19 CFR Part 18

Pt. 18

19 CFR Ch. I (4–1–20 Edition)

diamonds must either submit through
CBP’s Automated Broker Interface
(ABI) system the unique identifying
number of the Kimberley Process Certificate accompanying the shipment or,
for non-ABI entries, indicate the certificate number on the CBP Form 7501,
Entry Summary, on each applicable
line item.
(f) Maintenance of Kimberley Process
Certificate—(1) Ultimate consignee. The
ultimate consignee identified on the
CBP Form 7501, Entry Summary, or its
electronic equivalent filed with CBP in
connection with an importation of
rough diamonds must retain the original Kimberley Process Certificate for a
period of at least five years from the
date of importation and must make the
certificate available for examination at
the request of CBP.
(2) Importer. The U.S. person that imports into the United States a shipment of rough diamonds must retain a
copy of the Kimberley Process Certificate accompanying the shipment for a
period of at least five years from the
date of importation and must make the
copy available for examination at the
request of CBP.
(3) Exporter. The U.S. person that exports from the United States a shipment of rough diamonds must retain a
copy of the Kimberley Process Certificate accompanying the shipment for a
period of at least five years from the
date of exportation and must make the
copy available for examination at the
request of CBP.
[78 FR 40629, July 8, 2013]

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PART 18—TRANSPORTATION IN
BOND AND MERCHANDISE IN
TRANSIT

18.8

Liability for not meeting in-bond requirements; liquidated damages; payment of taxes, duties, fees, and charges.
18.9 New in-bond movement for forwarded
or returned merchandise.
18.10 Special manifest.

Subpart B—Immediate Transportation
Without Appraisement
18.11
18.12

General rules.
Entry at port of destination.

Subpart C—Shipment of Baggage In-Bond
18.13 Procedure; manifest.
18.14 Shipment of baggage in transit to foreign countries.

Subpart D—Transportation and Exportation
18.20 General rules.
18.21 [Reserved]
18.22 Procedure at port of exportation.
18.23 Change of port of exportation or first
foreign port; change of entry.
18.24 Retention of goods within port limits;
dividing of shipments.

Subpart E—Immediate Exportation
18.25 Direct exportation.
18.26 Indirect exportation.
18.27 Port marks.

Subpart F—Merchandise Transported by
Pipeline
18.31 Pipeline transportation of bonded merchandise.

Subpart G—Merchandise Not Otherwise
Subject to CBP Control Exported Under
Cover of a TIR Carnet
18.41
18.42
18.43
18.44
18.45

Applicability.
Direct exportation.
Indirect exportation.
Abandonment of exportation.
Supervision of exportation.

Subpart H—Importer Security Filings

Subpart A—General Provisions

18.46 Changes to Importer Security Filing
information.

Sec.
18.0 Scope; definitions.
18.1 In-bond application and entry; general
rules.
18.2 Carriers, cartmen, and lightermen.
18.3 Transfers.
18.4 Sealing conveyances, compartments,
and containers.
18.5 Diversion.
18.6 Short shipments; shortages; entry and
allowance.
18.7 Lading for exportation; notice and
proof of exportation; verification.

AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1202
(General Note 3(i), Harmonized Tariff Schedule of the United States), 1551, 1552, 1553,
1623, 1624; Section 18.1 also issued under 19
U.S.C. 1484, 1557, 1490; Section 18.2 also issued
under 19 U.S.C. 1551a; Section 18.3 also issued
under 19 U.S.C. 1565; Section 18.4 also issued
under 19 U.S.C. 1322, 1323; Section 18.7 also
issued under 19 U.S.C. 1490, 1557; 1646a; Section 18.11 also issued under 19 U.S.C. 1484;
Section 18.12 also issued under 19 U.S.C. 1448,
1484, 1490; Section 18.13 also issued under 19
U.S.C. 1498(a); Section 18.14 also issued under

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U.S. Customs and Border Protection, DHS; Treas.
19
19
19
19

U.S.C. 1498. Section 18.25 also issued under
U.S.C. 1490. Section 18.26 also issued under
U.S.C. 1490. Section 18.31 also issued under
U.S.C. 1553a.

