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: 19CFR19.6]

[Page 341-343]

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. 19.6 Deposits, withdrawals, blanket permits to withdraw and

sealing requirements.

(a)(1) Deposit in warehouse. The port director may authorize the

deposit of merchandise in designated bonded warehouses, without physical

supervision by a Customs officer. Goods for which a warehouse or

rewarehouse entry has been accepted, according to the procedures in part

144, subpart B, of this chapter, shall be examined or inspected at the

place of unlading, bonded warehouse, or other location as ordered by the

port director. When merchandise is deposited in a proprietor's warehouse

or is accepted and receipted for by a proprietor or his agent for

transport to the proprietor's warehouse, the proprietor will be

responsible for the quantity and condition of merchandise reflected on

entry documentation adjusted by (i) any allowance made under part 158,

subparts A and B, of this chapter by the port director, and (ii) any

discrepancy report made jointly on the appropriate cartage documents as

set forth in Sec. 125.31 of this chapter by the warehouse proprietor

and the bonded carrier or licensed cartman or lighterman delivering the

goods to the warehouse, or an independent weigher, gauger, measurer, and

signed by an authorized representative of the above within 15 calendar

days after deposit. A copy of any joint report of discrepancy shall be

made within five business days of agreement and provided to the port

director on the appropriate cartage documents as set forth in Sec.

125.31 of this chapter. If the proprietor of the bonded warehouse

transports the goods to the warehouse, no discrepancy report shall be

necessary.

(2) Allowance after deposit. After merchandise has been deposited in

the warehouse the proprietor's liability may be further modified by any

adjustment for duties allowed by the port director for concealed

shortages (i.e., Sec. 158.5(a)), casualty loss (i.e., part 158, subpart

C), destruction (i.e., Sec. 158.43), or manipulation (i.e, Sec. 19.11,

19 U.S.C. 1562).

(b)(1) Withdrawal and removal from warehouse. The port director may

authorize the withdrawal and removal of merchandise, without physical

supervision or examination by a Customs officer under permit issued

under the procedure set forth in Sec. 144.39 of this chapter. When a

withdrawal or removal is not physically supervised by a Customs officer,

the warehouse proprietor will be relieved of responsibility only for the

merchandise in its warehouse in the condition and quantity as shown on

the application for withdrawal or removal. In the case of merchandise to

be carted or transported in bond from the warehouse, the proprietor will

be relieved of responsibility only if it receives the signed receipt on

the withdrawal or removal document of the carrier named in the document.

The proprietor's responsibility may be adjusted by any discrepancy

report made jointly by the warehouse proprietor, and the licensed

cartman or lighterman, bonded carrier, weigher, gauger, or measurer and

signed by the authorized representative of the above within 15 calendar

days after removal from the warehouse. The adjustments shall be noted on

the permit copy of the withdrawal or removal document. A copy of any

joint report of discrepancy shall be promptly provided to the port

director.

(2) Retention in warehouse after withdrawal. Merchandise for which a

permit for withdrawal has been issued, whether duty-paid or not, need

not be physically removed from the warehouse.

[[Page 342]]

However, such merchandise must be segregated or physically marked to

maintain its identity as merchandise for which a withdrawal permit has

been issued. Duty-paid or unconditionally duty-free merchandise which

has been withdrawn, but not removed, from a warehouse is no longer

deemed to be in Customs custody. All other goods which have been

withdrawn, but not removed, remain in Customs custody until the end of

the 5-year warehouse entry bond period.

physically supervises the deposit or removal of merchandise under

paragraphs (a)(1) or (b)(1) of this section, the Customs officer's

report of merchandise received or removed shall be determinative of the

quantity and condition of merchandise received or removed from the

warehouse for Customs purposes.

(d) Blanket permits to withdraw--(1) General. (i) Blanket permits

may be used to withdraw merchandise from bonded warehouses for:

(A) Delivery to individuals departing directly from the Customs

territory for exportation under the sales ticket procedure of Sec.

144.37(h) of this chapter (Class 9 warehouses only);

(B) Aircraft or vessel supplies under Sec. 309 or 317, Tariff Act

of 1930, as amended (19 U.S.C. 1309, 1317); or

and international organizations set forth in subpart I, part 148 of this

chapter; or

(D) A combination of the foregoing.

(ii) Blanket permits to withdraw may be used only for delivery at

the port where withdrawn and not for transportation in bond to another

port, except for a withdrawal for transportation to another port by a

duty-free sales enterprise which meets the requirements for exemption as

stated in Sec. 144.34(c) of this chapter. Blanket permits to withdraw

may not be used for delivery to a location for retention or splitting of

shipments under the provisions of Sec. 18.24 of this chapter. A

withdrawer who desires a blanket permit shall state in capital letters

on the warehouse entry, or on the warehouse entry/entry summary when

used as an entry, that ``Some or all of the merchandise will be

withdrawn under blanket permit per section 19.6(d), C.R.'' Customs

acceptance of the entry will constitute approval of the blanket permit.

