[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: 19CFR18.31]

[Page 287-288]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 18--TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT--Table of Contents
 
Sec. 18.31  Pipeline transportation of bonded merchandise.

    (a) General. Merchandise may be transported by pipeline under the 
procedures in this part, as appropriate and unless otherwise 
specifically provided for in this section.
    (b) Bill of lading to account for merchandise. Unless Customs has 
reasonable cause to suspect fraud, Customs shall accept a bill of lading 
or equivalent document of receipt issued by the pipeline operator to the 
shipper and accepted by the consignee to account for the quantity of 
merchandise transported by pipeline and to maintain the identity of the 
merchandise.
    (c) Procedures when pipeline is only carrier. When a pipeline is the 
only carrier of bonded merchandise and there is no transfer to another 
carrier, the bill of lading or equivalent document of receipt issued by 
the pipeline operator to the shipper shall be included with, and made a 
part of, the Customs in-bond document (see Sec. 18.2(b)). If there are 
no discrepancies between the bill of lading or equivalent document of 
receipt and the other documents making up the in-bond manifest for the 
merchandise, and provided that Customs has no reasonable cause to 
suspect fraud, the bill of lading or equivalent document of receipt 
shall be accepted by Customs at the port of destination or exportation 
(see Secs. 18.2(d) and 18.7) as establishing the quantity and identity 
of the merchandise transported. The pipeline operator shall be 
responsible for any discrepancies, including shortages, irregular 
deliveries, or nondeliveries at the port of destination or exportation 
(see Sec. 18.8).
    (d) Procedures when there is more than one carrier (i.e., transfer 
of the merchandise)--(1) Pipeline as initial carrier. When a pipeline is 
the initial carrier of bonded merchandise and the merchandise is 
transferred to another conveyance (either a different mode of 
transportation or a pipeline operated by another operator), the 
procedures in Sec. 18.3 and paragraph (c) of this section shall be 
followed, except that--
    (i) When the merchandise is to be transferred to one conveyance, a 
copy of the bill of lading or equivalent document issued by the pipeline 
operator to the shipper shall be delivered to the person in charge of 
the conveyance for delivery, along with the in-bond document, to the 
appropriate Customs official at the port of destination or exportation; 
or
    (ii) When the merchandise is to be transferred to more than one 
conveyance, a copy of the bill of lading or equivalent document issued 
by the pipeline operator to the shipper shall be delivered to the person 
in charge of each additional conveyance, along with the two additional 
copies of the in-bond document, for delivery to the appropriate Customs 
official at the port of destination or exportation.
    (2) Transfer to pipeline from initial carrier other than a pipeline. 
When bonded merchandise initially transported by a carrier other than a 
pipeline is transferred to a pipeline, the procedures in Sec. 18.3 and 
paragraph (c) of this section shall be followed, except that the bill of 
lading or other equivalent document of receipt issued by the pipeline 
operator to the shipper shall be delivered, along with the in-bond 
document, to the appropriate Customs officer at the port of destination 
or exportation.
    (3) Initial carrier liable for discrepancies. In the case of either 
paragraph (d)(1) or (d)(2) of this section, the initial carrier shall be 
responsible for any

[[Page 288]]

discrepancies, including shortages, irregular deliveries, or 
nondeliveries, at the port of destination or exportation (see 
Sec. 18.8).
    (e) Recordkeeping. The shipper, pipeline operator, and consignee are 
subject to the recordkeeping requirements in 19 U.S.C. 1508 and 1509, as 
provided for in part 162 of this chapter.

[T.D. 96-18, 61 FR 6779, Feb. 22, 1996]

  Merchandise Not Otherwise Subject to Customs Control Exported Under 
                          Cover of a TIR Carnet