SOURCE: CBP Dec. 17–13, 82 FR 45394, Sept.
28, 2017, unless otherwise noted.

Subpart A—General Provisions

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§ 18.0

Scope; definitions.

(a) Scope. Except as provided in parts
122 (Air commerce) and 123 (CBP relations with Canada and Mexico) of this
chapter, this part sets forth the requirements and procedures pertaining
to the transportation of merchandise
in-bond, as authorized by §§ 551, 552, and
553 of the Tariff Act of 1930, as amended
(19 U.S.C 1551, 1552, and 1553).
(b) Definitions. As used in this part,
the following terms will have the
meanings indicated unless either the
context in which they are used requires
a different meaning or a different definition is prescribed for a particular
part or portion thereof:
Bonded carrier. ‘‘Bonded carrier’’
means a carrier of merchandise whose
bond under § 113.63 of this chapter is obligated for the transportation and delivery of merchandise.
Common carrier. ‘‘Common carrier’’
means a common carrier of merchandise owning or operating a railroad,
steamship, pipeline, truck line, or
other transportation line or route.
Origination port. ‘‘Origination port’’
is the U.S. port at which the transportation of merchandise in-bond commences.
Port of destination. ‘‘Port of destination’’ is the U.S. port at which merchandise is delivered after being
shipped in-bond from the origination
port where it was entered as an immediate transportation entry.
Port of diversion. ‘‘Port of diversion’’
is the U.S. port to which merchandise
is diverted while in transit from the
origination port to the port of destination or the port of exportation.
Port of exportation. ‘‘Port of exportation’’ is the U.S. port at which inbond merchandise entered for transportation and exportation or for immediate exportation is delivered for exportation from the United States.

§ 18.1

§ 18.1 In-bond application and entry;
general rules.
(a) General requirement. In order to
transport merchandise in-bond (transport imported merchandise, secured by
a bond, from one port to another prior
to the appraisement of the merchandise and without the payment of duties), an in-bond application as described in paragraph (d) of this section
is required. An in-bond application consists of a transportation entry and a
manifest. A transportation entry as described in paragraph (b) of this section
may be made for any imported merchandise upon its arrival at a port of
entry, subject to the prohibitions and
restrictions provided in this part.
(b) Types of transportation entries and
withdrawals. The following types of
transportation entries and withdrawals
may be made for merchandise to be
transported in-bond:
(1) Entry for immediate transportation (IT).
(2) Warehouse withdrawal for immediate transportation.
(3) Warehouse withdrawal for immediate exportation or for transportation
and exportation.
(4) Entry for transportation and exportation (T&E).
(5) Entry for immediate exportation
(IE).
(6) Entry of vessel and aircraft supplies for immediate exportation (IE).
(7) Entry of vessel and aircraft supplies for transportation and exportation (T&E).
(c) Who may file. A transportation
entry may be filed by:
(1) The carrier, or authorized agent of
the carrier, that brings the merchandise to the origination port;
(2) The carrier, or authorized agent of
the carrier, that is to accept the merchandise under its bond or a carnet for
transportation to the port of destination or the port of exportation; or
(3) Any person or the authorized
agent of any person, who has a sufficient interest in the merchandise as
shown by the bill of lading or manifest,
a certificate of the importing carrier
(such as a power of attorney or letter
of authorization), or by any other document. CBP may request evidence to
demonstrate sufficient interest.

