[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR144.34]



[Page 73-74]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 144_WAREHOUSE AND REWAREHOUSE ENTRIES AND WITHDRAWALS--Table of 

Contents

 

                  Subpart D_Withdrawals from Warehouse

 

Sec.  144.34  Transfer to another warehouse.



    (a) At the same port. With the concurrence of the proprietors of the 

delivering and receiving warehouses, merchandise may be transferred from 

one bonded warehouse to another at the same port under Customs 

supervision and at the expense of the importer upon his written request 

to the port director, who shall issue an order for such transfer on 

Customs Form 6043. However, the port director may require the filing of 

a rewarehouse entry under Sec.  144.41 if he determines it necessary for 

proper control of the merchandise. All charges shall be paid before 

merchandise is transferred from a warehouse of class 1 (see Sec.  19.1 

of this chapter for classes of warehouses). The quantities of goods so 

transferred shall be subject to the joint determination of the warehouse 

proprietor and the cartman, lighterman, or private bonded carrier, as 

provided in Sec. 19.6 of this chapter.

    (b) At another port. Merchandise may be transferred to a warehouse 

which is under the jurisdiction of another port by withdrawing the 

merchandise for transportation in accordance with Sec.  144.36 and 

entering it for rewarehouse in accordance with Sec.  144.41 upon arrival 

at destination. All charges shall be paid before merchandise is 

transferred from the warehouse of class 1 (see Sec.  19.1 of this 

chapter for classes of warehouses).

    (c) Transfers between integrated bonded warehouses--(1) Eligibility. 

(i) Only an importer who will transfer warehoused merchandise among 

Class 2 and 9 warehouses listed on the application in paragraph (c)(2) 

of this section is eligible to participate.

    (ii) The importer must have a centralized inventory control system 

that shows the location of all of the warehoused merchandise at all 

times, including merchandise in transit.

    (iii) The importer and its surety must sign the application. If the 

application to use this alternative procedure is approved by the 

appropriate port director, the importer's entry bond containing the 

conditions provided under Sec.  113.62 of this chapter will continue to 

attach to any merchandise transferred under these alternative 

procedures.

    (iv) Each proprietor of a warehouse listed on the application and 

each surety who underwrites that proprietor's custodial bond coverage 

under Sec.  113.63 of this chapter shall sign the application.

    (2) Application. Application must be made in writing to the port 

director of the port in which the applicant's centralized inventory 

control system exists, with copies to all affected port directors, for 

exemptions from the requirements for transfer of merchandise from one 

bonded warehouse to another set forth in paragraphs (a) and (b) of this 

section. The application must list all bonded warehouses to and from 

which the merchandise may be transferred; all such warehouses must be 

covered by the same centralized inventory control system. Only blanket 

exemption requests will be considered; exemptions will not be considered 

for individual transfers. The application may be in letter form, signed 

by all participants, and contain a certification to the port director by 

the applicant that he maintains accounting records, documents and 

financial statements and reports that adequately support Customs 

activities.

    (3) Operation. An importer who receives approval to transfer 

merchandise between bonded warehouses in accordance with the provisions 

of this section may, after entry into the first warehouse, transfer that 

merchandise to any other warehouse without filing



[[Page 74]]



a withdrawal from warehouse or a rewarehouse entry. The warehoused 

merchandise will be treated as though it remains in the first warehouse 

so long as the actual location of the merchandise at all times is 

recorded as provided under the provisions of this section.

    (4) Inventory control requirements. The records required to be 

maintained must include a centralized inventory control system and 

supporting documentation which meets the following requirements:

    (i) Provide Customs upon demand with the proper on-hand balance of 

each inventory item in each warehouse facility and each storage location 

within each warehouse;

    (ii) Provide Customs upon demand with the proper on-hand balance for 

each open warehouse entry and the actual quantity in each warehouse 

facility;

    (iii) If an alternative inventory system has been approved, provide 

Customs upon demand with the proper on-hand balance for each unique 

identifier and the quantity related to each open warehouse entry and the 

quantity in each warehouse facility;

    (iv) Maintain documentation for all intracompany movements, 

including authorizations for the movement, shipping documents and 

receiving reports. These documents must show the appropriate warehouse 

entry number or unique identifier, the description and quantity of the 

merchandise transferred, and must be properly authorized and signed 

evidencing shipment from and delivery to each location;

    (v) Maintain a consolidated permit file folder at the location where 

the merchandise was originally warehoused. The consolidated permit file 

folder must meet the requirements of Sec.  19.12(d)(4) of this chapter 

regardless of the warehouse facility in which the action occurred. 

Documentation for all intracompany movements, including authorizations 

for movement, shipping documents, receiving reports, as well as 

documentation showing ultimate disposition of the merchandise must be 

filed in the consolidated permit file folder within seven business days;

    (vi) Maintain a subordinate permit file at all intracompany 

locations where merchandise is transferred containing copies of 

documentation required by Sec.  19.12(d)(4) of this chapter and by 

paragraph (c)(3)(v) of this section relating to merchandise quantities 

transferred to the location. A copy of all documents in the subordinate 

permit file folder must be filed in the consolidated permit file folder 

within seven business days; no exceptions will be granted to this 

requirement. When the final withdrawal is made on the respective entry, 

the subordinate permit file shall be considered closed and filed at the 

intracompany location to which the merchandise was transferred; and

    (vii) File the withdrawal from Customs custody at the original 

warehouse location at which the merchandise was entered.

    (5) Waiver of permit file folder requirements. The permit file 

folder requirements of paragraphs (c)(3)(v) and (c)(3)(vi) of this 

section may be waived if the proprietor's recordkeeping and inventory 

control system qualifies under the requirements of Sec.  

19.12(d)(4)(iii) of this chapter at all locations where bonded 

merchandise is stored.

    (6) Procedure not available--(i) Liens. The transfer procedures 

permitted under paragraph (c) of this section shall not be available for 

merchandise with respect to which Customs is notified of the existence 

of a lien, as prescribed in Sec.  141.112 of this chapter (see 19 U.S.C. 

1564), until proof shall be produced at the original warehouse location 

that the lien has been satisfied or discharged.

    (ii) Restricted merchandise. With the exception of alcohol and 

tobacco products, merchandise subject to a restriction on release such 

as covered by a licensing, quota or visa requirement, is not eligible.



[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 82-204, 47 

FR 49376, Nov. 1, 1982; T.D. 97-19, 62 FR 15840, Apr. 3, 1997]