Section

[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: 19CFR19.3]

[Page 337-339]

TITLE 19--CUSTOMS DUTIES

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

HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

PART 19_CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF MERCHANDISE THEREIN--Table of Contents

Sec. 19.3 Bonded warehouses; alterations; relocation; suspensions;

discontinuance.

(a) Alterations or relocation. Alterations to or relocation of a

warehouse may be made with the permission of the director of the port

nearest to where the facility is located.

(b) Suspensions. The use of all or part of a bonded warehouse or

bonded floor space may be temporarily suspended by the port director of

a period not to exceed one year on written application of the proprietor

if there are no bonded goods in the area. Upon written application of

the proprietor and upon the removal of all nonbonded goods, if any, the

premises may again be used for the storage of bonded goods. If the

application is approved, the port director shall indicate the approval

by endorsement on the application. Rebonding will not be necessary as

long as the original bond remains in force.

status of the warehouse, he shall make written application to the port

director. The port director shall not approve the application until all

goods in the warehouse are transferred to another bonded warehouse

without expense to the Government. To reestablish the bonded warehouse,

application shall be made and approved under the provision of Sec. 19.2

of this chapter.

(d) Employee lists. The port director may make a written demand upon

the proprietor to submit, within 30 days after the date of demand, a

written list of the names, addresses, social security numbers, and dates

and places of birth of all persons employed by the proprietor in the

carriage, receiving, storage, or delivery of any bonded merchandise. If

a list has been previously furnished the proprietor shall advise the

port director in writing of the names, addresses, social security

numbers, and dates and places of birth of any new personnel employed by

him in the carriage, receiving, storage, or delivery of bonded

merchandise within 10 days after such employment. For the purpose of

this part a person shall not be deemed to be employed by a warehouse

proprietor if he is an officer or employee of an independent contractor

engaged by the warehouse proprietor to load, unload, transport, or

otherwise handle bonded merchandise.

(e) Revocation or suspension for cause. The port director may revoke

or suspend for cause the right of a proprietor to continue the bonded

status of the

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warehouse for any ground specified in this paragraph. An action to

suspend or revoke the right to operate a bonded warehouse shall be taken

in accordance with the procedures set forth in paragraph (f) of this

section. If the bonded status is revoked or suspended for cause, the

port director shall require all goods in the warehouse to be transferred

to a bonded warehouse without expense to the Government. The bonded

status of a warehouse may be revoked or suspended for cause if:

(1) The approval of the application to bond the warehouse was

obtained through fraud or the misstatement of a material fact;

(2) The warehouse proprietor refuses or neglects to obey any proper

order of a Customs officer or any Customs order, rule, or regulation

relative to the operation or administration of a bonded warehouse;

(3) The warehouse proprietor or an officer of a corporation which

has been granted the right to operate a bonded warehouse is convicted of

or has committed acts which would constitute a felony, or a misdemeanor

involving theft, smuggling, or a theft-connected crime. Any change in

the employment status of the corporate officer, (e.g., discharge,

resignation, demotion, or promotion) prior to conviction of a felony or

prior to conviction of a misdemeanor involving theft, smuggling, or a

theft-connected crime, resulting from acts committed while a corporate

officer, will not preclude application of this provision;

(4) The warehouse proprietor does not provide secured facilities or

properly safeguard merchandise within the bonded warehouse;

(5) The warehouse proprietor fails to furnish a current list of

names, addresses, and other information required by Sec. 19.3(d);

(6) The bond required by Sec. 19.2(c) or (d) of this chapter is

determined to be insufficient in amount or lacking sufficient sureties,

and a satisfactory new bond with goods and sufficient sureties is not

furnished within a reasonable time;

(7) Bonded merchandise has not been stored in the warehouse for a

period of 2 year; or

(8) The warehouse proprietor or an employee of the warehouse

proprietor discloses proprietary information in, or proprietary

information contained on, documents to be included in the permit file

folder to an unauthorized person.

(9) The proprietor of a Class 9 warehouse is or has been unable to

provide reasonable assurance that conditionally duty-free merchandise is

or was exported in compliance with the regulations of this part.

(f) Procedure for revocation or suspension for cause. The port

director may at any time serve notice in writing upon any proprietor of

a bonded warehouse to show cause why his right to continue the bonded

status of his warehouse should not be revoked or suspended for cause.

Such notice shall advise the proprietor of the grounds for the proposed

action and shall afford the proprietor an opportunity to respond in

writing within 30 days. Thereafter, the port director shall consider the

allegations and responses made by the proprietor unless the proprietor

in his response requests a hearing. If a hearing is requested, it shall

be held before a hearing officer designated by the Commissioner of

Customs or his designee within 30 days following the proprietor's

request. The proprietor may be represented by counsel at such hearing,

and all evidence and testimony of witnesses in such proceedings,

including substantiation of the allegations and the responses thereto

shall be presented, with the right of cross-examination to both parties.

A stenographic record of any such proceeding shall be made and a copy

thereof shall be delivered to the proprietor of the warehouse. At the

conclusion of the hearing, the hearing officer shall promptly transmit

all papers and the stenographic record of the hearing to the Assistant

Commissioner, Office of Field Operations or designee together with his

recommendation for final action. The proprietor may submit in writing

additional views or arguments to the Assistant Commissioner, Office of

Field Operations or designee following a hearing on the basis of the

stenographic record, within 10 days after delivery to him of a copy of

such record. The Assistant Commissioner, Office of Field Operations or

designee

[[Page 339]]

shall thereafter render his decision in writing, stating his reasons

therefor. Such decision shall be served on the proprietor of the

warehouse, and shall be considered the final administrative action.

(g) Review by the Court of International Trade. Any proprietor

adversely affected by a decision of the Assistant Commissioner, Office

of Field Operations or designee may appeal the decision in the Court of

International Trade.

[T.D. 82-204, 47 FR 49369, Nov. 1, 1982, as amended by T.D. 85-90, 50 FR

21431, May 24, 1985; T.D. 88-63, 53 FR 40219, Oct. 14, 1988; T.D. 92-81,

57 FR 37697, Aug. 20, 1992; T.D. 95-99, 60 FR 62733, Dec. 7, 1995; T.D.

99-27, 64 FR 13675, Mar. 22, 1999]