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§ 18.1

19 CFR Ch. I (4–1–20 Edition)

(d) In-bond application. An in-bond application consisting of a transportation
entry and manifest must be transmitted to CBP via a CBP-approved EDI
system as specified in paragraph (d)(2)
of this section in order to transport
merchandise in-bond.
(1) Contents. Except for the other
identifying information described in
paragraph (d)(1)(iii) of this section
which is optional, the in-bond application must contain the following information:
(i) Commodity HTSUS number. The sixdigit Harmonized Tariff Schedule of
the United States (HTSUS) number of
the merchandise must be provided.
(ii) Description of merchandise subject
to regulation by another government
agency. Merchandise subject to regulation by a U.S. government agency
other than CBP must contain a sufficient description of the merchandise to
enable the agency concerned to determine the contents of the shipment.
(iii) Other identifying information. If a
visa, permit, license, entry number, or
other similar number or identifying information has been issued by the U.S.
Government, foreign government or
other issuing authority, relating to the
merchandise, the visa, permit, license,
entry number, or other similar number
or identifying information may be provided.
(iv) Quantity. The quantity of the
cargo laden aboard the conveyance
must be provided. This means the
quantity of the smallest external packing unit. Containers and pallets do not
constitute acceptable information. For
example, a container holding 10 pallets
with 200 cartons should be described as
200 cartons. If the reported quantity is
not correct or if it changes, the in-bond
record must be updated or amended in
accordance with paragraph (h) of this
section. The updating of the quantity
of the merchandise does not relieve the
carrier whose bond is obligated from
liquidated damages for any shortage.
(v) Container number and seals. The
container number of the container in
which the merchandise is being transported and the seal number of the seal
that seals the container (see § 18.4)
must be provided. If the seal number is
not known when the in-bond application is filed, the in-bond application

must be updated with the seal number
within two business days from the date
the initial carrier takes possession of
the sealed merchandise.
(vi) Destination. For IT shipments,
the port of destination in the United
States must be provided. For T&E and
IE shipments, the port of exportation
and the first foreign port must be provided. If any of this information
changes, the in-bond record must be
updated or amended in accordance with
paragraph (h) of this section.
(2) Method of submission. The in-bond
application must be electronically
transmitted to CBP via a CBP-approved EDI system, except as described
in § 18.31 relating to the in-bond transportation of merchandise by pipeline,
or air (see 19 CFR part 122) or under a
TIR carnet (see 19 CFR part 115). In the
event that EDI functionality is unavailable for filing an in-bond application, or any related in-bond filing, the
Commissioner or his designee may authorize an alternative method.
(3) Timing. The in-bond application
may be submitted at any time prior to
the merchandise departing the origination port.
(e) Bond required. A custodial bond on
CBP Form 301, containing the bond
conditions set forth in § 113.63 of this
chapter, is required in order to transport merchandise in-bond under the
provisions of this part.
(f) Movement authorization required.
Authorization from CBP is required before merchandise can be transported
in-bond. Authorization for the movement of merchandise will be transmitted by CBP via a CBP-approved EDI
system.
(g) Supervision—(1) Generally. When
merchandise is delivered to a bonded
carrier for transportation in-bond, CBP
may, in its discretion, require that the
merchandise be laden on the conveyance only under CBP supervision.
(2) Merchandise delivered from warehouse. When merchandise is delivered
from a warehouse to a bonded carrier
for transportation in-bond, supervision
of lading will be accomplished in accordance with the procedure set forth
in § 19.6(b) of this chapter.
(3) Merchandise delivered from foreign
trade zone. When merchandise is delivered from a foreign trade zone to a

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U.S. Customs and Border Protection, DHS; Treas.
bonded carrier for transportation inbond, supervision of lading will be accomplished in accordance with the procedure set forth in § 146.71(a) of this
chapter.
(h) Updating and amending the in-bond
record. The filer of the in-bond application or any other party named in paragraph (c) of this section, with authorization of the party whose bond is obligated, must update and/or amend the
in-bond record as required under the
provisions of this part via a CBP-approved EDI system. The in-bond record
must be updated or amended within
two business days of the event that requires updating and/or amending of the
in-bond record.
(i) In-transit time—(1) Maximum intransit time. Except for merchandise to
be transported via barge, merchandise
to be transported in-bond must be delivered to CBP at the port of destination or port of exportation within 30
days from the date of conveyance arrival at the origination port (if the inbond application has been received and
approved prior to conveyance arrival),
or the date CBP provides movement
authorization to the in-bond applicant,
whichever is later. Merchandise to be
transported via barge for all or part of
the in-bond movement, must be delivered to CBP at the port of destination
or port of exportation within 60 days
from the date of conveyance arrival at
the origination port (if the in-bond application has been received and approved prior to conveyance arrival), or
the date CBP provides movement authorization to the in-bond applicant,
whichever is later. If the merchandise
is subject to examination or inspection
by CBP or another government agency,
the time that the merchandise is held
due to the examination or inspection
will not be considered part of the 30day or 60-day in-transit time. Neither
the diversion to another port nor the
filing of a new in-bond application extends the maximum in-transit time.
Failure to deliver the merchandise
within the prescribed period constitutes an irregular delivery. In-bond
merchandise transported by pipeline is
not subject to the time limits in this
section.
(2) Extension of in-transit time. The intransit requirement may be extended

