[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: 19CFR4.12]

[Page 16]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES--Table of Contents
 
Sec. 4.12  Explanation of manifest discrepancy.

    (a)(1) Vessel masters or agents shall notify the port director on 
Customs Form 5931 of shortages (merchandise manifested, but not found) 
or overages (merchandise found, but not manifested) of merchandise.
    (2) Shortages shall be reported to the port direct by the master or 
agent of the vessel by endorsement on the importer's claim for shortage 
on Customs Form 5931 as provided for in Sec. 158.3 of this chapter, or 
within 60 days after the date of entry of the vessel, whichever is 
later. Satisfactory evidence to support the claim of nonimportation or 
of proper disposition or other corrective action (see Sec. 4.34) shall 
be obtained by the master or agent and shall be retained in the 
carrier's file for one year.
    (3) Overages shall be reported to the port director within 60 days 
after the date of entry of the vessel by completion of a post entry or 
suitable explanation of corrective action (see Sec. 4.34) on the Customs 
Form 5931.
    24-27 [Reserved]
    (4) The port director shall immediately advise the master or agent 
of those discrepancies which are not reported by the master or agent. 
Notification may be in any appropriate manner, including the furnishing 
of a copy of Customs Form 5931 to the master or agent. The master or 
agent shall satisfactorily resolve the matter within 30 days after the 
date of such notification, or within 60 days after entry of the vessel, 
whichever is later.
    (5)(a) Unless the required notification and explanation is made 
timely and the port director is satisfied that the discrepancies 
resulted from clerical error or other mistake and that there has been no 
loss of revenue (and in the case of a discrepancy not initially reported 
by the master or agent that there was a valid reason for failing to so 
report), applicable penalties under section 584, Tariff Act of 1930, as 
amended (19 U.S.C. 1584), shall be assessed (see Sec. 162.31 of this 
chapter). For purposes of this section, the term ``clerical error'' is 
defined as a non-negligent, inadvertent, or typographical mistake in the 
preparation, assembly, or submission (electronically or otherwise) of 
the manifest. However, repeated similar manifest discrepancies by the 
same parties may be deemed the result of negligence and not clerical 
error or other mistake. For the purpose of assessing applicable 
penalties, the value of the merchandise shall be determined as 
prescribed in Sec. 162.43 of this chapter. The fact that the master or 
owner had no knowledge of a discrepancy shall not relieve him from the 
penalty.
    (b) Except as provided in paragraph (c) of this section, a 
correction in the manifest shall not be required in the case of bulk 
merchandise if the port director is satisfied that the difference 
between the manifested quantity and the quantity unladen, whether the 
difference constitutes an overage or a shortage, is an ordinary and 
usual difference properly attributable to absorption of moisture, 
temperature, faulty weighing at the port of lading, or other similar 
reason. A correction in the manifest shall not be required because of 
discrepancies between marks or numbers on packages of merchandise and 
the marks or numbers for the same packages as shown on the manifest of 
the importing vessel when the quantity and description of the 
merchandise in such packages are correctly given.
    (c) Manifest discrepancies (shortages and overages) of petroleum and 
petroleum products imported in bulk shall be reported on Customs Form 
5931, if the discrepancy exceeds one percent.

[T.D. 80-142, 45 FR 36383, May 30, 1980, as amended by T.D. 99-64, 64 FR 
43265, Aug. 10, 1999]

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