Supporting Law and Regulation

United States Customs Service, Treasury
the notice a justification for any increased or additional fee. Following receipt of this written notice, the port director will advise the public of the proposed fee schedule change and invite
comments thereon under the public notice and comment procedures set forth
in § 118.2 of this part. After a review of
the proposed fee schedule change and
any public comments thereon, and
based on the principle of comparability
set forth in § 118.11(c) of this part, the
port director will decide whether to approve the change, will notify the CES
operator in writing of his decision, and
will notify the public of any approved
fee schedule change by the same methods that were used to provide the public with notice of the proposed change.
A CES operator shall remain bound by
the existing fee schedule and shall not
implement any fee schedule change
prior to receipt of written approval of
the change from the port director.

Subpart B—Application To
Establish a CES
§ 118.11 Contents of application.
Each application to operate a CES
shall consist of the following information, any application not providing all
of the specified information will not be
considered, and the responses to paragraphs (b), (c), (d), (g) and (h) of this
section shall constitute the criteria
used to judge the application:
(a) The name and address of the facility to be operated as the CES, the
names of all principals or corporate officers, and the name and telephone
number of an individual to be contacted for further information;
(b) A description of the CES’s accessibility within the port or other location, and a floor plan of the facility actually dedicated to the CES operation
showing bay doors, office space, exterior features, security features, and
staging and work space. Where a significant capital expenditure would be
required in order for an existing facility to meet security or other physical
or equipment requirements necessary
for the CES operation, the applicant
may request in the application time to
conform the facility to such requirements. The agreement referred to in
§ 118.3 of this part shall not be exe-

§ 118.12
cuted, in any event, until the facility is
conformed to meet the requirements;
(c) A schedule of fees clearly showing
what the applicant will charge for each
type of service. Subject to any special
costs incurred by the applicant such as
facility modifications to meet specific
cargo handling or storage requirements
or to meet Customs security standards,
the fees set forth in the schedule shall
be comparable to fees charged for similar services in the area to be served by
the CES;
(d) A detailed list of equipment showing that the applicant can make a diverse variety of cargo available for examination in an efficient and timely
manner;
(e) A copy of an approved custodial
bond on Customs Form 301. If the applicant does not possess such a bond, a
completed Customs Form 301 must be
included with the application for approval as a prerequisite to selection;
(f) A list of all employees involved in
the CES operation setting forth their
names, dates of birth, and social security numbers. (Providing social security numbers is voluntary; however,
failure to provide the number may
hinder the investigation process.);
(g) Any information showing the applicant’s experience in international
cargo operations and knowledge of Customs procedures and regulations; and
(h) Any other information to address
any local criteria that the port director considers essential to the selection
process based on port conditions.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993; 58 FR
6574, Jan. 29, 1993, as amended by T.D. 98–29,
63 FR 16684, Apr. 6, 1998]

§ 118.12 Action on application.
Following submission of all applications in accordance with §§ 118.2 and
118.11 of this part, the port director
will advise the public of the applications received and invite comments
thereon under the public notice and
comment procedures set forth in § 118.2;
with regard to each application, the
notice will set forth the name of the
applicant, the address of the facility
proposed to be operated as the CES, the
proposed fee schedule, the list of equipment at the facility, and the number of
employees to be involved in the CES
operation. The port director, based on

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