§ 18.1

by CBP upon a written request to the
port director of the port of destination
or port of exportation. The decision to
extend the in-transit time period is
within the discretion of CBP. Factors
that may be considered, among any
others deemed applicable by CBP, include
extraordinary
circumstances
such as major transportation network
disruptions, natural disasters, and
other emergencies beyond the control
of the party requesting the extension.
(3) Restriction of in-transit time. CBP
or any other government agency with
jurisdiction over the merchandise may
shorten the in-transit time to less than
30 or 60 days. CBP will provide notice
of a government-shortened in-transit
time with the movement authorization.
(j) Report of arrival. Within two business days after the arrival of any portion of an in-bond shipment at the port
of destination or the port of exportation, CBP must be notified via a
CBP-approved EDI system that the
merchandise has arrived. The notification must include the Facilities Information and Resources Management
System (FIRMS) code of the location
of the merchandise within the port.
Failure to report the arrival or the
FIRMS code for the physical location
of the merchandise transported in-bond
within the prescribed period constitutes an irregular delivery.
(k) General order merchandise; exportation. Any merchandise covered by an
in-bond shipment that has arrived at
the port of destination or the port of
exportation must be entered, exported,
or admitted to a foreign-trade zone
pursuant to this part within 15 calendar days from the date of arrival of
the entire in-bond shipment at the port
of destination or port of exportation.
Sixteen days after in-bond merchandise
arrives in the port of destination or
port of exportation, the merchandise
will become subject to general order
requirements pursuant to § 4.37, § 122.50,
or § 123.10 of this chapter, as applicable.
(l) Special classes of merchandise—(1)
Health, safety and conservation. CBP
may determine that merchandise not
in compliance with an applicable rule,
regulation, law, standard or ban, relating to health, safety or conservation,
will not be released for transportation

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§ 18.2

19 CFR Ch. I (4–1–20 Edition)

in-bond without the authorization of
the
governmental
agency
administering such rule, regulation, law,
standard or ban.
(2) Plants and plant products. Merchandise subject upon importation to
examination, disinfection, or further
treatment under the USDA Animal and
Plant
Health
Inspection
Service
(APHIS), Plant Protection and Quarantine program, will only be released
for transportation in-bond with the authorization of APHIS under regulations
issued by that program. (See §§ 12.10 to
12.15 of this chapter).
(3) Prohibited articles. Articles prohibited admission into the commerce of
the United States may not be entered
for transportation in-bond. Any such
merchandise offered for entry for that
purpose may either be denied entry or
be seized. However, CBP may permit
exportation or transportation and exportation either with authorization
from the governmental agency having
regulatory authority over the prohibited articles or in compliance with the
regulations of such agency.
(4) Narcotics and other drugs, medicines, or chemicals—(i) Narcotics. Narcotics prohibited admission into the
commerce of the United States may
not be entered for transportation inbond and any such merchandise offered
for entry for that purpose will be
seized, except that exportation or
transportation and exportation may be
permitted with authorization from the
Drug Enforcement Agency (DEA) and/
or compliance with the regulations of
the DEA.
(ii) Other drugs, medicines, or chemicals. Articles entered for transportation in-bond that are manifested
merely as drugs, medicines, or chemicals, without evidence to satisfy the
port director that they are non-narcotic, will be detained and subjected,
at the carrier’s risk and expense, to
such examination as may be necessary
to satisfy the port director that they
are not of a narcotic character. A properly verified certificate of the shipper,
specifying the items in the shipment
and stating that they are not narcotic,
may be accepted by the port director to
establish the character of such a shipment.

