Import Administration
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last update: September 2002 
                          DEPARTMENT OF THE TREASURY 
                                Customs Service 
                       AGENCY: Customs Service, Treasury. 
 
                                19 CFR Part 146 
            Proposed Customs Regulations Amendments Relating to the 
             Transfer of Merchandise From a Foreign-Trade Zone to a 
                            Customs Bonded Warehouse 
 
                                  47 FR 37927 
 
                                August 27, 1982 
 
 
ACTION: Proposed rule. 
 
 
SUMMARY: This document proposes to amend the Customs Regulations to permit 
the transfer of zone-restricted merchandise from a foreign-trade zone to a 
customs bonded warehouse pending exportation, without obtaining prior 
approval from the Foreign-Trade Zones Board. Elimination of this 
unnecessary requirement would expedite the transfer process. 
 
 
DATE: Written comments must be received on or before October 26, 1982.  
 
 
ADDRESS: Written comments (preferably in triplicate) should be addressed 
to the Commissoner of Customs, Attention: Regulations Control Branch, U.S. 
Customs Service, 1301 Constitution Avenue, NW., Room 2426, Washington, D.C. 
20229. 
FOR FURTHER INFORMATION CONTACT: 
 
 
Legal Aspects: William D. Lawlor, Carriers, Drawback and Bonds Division 
(202-566-5856); Operationl Aspects: John R. Holl, Cargo Processing Division
(202-566-5354); U.S. Customs Service, 1301 Constitution Avenue, NW., 
Washington, D.C. 20229. 
 
TEXT: SUPPLEMENTARY INFORMATION: 
 
 
Background 
 
   Foreign-trade zones (zones) are areas within the United States (but 
outside of the "Customs territory" of the United States, as defined in 
section 146.1, Customs Regulations (19 CFR 146.1)), where foreign or 
domestic merchandise may be brought for manipulation, manufacture, 
assembly, or other processing or for storage or exhibition, provided that 
these operatins are not otherwise prohibited by law. Foreign merchandise 
may be brought into a zone without being subject to the usual Customs 
entry procedures and payment of duty. Foreign or domestic merchandise may 
be exported or entered into the Customs territory from a foreign-trade zone.
 
   Zones are established under the Foreign-Trade Zones Act of 1934, as 
amended (19 U.S.C. 81a-81u), and the general regulations and rules of 
procedure of the Foreign-Trade Zones Board (the Board) (15 CFR Part 400.) 
Part 146, Customs Regulations (19 CFR Part 146), governs the admission of 
merchandise into a zone; the manipulation, manufacture, or exhibition in 
a zone; the exportation of merchandise from a zone; and the transfer of 
merchandise from a zone into the Customs territory. 
 
   Articles taken into a zone from the Customs territory for the sole 
purpose of exportation, destruction (except destruction of distilled 
spirits, wines, and fermented malt liquors), or storage are given 
"zone-restricted" status upon proper application. Upon receiving this 
status, the merchandise is considered exported and may be returned to the 
Customs territory for domestic consumption only after the Board has 
determined that the tranfer is in the public interest.  
 
   Because obtaining Board approval may be a time-consuming process and 
may result in lost sales to merchants who wish to transfer zone-restricted 
merchandise to a Customs bonded warehouse pending exportation, the 
question has arisen whether zone-restricted merchandise may be transferred 
to a Customs bonded warehouse pending exportation, without Board approval.
 
   While the statute prohibits the return of merchandise to Customs 
territory from a zone for domestic consumption without Board approval, it 
does not prohibit the return of merchandise to Customs territory for 
warehousing prior to exportation. 

It is noted that section 557, Tariff Act of 1930, as amended (19 U.S.C 
1557), provides, in part, that the total period of time that merchandise 
may remain in a bonded warehouse shall not exceed five years from the date 
of importation. 

Accordingly, in order to relieve the trading community of the time-consuming
transfer application process, Customs has determined that section 146.47, 
Customs Regulations (19 CFR 146.47), should be amended to permit the 
transfer of zone-restricted merchandise to a Customs bonded warehouse 
pending exportation, without prior approval of the Board. 
 
 
List of Subjects in 19 CFR Part 146 Exports, Foreign-trade zones.  
 
