[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: 19CFR18.8]



[Page 323-325]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 18_TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT--Table of 

Contents

 

Sec.  18.8  Liability for shortage, irregular delivery, or nondelivery; 

penalties.



    (a) The initial bonded carrier shall be responsible for shortage, 

irregular delivery, or nondelivery at the port of destination or 

exportation of bonded merchandise received by it for carriage. An 

acceptable proof of proper delivery of bonded merchandise to Customs at 

the port of destination or exportation is a properly receipted copy of 

the in-bond document (the appropriate Customs Form 7512 or 7520, or the 

carnet). When sealing is waived, any loss found to exist at the port of 

destination or exportation shall be presumed to have occurred while the 

merchandise was in the possession of the carrier, unless conclusive 

evidence to the contrary is produced.

    (b) Carriers shall be liable for payment of liquidated damages under 

the carriers bond for any shortage, failure to deliver, or irregular 

delivery, as provided in such bond.

    (c) In addition to the penalties described in paragraph (b) of this 

section, the carrier shall pay any internal-revenue taxes, duties, or 

other taxes accruing to the United States on the missing merchandise, 

together with all costs, charges, and expenses caused by



[[Page 324]]



the failure to make the required transportation, report, and delivery.

    (d) In any case in which liquidated damages are imposed in 

accordance with this section and the Fines, Penalties, and Forfeitures 

Officer is satisfied by evidence submitted to him with a petition for 

relief filed in accordance with the provisions of Part 172 of this 

chapter that any violation of the terms and conditions of the bond 

occurred without any intent to evade any law or regulation, the Fines, 

Penalties, and Forfeitures Officer, in accordance with delegated 

authority, may cancel such claim upon the payment of any lesser amount 

or without the payment of any amount as may be deemed appropriate under 

the law and in view of the circumstances.

    (e)(1) The domestic guaranteeing association shall be jointly and 

severally liable with the initial bonded carrier for duties and taxes 

accruing to the U.S., and any other charges imposed, in lieu thereof, as 

the result of any shortage, irregular delivery, or nondelivery at the 

port of destination or port of exit of merchandise covered by a TIR 

carnet. The liability of the domestic guaranteeing association is 

limited to $50,000 per TIR carnet for duties, taxes, and sums collected 

in lieu thereof. Penalties imposed as liquidated damages on the initial 

bonded carrier, and sums assessed the guaranteeing association in lieu 

of duties and taxes for any shortage, irregular delivery, or nondelivery 

shall be in accordance with this section. If a TIR carnet has not been 

discharged or has been discharged subject to a reservation, the 

guaranteeing association shall be notified within 1 year of the date 

upon which the carnet is taken on charge, including time for receipt of 

the notification, except that if the discharge shall have been obtained 

improperly or fraudulently the period shall be 2 years. However, in 

cases which become the subject of legal proceedings during the above-

mentioned period, no claim for payment shall be made more than 1 year 

after the date when the decision of the court becomes enforceable.

    (2) Within 3 months from the date demand for payment is made by the 

port director as provided by Sec.  18.6(d), the guaranteeing association 

shall pay the amount claimed, except that if the amount claimed exceeds 

the liability of the guaranteeing association under the carnet (see 

Sec.  114.22(d) of this chapter), the carrier shall pay the excess. The 

amount paid shall be refunded if, within a period of 1 year from the 

date on which the claim for payment was made, it is established to the 

satisfaction of the Commissioner of Customs that no irregularity 

occurred. The Fines, Penalties, and Forfeitures Officer may cancel 

liquidated damages assessed against the guaranteeing association to the 

extent authorized by paragraph (d) of this section.

    (3) The domestic guaranteeing association shall be jointly and 

severally liable with the initial bonded carrier for pecuniary 

penalties, liquidated damages, duties, and taxes accruing to the United 

States and any other charges imposed as the result of any shortage, 

irregular delivery, or nondelitery at the port of destination or port of 

exit of merchandise covered by an A.T.A. or TECRO/AIT carnet. However, 

the liability of the guaranteeing association shall not exceed the 

amount of the import duties by more than 10 percent. If an A.T.A. or 

TECRO/AIT carnet is unconditionally discharged with respect to certain 

goods, the guaranteeing association will no longer be liable on the 

carnet with respect to those goods unless it is subsequently discovered 

that the discharge of the carnet was obtained fraudulently or improperly 

or that there has been a breach of the conditions of temporary admission 

or of transit. No claim for payment shall be made more than one year 

following the date of expiration of the validity of the carnet. The 

guaranteeing association shall be allowed a period of six months from 

the date of any claim by the port director in which to furnish proof of 

the reexportation of the goods or of any other proper discharge of the 

A.T.A. or TECRO/AIT carnet. If such proof is not furnished within the 

time specified, the guranteeing association shall either deposit or 

provisionally pay the sums. The deposit or payment shall become final 

three months after the date of the deposit or payment, during which time 

the guaranteeing association may still furnish proof of the 

reexportation of



[[Page 325]]



the goods to recover the sums deposited or paid.



[28 FR 14755, Dec. 31, 1963]



    Editorial Note: For Federal Register citations affecting Sec.  18.8, 

see the List of CFR Sections Affected, which appears in the Finding Aids 

section of the printed volume and on GPO Access.