[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: 19CFR146.71]



[Page 114-115]

 

                        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 F_Transfer of Merchandise From a Zone

 

Sec.  146.71  Release and removal of merchandise from zone.



    (a) General. Except as provided for in Sec.  146.43, no merchandise 

will be transferred from a zone without a Customs permit on the 

appropriate entry or withdrawal form or other document as required in 

this part. This port director may authorize transfer from a zone without 

physical supervision or examination by a Customs officer. Upon issuance 

of a permit, the port director will authorize delivery of the 

merchandise only to the operator, who then may release the merchandise 

to the importer or carrier.



[[Page 115]]



    (b) Liability for discrepancy. When a transfer is not physically 

supervised by a Customs officer, the operator will be relieved of 

responsibility only for the merchandise in a zone in the condition and 

quantity as shown on the entry, withdrawal, or other appropriate form. 

The operator will be relieved of responsibility only if it receives the 

signed receipt on the document of the importer or the carrier named in 

that document. The responsibility of the operator may be adjusted by any 

discrepancy report made jointly by the operator and the bonded cartman, 

lighterman, or carrier, or the importer, and signed by the above or an 

authorized representative within 15 days after transfer of the 

merchandise from the zone. Any adjustment must be noted on the permit 

copy of the entry, withdrawal, or other appropriate form or document. A 

copy of any joint report of discrepancy must be submitted to the port 

director within 10 working days of signing by the parties.

    (c) Time limit. Except in the case of articles for use in a zone, 

merchandise for which a Customs permit for transfer to Customs territory 

has been issued must be physically removed from the zone within 5 

working days of issuance of that permit. The port director, upon request 

of the operator, may extend that period for good cause. Merchandise 

awaiting removal within the required time limit will not be further 

manipulated or manufactured in the zone, but will be segregated or 

otherwise identified by the operator as merchandise that has been 

constructively transferred to Customs territory.

    (d) Retention or return of merchandise to zone for consumption. (1) 

The port director shall cancel any entry for consumption where: (i) The 

merchandise is not removed from the zone within the period specified in 

paragraph (c) of this section, or (ii) the merchandise was removed from 

the zone but did not enter the commerce of the U.S. in Customs territory 

and was subsequently readmitted to a zone in domestic status. If the 

port director has reason to believe any new entry would be cancelled 

under the provisions of this paragraph, he may reject the entry or 

demand a written stipulation, as a condition of entry acceptance, that 

the merchandise will not be returned to a zone in domestic status. 

Merchandise covered by an entry which has been cancelled under this 

paragraph shall be restored to its last foreign status.

    (2) A component of merchandise which has been entered, but not 

physically removed from a zone, shall be restored to its last zone 

status, provided the port director determines that the component was 

included in the entry through clerical error, mistake of fact, or other 

inadvertence not amounting to an error in the construction of the law. 

Such an error, including that in appraisement of any entry or 

liquidation due to the above circumstances, may be corrected pursuant to 

section 520(c)(1), Tariff Act of 1930, as amended (19 U.S.C. 

1520(c)(1)), in accordance with the procedures described in part 173 of 

this chapter. If the port director decides there has been no error, 

mistake, or inadvertence, or that the information was not timely 

provided, the component will be considered as an overage and subject to 

the provisions of Sec.  146.53(d).

    (3) When merchandise which has been entered for consumption is 

subsequently returned to a zone for a reason other than that specified 

in paragraph (d)(1) of this section, it shall be admitted in domestic 

status.



[T.D. 86-16, 51 FR 5049, Feb. 11, 1986; 51 FR 11012, Apr. 1, 1986]