 
Proposed Regulations Amendments 
 
   It is proposed to amend Part 146, Customs Regulations (19 CFR Part 146), 
in the following manner: 
 
   PART 146 -- FOREIGN-TRADE ZONES 
 
   1. It is proposed to amend @ 146.47 by revising paragraph (a) to read 
as follows: 
 
    @ 146.47 Transfer of zone-restricted merchandise into Customs territory.
 
   (a) Types of entry. If the return of zone-restricted merchandise to 
Customs territory for domestic consumption has been ruled by the Board to 
be in the public interest, it may be entered for consumption, for 
warehousing, or for immediate transportation without appraisement, unless 
the Board has specified which of these forms of entry shall be made. 
Otherwise, zone-restricted merchandise may be returned to Customs 
territory only for entry for exportation, for Customs bonded warehousing
at the same or a different port prior to exportation, for entry for 
transportation and exportation, for destruction (except destruction of 
distilled spirits, wines, and fermented malt liquors), for transfer from 
one zone to another, or for delivery to a qualified vessel or aircraft or 
as ground equipment of a qualified aircraft under section 309 or 317 of 
the Tariff Act of 1930, as amended. 
 
 
* * * * * 
 
   2. It is proposed to further amend @ 146.47 by adding a new paragraph 
(e)(4) to read as follows: 
 
 
* * * * * 
 
   (e) * * * 
 
   (4) Zone-restricted merchandise may be transferred from a foreign-trade 
zone to a Customs bonded warehouse at the same or a different port for 
storage pending exportation. The warehouse entry form, Customs Form 7502, 
and Customs Form 215 shall be endorsed by the district director to show 
that the merchandise cannot be withdrawn from the warehouse for 
consumption. In the case of zone-restricted merchandise transported in 
bond to another port for warehousing and exportation, Customs Form 7512 
shall be endorsed by the district director to show that the merchandise is 
foreign-trade zone merchandise which shall be entered for warehouse and 
cannot be withdrawn therefrom for consumption.  
 
 
Comments 
 
   Before adopting this proposal, consideration will be given to any 
written comments timely submitted to the Commissioner of Customs. Comments 
submitted will be available for public inspection in accordance with @ 
103.11(b), Customs Regulations (19 CFR 103.11(b)), or regular business 
days between the hours of 9:00 a.m. and 4:30 p.m. at the Regulations 
Control Branch, Room 2426, Headquarters, U.S. Customs Service, 1301 
Constitution Avenue, NW., Washington, D.C. 20229. 
 
 
Authority 
 
   These amendments are proposed under the authority of R.S. 251, as 
amended; section 624, 46 Stat. 759; 48 Stat. 998, et seq. ; 77A Stat. 14 
(19 U.S.C. 66, 81a-81u, 1202 (General Headnote 11), 1624). 
 
 
Regulatory Flexibility Act 
 
   The provisions of the Regulatory Flexibility Act relating to an initial 
and final regulatory flexibility analysis (5 U.S.C. 603, 604) are not 
applicable to this document because the proposed amendments will not have 
a significant economic impact on a substantial number of small entities. 
The proposal is not expected to have significant secondary or incidental 
effects on a substantial number of small entities, or to impose, or 
otherwise cause, a significant increase in the reporting, recordkeeping, 
or other compliance burdens on a substantial number of small entities. 
 
   Accordingly, it is hereby certified under the provisions of section 3 
of the Regulatory Flexibility Act (5 U.S.C. 605(b)), that the proposed 
amendments, if promulgated, will not have a significant economic impact on 
a substantial number of small entities. 
 
 
Executive Order 12291 
 
   Because this document will not result in a regulation which will be a 
"major rule" as defined in section 1(b) of E.O. 12291, a regulatory impact 
analysis as prescribed by section 3 of the E.O. is not required. 
 
 
Drafting Information 
 
   The principal author of this document was Gerard J. O'Brien, Jr., 
Regulations Control Branch, Office of Regulations and Rulings, U.S. 
Customs Service. However, personnel from other Customs offices 
participated in its development.  
 
   Approved: August 5, 1982. 
 
 
William von Raab, 
 
   Commissioner of Customs. 
 
 
John M. Walker, Jr., 
 
   Assistant Secretary of the Treasury.  
[FR Doc. 82-23599 Filed 8-26-82; 8:45 am] 
 
   BILLING CODE 4820-02-M