Details of CBP Proposed Rule to Change In-Bond Regs (Final Part)

This is Part IV, the final part, of a multi-part series of summaries on this proposed rule. This Part covers proposed changes to the requirements for withdrawals from warehouse or bonds, conforming changes to the air commerce regulations, etc.

Changes for Withdrawals, Shipments to Other Ports, Etc.

The following are highlights of the proposed changes to the in-bond regulations contained in 19 CFR Parts 4, 10, 19, and 113 (note that many of the proposed changes to these parts are conforming changes):

Requirements for Coastwise Trade via Foreign Port

Proposed section 4.82 would provide that the master must present to the port director a coastwise Cargo Declaration in triplicate of the merchandise to be transported via the foreign port or ports to the subsequent ports in the U.S. The declaration would have to describe the merchandise and show the marks and numbers of the packages, the names of the shippers and consignees, and the destinations. The port director would certify the two copies and return them to the master. Merchandise carried by the vessel in bond under a transportation entry pursuant to proposed 19 CFR Part 18 should not be shown on the coastwise Cargo Declaration.

Requirements for Withdrawals from Warehouse or Bonds

Proposed section 10.60 would state that withdrawals from warehouse should be made on CBP Form 7501 and should contain an endorsement of transfer and all statistical information required under this proposed rule. Withdrawals from continuous CBP custody elsewhere than in a bonded warehouse would have to be made by filing an in-bond application. When a withdrawal of supplies or other articles is made which may be used on a vessel while it is proceeding in ballast to another port, a notation of this fact should be made on the withdrawal and the name of the other port given if known.

Except for certain withdrawals from warehouse of aircraft turbine fuel, when the supplies are to be laden at a port other than the port of withdrawal from warehouse, they should be withdrawn for transportation in bond to the port of lading by filing an in-bond application pursuant to proposed 19 CFR Part 18.

Requirements for Shipments to Other Ports, Entry & Release of PPQ Plants

Proposed section 12.5 would provide that when imported merchandise is shipped to another port for reconditioning or exportation, such shipment would have to be made in the same manner as shipments in bond in accordance with the requirements of proposed 19 CFR Part 18.

Proposed section 12.11 would state that where plant or plant products are shipped from the port of first arrival to another port or place for inspection or other treatment by a representative of the Animal and Plant Health Inspection Service, Plant Protection and

Quarantine Programs (APHIS PPQ), and all CBP requirements for the release of the merchandise have been met, the merchandise would have to be forwarded as an in-bond shipment to the PPQ representative at the place at which the inspection or other treatment is to take place. No further release by the port director would be required.

Withdrawal for Export of Articles Manufactured In-Bond, Etc.

Section 19.15 would provide the general procedure for articles withdrawn for exportation from a bonded manufacturing warehouse. Articles could be withdrawn for transportation and delivery to a bonded storage warehouse at an exterior port for the sole purpose of immediate export (except for distilled spirits which may be withdrawn under other provisions) or may be withdrawn. To make a withdrawal an in-bond application would have to be filed. A rewarehouse entry should be made and supported by a bond on CBP Form 301. The proposed rule would also amend this section by deleting the clause and legend relating to flour exports to Cuba.

Basic Custodial Bond Conditions

Proposed section 113.63 concerning bond conditions would be amended by adding language to require the principal, if a bonded carrier, to report in-bond arrivals in the manner and in the time prescribed by regulation and to export in-bond merchandise in the time periods prescribed by regulation.

Proposed Changes to Air Commerce Regs, Canada & Mexico Trade

CBP is not proposing to change the in-bond procedures found in the air commerce regulations at this time, except to change certain time periods to conform to the proposed changes in this rule. The following are highlights of the proposed conforming changes for 19 CFR Parts 122 (air commerce regulations) and 123 (CBP relations with Canada and Mexico):

15-day limit for export. Proposed section 122.118 would require that transit air cargo be exported from the port of arrival within 15 days (instead of 10 days) from the date the exporting airline receives the cargo. After the 15-day period, the individual cargo shipments would have to be made the subject of individual entries, as appropriate.

