19 Cfr 146.39

§ 146.38

19 CFR Ch. I (4–1–05 Edition)

unique number assigned to each Customs Form 214 as the file reference
number; or
(2)
Authorized
inventory
method.
Where a Customs authorized inventory
method other than a lot system (specific identification of merchandise) is
used, e.g., First-In-First-Out (FIFO), no
lot file is required but the operator
shall maintain a file of all Customs
Form’s 214 in sequential order.
(b) Examination invoice. The operator
shall give a copy of the examination
invoice to the person making entry to
transfer the merchandise from the zone
upon request of that person or the port
director.
(c) Liability for merchandise. The operator will be held liable under its bond
for the receipt of merchandise admitted in the quantity and condition as
described on the Customs Form 214, except as modified by a discrepancy report:
(1) Signed jointly by the operator and
carrier on the Customs Form 214 or
other approved form within 15 days
after admission of the merchandise,
and reported to the port director within 2 working days thereafter; or
(2) Submitted on Customs Form 5931
under the provisions of subpart A, part
158, of this chapter within 20 days after
admission of the merchandise. The operator may file a Customs Form 5931 on
behalf of the person who applied for admission of merchandise to the zone.
(d) Supervision of merchandise. The
port director may authorize the receipt
of zone status merchandise at a zone
without physical supervision by a Customs officer (see § 146.3). In that case,
the operator shall supervise the receipt
of merchandise into the zone, report
the receipt and condition of the merchandise, and mark packages with the
unique Customs Form 214 number so
that the merchandise can be traced to
a particular Customs Form 214. Packages that are accounted for under a
Customs-authorized inventory method
other than specific identification, need
not be marked with a unique Customs
Form 214 number but must be adequately identified so Customs can conduct an inventory count. The operator
shall submit the Custom Form 214 to
Customs at the location specified by
the port director.

§ 146.38 Certificate of arrival of merchandise.
Whenever a certificate prepared by
Customs as to the arrival of any merchandise in a zone is required by a Federal agency, the port director shall
issue the document certifying only
that authorization to deliver the merchandise to a zone has been made. The
operator shall issue a certificate of arrival of merchandise at a zone.
§ 146.39

Direct delivery procedures.

(a) General. This procedure is for delivery of merchandise to a zone without prior application and approval on
Customs Form 214.
(b) Application. An operator, meeting
the criteria of paragraph (c) of this section, shall file a written application
with the port director at least 30 days
before the special procedure is to become effective. The application will describe the merchandise to be handled
or processed, and the kind of operation
which it will undergo in the zone.
(c) Criteria. The port director shall
approve the application if the following
criteria are met:
(1) The merchandise is not restricted
or of a type which requires Customs examination or documentation review before or upon its arrival at the zone;
(2) The merchandise to be admitted
to the zone, and the operations to be
conducted therein, are known well in
advance, are predictable and stable
over the long term, and are relatively
fixed in variety by the nature of the
business conducted at the site; and
(3) The operator is the owner or purchaser of the goods.
(d) Application decision. The port director shall promptly notify the operator, in writing, of Customs decision on
the application. If the application is
denied, the port director shall specify
the reason for denial in his reply. The
port director’s decision will constitute
the final Customs administrative determination concerning the application.
(e) Revocation of approval. The port
director may revoke the approval given
under this section if it becomes necessary for Customs routinely to examine the merchandise or documentation
before or upon admission to the zone.

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