Supporting Regulation

United States Customs Service, Treasury
store under which merchandise is delivered to or through such facility for exportation, merchandise incident to
such operation may not be withdrawn
for exportation and transferred to or
through such facility unless the operator of the duty-free store demonstrates to the port director that the
concession or approval required for the
enterprise has been obtained.
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as
amended by T.D. 97–19, 62 FR 15839, Apr. 3,
1997; T.D. 00–33, 65 FR 31261, May 17, 2000]

§ 19.36 Requirements
for
duty-free
store operations.
(a) Withdrawals. Merchandise withdrawn under the sales ticket procedure
in § 144.37(h) of this chapter may be delivered only toindividuals departing
from the Customs territory for exportation or to persons and organizations
for use as specified in subpart I, part
148, of this chapter. Withdrawals of
other kinds may be made from Class 9
warehouses, but only through separate
withdrawals (or withdrawals under
blanket permit for vessel or aircraft
supplies) under an approved permit of
the port director as provided in § 144.39
of this chapter.
(b) Procedures required. Each dutyfree store shall establish, maintain,
and follow written procedures to provide reasonable assurance to the port
director that conditionally duty-free
merchandise purchased therein will be
exported from the Customs territory. A
copy of any change in the procedure
will be provided to the port director before it is implemented. However, receipt by Customs of the procedures of
any change thereto shall not be construed as approval by Customs of the
procedures. The port director is responsible for ensuring that each enterprise
has established guidelines with Customs and is complying with those
guidelines, giving assurance that proper supervision exists when delivery is
made to the purchaser at or before the
exit point. The port director may at
any time require any change in the
procedures deemed necessary for assurance of exportation.
(c) Personal-use restrictions. Any dutyfree store which delivers conditionally
duty-free merchandise to purchasers at
an airport exit point shall establish,

§ 19.36
maintain, and enforce written restrictions on the sale of conditionally dutyfree merchandise to any one individual
to personal-use quantities. Personaluse quantities means quantities that
are only suitable for uses other than
resale, and includes reasonable quantities for household or family consumption as well as for gifts to others. Proprietors will not knowingly sell or deliver conditionally duty-free merchandise in any quantity to any individual
for the purpose of resale. A copy of the
restrictions and of any change thereto
shall be provided to the port director
prior to implementation. However, receipt of the written restrictions by
Customs shall not be construed as approval by Customs of the restrictions.
The port director may require any
change in the restrictions deemed necessary to conform to the personal-use
quantity restriction of this section.
(d) Reimported merchandise. Merchandise purchased in a duty-free store is
not eligible for exemption from duty,
or tax where applicable, under chapter
98, subchapter IV, Harmonized Tariff
Schedule, if it is brought back to the
United States after exportation. To enforce this restriction, the port director
may require the proprietor to mark or
otherwise place a distinguishing identifier on individual items of merchandise
to indicate the items were sold in a
U.S. duty-free store, if a pattern is disclosed in which such items are being
brought back to the United States
without declaration. A pattern of
undeclared reimportations means a
number of instances over a period of
time and not isolated instances of unrelated violations. Any such marking
required by the port director will be inconspicuous to the purchaser and will
not detract from the value of the merchandise. The marking requirement
will be limited to the items or types of
merchandise noted in the pattern, and
will not be extended to all merchandise
of the responsible store proprietor unless all or most items are part of the
pattern.
(e)
Merchandise
eligible
for
warehousing. Only conditionally dutyfree merchandise may be placed in a
bonded storage area of a Class 9 warehouse. However, domestic merchandise
and merchandise which was previously

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§ 19.37

19 CFR Ch. I (4–1–02 Edition)

entered or withdrawn for consumption,
may be brought into the bonded sales
or crib area of a Class 9 warehouse for
display and sale, and in the case of a
crib, for delivery to purchasers. However, such merchandise must be either
identified or marked ‘‘DUTY-PAID’’ or
‘‘U.S.-ORIGIN’’, or similar markings,
as applicable, so that Customs officers
can easily distinguish conditionally
duty-free merchandise from other merchandise in the sales or crib area.
(f) Sale of merchandise. Conditionally
duty-free merchandise for exportation
at airport or seaport exit points may
be sold and delivered only to purchasers who display valid tickets, or in
the case of chartered or for-hire flights
that have not issued tickets, other
proof of impending departure from the
Customs territory, and to crewmembers who have been engaged for a
flight or voyage departing directly
from the Customs territory with no intermediate stops in the U.S.
(g) Inventory procedure. Duty-free
store proprietors shall maintain, at the
duty-free store or at another location
approved by the port director, a current inventory separately for each
storage area, crib, and sales area containing conditionally duty-free merchandise by warehouse entry, or by
unique identifier where permitted by
the port director. Proprietors shall assure that Customs has ready access to
those records, and that the records are
stored in such a way as to keep transactions of multiple facilities separated.
The inventory shall be reconcilable
with the accounting and inventory
records and the permit file folder requirements of § 19.12 (d), (e) and (f) of
this part. Proprietors are subject also
to the recordkeeping requirements of
other paragraphs of § 19.12, as well as
those of §§ 19.6(d), 19.37(d), 19.39(d) of
this part, and 144.37(h)(3) of this chapter.
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as
amended by T.D. 97–19, 62 FR 15840, Apr. 3,
1997]

§ 19.37 Crib operations.
(a) Crib. A crib means a bonded area,
separate from the storage area of a
Class 9 warehouse, for the retention of
a supply of articles for delivery to persons departing from the United States.

It shall be located beyond the exit
point, unless exception has been made
under § 19.39 (a) and (b) of this part. The
crib may be a permanent location or a
mobile facility which is periodically
moved to a location beyond the exit
point. The quantity of goods in the crib
may be an amount requested by the
proprietor which is commercially necessary for the delivery operations for a
period, if approved by the port director.
The port director may increase or decrease the quantity as deemed necessary for the protection of the revenue
and proper administration of U.S. laws
and regulations, or may order the return to the storage area of goods remaining unsold.
(b) Delivery and removal of merchandise. Conditionally duty-free merchandise shall be delivered to the crib, or
removed from the crib for return to the
storage area, under the procedures in
subpart D, part 125, and § 144.34(a), of
this chapter, or under a local control
system approved by the port director
wherein any discrepancy found in the
merchandise will be treated as if it occurred in the bonded warehouse. If delivery is made by licensed cartman,
cartage vehicles shall be conspicuously
marked as provided in § 112.27 of this
chapter.
(c) Delivery vehicles. Vehicles, including mobile cribs, containing conditionally duty-free merchandise for delivery to or from a crib shall carry a
listing of the articles contained therein. The proprietor shall provide, upon
request by Customs, a transfer document sufficient to account for each
movement of inventory among its locations. The merchandise in the vehicles
shall be subject to inspection by Customs.
(d) Retention of records. Class 9 warehouse
proprietors
shall
maintain
records of conditionally duty-free merchandise transported beyond the exit
point and returned therefrom, and Customs permits for such movements, for
not less than 5 years after exportation
of the articles. Such records need not
be placed in permit file folders but
must be filed by date of movement,
destination site and warehouse entry
number or by unique identifier where

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