supporting CFR

U.S. Customs and Border Protection, DHS; Treasury
(b) The Certifying Authority shall
conduct such examinations, inspections, and testing of the production run
road vehicles as it deems necessary.
§ 115.67

Approval certificate.

The holder of the approval certificate
shall, before using the vehicle for the
carriage of goods under the cover of a
TIR Carnet, fill in as may be required
on the approval certificate:
(a) The registration number given to
the vehicle (item No. 1); or
(b) In the case of a vehicle not subject to registration, particulars of his
name and business address (item No. 8).
(See Annex 4 of the Convention for
model of certificate of approval.)
§ 115.68

Termination of approval.

Any road vehicle whose essential features are changed shall no longer be
covered by the design type approval.
Such a road vehicle may be made available to a Certifying Authority for inspection and individual approval in accordance with subpart E of this part.
However, repairs in kind do not constitute a change of the essential features.

PART 118—CENTRALIZED
EXAMINATION STATIONS
Sec.
118.0

§ 118.1

118.23 Appeal to the Assistant Commissioner; procedure; status of CES operations.
AUTHORITY: 19 U.S.C. 66, 1499, 1623, 1624; 22
U.S.C. 401; 31 U.S.C. 5317.
SOURCE: T.D. 93–6, 58 FR 5604, Jan. 22, 1993,
unless otherwise noted.

§ 118.0

Scope.

This part sets forth regulations providing for the making of agreements
between Customs and persons desiring
to operate a centralized examination
station (CES). It covers the application
process, the responsibilities of the person or entity selected to be a CES operator, the written agreement to operate
a CES facility, the port director’s discretion to immediately suspend a CES
operator’s or entity’s selection and the
written agreement to operate the CES
or to propose the permanent revocation
of a CES operator’s or entity’s selection and cancellation of the written
agreement for specified conduct, and
the appeal procedures to challenge an
immediate suspension or proposed revocation and cancellation action. Procedures and requirements for the transfer
of merchandise to a CES are set forth
in part 151 of this chapter.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993; 58 FR
6574, Jan. 29, 1993, as amended by T.D. 96–57,
61 FR 39070, July 26, 1996]

Scope.

Subpart A—General Provisions

Subpart A—General Provisions
118.1 Definition.
118.2 Establishment of a CES.
118.3 Written agreement.
118.4 Responsibilities of a CES operator.
118.5 Procedures for changes to a fee schedule.

Subpart B—Application To Establish a CES
118.11 Contents of application.
118.12 Action on application.
118.13 Notification of selection or nonselection.

Subpart C—Termination of a CES
118.21 Temporary suspension; permanent
revocation of selection and cancellation
of agreement to operate a CES.
118.22 Notice of immediate suspension or
proposed revocation and cancellation action.

§ 118.1

Definition.

A centralized examination station
(CES) is a privately operated facility,
not in the charge of a Customs officer,
at which merchandise is made available to Customs officers for physical
examination. A CES may be established in any port or any portion of a
port, or any other area under the jurisdiction of a port director. To present
outbound cargo for inspection at a CES
at a port other than the shipment’s
designated port of exit, either proof of
the shipper’s consent to the inspection
must be furnished or a complete set of
transportation documents must accompany the shipment to evidence that exportation of the goods is imminent and

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§ 118.2

19 CFR Ch. I (4–1–11 Edition)

that the goods are committed to export, thereby, making them subject to
Customs examination.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amended by T.D. 98–29, 63 FR 16684, Apr. 6, 1998]

§ 118.2

Establishment of a CES.

When a port director makes a preliminary determination that a new
CES should be established, or when the
term of an existing CES is about to expire and the port director believes that
the need for a CES still exists, he will
announce, by written notice posted at
the customhouse and by any other
written methods he may consider appropriate (such as normal port information distribution channels, trade
bulletins or local newspapers), that applications to operate a CES are being
accepted. This notice will include the
general criteria together with any
local criteria that applicants must
meet (see § 118.11 of this part), and will
invite the public to submit any relevant written comments on whether a
new CES should be established or on
whether there is still a need for a CES.
Applications will be accepted only in
response to the port notice and must be
received within 60 calendar days from
the date of the notice. Public comments must be received within 30 calendar days from the date of the notice.
§ 118.3

Written agreement.

