[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: 19CFR146.52]



[Page 107-108]

 

                        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 E_Handling of Merchandise in a Zone

 

Sec.  146.52  Manipulation, manufacture, exhibition or destruction; 

Customs Form 216.



    (a) Application. Prior to any action, the operator shall file with 

the port director an application (or blanket application) on Customs 

Form 216 for permission to manipulate, manufacture, exhibit, or destroy 

merchandise in a zone. After Customs approves the application (or 

blanket application), the operator will retain in his recordkeeping 

system the approved application.

    (b) Approval. (1) The port director shall approve the application 

unless (i) the proposed operation would be in violation of law or 

regulation; (ii) the place designated for its performance is not 

suitable for preventing confusion of the identity or status of the 

merchandise, or for safeguarding the revenue; (iii) the port director is 

not satisfied



[[Page 108]]



that the destruction will be effective; or (iv) the Executive Secretary 

of the Board has not granted approval of a new manufacturing operation.

    (2) The port director is authorized to approve a blanket application 

for a period of up to one year for a continuous or repetitive operation. 

The port director may disapprove or revoke approval of any application, 

or may require the operator to file an individual application.

    (c) Appeal of adverse ruling. If an approved application is 

subsequently rescinded by the port director for any reason, the 

applicant or grantee may appeal the adverse ruling pursuant to the 

hearing provisions of Sec.  146.82(b)(2). The rescission shall remain in 

effect pending the decision on the appeal.

    (d) Report results--(1) Separate application. The operator shall 

report on Customs Form 216 the results of an approved manipulation, 

manufacture, exhibition, or certification of destruction (other than by 

a blanket application), unless the port director chooses physically to 

supervise the operation.

    (2) Blanket application. The operator shall maintain a record of an 

approved manipulation, manufacture, exhibition, or certification of 

destruction, in its inventory control and recordkeeping system so as to 

provide an accounting and audit trail of the merchandise through the 

approved operation.

    (e) Destruction. The port director may permit destruction to be done 

outside the zone, in whole or in part and at the risk and expense of the 

applicant, and under such conditions as are necessary to protect the 

revenue, if proper destruction cannot be accomplished within the zone. 

Any residue from the destruction within a zone, which is determined to 

be without commercial value, may be removed to Customs territory for 

disposal.