30-day limit for transport to other U.S. port. Proposed section 122.119 concerning the transportation of transit air cargo to a final port of destination in the U.S. would be amended by changing the time in which cargo must be delivered to CBP at the port of destination from 15 days to 30 days.

45-day limit for transit for export. Section 122.120, concerning the transportation of transit air cargo to another port for exportation, would be amended by changing the time in which cargo must be delivered to CBP at the port of exportation from 15 days to 30 days, and by increasing the time in which cargo listed on a transit air cargo manifest must be accounted for from 40 to 45 days. The 45-day time period would represent the sum of the proposed 30 days for delivering the cargo to the port of exportation and the proposed 15 days to export the cargo.

Transit thru U.S. between Canada & Mexico. Proposed section 123.31 would allow merchandise to be transported from point to point in Canada or in Mexico through the U.S. in bond in accordance with the procedures set forth in this proposed rule.

Submission of in-bond application. Section 123.32, concerning merchandise in transit through the U.S. from point to point in Canada or Mexico, would amended by replacing the requirement to file three copies of a Customs Form 7512 with the requirement to file an in-bond application pursuant to proposed 19 CFR Part 18.

Truck shipments transiting U.S. Proposed section 123.42 concerning truck shipments transiting the U.S. from point to point in Canada would be amended by requiring the filing of an in-bond application, the reporting of arrival at the U.S. port of export, and the notation by CBP of the waiver of sealing.

Samples transported between Canada ports by auto. Proposed section 123.52 concerning commercial samples transported by automobile through the U.S. from point to point in Canada would be amended to update the section references to conform with the other changes in this proposed rule. This proposed section would permit a commercial traveler arriving from Canada to transport effectively corded and sealed samples in his/her automobile without further sealing in the U.S., upon compliance with other provisions in 19 CFR, since customs bonded carriers would not considered to be reasonably available. Samples having a total value of not more than $200 could be carried by a nonresident commercial traveler through the U.S. without cording and sealing and without an in-transit manifest.

Baggage in transit between ports in Canada & Mexico. Section 123.64 concerning baggage in transit through the U.S. between ports in Canada or Mexico would be amended by adding a reference to proposed 19 CFR Part 18 and removing certain paragraphs on in-transit manifest, consolidated train manifest, and baggage cards.

Other Miscellaneous Conforming Changes

The proposed rule would also make conforming changes to the in-bond regulations in 19 CFR Parts 141-144, 146, 151, and 181, which cover entry of merchandise; the entry process; special entry procedures; warehouse and rewarehouse entries and withdrawals; foreign trade zones; examination, sampling and testing of merchandise; etc. These proposed conforming changes would mainly update references to CBP Form 7512 to instead reflect the electronic in-bond application filed pursuant to 19 CFR Part 18 of this proposed rule. Additional references to other sections of the in-bond regulations would also be updated to conform to this proposed rule. See proposed rule for full details.

(Note that CBP authorities have stated that most of the proposed rule's requirements have already been built in ACE.

See ITT's Online Archives 12022218 for Part I of this series, which provides an overview of the major amendments proposed to the in-bond regulations. See ITT's Online Archives 12022317 for Part II of this series, which covers proposed revisions to the general requirements of the in-bond regulations in 19 CFR Part 18 Subpart A. See ITT's Online Archives 12022418 for Part III of this series, which covers proposed revisions to 19 CFR Part 18 Subparts B through H on Immediate Transportation, Transportation and Exportation, pipelines, etc.

See ITT's Online Archives 12022131 for initial summary announcing the availability of this proposed rule.)

CBP Contact -- Gary Schreffler (202) 344-1535

(Docket Number USCBP-2012-0002, FR Pub 02/22/12)