[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR10.62b]

[Page 125-127]
 
                        TITLE 19--CUSTOMS DUTIES
 
   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 
              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY
 
PART 10_ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.
--Table of Contents
 
                      Subpart A_General Provisions
 
Sec. 10.62b  Aircraft turbine fuel.

    (a) General. Unless otherwise provided, aircraft turbine fuel 
withdrawn from a Customs bonded warehouse for use under section 309, 
Tariff Act of 1930, as amended (19 U.S.C. 1309), may be commingled with 
domestic or other aircraft turbine fuel after such withdrawal only if 
such commingling is approved by the appropriate Customs official for the 
port where the commingling occurs. The appropriate Customs official may 
approve such commingling if the fueling system in which the commingling 
will occur contains adequate physical safeguards to prevent the possible 
unauthorized entry into the Customs territory of the bonded fuel. Such 
commingled fuel must be accounted for in the same 24-hour period in 
which it was commingled and must be--
    (1) Exported within that 24-hour period;
    (2) Used under section 309 within that 24-hour period; or
    (3) Entered or withdrawn for consumption, with duty deposited, as 
required under the applicable regulations (see part 144 of this 
chapter).
    (b) Duty-free withdrawal from warehouse of aircraft turbine fuel 
under section 557(a), Tariff Act of 1930, as amended (19 U.S.C. 
1557(a)). Turbine fuel intended for use as supplies on aircraft under 
section 309, Tariff Act of 1930, as amended, and withdrawn from a 
Customs bonded warehouse shall be entitled to the privileges provided 
for in section 309 if an amount equal to or exceeding the quantity of 
such fuel is established, as provided for in paragraph (c) of this 
section, to have been used on aircraft qualifying for the privileges 
provided for in section 309 within 30 days after the withdrawal of the 
fuel from the Customs bonded warehouse. Withdrawal of aircraft turbine 
fuel under this paragraph shall be in accordance with the procedures in 
Sec. Sec. 10.59 through 10.64, unless otherwise provided in this 
section. Withdrawals under this paragraph shall be annotated with the 
term ``Withdrawal under 19 CFR 10.62b(b)''.
    (c) Establishment of use of fuel by qualifying aircraft. (1) The 
person withdrawing aircraft turbine fuel under paragraph (b) of this 
section must establish that an aircraft qualifying for the privileges 
provided for in section 309, Tariff Act of 1930, as amended, used fuel 
in an amount equal to or exceeding the quantity of the fuel withdrawn 
that is not entered and upon which duties are not paid by submitting to 
Customs, at the port where the bonded warehouse entry was filed, within 
the time provided in paragraph (d) of this section, either--
    (i) Records prepared in the normal course of business effecting the 
transfer to identified (e.g., by aircraft company name, flight number, 
flight origin and destination, and date of flight) aircraft of fuel in 
an amount equal to or exceeding the quantity of the fuel withdrawn which 
is not entered and on which duties are not paid and objective evidence 
that the aircraft to which the fuel was transferred were actually used 
in trade qualifying for the privileges provided in section 309, Tariff 
Act of 1930, as amended; or
    (ii) A certification (documentary or electronic) that:
    (A) All of the fuel withdrawn was intended for use on aircraft 
entitled to the privileges provided for in section 309;
    (B) Within 30 days of the date of withdrawal from warehouse, an 
amount of fuel equal to or exceeding the quantity of the fuel withdrawn 
which is not entered and on which duties are not paid was transferred as 
supplies to aircraft entitled to the privileges provided for in section 
309;
    (C) All of the aircraft into which fuel is loaded hereunder were 
used in a trade provided for in section 309; and
    (D) The person making the certification possesses evidence 
(documentary or electronic) available for Customs inspection at a named 
place which supports each of the above statements.
    (2) Upon request by Customs, the person who submits the 
certification provided for in paragraph (c)(1) of this section shall 
promptly provide the evidence required to support the claim for

[[Page 126]]

