Supporting Regulation

United States Customs Service, Treasury
suitable premises for the storage of
general order merchandise.
[T.D. 76–277, 41 FR 42649, Sept. 28, 1976, as
amended by T.D. 82–204, 47 FR 49368, Nov. 1,
1982; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D.
92–81, 57 FR 37696, Aug. 20, 1992; T.D. 97–19, 62
FR 15834, Apr. 3, 1997; T.D. 02–65, 67 FR 68032,
Nov. 8, 2002]

GENERAL PROVISIONS
§ 19.2

Applications to bond.

(a) Application. An owner or lessee desiring to establish a bonded warehouse
facility shall make written application
to the director of the port nearest to
where the warehouse is located, describing the premises, giving its location, and stating the class of warehouse desired. If required by the port
director, the applicant shall provide a
list of names and addresses of all officers and managing officials of the
warehouse and all persons who have a
direct or indirect financial interest in
the operation of the warehouse facility.
Except in the case of a class 2 or class
7 warehouse, the application shall state
whether the warehouse facility is to be
operated only for the storage or treatment of merchandise belonging to the
applicant or whether it is to be operated as a public bonded warehouse. If
the warehouse facility is to be operated
as a private bonded warehouse, the application also shall state the general
character of the merchandise to be
stored therein, and provide an estimate
of the maximum duties and taxes
which will be due on all merchandise in
the bonded warehouse at any one time.
A warehouse facility will be determined by street address, location, or
both. For example, if a proprietor has
two warehouses located at one street
address and three warehouses located
at three different street addresses the
two located at one address would be
considered as one warehouse facility
and the three located at three different
addresses would each be considered as
separate warehouses facilities. The applicant must prepare and have available at the warehouse a procedures
manual describing the inventory control and recordkeeping system that
will be used in the warehouse. A certification by the proprietor that the inventory control and recordkeeping sys-

§ 19.2
tem meets the requirements of § 19.12
will be submitted with the application.
The physical security of the facility
must meet the approval of the port director.
(b) The applicant shall submit evidence of fire insurance coverage on the
proposed warehouse. If the applicant
does not have fire insurance for the
proposed warehouse, he shall submit a
certificate signed by an officer or agent
of each of two insurance companies
stating that the building is acceptable
for fire-insurance purposes. The application shall also be accompanied by a
blueprint
showing
measurements,
openings, etc., of the building or space
to be bonded. If the warehouse to be
bonded is a tank, the blueprint shall
show all outlets, inlets, and pipe liles
and shall be certified as correct by the
proprietor of the tank. A gauge table
showing the capacity of the tank in
United States gallons per inch or fraction of an inch of height, certified by
the proprietor to be correct, shall accompany the application. When a part
or parts of a building are to be used as
the warehouse, there shall be given a
detailed description of the materials
and construction of all partitions.
When the proprietor is the lessee of the
premises covered by the application
and bond, he shall furnish a stipulation
concurred in by the sureties, agreeing
that, prior to the expiration of the
lease covering the premises without renewal thereof, he will transfer any
merchandise remaining in the bonded
warehouse to an approved bonded warehouse, pay all duties, charges, or exactions due on such merchandise, or otherwise dispose of such merchandise in
accordance with the Customs laws and
regulations. If the application is for a
Class 9 warehouse (duty-free store), the
applicant shall furnish the following
documents:
(1) A map showing the location of the
facilities to be bonded in respect to the
port of entry and distances to all exit
points of purchasers of conditionally
duty-free merchandise;
(2) A description of the store’s procedures, which includes inventory control, recordkeeping, and delivery methods. These procedures must be set forth
in the proprietor’s procedures manual.
Such manual and subsequent changes

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§ 19.3

19 CFR Ch. I (4–1–03 Edition)

therein must be furnished to the port
director upon request. The procedures
in the manual shall provide reasonable
assurance that conditionally duty-free
merchandise sold therein will be exported;
(3) If an airport duty-free store, a description of the store’s procedures for
restricting sales of conditionally dutyfree merchandise to personal-use quantities; and
(4) A statement by an authorized official of the appropriate state, local or
other governmental authority administering the exit point facility that the
applicant duty-free store is authorized
to deliver conditionally duty-free merchandise to purchasers at or through
that exit point facility. A separate
statement shall be required for each
governments authority having jurisdiction over exit point facilities through
which the duty-free store intends to deliver merchandise to purchasers. If the
merchandise will be delivered through
an exit point which is not under the jurisdiction of a governmental authority,
the applicant will provide a statement
to that effect.
(c) On approval of the application to
bond a warehouse of any class, except
class 1, a bond shall be executed on
Customs Form 301, containing the bond
conditions set forth in § 113.63 of this
chapter.
(d) An applicant desiring to establish
a general order warehouse may need to
establish, as a condition of approval of
the application, that the warehouse
will meet minimum space requirements imposed by the port director to
accommodate the storage of general
order merchandise. Any space requirements will be posted by written notice
at the customhouse and on the appropriate Customs-authorized electronic
data interchange system. An applicant
will not be subject to any minimum
space requirements that are posted
after the filing of his application.
(e) Any proprietor of a bonded warehouse may be required on 10 days’ notice from the port director to furnish a
new bond on Customs Form 301, containing the bond conditions set forth in
§ 113.63 of this chapter; and if he fails to
do so, no more goods shall be sent to
the warehouse and those therein shall
be removed at the expense of such pro-

prietor. A new bond is required if the
bonded warehouse is substantially altered or rebuilt.
(f) As a condition of approval of the
application, the port director may
order an inquiry by a Customs officer
into the qualification, character, and
experience of the applicant (e.g. personal history, financial and business
data, credit and personal references),
and into the security, suitability, and
fitness of the facility. The port director
may require an individual applicant to
submit fingerprints on form FD 258 or
electronically at the time of filing the
application, or in the case of applications from a business entity, may require the fingerprints, on form FD 258
or electronically, of all employees of
the business entity.
(g) The port director shall promptly
notify the applicant in writing of his
decision to approve or deny the application to bond the warehouse. If the
application is denied the notification
shall state the grounds for denial. The
decision of the port director will be the
final Customs administrative determination in the matter.
[28 FR 14763, Dec. 31, 1963, as amended by
T.D. 56393, 30 FR 5580, Apr. 20, 1965; T.D. 78–
80, 43 FR 10685, Feb. 15, 1978; T.D. 82–204, 47
FR 49368, Nov. 1, 1982; T.D. 84–213, 49 FR
41169, Oct. 19, 1984; T.D. 92–81, 57 FR 37696,
Aug. 20, 1992; T.D. 93–18, 58 FR 15772, Mar. 24,
1993; T.D. 95–99, 60 FR 62733, Dec. 7, 1995; T.D.
97–19, 62 FR 15834, Apr. 3, 1997; T.D. 99–27, 64
FR 13675, Mar. 22, 1999; T.D. 01–14, 66 FR 8767,
Feb. 2, 2001; T.D. 02–65, 67 FR 68032, Nov. 8,
2002]

§ 19.3 Bonded warehouses; alterations;
relocation; suspensions; discontinuance.
(a) Alterations or relocation. Alterations to or relocation of a warehouse
may be made with the permission of
the director of the port nearest to
where the facility is located.
(b) Suspensions. The use of all or part
of a bonded warehouse or bonded floor
space may be temporarily suspended by
the port director of a period not to exceed one year on written application of
the proprietor if there are no bonded
goods in the area. Upon written application of the proprietor and upon the
removal of all nonbonded goods, if any,
the premises may again be used for the

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