(5) Explosives. Explosives may not be
transported in-bond unless the importer has first obtained a license or
permit from the proper governmental
agency. In such case the explosives
may be entered for immediate transportation, for transportation and exportation, or for immediate exportation as specified by the approving
government
agency.
Governmental
agencies with regulatory authority
over explosives include the Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Transportation (DOT), and the U.S. Coast
Guard (USCG).
(6) Livestock. Carload shipments of
livestock will not be entered for inbond transportation unless they will
arrive at the port of destination named
in the in-bond application before it becomes necessary to remove the seals
for the purpose of watering and feeding
the animals, or unless the route is such
that the removal of the seals and the
watering, feeding, and reloading of the
stock may be done under CBP supervision.
(m) Divided shipments. After reaching
the destination port, the port to which
the merchandise has been diverted
under § 18.5(a), in-bond merchandise
may be divided into multiple shipments with a portion of the initial inbond shipment being entered for consumption or warehouse, and the remainder shipped under a new in-bond
application. The carrier or any of the
parties named in paragraph (c) of this
section must, in accordance with the
filing requirements of this section, submit a new in-bond application for each
portion of the original shipment to be
transported in-bond. Divided shipments
for merchandise being transported
under cover of a carnet are prohibited.
§ 18.2 Carriers,
lightermen.

cartmen,

(a) Transportation of merchandise inbond by bonded carriers—(1) Generally.
Except as provided for in paragraph (b)
of this section, merchandise to be
transported from one port to another
in the United States in-bond must be
delivered to a common carrier, contract carrier, freight forwarder, or private carrier, each of which must be

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U.S. Customs and Border Protection, DHS; Treas.
bonded for that purpose. Such merchandise delivered to a bonded common
carrier, contract carrier, or freight forwarder may be transported with the
use of facilities of other bonded or nonbonded carriers; however, the responsibility for the merchandise will remain
with the common carrier, contract carrier, or freight forwarder that obligated its bond for that purpose. Only
vessels entitled to engage in the coastwise trade (see § 4.80 of this chapter)
will be entitled to transport merchandise under this section.
(2) Merchandise transported under a
TIR carnet. Merchandise to be transported from one port to another in the
United States under cover of a TIR
carnet (see part 114 of this chapter), except merchandise not otherwise subject
to CBP control, as provided in §§ 18.41
through 18.45, must be delivered to a
common carrier or contract carrier
bonded for that purpose, but the merchandise thereafter may be transported
with the use of other bonded or nonbonded common or contract carriers.
The TIR carnet will be responsible for
liability incurred in the carriage of
merchandise under the carnet, and the
carrier’s bond will be responsible as
provided in § 114.22(c) of this chapter.
(3) Merchandise transported under an
A.T.A. or a TECRO/AIT carnet. Merchandise to be transported from one
port to another in the United States
under cover of an A.T.A. or TECRO/AIT
carnet (see part 114 of this chapter)
must be delivered to a common carrier
or contract carrier bonded for that purpose, but the merchandise thereafter
may be transported with the use of
other bonded or non-bonded common or
contract carriers. The A.T.A. or
TECRO/AIT carnet will be responsible
for liability incurred in the carriage of
merchandise under the carnet, and the
carrier’s bond will be responsible as
provided in § 114.22(d) of this chapter.
(b) Transportation of merchandise inbond between certain ports by bonded
cartmen or lighterman. Pursuant to Public Resolution 108, of June 19, 1936, (19
U.S.C. 1551, 1551a) and subject to compliance with all other applicable provisions of this part, CBP, upon the request of a party named in § 18.1(c), may
permit merchandise that has been entered and subject to CBP examination

§ 18.3

to be transported in-bond between the
ports of New York, Newark, and Perth
Amboy,
by
bonded
cartmen
or
lightermen duly qualified in accordance with the provisions of part 112 of
this chapter, if CBP is satisfied that
the transportation of such merchandise
in this manner will not endanger the
revenue and does not pose a risk to
health, safety or security.
§ 18.3

Transfers.

