[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: 19CFR4.37]



[Page 40-42]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 4_VESSELS IN FOREIGN AND DOMESTIC TRADES--Table of Contents

 

Sec.  4.37  General order.



    (a) Any merchandise or baggage regularly landed but not covered by a 

permit for its release shall be allowed to remain at the place of 

unlading until the fifteenth calendar day after landing. No later than 

20 calendar days after landing, the master or owner of the vessel or the 

agent thereof shall notify Customs of any such merchandise or baggage 

for which entry has not been made. Such notification shall be provided 

in writing or by any appropriate Customs-authorized electronic data 

interchange system. Failure to provide such notification may result in 

assessment of a monetary penalty of up to $1,000 per bill of lading 

against the master or owner of the vessel or the agent thereof. If the 

value of the merchandise on the bill is less than $1,000,



[[Page 41]]



the penalty shall be equal to the value of such merchandise.

    (b) Any merchandise or baggage that is taken into custody from an 

arriving carrier by any party under a Customs-authorized permit to 

transfer or in-bond entry may remain in the custody of that party for 15 

calendar days after receipt under such permit to transfer or 15 calendar 

days after arrival at the port of destination. No later than 20 calendar 

days after receipt under the permit to transfer or 20 calendar days 

after arrival under bond at the port of destination, the party shall 

notify Customs of any such merchandise or baggage for which entry has 

not been made. Such notification shall be provided in writing or by any 

appropriate Customs-authorized electronic data interchange system. If 

the party fails to notify Customs of the unentered merchandise or 

baggage in the allotted time, he may be liable for the payment of 

liquidated damages under the terms and conditions of his custodial bond 

(see Sec.  113.63(c)(4) of this chapter).

    (c) In addition to the notification to Customs required under 

paragraphs (a) and (b) of this section, the carrier (or any other party 

to whom custody of the unentered merchandise has been transferred by a 

Customs authorized permit to transfer or in-bond entry) shall provide 

notification of the presence of such unreleased and unentered 

merchandise or baggage to a bonded warehouse certified by the port 

director as qualified to receive general order merchandise. Such 

notification shall be provided in writing or by any appropriate Customs-

authorized electronic data interchange system and shall be provided 

within the applicable 20-day period specified in paragraph (a) or (b) of 

this section. It shall then be the responsibility of the bonded 

warehouse proprietor to arrange for the transportation and storage of 

the merchandise or baggage at the risk and expense of the consignee. The 

arriving carrier (or other party to whom custody of the merchandise was 

transferred by the arriving carrier under a Customs-authorized permit to 

transfer or in-bond entry) is responsible for preparing a Customs Form 

(CF) 6043 (Delivery Ticket), or other similar Customs document 

designated by the port director or an electronic equivalent as 

authorized by Customs, to cover the proprietor's receiptof the 

merchandise and its transport to the warehouse from the custody of the 

arriving carrier (or other party to whom custody of the merchandise was 

transferred by the carrier under a Customs-authorized permit to transfer 

or in-bond entry) (see Sec.  19.9 of this chapter). Any unentered 

merchandise or baggage shall remain the responsibility of the carrier, 

master, or person in charge of the importing vessel or the agent thereof 

or party to whom the merchandise has been transferred under a Customs 

authorized permit to transfer or in-bond entry, until it is properly 

transferred from his control in accordance with this paragraph. If the 

party to whom custody of the unentered merchandise or baggage has been 

transferred by a Customs-authorized permit to transfer or in-bond entry 

fails to notify a Customs-approved bonded warehouse of such merchandise 

or baggage within the applicable 20-calendar-day period, he may be 

liable for the payment of liquidated damages of $1,000 per bill of 

lading under the terms and conditions of his international carrier or 

custodial bond (see Sec. Sec.  113.63(b), 113.63(c) and 113.64(b) of 

this chapter).

    (d) If a carrier or any other party to whom custody of the unentered 

merchandise has been transferred by means of a Customs-authorized permit 

to transfer or in-bond entry fails to timely relinquish custody of the 

merchandise to a Customs-approved bonded General Order warehouse, the 

carrier or other party may be liable for liquidated damages equal to the 

value of that merchandise under the terms and conditions of his 

international carrier or custodial bond, as applicable.

    (e) If the bonded warehouse operator fails to take possession of 

unentered and unreleased merchandise or baggage within five calendar 

days after receipt of notification of the presence of such merchandise 

or baggage under this section, he may be liable for the payment of 

liquidated damages under the terms and conditions of his custodial bond 

(see Sec.  113.63(a)(1) of this chapter). If the port director finds 

that the warehouse operator cannot accept the goods because they are 

required by law to be



[[Page 42]]



exported or destroyed (see Sec.  127.28 of this chapter), or for other 

good cause, the goods will remain in the custody of the arriving carrier 

or other party to whom the goods have been transferred under a Customs-

authorized permit to transfer or in-bond entry. In this event, the 

carrier or other party will be responsible under bond for exporting or 

destroying the goods, as necessary (see Sec. Sec.  113.63(c)(3) and 

113.64(b) of this chapter).

    (f) In ports where there is no bonded warehouse authorized to accept 

general order merchandise or if merchandise requires specialized storage 

facilities which are unavailable in a bonded facility, the port 

director, after having received notice of the presence of unentered 

merchandise or baggage in accordance with the provisions of this 

section, shall direct the storage of the merchandise by the carrier or 

by any other appropriate means.

    (g) Whenever merchandise remains on board any vessel from a foreign 

port more than 25 days after the date on which report of arrival of such 

vessel was made, the port director, as prescribed in section 457, Tariff 

Act of 1930, as amended (19 U.S.C. 1457), may take possession of such 

merchandise and cause it to be unladen at the expense and risk of the 

owners of the merchandise. Any merchandise so unladen shall be sent 

forthwith by the port director to a general order warehouse and stored 

at the risk and expense of the owners of the merchandise.

    (h) Merchandise taken into the custody of the port director pursuant 

to section 490(b), Tariff Act of 1930, as amended (19 U.S.C. 1490(b)), 

shall be sent to a general order warehouse after 1 day after the day the 

vessel was entered, to be held there at the risk and expense of the 

consignee.



[T.D. 98-74, 63 FR 51287, Sept. 25, 1998, as amended by T.D. 02-65, 67 

FR 68032, Nov. 8, 2002]