[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: 19CFR118.21]



[Page 581-582]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 118_CENTRALIZED EXAMINATION STATIONS--Table of Contents

 

                     Subpart C_Termination of a CES

 

Sec.  118.21  Temporary suspension; permanent revocation of selection 

and cancellation of agreement to operate a CES.





    The port director may immediately suspend or propose permanent 

revocation and cancellation of CES operations for cause as provided in 

this section.

    (a) Immediate suspension. The port director may immediately suspend, 

for a temporary period of time or until revocation and cancellation 

proceedings are concluded pursuant to Sec.  118.23, a CES operator's or 

entity's selection and the written agreement to operate the CES if:

    (1) The selection and written agreement were obtained through fraud 

or the misstatement of a material fact; or

    (2) The CES operator or an officer of a corporation which is a CES 

operator or a person the port director determines is exercising 

substantial ownership or control over such operator or officer is 

indicted for, convicted of, or has committed acts, which would 

constitute a felony, or a misdemeanor involving theft or a theft-

connected crime. In the absence of an indictment or conviction, the port 

director must have probable cause to believe the proscribed acts 

occurred.

    (b) Proposed revocation and cancellation. The port director may 

propose to revoke the selection as operator and cancel the agreement to 

operate a CES if:

    (1) The CES operator refuses or otherwise fails to follow any proper 

order of a Customs officer or any Customs order, rule, or regulation 

relative to the operation of a CES, or fails to operate in accordance 

with the terms of his agreement or to comply with any of the provisions 

of Sec.  118.4 of this part;

    (2) The CES operator fails to retain merchandise which has been 

designated for examination;

    (3) The CES operator does not provide secure facilities or properly 

safeguard merchandise within the CES;

    (4) The CES operator fails to furnish a current list of names, 

addresses and other information required by Sec.  118.4 of this part; or



[[Page 582]]



    (5) The custodial bond required by Sec.  118.4 of this part is 

determined to be insufficient in amount or lacking sufficient sureties, 

and a satisfactory new bond with good and sufficient sureties is not 

furnished within a reasonable time.

    (6) The CES operator or an officer of a corporation which is a CES 

operator or a person the port director determines is exercising 

substantial ownership or control over such operator or officer is 

indicted for, convicted of, or has committed acts, which would 

constitute any of the offenses listed under paragraph (a) of this 

section. Where adverse action is initiated by the port director pursuant 

to paragraph (a) of this section and continued under this paragraph, the 

suspension of CES activities remains in effect through the appeal 

procedures provided under Sec.  118.23.

    (c) Circumstance of change in employment not a bar to adverse 

action. Any change in the employment status of a corporate officer (for 

example, discharge, resignation, demotion, or promotion) prior to 

indictment or conviction or after committing any acts which would 

constitute the culpable behavior described under paragraph (a) of this 

section, will not preclude application of this section, but may be taken 

into account by the port director in exercising discretion to take 

adverse action. If the person whose employment status changed remains in 

a substantial ownership, control, or beneficial relationship with the 

CES operator, this factor will also be considered in exercising 

discretion under this section.



[T.D. 93-6, 58 FR 5604, Jan. 22, 1993; 58 FR 6574, Jan. 29, 1993, as 

amended by T.D. 96-57, 61 FR 39071, July 26, 1996]