(a) Transfer to another conveyance.
Merchandise being transported in-bond
may be transferred to another conveyance at any time. CBP notification is
not required. The transfer to one or
more conveyances will not extend the
maximum in-transit time set forth in
§ 18.1(i).
(b) Transfer to another bonded carrier.
Except as provided in § 18.31(d)(3), when
merchandise is transferred to a bonded
carrier that assumes the liability for
the in-bond shipment, a report of arrival for the merchandise must be filed
by the original bonded carrier and a
new in-bond application must be filed
by the subsequent bonded carrier pursuant to § 18.1.
(c) Transfer of merchandise covered by
a TIR Carnet generally prohibited. Merchandise covered by a TIR carnet may
not be transferred except in cases in
which the unlading of the merchandise
from a container or road vehicle is necessitated by casualty en route. In the
event of transfer, a TIR approved container or road vehicle must be used if
available. If the transfer takes place
under CBP supervision, the CBP officer
must execute a certificate of transfer
on the appropriate TIR carnet voucher.
(d) Transfer by bonded cartmen. All
transfers to or from the conveyance or
warehouse of merchandise being transported in-bond must be made under the
provisions of part 125 of this chapter
and at the expense of the parties in interest, unless the bond of the carrier on
CBP Form 301, containing the bond
conditions set forth in § 113.63 of this
chapter or a TIR carnet, is liable for
the safekeeping and delivery of the
merchandise while it is being transferred.

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§ 18.4

19 CFR Ch. I (4–1–20 Edition)

§ 18.4 Sealing conveyances, compartments, and containers.
(a) Requirements, waiver, and TIR
carnets—(1) Seals required. Conveyance,
compartments, or containers transporting in-bond merchandise must be
sealed and the seals must remain intact until the merchandise arrives at
the port of destination or the port of
exportation. The seals to be used and
the method for sealing conveyances,
compartments, or containers must
meet the requirements of §§ 24.13 and
24.13a of this chapter.
(2) Waiver. (i) CBP may waive the
sealing of a conveyance, compartment,
or container in which bonded merchandise is transported if CBP determines
that the sealing of the conveyance,
compartment, or container is unnecessary to protect the revenue or to prevent violations of the customs laws and
regulations.
(ii) Examples of situations where
CBP may waive the waiver of the sealing requirement are when the conveyance, compartment, or container cannot be effectively sealed, as in the case
of merchandise shipped in open cars or
barges or on the decks of vessels, when
it is known that any seals would necessarily be removed outside the jurisdiction of the United States for the
purpose of discharging or taking on
cargo, or when it is known that the
breaking of the seals will be necessary
to ventilate the hatches.
(3) TIR carnets. The port director will
cause a CBP seal to be affixed to a container or road vehicle that is being
used to transport merchandise under
cover of a TIR carnet unless the container or road vehicle bears a customs
seal (domestic or foreign). The port director will likewise cause a CBP seal or
label to be affixed to heavy or bulky
goods being so transported. If, however,
the port director has reason to believe
that there is a discrepancy between the
merchandise listed on the Goods Manifest of the carnet and the merchandise
that is to be transported, the port director may cause a CBP seal or label to
be affixed only when the listing of the
merchandise in the carnet and a physical inventory agree.
(b)
Commingled
merchandise—(1)
Transported in a sealed conveyance, compartment, or container. Merchandise

that is not covered by a bond may be
transported in a sealed conveyance,
compartment, or container that contains bonded merchandise if the merchandise is destined for the same or
subsequent port as the bonded merchandise.
(2) Transported in a conveyance, compartment, or container that is not sealed.
Merchandise that is not covered by a
bond may be transported with bonded
merchandise in a conveyance, compartment, or container that is not sealed, if
the in-bond merchandise is corded and
sealed, or affixed with a warning label
or tag as described in paragraph (b)(3)
of this section.
(3) Warning label or tag—(i) Warning
label. The required warning label for inbond merchandise described in paragraph (b)(2) of this section, must be on
bright red paper, not less than 5 by 8
inches in size, unless the size of the
package renders the use of a 5 by 8 inch
warning label impracticable because of
lack of space; then a 3 by 5 inch label
may be used. Alternatively, a high visibility, permanently affixed warning
label, whether as a continuous series in
tape form or otherwise, but not less
than 11⁄2 by 3 inches, and not to be removed until the in-bond movement is
completed, may be used on any size
package. The warning label must contain the following words in black or
white lettering of a conspicuous size:
U.S. Customs and Border Protection
This package is under bond and must be
delivered intact to the CBP officer in charge
at the port of destination or to such other
place as authorized by CBP.
Warning. Two years’ imprisonment, a fine,
or both, is the penalty for unlawful removal
of this package or any of its contents.