treatment under this section (including the records described in Sec. 
10.62b(c)(1)(i)) and Sec. Sec. 10.62 and 19.6(d) and each of the 
statements in the certification.
    (d) Time for establishment of use of fuel by qualifying aircraft. 
The person withdrawing aircraft turbine fuel under paragraph (b) of this 
section shall submit the records or certification provided for in 
paragraph (c) of this section by the 40th day after the date of 
withdrawal of the fuel unless the fuel was withdrawn under a blanket 
withdrawal under paragraph (g) of this section. If the fuel was 
withdrawn under a blanket withdrawal, the person withdrawing aircraft 
turbine fuel under this section shall submit the records or 
certification provided for in paragraph (c) of this section by the 40th 
day after all of the fuel covered by the blanket permit to withdraw has 
been withdrawn.
    (e) Treatment of turbine fuel withdrawn but not used on qualifying 
aircraft within 30 days. If turbine fuel is withdrawn from a Customs 
bonded warehouse under paragraph (b) of this section but fuel in an 
amount less than the quantity withdrawn is established to have been used 
within 30 days of the date of withdrawal from warehouse on aircraft 
qualifying for the privileges provided for in section 309, Tariff Act of 
1930, as amended, a withdrawal for consumption shall be filed and duties 
shall be deposited for the excess of fuel so withdrawn over that used on 
aircraft so qualifying. Such withdrawal shall be filed and such duties 
shall be deposited by the 40th day after the date of withdrawal of the 
fuel in accordance with the procedures in Sec. 144.38 of this chapter. 
Interest shall be payable and deposited with such duties, calculated 
from the date of withdrawal at the rate of interest established under 26 
U.S.C. 6621.
    (f) Liquidated damages. Failure to account for turbine fuel 
withdrawn under paragraphs (b) through (h) of this section shall result 
in liquidated damages against the person withdrawing the turbine fuel, 
as provided for under Sec. 113.62 of this chapter. Such failure to 
account for turbine fuel includes:
    (1) The failure to timely file the withdrawal for consumption and 
payment of duty, with interest, on the quantity of fuel so withdrawn in 
excess of the quantity of fuel established to have been used on 
qualifying aircraft within 30 days of withdrawal, as provided for in 
paragraph (e) of this section;
    (2) The failure to timely file the evidence or certification 
establishing such use of the fuel which is not entered and on which 
duties are not paid, as provided for in paragraph (c) of this section; 
or
    (3) The failure to promptly provide the evidence required to support 
the claim for treatment under paragraph (b) of this section, upon 
request by Customs, as provided for in paragraph (c)(2) of this section.
    (g) Blanket withdrawals. Blanket withdrawals, as provided for in 
Sec. Sec. 10.62 and 19.6(d), may be used for withdrawals from warehouse 
under section 557(a), Tariff Act of 1930, as amended, and paragraphs (b) 
through (h) of this section, under the procedures provided in Sec. Sec. 
10.62 and 19.6(d) except that--
    (1) Application by the withdrawer for a blanket permit to withdraw 
shall be on the warehouse entry, or on the warehouse entry/entry summary 
when used as an entry, annotated with the words ``Some or all of the 
merchandise will be withdrawn under blanket permit per Sec. Sec. 10.62, 
10.62b, and 19.6(d).'';
    (2) Turbine fuel withdrawn under a blanket permit as authorized in 
this paragraph may be delivered at a port other than the port of 
withdrawal;
    (3) Customs acceptance of a properly completed application for a 
blanket permit to withdraw, on the warehouse entry or warehouse entry/
entry summary, will constitute approval of the blanket permit to 
withdraw;
    (4) A copy of the approved blanket permit to withdraw will be 
delivered to the warehouse proprietor, whereupon fuel may be withdrawn 
under the terms of the blanket permit;
    (5) The withdrawal document to be placed in the proprietor's permit 
file folder (see Sec. 19.6(d)(2)) will be a commercially acceptable 
document of receipt (such as a ``withdrawal ticket'') issued by the 
warehouse proprietor, identified with a unique alpha-numeric code and 
containing the following information:
    (i) Identity of withdrawer;

[[Page 127]]

    (ii) Identity of warehouse and tank from which fuel is withdrawn;
    (iii) Date of withdrawal;
    (iv) Type of merchandise withdrawn; and
    (v) Quantity of merchandise withdrawn.
    (6) The date of withdrawal, for purposes of calculating the 30-day 
period in which fuel must be used on qualifying aircraft under this 
section, shall be the date on which physical removal of the fuel from 
the warehouse commences;
    (7) The blanket permit summary prepared by the proprietor as 
provided for in Sec. 19.6(d)(4) shall be prepared when all of the fuel 
covered by the blanket permit has been withdrawn and shall account for 
all merchandise withdrawn under the blanket permit, as required by Sec. 
19.6(d)(4), by stating, in summary form, the unique alpha-numeric codes 
and information required in paragraph (g)(5) of this section, as well as 
the identity of the warehouse entry to which the withdrawal is 
attributed;
    (8) The certification on the blanket permit summary (see Sec. 
19.6(d)(4)) shall be that the merchandise listed thereunder was 
withdrawn in compliance with Sec. Sec. 10.62, 10.62b, and 19.6(d); and
    (9) The person withdrawing aircraft turbine fuel under these blanket 
procedures shall submit the records or certification provided for in 
Sec. 10.62b(c) by the 40th day after all of the fuel covered by the 
blanket permit has been withdrawn (see Sec. 10.62b(d)). At the 
discretion of the port director for the port where blanket withdrawal 
was approved, submission of the records and evidence required to 
establish use of the fuel on qualifying aircraft may be required to be 
submitted electronically, in a format compatible with Customs electronic 
record-keeping systems.
    (h) Recordkeeping. The person withdrawing aircraft turbine fuel from 
warehouse under this section is 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 6778, Feb. 22, 1996, as amended by T.D. 99-33, 64 FR 
16347, Apr. 5, 1999]