Supporting Regulation

§ 19.5

19 CFR Ch. I (4–1–02 Edition)

identifier by the proprietor to distinguish it from all other inventory categories under FIFO. All of the merchandise in a given inventory category
shall be physically placed so as to be
segregated from merchandise under
other inventory categories or merchandise accounted for under other inventory methods. The unique identifier
shall be marked on the merchandise,
its container, or the location where it
is stored so as to clearly show the inventory category of each article under
FIFO procedures. Merchandise covered
by a given unique identifier may be
stored in multiple locations within the
warehouse if the proprietor’s inventory
control system specifically identifies
all locations where merchandise for a
specific unique identifier is stored and
the quantity in each location. The proprietor must provide, upon request by a
Customs officer, a record balance of
goods, specifying the quantity in each
storage location, covered by any warehouse entry, general order, seizure, or
unique identifier so a physical count
can be made to verify the accuracy of
the record balance.
(iii) Other alternative inventory methods. Other alternative inventory systems may be used, if Customs approval
is obtained. Importers or proprietors
who wish to use an alternative inventory method other than FIFO must
apply to Customs Headquarters, Office
of Regulations and Rulings, for approval.
(9) Miscellaneous responsibilities. The
proprietor is responsible for complying
with requirements for transport to his
warehouse,
deposit,
manipulation,
manufacture, destruction, shortage or
overage, inventory control and recordkeeping systems, and other requirements as specified in this part.
[T.D. 97–19, 62 FR 15834, Apr. 3, 1997, as
amended by T.D. 98–22, 63 FR 11825, Mar. 11,
1998; T.D. 98–56, 63 FR 32944, June 16, 1998]

§ 19.5

[Reserved]

§ 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 super-

vision 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 § 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 § 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.,
§158.5(a)), casualty loss (i.e., part 158,
subpart C), destruction (i.e., §158.43), or
manipulation (i.e, § 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 § 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

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United States Customs Service, Treasury
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.
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.
(c) Customs determination of liability.
When a Customs officer 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 pro-

§ 19.6
cedure of § 144.37(h) of this chapter
(Class 9 warehouses only);
(B) Aircraft or vessel supplies under
§ 309 or 317, Tariff Act of 1930, as
amended (19 U.S.C. 1309, 1317); or
(C) The personal or official use of
personnel of foreign governments 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 § 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 § 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,

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§ 19.6

19 CFR Ch. I (4–1–02 Edition)

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
§ 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 § 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 § 144.37(h) of this chapter.
The sales ticket need not contain the
summary
statement
described
in
§ 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 § 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 § 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 § 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 § 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 § 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 § 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

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United States Customs Service, Treasury
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]

§ 19.7 Expenses of labor and storage.
(a) All merchandise deposited in public stores or in bonded warehouses shall
be held liable for the expenses of labor
and storage chargeable thereon at the
customary rates and for all other expenses accruing upon the goods.
(b) The rates of storage and labor
shall be agreed upon between the importer and the warehouse proprietor,
but in case of disagreement the port director may, with the consent of all parties in interest, determine the rates to
be charged.
(c) Except in cases provided for by
§ 141.102(d) of this chapter, when merchandise is stored in a public store
under a warehouse entry, general
order, or otherwise, the charges for
storage due the Government shall be
paid before the packages are delivered.
The charges shall be based upon the existing bonded warehouse tariff of the
port for storage and labor.
[28 FR 14763, Dec. 31, 1963, as amended by
T.D. 73–175, 38 FR 17446, July 2, 1973]

§ 19.8 Examination of goods by importer; sampling; repacking; examination of merchandise by prospective purchasers.
Importers may, upon application approved by the port director on Customs
Form 3499 examine, sample, and repack 12 or transfer merchandise in
bonded warehouse. Where there will be
no interference with the orderly con12 Repacking shall be considered a manipulation within the purview of sec. 562, Tariff
Act of 1930, as amended.

§ 19.9
duct of Customs business and no danger to the revenue prospective purchaser may be permitted to examine
merchandise in bonded warehouses
upon the written request of the owner,
importer, consignee, or transferee.
[28 FR 14763, Dec. 31, 1963, as amended by
T.D. 82–204, 47 FR 49371, Nov. 1, 1982]

§ 19.9 General order, abandoned, and
seized merchandise.
(a) Acceptance of merchandise. A proprietor of a general order warehouse
shall accept general order, abandoned,
or seized goods and articles into the
warehouse only upon order of the port
director on Customs Form 6043 (Delivery Ticket), as presented by the
cartman or lighterman. A joint determination shall be made by the warehouse proprietor and the cartman or
lighterman of the quantity and condition of the goods or articles so delivered to the warehouse. Any discrepancy between the quantity and condition of the goods and that reported on
Customs Form 6043 shall be reported to
the port director within two business
days of agreement.
(b) Recording and storing. General
order, abandoned, and seized goods and
articles shall be recorded and stored in
the warehouse as prescribed by § 19.12.
(c) Release of merchandise. Merchandise in general order may be released
by the warehouse proprietor, after Customs inspection or examination as ordered by the port director, to the person named in a release order under
§ 141.11 of this chapter. The release may
only be made by the proprietor upon
presentation of a permit to release or
delivery authorization signed by the
appropriate Customs officer on Customs Form 3461, 7501, 368 or 368A or
other Customs form as designated by
the port director. General order goods
which have been unclaimed under
§ 127.11 of this chapter, voluntarily
abandoned, or seized and forfeited may
be released for transfer to the place of
sale upon presentation to the warehouse proprietor of an approved copy of
Customs Form 5251 (Order to Transfer
Merchandise for Public Auction (Sale)),
and an approved copy of Customs Form
6043 (Delivery Ticket). The quantity
and condition of the goods so transferred shall be determined jointly by

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