[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: 19CFR146.40]



[Page 105-106]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 146_FOREIGN TRADE ZONES--Table of Contents

 

              Subpart C_Admission of Merchandise to a Zone

 

Sec.  146.40  Operator responsibilities for direct delivery.



    (a) Arrival of conveyance. Upon arrival at a subzone or zone site of 

a conveyance containing foreign merchandise, the operator shall:

    (1) Collect in-bond or cartage documentation from the carrier;

    (2) Check the condition of any seal affixed to the conveyance, and 

if broken, missing or improperly affixed, notify the port director and 

receive instructions before unloading the merchandise;

    (3) Check each incoming in-bond and cartage shipment to determine if 

the manifested quantity or the quantity on the cartage document agrees 

with the quantity actually received;

    (4) Sign and date the in-bond or cartage documentation to accept 

responsibility for the merchandise under the Foreign Trade Zone 

Operator's Bond and to relieve the carrier of responsibility.

    (5) Forward the in-bond or cartage documentation so as to reach the 

port director within 2 working days after the date of arrival of the 

conveyance at the subzone or zone site;

    (6) Maintain a file of open in-bond manifests in chronological order 

of date of conveyance arrival to identify shipments that have arrived 

but the entire contents of which have not been admitted to the subzone 

or zone site; and

    (7) Notify the port director, by annotation on the Customs Form 214, 

when the entire contents of a shipment have been admitted.

    (b) Transportation by operator. If merchandise is transported to a 

subzone or zone site by the foreign trade zone operator from a location 

in the district (see definition of ``district'' at Sec.  112.1) in which 

the subzone or zone site is situated, the merchandise is deemed admitted 

at the time the foreign trade zone operator picks it up. At the time of 

pick-up, the operator is responsible for:

    (1) Receipting for the merchandise and recording on the appropriate 

document any discrepancies regarding quantity, condition or the status 

of the seals;

    (2) Transporting the merchandise to the zone or subzone; and

    (3) Ensuring that the zone records reflect that the merchandise is 

received in the zone.

    (c) Admission of merchandise: alternative procedures--(1) Cumulative 

Customs Form 214. If the operator has an agreement with the Bureau of 

Census for direct transmittal of statistical information, he shall 

submit to the port director each business day a properly signed and 

uniquely numbered Customs Form 214 listing all merchandise except for 

domestic status merchandise admitted under Sec.  146.43 recorded into 

the inventory control and recordkeeping system during the previous 

business day. The Customs Form 214 must contain a list of all in-bond 

(I.T.) numbers or the unique number of any cartage document, as well as 

the number of invoices for each I.T. or cartage document, pertaining to 

merchandise which has been entered into the system.

    (2) Individual Customs Form 214. If a cumulative Customs Form 214 is 

not submitted as provided in paragraph (b)(1) of this section, the 

operator shall file with the port director each business day an 

individual Customs Form 214 and 214-A covering each shipment recorded 

into the inventory control and recordkeeping system during the previous 

business day. The forms shall be submitted within 10 days after the end 

of the month in which the merchandise was received in the zone, and no 

extension beyond that time will be approved by the port director.

    (3) General order. Merchandise not admitted into a subzone or zone 

site as provided in this section within 15 calendar days after its 

arrival there shall be disposed of in accordance with the applicable 

procedures in Sec.  4.37 or Sec.  122.50 or Sec.  123.10 of this 

chapter.

    (4) Inventory control and recordkeeping system. The operator shall 

establish and maintain a continuing input quality control program to 

ensure that information concerning merchandise in admission documents, 

verified or corrected by counts and checks, is accurately recorded in 

the inventory control and recordkeeping system. Quantities recorded in 

the system, after allowance by the port director for any discrepancies, 

will be the quantities of merchandise for which the operator



[[Page 106]]



shall be held liable under its bond for admission to the subzone or zone 

site. A discrepancy involving a within-case shortage (or overage) need 

not be reported on Customs Form 5931, if the operator is able to report 

that information in another manner so that the port director can 

determine whether there is liability for the discrepancy under the bond 

of any party to the importation.



[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 94-81, 59 FR 

51497, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 98-

74, 64 FR 6801, Feb. 11, 1999]