Supporting Statement May2008

Supporting Statement

Establishment of a Bonded Warehouse

(Bonded Warehouse Regulations)

1651-0041

A. Justification

1. Owners or lessees desiring to establish a bonded warehouse must make written application to the port director where the warehouse is located. The application must state warehouse location, describe the premises and indicate the class of bonded warehouse permit desired. The proprietor of a bonded manufacturing warehouse must make application to the port director of U.S. Customs and Border Protection (CBP) to receive therein any domestic merchandise, except merchandise subject to Internal Revenue Tax, which is to be used in connection with the manufacture of articles permitted to be manufactured in such a warehouse, 19 U.S.C. 1555. Domestic merchandise for which such application is required includes packages, coverings, vessels and labels used in putting up such articles. Alterations to or relocation of a bonded warehouse within the same CBP port may be made with the permission of the port director in whose port the facility is located by submission of an application by the warehouse proprietor to alter or relocate the warehouse. The authority to establish and maintain a bonded warehouse is set forth in 19 U.S.C. 1555, 19 CFR 19.2, 19 CFR 17, 19 CFR 19.3, 19 CFR 19.6, and 19 CFR 19.36.

2. The application to establish a bonded warehouse is prepared by the owner or lessee and submitted to CBP for approval. This information is used by CBP to ensure that the legal, regulatory and administrative requirements are met by the respondents. The application is accompanied by other supporting documents that any commercial operation would have in the normal course of business.

3. CBP plans to automate the submission of this information as part of its Automated Commercial Environment (ACE) no later than 2012.

4. This information is not collected in any other place or in any other form, and there is no similar information collected or available from any other source.

5. This information collection does not have a significant adverse impact on a substantial number of small businesses.

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6. Since this information is collected only once when an application is filed, this information cannot be collected less frequently.

7. This information collection is conducted in a manner consistent with the guidelines

in 5 CFR 1320.5(C).

8. Public comments were solicited through two Federal Register notices published on March 4, 2008 (Volume 73, Page 11658) and on May 6, 2008 (Volume 73, Page 25024). No comments were received.

9. There is no offer of a monetary or material value for this information collection..

10. CBP officers are precluded from making unauthorized disclosure of any information related to this information collection.

11. There are no questions of a personal or sensitive nature such as those associated with conduct or beliefs described in the specific instructions.

12. Estimated Annualized Burden on the Public - The estimated burden for this information collection is 4,910 hours. This is based on an estimated 198 respondents making 47 responses per year with a total of 9,254 responses annually with each response taking 32 minutes.

9,254 responses x .53 (32 minutes) response time = 4,910 burden hours.

Estimated Annualized Cost to the Public - The estimated cost to the public is $108,020. This is based on 4,910 hours at an estimated hourly rate of $22.00 (4,910 x $22.00 = $108,020).

13. There are no record keeping burden hours associated with this collection, and there are no capitalization costs associated with this collection.

14. The estimated cost to the government associated with collecting, analyzing and processing the information is $80,990. This is based upon an average time spent of 15 minutes per response (.25 hours x 9,254 responses = 2,314 hours). And 2,314 hours x an average hourly rate of $35 = $80,990.

15. There are no changes to this information collection.

16. This information collection will not be published for statistical purposes.

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17. This collection does not involve a form so there is no printed expiration date.

18. There are no exceptions to the certification statements identified in Item 19 on the 83-i.

2. No statistical methods were employed.