[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR146.40]

[Page 102-103]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 146--FOREIGN TRADE ZONES--Table of Contents
 
              Subpart C--Admission of Merchandise to a Zone
 
Sec. 146.40  Operator responsibilities for direct delivery.

    (a) Arrival of conveyance. Upon arrival at a subzone or zone site of 
a conveyance containing foreign merchandise, the operator shall:
    (1) Collect in-bond or cartage documentation from the carrier;
    (2) Check the condition of any seal affixed to the conveyance, and 
if broken, missing or improperly affixed, notify the port director and 
receive instructions before unloading the merchandise;
    (3) Check each incoming in-bond and cartage shipment to determine if 
the manifested quantity or the quantity on the cartage document agrees 
with the quantity actually received;
    (4) Sign and date the in-bond or cartage documentation to accept 
responsibility for the merchandise under the Foreign Trade Zone 
Operator's Bond and to relieve the carrier of responsibility.
    (5) Forward the in-bond or cartage documentation so as to reach the 
port director within 2 working days after the date of arrival of the 
conveyance at the subzone or zone site;
    (6) Maintain a file of open in-bond manifests in chronological order 
of date of conveyance arrival to identify

[[Page 103]]

shipments that have arrived but the entire contents of which have not 
been admitted to the subzone or zone site; and
    (7) Notify the port director, by annotation on the Customs Form 214, 
when the entire contents of a shipment have been admitted.
    (b) Transportation by operator. If merchandise is transported to a 
subzone or zone site by the foreign trade zone operator from a location 
in the district (see definition of ``district'' at Sec. 112.1) in which 
the subzone or zone site is situated, the merchandise is deemed admitted 
at the time the foreign trade zone operator picks it up. At the time of 
pick-up, the operator is responsible for:
    (1) Receipting for the merchandise and recording on the appropriate 
document any discrepancies regarding quantity, condition or the status 
of the seals;
    (2) Transporting the merchandise to the zone or subzone; and
    (3) Ensuring that the zone records reflect that the merchandise is 
received in the zone.
    (c) Admission of merchandise: alternative procedures--(1) Cumulative 
Customs Form 214. If the operator has an agreement with the Bureau of 
Census for direct transmittal of statistical information, he shall 
submit to the port director each business day a properly signed and 
uniquely numbered Customs Form 214 listing all merchandise except for 
domestic status merchandise admitted under Sec. 146.43 recorded into the 
inventory control and recordkeeping system during the previous business 
day. The Customs Form 214 must contain a list of all in-bond (I.T.) 
numbers or the unique number of any cartage document, as well as the 
number of invoices for each I.T. or cartage document, pertaining to 
merchandise which has been entered into the system.
    (2) Individual Customs Form 214. If a cumulative Customs Form 214 is 
not submitted as provided in paragraph (b)(1) of this section, the 
operator shall file with the port director each business day an 
individual Customs Form 214 and 214-A covering each shipment recorded 
into the inventory control and recordkeeping system during the previous 
business day. The forms shall be submitted within 10 days after the end 
of the month in which the merchandise was received in the zone, and no 
extension beyond that time will be approved by the port director.
    (3) General order. Merchandise not admitted into a subzone or zone 
site as provided in this section within 15 calendar days after its 
arrival there shall be disposed of in accordance with the applicable 
procedures in Sec. 4.37 or Sec. 122.50 or Sec. 123.10 of this chapter.
    (4) Inventory control and recordkeeping system. The operator shall 
establish and maintain a continuing input quality control program to 
ensure that information concerning merchandise in admission documents, 
verified or corrected by counts and checks, is accurately recorded in 
the inventory control and recordkeeping system. Quantities recorded in 
the system, after allowance by the port director for any discrepancies, 
will be the quantities of merchandise for which the operator shall be 
held liable under its bond for admission to the subzone or zone site. A 
discrepancy involving a within-case shortage (or overage) need not be 
reported on Customs Form 5931, if the operator is able to report that 
information in another manner so that the port director can determine 
whether there is liability for the discrepancy under the bond of any 
party to the importation.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 94-81, 59 FR 
51497, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 98-
74, 64 FR 6801, Feb. 11, 1999]