The applicant tentatively selected to
operate a CES must sign a written
agreement with CBP before commencing operations. Failure to execute
a written agreement with CBP in a
timely manner will result in the revocation of that applicant’s tentative
selection and may result in tentative
selection of another applicant or republication of the notice soliciting applications. In addition to the provisions
described elsewhere in this part, the
agreement will specify the duration of
the authority to operate the CES. That
duration will be not less than three
years nor more than five years. Such
agreements cannot be transferred, sold,
inherited, or conveyed in any manner.
At the expiration of the agreement, an
operator wishing to reapply may do so

pursuant to this part and his application will be considered de novo.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amended at CBP Dec. 10–29, 75 FR 52452, Aug. 26,
2010]

§ 118.4 Responsibilities of a CES operator.
By signing the agreement and commencing operation of a CES, an operator agrees to:
(a) Maintain the facility designated
as the CES in conformity with the security standards as outlined in the approved application;
(b) Provide adequate personnel and
equipment to ensure reliable service
for the opening, presentation for inspection, and closing of all types of
cargo designated for examination by
Customs. Such service must be provided on a ‘‘first come-first served’’
basis;
(c) Assess service fees as outlined in
the fee schedule included in the approved application or as changed under
§ 118.5 of this part and bill users directly for services rendered;
(d) Assume responsibility for any
charges or expenses incurred in connection with the operation of the CES;
(e) Maintain, at his own expense, adequate liability insurance with respect
to the property within his control and
with respect to persons having access
to the CES;
(f) Keep current the list filed with
the port director pursuant to § 118.11(f)
of this part. Additions to or deletions
from the list must be submitted in
writing to the port director within 10
calendar days of the commencement or
termination of employement;
(g) Maintain a Customs custodial
bond in an amount set by the port director. The CES operator will accept
and keep safe all merchandise delivered
to the CES for examination. The bond
will include liability for transporting
merchandise to the CES from within
the district boundaries (see definition
of ‘‘district’’ at § 112.1); such liability is
assumed by the CES operator when he
picks up merchandise for transportation to his facility. The operator also
agrees to increase the amount of the
bond if deemed appropriate by the port
director.

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U.S. Customs and Border Protection, DHS; Treasury
(h) Maintain and make available for
Customs examination all records connected with the operation of the CES
in accordance with part 162 of this
chapter and retain such records for a
period of not less than five years from
the date of the transaction or examination conducted pursuant to the agreement to operate the CES;
(i) Submit, if requested by Customs,
the fingerprints of all employees involved in the CES operation;
(j) Provide office space, parking
spaces, appropriate sanitary facilities,
and potable water to Customs personnel at no charge or a charge of $1
per year; and
(k) Perform in accordance with any
other reasonable requirements imposed
by the port director.
(l) Provide transportation for merchandise to the CES from within the
district boundaries (see definition of
‘‘district’’ at § 112.1). This responsibility
is optional. If the CES operator chooses
to provide transportation, he shall receipt for the merchandise when he
picks it up and assume liability for the
merchandise at that time.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amended by T.D. 94–81, 59 FR 51495, Oct. 12, 1994;
T.D. 95–77, 60 FR 50020, Sept. 27, 1995; T.D. 98–
29, 63 FR 16684, Apr. 6, 1998]

§ 118.5 Procedures for changes to a fee
schedule.
Whenever a CES operator intends to
increase, add to or otherwise change
the service fees set forth in the fee
schedule referred to in § 118.4(c) of this
part, the operator shall provide 90 calendar days advance written notice to
the port director of such proposed fee
schedule change and shall include in
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

§ 118.11

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 executed, 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;

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§ 118.12

19 CFR Ch. I (4–1–11 Edition)

(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
a review of all applications under the
criteria set forth in § 118.11 and any
public comments submitted under
§ 118.2 or this section, shall determine
whether a CES operator should be selected and, if a CES operator is to be
selected, shall select the applicant that
will best meet the examination needs
of Customs and facilitate the movement of merchandise.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amended by T.D. 99–64, 64 FR 43266, Aug. 10, 1999]

§ 118.13 Notification of selection or
nonselection.
The applicant selected to operate a
CES will be notified in writing by the
port director of his tentative selection.
The selection shall become final upon
execution of the written agreement between Customs and the applicant under
§ 118.3 of this part, and the port director
will advise the public of the final selection and of the date on which the CES
will commence operation under the
agreement in accordance with the notice procedures set forth in § 118.2 of
this part. Each applicant not selected
to be a CES operator will be so notified
in writing and with a statement of the
reason of nonselection.