A copy of the entry will be delivered to the proprietor, whereupon

merchandise may be withdrawn under the terms of the blanket permit. The

permit may be revoked by the port director in favor of individual

applications and permits if the permit is found to be used for other

purposes, or if necessary to protect the revenue or properly enforce any

law or regulation Customs is charged with administering. Merchandise

covered by an entry for which a blanket permit was issued may be

withdrawn for purposes other than those specified in this paragraph if a

withdrawal is properly filed as required in subpart D, part 144, of this

chapter.

(2) Withdrawals under blanket permit. Withdrawals may be made under

blanket permit without any further Customs approval, and shall be

documented by placing a copy of the withdrawal document in the

proprietor's permit file folder. Each withdrawal shall be filed on

Customs Form 7501 and shall be consecutively numbered, prefixed with the

letter``B''. The withdrawal shall specify the quantity and value of each

type of merchandise to be withdrawn. Each copy shall bear the summary

statement described in Sec. 144.32(a) of this chapter, reflecting the

balance of merchandise covered by the warehouse entry. Any joint

discrepancy report of the proprietor and the bonded carrier, licensed

cartman or lighterman, or weigher, gauger, or measurer for a

supplementary withdrawal shall be made on the copy and reported to the

port director as provided in paragraph (b)(1) of this section. A copy of

the withdrawal shall be retained in the records of the proprietor as

provided in Sec. 19.12(d)(4) of this part. Merchandise shall not be

removed from the warehouse prior to the preparation of the supplementary

withdrawal. If merchandise is so removed, the proprietor shall be

subject to liquidated damages as if it were removed without Customs

permit.

(3) Withdrawals under blanket permit from duty-free stores.

Withdrawals under blanket permit from duty-free stores shall be made on

the sales ticket described in Sec. 144.37(h) of this chapter.

[[Page 343]]

The sales ticket need not contain the summary statement described in

Sec. 144.32(a) of this chapter, since the information required is

included in the sales ticket register. The sales ticket shall be

serially numbered as provided in Sec. 144.37(h)(2) of this chapter.

(4) Withdrawals under blanket permit for aircraft or vessel

supplies. Multiple withdrawals under a blanket permit for aircraft or

vessel supplies, if consigned to the same daily aircraft flight number

or vessel sailing, may be filed on one Customs Form 7512; however, an

attachment form, developed by the warehouse proprietor and approved by

the port director may be used for all withdrawals. This attachment form

shall provide a sufficient summary of the goods being withdrawn, and

shall include the warehouse entry number, the quantity and weight being

withdrawn, the Harmonized Tariff Schedule of the United States

number(s), the value of the goods, import and export lading information,

the duty rate and amount, and any applicable Internal Revenue tax

calculation, for each warehouse entry being withdrawn. A copy of Customs

Form 7512 and the summary attachment must be attached to each permit

file folder unless the warehouse proprietor qualifies for the permit

file folder exemption under Sec. 19.12(d)(4)(iii) of this part.

(5) Blanket permit summary. When all of the merchandise covered by

an entry on which a blanket permit to withdraw was issued has been

withdrawn, including withdrawals made for purposes other than duty-free

store delivery, vessel or aircraft supply, or diplomatic use, the

proprietor shall prepare a report on a copy of Customs Form 7501, or a

form on the letterhead of the proprietor, which provides an account of

the disposition of the merchandise covered by the blanket permit. The

form shall bear the words ``BLANKET PERMIT SUMMARY'' in capital letters

conspicuously printed or stamped in the top margin. On the form, the

proprietor shall certify that the merchandise listed thereunder was

withdrawn in compliance with Sec. 19.6(d), and shall account for all of

the merchandise withdrawn under blanket permit by HTSUS (Harmonized

Tariff Schedule of the United States) number, HTSUS quantity (where

applicable) and value. If applicable, the account shall separately list

and identify merchandise withdrawn for

(i) Duty-free store exportation,

(ii) Vessel or aircraft supply use, and

(iii) Personal or official use of persons and organizations set

forth in subpart I, part 148, of this chapter. If all of the merchandise

was withdrawn under the sales ticket procedure of Sec. 144.37(h) of

this chapter, the sales ticket register may be substituted for the

blanket permit summary. The form will be placed in the permit file

folder and treated as provided in Sec. 19.12(a) of this part.

(e) Affixing or breaking of seals. The port director may authorize a

warehouse proprietor to: (1) Break Customs in bond seals affixed under

Sec. 18.4 of this chapter, or under any Customs order or directive, on

any vehicle or container of goods entered for warehouse upon arrival of

the vehicle or container at the warehouse: or (2) affix Customs in bond

seals to any vehicle or container of goods for which a withdrawal

document has been approved for movement in bond. The affixing or

breaking of seals so authorized, shall be deemed to have been done under

Customs supervision. The proprietor shall report to the port director

any seal found, upon arrival of the vehicle or container at the

warehouse, to be broken, missing, or improperly affixed, and hold the

vehicle or container and its contents intact pending instructions from

the port director.

[T.D. 82-204, 47 FR 49370, Nov. 1, 1982, as amended by T.D. 84-149, 49

FR 28698, July 16, 1984; T.D. 92-81, 57 FR 37697, Aug. 20, 1992; T.D.

94-81, 59 FR 51494, Oct. 12, 1994; T.D. 95-81, 60 FR 52295, Oct. 6,

1995; T.D. 97-19, 62 FR 15836, Apr. 3, 1997]