[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 127-130]

 

                        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withdrawn from a Customs bonded warehouse for use under section 309, 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



[[Page 128]]



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    (3) Entered or withdrawn for consumption, with duty deposited, as 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section 309, Tariff Act of 1930, as amended, and withdrawn from a 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 

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



[[Page 129]]



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;

    (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



[[Page 130]]



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]