Subpart C—Termination of a CES
§ 118.21 Temporary suspension; permanent revocation of selection and
cancellation of agreement to operate a CES.
The port director may immediately
suspend or propose permanent revocation and cancellation of CES operations for cause as provided in this section.
(a) Immediate suspension. The port director may immediately suspend, for a
temporary period of time or until revocation and cancellation proceedings
are concluded pursuant to § 118.23, a
CES operator’s or entity’s selection
and the written agreement to operate
the CES if:
(1) The selection and written agreement were obtained through fraud or
the misstatement of a material fact; or
(2) The CES operator or an officer of
a corporation which is a CES operator
or a person the port director determines is exercising substantial ownership or control over such operator or
officer is indicted for, convicted of, or
has committed acts, which would constitute a felony, or a misdemeanor involving theft or a theft-connected
crime. In the absence of an indictment
or conviction, the port director must
have probable cause to believe the proscribed acts occurred.
(b) Proposed revocation and cancellation. The port director may propose to
revoke the selection as operator and
cancel the agreement to operate a CES
if:

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U.S. Customs and Border Protection, DHS; Treasury
(1) The CES operator refuses or otherwise fails to follow any proper order
of a Customs officer or any Customs
order, rule, or regulation relative to
the operation of a CES, or fails to operate in accordance with the terms of his
agreement or to comply with any of
the provisions of § 118.4 of this part;
(2) The CES operator fails to retain
merchandise which has been designated
for examination;
(3) The CES operator does not provide secure facilities or properly safeguard merchandise within the CES;
(4) The CES operator fails to furnish
a current list of names, addresses and
other information required by § 118.4 of
this part; or
(5) The custodial bond required by
§ 118.4 of this part is determined to be
insufficient in amount or lacking sufficient sureties, and a satisfactory new
bond with good and sufficient sureties
is not furnished within a reasonable
time.
(6) The CES operator or an officer of
a corporation which is a CES operator
or a person the port director determines is exercising substantial ownership or control over such operator or
officer is indicted for, convicted of, or
has committed acts, which would constitute any of the offenses listed under
paragraph (a) of this section. Where adverse action is initiated by the port director pursuant to paragraph (a) of this
section and continued under this paragraph, the suspension of CES activities
remains in effect through the appeal
procedures provided under § 118.23.
(c) Circumstance of change in employment not a bar to adverse action. Any
change in the employment status of a
corporate officer (for example, discharge, resignation, demotion, or promotion) prior to indictment or conviction or after committing any acts
which would constitute the culpable
behavior described under paragraph (a)
of this section, will not preclude application of this section, but may be
taken into account by the port director
in exercising discretion to take adverse
action. If the person whose employment status changed remains in a substantial ownership, control, or beneficial relationship with the CES operator, this factor will also be considered

§ 118.23

in exercising discretion under this section.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993; 58 FR
6574, Jan. 29, 1993, as amended by T.D. 96–57,
61 FR 39071, July 26, 1996]

§ 118.22 Notice of immediate suspension or proposed revocation and
cancellation action.
Adverse action pursuant to the provisions of § 118.21(a) or (b) is initiated
when the port director serves written
notice on the operator or entity selected to operate the CES. The notice
shall be in the form of a statement specifically setting forth the grounds for
the adverse action and shall inform the
operator of the appeal procedures
under § 118.23 of this part.
[T.D. 96–57, 61 FR 39071, July 26, 1996]

