[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR118.4]

[Page 523]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 118--CENTRALIZED EXAMINATION STATIONS--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 118.4  Responsibilities of a CES operator.

    By signing the agreement and commencing operation of a CES, an 
operator agrees to:
    (a) Maintain the facility designated as the CES in conformity with 
the security standards as outlined in the approved application;
    (b) Provide adequate personnel and equipment to ensure reliable 
service for the opening, presentation for inspection, and closing of all 
types of cargo designated for examination by Customs. Such service must 
be provided on a ``first come-first served'' basis;
    (c) Assess service fees as outlined in the fee schedule included in 
the approved application or as changed under Sec. 118.5 of this part and 
bill users directly for services rendered;
    (d) Assume responsibility for any charges or expenses incurred in 
connection with the operation of the CES;
    (e) Maintain, at his own expense, adequate liability insurance with 
respect to the property within his control and with respect to persons 
having access to the CES;
    (f) Keep current the list filed with the port director pursuant to 
Sec. 118.11(f) of this part. Additions to or deletions from the list 
must be submitted in writing to the port director within 10 calendar 
days of the commencement or termination of employement;
    (g) Maintain a Customs custodial bond in an amount set by the port 
director. The CES operator will accept and keep safe all merchandise 
delivered to the CES for examination. The bond will include liability 
for transporting merchandise to the CES from within the district 
boundaries (see definition of ``district'' at Sec. 112.1); such 
liability is assumed by the CES operator when he picks up merchandise 
for transportation to his facility. The operator also agrees to increase 
the amount of the bond if deemed appropriate by the port director.
    (h) Maintain and make available for Customs examination all records 
connected with the operation of the CES in accordance with part 162 of 
this chapter and retain such records for a period of not less than five 
years from the date of the transaction or examination conducted pursuant 
to the agreement to operate the CES;
    (i) Submit, if requested by Customs, the fingerprints of all 
employees involved in the CES operation;
    (j) Provide office space, parking spaces, appropriate sanitary 
facilities, and potable water to Customs personnel at no charge or a 
charge of $1 per year; and
    (k) Perform in accordance with any other reasonable requirements 
imposed by the port director.
    (l) Provide transportation for merchandise to the CES from within 
the district boundaries (see definition of ``district'' at Sec. 112.1). 
This responsibility is optional. If the CES operator chooses to provide 
transportation, he shall receipt for the merchandise when he picks it up 
and assume liability for the merchandise at that time.

[T.D. 93-6, 58 FR 5604, Jan. 22, 1993, as amended by T.D. 94-81, 59 FR 
51495, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 98-
29, 63 FR 16684, Apr. 6, 1998]