[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR19.3]

[Page 300-302]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 19--CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF MERCHANDISE THEREIN--Table of Contents
 
Sec. 19.3  Bonded warehouses; alterations; relocation; suspensions; discontinuance.

    (a) Alterations or relocation. Alterations to or relocation of a 
warehouse may be made with the permission of the director of the port 
nearest to where the facility is located.
    (b) Suspensions. The use of all or part of a bonded warehouse or 
bonded floor space may be temporarily suspended by the port director of 
a period not to exceed one year on written application of the proprietor 
if there are no bonded goods in the area. Upon written application of 
the proprietor and upon the removal of all nonbonded goods, if any, the 
premises may again be used for the

[[Page 301]]

storage of bonded goods. If the application is approved, the port 
director shall indicate the approval by endorsement on the application. 
Rebonding will not be necessary as long as the original bond remains in 
force.
    (c) Discontinuance. If a proprietor wishes to discontinue the bonded 
status of the warehouse, he shall make written application to the port 
director. The port director shall not approve the application until all 
goods in the warehouse are transferred to another bonded warehouse 
without expense to the Government. To reestablish the bonded warehouse, 
application shall be made and approved under the provision of Sec. 19.2 
of this chapter.
    (d) Employee lists. The port director may make a written demand upon 
the proprietor to submit, within 30 days after the date of demand, a 
written list of the names, addresses, social security numbers, and dates 
and places of birth of all persons employed by the proprietor in the 
carriage, receiving, storage, or delivery of any bonded merchandise. If 
a list has been previously furnished the proprietor shall advise the 
port director in writing of the names, addresses, social security 
numbers, and dates and places of birth of any new personnel employed by 
him in the carriage, receiving, storage, or delivery of bonded 
merchandise within 10 days after such employment. For the purpose of 
this part a person shall not be deemed to be employed by a warehouse 
proprietor if he is an officer or employee of an independent contractor 
engaged by the warehouse proprietor to load, unload, transport, or 
otherwise handle bonded merchandise.
    (e) Revocation or suspension for cause. The port director may revoke 
or suspend for cause the right of a proprietor to continue the bonded 
status of the warehouse for any ground specified in this paragraph. An 
action to suspend or revoke the right to operate a bonded warehouse 
shall be taken in accordance with the procedures set forth in paragraph 
(f) of this section. If the bonded status is revoked or suspended for 
cause, the port director shall require all goods in the warehouse to be 
transferred to a bonded warehouse without expense to the Government. The 
bonded status of a warehouse may be revoked or suspended for cause if:
    (1) The approval of the application to bond the warehouse was 
obtained through fraud or the misstatement of a material fact;
    (2) The warehouse proprietor refuses or neglects to obey any proper 
order of a Customs officer or any Customs order, rule, or regulation 
relative to the operation or administration of a bonded warehouse;
    (3) The warehouse proprietor or an officer of a corporation which 
has been granted the right to operate a bonded warehouse is convicted of 
or has committed acts which would constitute a felony, or a misdemeanor 
involving theft, smuggling, or a theft-connected crime. Any change in 
the employment status of the corporate officer, (e.g., discharge, 
resignation, demotion, or promotion) prior to conviction of a felony or 
prior to conviction of a misdemeanor involving theft, smuggling, or a 
theft-connected crime, resulting from acts committed while a corporate 
officer, will not preclude application of this provision;
    (4) The warehouse proprietor does not provide secured facilities or 
properly safeguard merchandise within the bonded warehouse;
    (5) The warehouse proprietor fails to furnish a current list of 
names, addresses, and other information required by Sec. 19.3(d);
    (6) The bond required by Sec. 19.2(c) or (d) of this chapter is 
determined to be insufficient in amount or lacking sufficient sureties, 
and a satisfactory new bond with goods and sufficient sureties is not 
furnished within a reasonable time;
    (7) Bonded merchandise has not been stored in the warehouse for a 
period of 2 year; or
    (8) The warehouse proprietor or an employee of the warehouse 
proprietor discloses proprietary information in, or proprietary 
information contained on, documents to be included in the permit file 
folder to an unauthorized person.
    (9) The proprietor of a Class 9 warehouse is or has been unable to 
provide reasonable assurance that conditionally duty-free merchandise is 
or was exported in compliance with the regulations of this part.

[[Page 302]]

    (f) Procedure for revocation or suspension for cause. The port 
director may at any time serve notice in writing upon any proprietor of 
a bonded warehouse to show cause why his right to continue the bonded 
status of his warehouse should not be revoked or suspended for cause. 
Such notice shall advise the proprietor of the grounds for the proposed 
action and shall afford the proprietor an opportunity to respond in 
writing within 30 days. Thereafter, the port director shall consider the 
allegations and responses made by the proprietor unless the proprietor 
in his response requests a hearing. If a hearing is requested, it shall 
be held before a hearing officer designated by the Commissioner of 
Customs or his designee within 30 days following the proprietor's 
request. The proprietor may be represented by counsel at such hearing, 
and all evidence and testimony of witnesses in such proceedings, 
including substantiation of the allegations and the responses thereto 
shall be presented, with the right of cross-examination to both parties. 
A stenographic record of any such proceeding shall be made and a copy 
thereof shall be delivered to the proprietor of the warehouse. At the 
conclusion of the hearing, the hearing officer shall promptly transmit 
all papers and the stenographic record of the hearing to the Assistant 
Commissioner, Office of Field Operations or designee together with his 
recommendation for final action. The proprietor may submit in writing 
additional views or arguments to the Assistant Commissioner, Office of 
Field Operations or designee following a hearing on the basis of the 
stenographic record, within 10 days after delivery to him of a copy of 
such record. The Assistant Commissioner, Office of Field Operations or 
designee shall thereafter render his decision in writing, stating his 
reasons therefor. Such decision shall be served on the proprietor of the 
warehouse, and shall be considered the final administrative action.
    (g) Review by the Court of International Trade. Any proprietor 
adversely affected by a decision of the Assistant Commissioner, Office 
of Field Operations or designee may appeal the decision in the Court of 
International Trade.

[T.D. 82-204, 47 FR 49369, Nov. 1, 1982, as amended by T.D. 85-90, 50 FR 
21431, May 24, 1985; T.D. 88-63, 53 FR 40219, Oct. 14, 1988; T.D. 92-81, 
57 FR 37697, Aug. 20, 1992; T.D. 95-99, 60 FR 62733, Dec. 7, 1995; T.D. 
99-27, 64 FR 13675, Mar. 22, 1999]