(ii) Tag. When it is impossible to attach the warning label by pasting, a
bright red shipping tag of convenient
size, large enough to be conspicuous
and containing the same legend as the
label, shall be used in lieu of a label.
Such tag shall be wired or otherwise
securely fastened to the packages in
such manner as not to damage the merchandise.
(4) Merchandise transported under
carnet. Merchandise moving under
cover of a carnet may not be consolidated with other merchandise.

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U.S. Customs and Border Protection, DHS; Treas.
(c) Removal and replacement of seals. If
it becomes necessary at any point in
transit to remove seals from a conveyance, compartment, or container containing bonded merchandise for the
purpose of transferring its contents to
another conveyance, compartment, or
container, or to gain access to the shipment because of casualty or for other
good reason, such as when required by
law enforcement or another government agency, a responsible agent of the
carrier may remove the seals, supervise
the transfer or handling of the merchandise, and seal the conveyance,
compartment, or container in which
the shipment goes forward. Updated
seal numbers must be transmitted to
CBP pursuant to § 18.1(h) and general
recordkeeping requirements under 19
CFR part 163 apply.
(d) Containers or road vehicles accepted
for transport under customs seal; requirements—(1)(i) Containers covered by the
Customs Convention on Containers. Containers covered by the Customs Convention on Containers will be accepted
for transport under customs seal if:
(A) Durably marked with the name
and address of the owner, particulars of
tare, and identification marks and
numbers, and
(B) Constructed and equipped as outlined in Annex 1 to the Customs Convention on Containers, as evidenced by
an accompanying unexpired certificate
of approval in the form prescribed by
Annex 2 to that Convention or by a
metal plate showing design type approval by a competent authority.
(ii) Containers carrying merchandise
covered by a TIR carnet. Containers carrying merchandise covered by a TIR
carnet will be accepted for transport
under customs seal if:
(A) Durably marked with the name
and address of the owner, particulars of
tare, and identification marks and
numbers,
(B) Constructed and equipped as outlined in Annex 6 to the TIR Convention, as evidenced by an accompanying
unexpired certificate of approval in the
form prescribed by Annex 8 to that
Convention, or by a metal plate showing design type approval by a competent authority, and
(C) If the container or road vehicle
hauling the container has affixed to it

§ 18.5

a rectangular plate bearing the letters
‘‘TIR’’ in accordance with Article 31 of
the TIR Convention.
(2) Road vehicles carrying merchandise
covered by a TIR carnet. Road vehicles
carrying merchandise covered by a TIR
carnet will be accepted for transport
under customs seal if:
(i) Durably marked with the name
and address of the owner, particulars of
tare, and identification marks and
numbers,
(ii) Constructed and equipped as outlined in Annex 3 to the TIR Convention, as evidenced by an accompanying
unexpired certificate of approval in the
form prescribed by Annex 5 to that
Convention, or by a metal plate showing design type approval by a competent authority, and
(iii) If the road vehicle has affixed to
it a rectangular plate bearing the letters ‘‘TIR’’ in accordance with Article
31 of the TIR Convention.
(3) CBP refusal. The port director
may refuse to accept for transport
under customs seal a container or road
vehicle bearing evidence of approval if,
in the port director’s opinion, the container or road vehicle no longer meets
the requirements of the applicable Convention.
(4) CBP acceptance for transport. Containers or road vehicles that are not
approved under the provisions of a Customs Convention may be accepted for
transport under customs seal only if
the port director at the origination
port is satisfied that the container or
road vehicle can be effectively sealed
and no goods can be removed from or
introduced into the container or road
vehicle without obvious damage to it
or without breaking the seal. A container or road vehicle so accepted shall
not carry merchandise covered by a
TIR carnet.
§ 18.5

Diversion.

