    paragraph (g)(6) thereafter, to read as follows:
    
    
    Sec. 144.36  Withdrawal for transportation.
    
    * * * * *
        (c) Form. (1) A withdrawal for transportation shall be filed on 
    Customs Form 7512 in five copies. An extra copy or copies of the 
    Customs Form 7512 may be required for use in connection with the 
    delivery of the merchandise to the bonded carrier and, in the case of 
    alcoholic beverages, two extra copies shall be required for use in 
    furnishing the duty statement to the port director at destination.
        (2) Separate withdrawals for transportation from a single 
    warehouse, via a single conveyance, consigned to the same consignee, 
    and deposited into a single warehouse, can be filed on one Customs Form 
    7512, under one control number, provided that there is an attachment, 
    to be certified by a Customs officer, providing the information for 
    each withdrawal, as required in paragraph (d) of this section. With the 
    exception of alcohol and tobacco products, this procedure shall not be 
    allowed for merchandise which is in any way restricted (for example, 
    quota/visa).
        (3) The requirement that a Customs Form 7512 be filed and the 
    information required in paragraph (d) of this section be shown shall 
    not be required if the merchandise qualifies under the exemption in 
    Sec. 144.34(c).
    * * * * *
    
    [[Page 15842]]
    
        (f) Forwarding procedure. The merchandise shall be forwarded in 
    accordance with the general provisions for transportation in bond 
    (Secs. 18.1 through 18.8 of this chapter). However, when the alternate 
    procedures under Sec. 144.34(c) are employed, the merchandise need not 
    be delivered to a bonded carrier for transportation, and an entry for 
    transportation (Customs Form 7512) and a rewarehouse entry will not be 
    required.
        (g) Procedure at destination. * * *
        (5) * * *; or
        (6) Deposited into the proprietor's bonded warehouse or duty free 
    store warehouse without rewarehouse entry as required in Sec. 144.41, 
    if the merchandise qualifies for the exemption specified in 
    Sec. 144.34(c).
    * * * * *
        4. Section 144.37 is amended by revising paragraph (h)(2)(v), and 
    by revising the fourth sentence and the last sentence in the concluding 
    text of paragraph (h)(3), to read as follows:
    
    
    Sec. 144.37  Withdrawal for exportation.
    
    * * * * *
        (h) * * *
        (2) * * *
        (v) The full name and address of the purchaser. However, the port 
    director may waive the address requirement for all merchandise except 
    for alcoholic beverages in quantities in excess of 4 liters and 
    cigarettes in quantities in excess of 3 cartons. Also, the address 
    requirement is not applicable with respect to purchasers at airport 
    duty-free enterprises; and
    * * * * *
        (3) Sales ticket register. * * *
    
    * * * The sales ticket register shall be included in the permit file 
    folder with or in lieu of the blanket permit summary, as provided in 
    Sec. 19.6(d)(5) of this chapter. * * * In lieu of placing a copy of 
    sales tickets in each permit file folder, the warehouse proprietor may 
    keep all sales tickets in a readily retrievable manner in a separate 
    file.
        5. Section 144.39 is amended by revising its first sentence to read 
    as follows:
    
    
    Sec. 144.39  Permit to transfer and withdraw merchandise.
    
        With the exception of merchandise transferred under the procedures 
    of Sec. 144.34(c), if all legal and regulatory requirements are met, 
    the appropriate Customs officer shall approve the application to 
    transfer or withdraw merchandise from a bonded warehouse by endorsing 
    the permit copy and returning it to the applicant. * * *
        6. Section 144.41 is amended by revising paragraph (c) to read as 
    follows:
    
    
    Sec. 144.41  Entry for rewarehouse.
    
    * * * * *
        (c) Combining separate shipments. (1) Separate shipments consigned 
    to the same consignee and received under separate withdrawals for 
    transportation may be combined into one rewarehouse entry if the 
    warehouse withdrawals are from the same original warehouse entry.
        (2) Shipments covered by multiple warehouse entries, and shipped 
    from a single warehouse under separate withdrawals for transportation, 
    via a single conveyance, may be combined into one rewarehouse entry if 
    consigned to the same consignee and deposited into a single warehouse. 
    With the exception of alcohol and tobacco products, this procedure 
    shall not be allowed for merchandise which is in any way restricted 
    (for example, quota/visa). The combined rewarehouse entry shall have 
    attached either copies of each warehouse entry package which is being 
    combined into the single rewarehouse entry or a summary with pertinent 
    information, that is, the date of importation, commodity description, 
    size, HTSUS and entry numbers, for all entries withdrawn for 
    consolidation as one rewarehouse entry. Any combining of separate 
    withdrawals into one rewarehouse entry shall result in the rewarehouse 
    entry being assigned the import date of the oldest entry being combined 
    into the rewarehouse entry.
        (3) Combining of separate shipments shall be prohibited in all 
    other circumstances.
    * * * * *
        Approved: March 5, 1997.
    George J. Weise,
    Commissioner of Customs.
    John P. Simpson,
    Deputy Assistant Secretary of the Treasury.
    [FR Doc. 97-8447 Filed 4-2-97; 8:45 am]
    BILLING CODE 4820-02-P
    
    
    

Document Information

Effective Date:
5/5/1997
Published:
04/03/1997
Department:
Customs Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-8447
Dates:
May 5, 1997.
Pages:
15831-15842 (12 pages)
Docket Numbers:
T.D. 97-19
RINs:
1515-AB86: Duty-Free Stores
RIN Links:
https://www.federalregister.gov/regulations/1515-AB86/duty-free-stores
PDF File:
97-8447.pdf
CFR: (25)
19 CFR 162.1(a)
19 CFR 144.34(a)
19 CFR 144.34(c)
19 CFR 19.6(d)(5)
19 CFR 19.12(d)(4)(iii)
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