DEPARTMENT OF THE TREASURY
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.
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:
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
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
@ 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.
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.
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.
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