§ 118.23 Appeal to the Assistant Commissioner; procedure; status of CES
operations.
(a) Appeal to the Assistant Commissioner. Appeal of a port director’s decision under § 118.21(a) or (b) must be
filed with the Assistant Commissioner,
Office of Field Operations, within 10
calendar days of receipt of the written
notice of the adverse action. The appeal shall be filed in duplicate and
shall set forth the CES operator’s or
entity’s responses to the grounds specified by the port director in his written
notice letter for the adverse action initiated. The Assistant Commissioner,
Office of Field Operations, or his designee, shall render a written decision
to the CES operator or entity, stating
the reasons for the decision, by letter
mailed within 30 working days following receipt of the appeal, unless the
period for decision is extended with due
notification to the CES operator or entity.
(b) Status of CES operations during appeal. During this appeal period, an immediate suspension of a CES operator’s
or entity’s selection and written agreement pursuant to § 118.21(a) of this part
shall remain in effect. A proposed revocation of a CES operator’s or entity’s
selection and cancellation of the written agreement pursuant to § 118.21(b)(1)
through (5) of this part shall not take
effect unless the appeal process under
this paragraph has been concluded with
a decision adverse to the operator.

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Pt. 122

19 CFR Ch. I (4–1–11 Edition)

(c) Effect of suspension or revocation.
Once a suspension or revocation action
takes effect, the CES operator must
cease CES operations. However, when
CES operations are suspended or revoked and cancelled by Customs, it is
the CES operator’s responsibility to
ensure that merchandise already at the
CES is properly consigned to another
location for inspection, as directed by
the importer and approved by the port
director.

122.36 Responsibility
of
aircraft
commander.
122.37 Precleared aircraft.
122.38 Permit and special license to unlade
and lade.

Subpart E—Aircraft Entry and Entry Documents; Electronic Manifest Requirements for Passengers, Crew Members,
and Non-Crew Members Onboard
Commercial Aircraft Arriving In, Continuing Within, and Overflying the
United States

[T.D. 96–57, 61 FR 39071, July 26, 1996]

PART 122—AIR COMMERCE
REGULATIONS
Sec.
122.0

Scope

Subpart A—General Definitions and
Provisions
122.1
122.2
122.3
122.4
122.5

General definitions.
Other Customs laws and regulations.
Availability of forms.
English language required.
Reproduction of Customs forms.

Subpart B—Classes of Airports
122.11
122.12
122.13
122.14
122.15

Designation as international airport.
Operation of international airports.
List of international airports.
Landing rights airport.
User fee airports.

Subpart C—Private Aircraft
122.21 Application.
122.22 Electronic manifest requirement for
all individuals onboard private aircraft
arriving in and departing from the
United States; notice of arrival and departure information.
122.23 Certain aircraft arriving from areas
south of the U.S.
122.24 Landing requirements for certain aircraft arriving from areas south of U.S.
122.25 Exemption from special landing requirements.
122.26 Entry and clearance.
122.27 Documents required.
122.28 Private aircraft taken abroad by U.S.
residents.
122.29 Arrival fee and overtime services.
122.30 Other Customs laws and regulations.

Subpart F—International Traffic Permit
122.51 Aircraft
in the U.S.
122.52 Aircraft
in the U.S.
122.53 Aircraft
or leased to
122.54 Aircraft

of domestic origin registered
of foreign origin registered
of foreign registry chartered
U.S. air carriers.
of foreign registry.

Subpart G—Clearance of Aircraft and
Permission To Depart
122.61 Aircraft required to clear.
122.62 Aircraft not otherwise required to
clear.
122.63 Scheduled airlines.
122.64 Other aircraft.
122.65 Failure to depart.

Subpart D—Landing Requirements
122.31
122.32
122.33
122.35

122.41 Aircraft required to enter.
122.42 Aircraft entry.
122.43 General declaration.
122.44 Crew baggage declaration.
122.45 Crew list.
122.46 Crew purchase list.
122.47 Stores list.
122.48 Air cargo manifest.
122.48a Electronic information for air cargo
required in advance of arrival.
122.49 Correction of air cargo manifest or
air waybill.
122.49a Electronic manifest requirement for
passengers onboard commercial aircraft
arriving in the United States.
122.49b Electronic manifest requirement for
crew members and non-crew members onboard commercial aircraft arriving in,
continuing within, and overflying the
United States.
122.49c Master crew member list and master
non-crew member list requirement for
commercial aircraft arriving in, departing from, continuing within, and overflying the United States.
122.49d Passenger Name Record (PNR) information.
122.50 General order merchandise.

Notice of arrival.
Aircraft required to land.
Place of first landing.
Emergency or forced landing.

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