(a) Procedure. In order to change the
port of destination or the port of exportation of an in-bond movement, the
filer of the in-bond application must
submit a request to divert merchandise

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§ 18.6

19 CFR Ch. I (4–1–20 Edition)

via a CBP-approved EDI system. Permission for the diversion and movement of merchandise will be transmitted via a CBP-approved EDI system. If the request to divert merchandise is denied, such merchandise must
be delivered to the original port of destination or port of exportation that
was named in the in-bond application.
The decision to grant or deny permission to divert merchandise is within
the discretion of CBP. Denials may result from, for example, restrictions
placed upon the movement of goods by
government agencies.
(b) In-transit time. The approval of a
request to divert merchandise for
transportation in-bond does not extend
the
in-transit
time
specified
in
§ 18.1(i)(1) of this part. The diverted
merchandise must be delivered to the
port of diversion within the in-transit
time specified in § 18.1(i)(1) from the
date CBP first authorized the in-bond
movement, unless an extension is
granted pursuant to § 18.1(i)(2).
(c) Diversion of cargo subject to restriction, prohibition or regulation by other
federal agency or authority. Merchandise
subject to a law, regulation, rule,
standard or ban that requires permission or authorization by another federal agency or authority before importation may be restricted from being diverted on behalf of the authorizing
agency.

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§ 18.6 Short
shipments;
entry and allowance.

shortages;

(a) Notification of short shipment.
When an in-bond shipment arrives at
the port of destination or the port of
exportation and the cargo covered by
the original in-bond application is
short, the arriving carrier must notify
CBP of the shortage when submitting
the notice of arrival via a CBP-approved EDI system.
(b) New in-bond application required.
The carrier or any of the parties named
in § 18.1(c) must, in accordance with the
filing requirements of § 18.1, submit a
new in-bond application to transport
short shipped packages that have been
located or recovered to the port of destination or port of exportation provided in the in-bond application. Reference must be made in the new in-

bond application to the original transportation entry.
(c) Demand for redelivery; entry. When
a shipment or a portion of a shipment
is not delivered, or when delivery is to
an unauthorized location or is delivered to the consignee without the permission of CBP, CBP may demand return (redelivery) of the merchandise to
CBP custody. The demand must be
made no later than 30 days after the
shortage, delivery, or failure to deliver
is discovered by CBP. The demand for
the redelivery of the merchandise to
CBP custody must be made to the
bonded carrier, cartman, or lighterman
identified in the in-bond application.
The demand for the redelivery of the
merchandise will be made on CBP
Form 4647, Notice of Redelivery, other
appropriate form or letter, or by an
electronic equivalent thereof. A copy
of the demand or electronic equivalent
thereof, with the date of mailing or delivery noted thereon, must be retained
by the port director and made part of
the in-bond entry record. Entry of the
merchandise may be accepted if the
merchandise can be recovered intact
without any of the packages having
been opened. In such cases, any shortage from the invoice quantity will be
presumed to have occurred while the
merchandise was in the possession of
the bonded carrier.
(d) Failure to redeliver; entry. If the
merchandise cannot be recovered intact, entry will be accepted in accordance with § 141.4 of this chapter for the
full manifested quantity, unless a lesser amount is otherwise permitted in
accordance with subpart A of part 158.
Except as provided in paragraph (e) of
this section, if the merchandise is not
returned to CBP custody within 30 days
of the date of mailing of the demand
for redelivery, if mailed, or within 30
days of the date of transmission, if
transmitted by a method other than by
mail, there shall be sent to the party
whose bond is obligated on the transportation entry a demand for liquidated damages on CBP Form 5955–A.
CBP will also seek the payment of duties, taxes, and fees, where appropriate,
pursuant to § 18.8(c).
(e) Failure to redeliver merchandise covered by a carnet. If merchandise covered
by a carnet cannot be recovered intact

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U.S. Customs and Border Protection, DHS; Treas.
as specified in paragraph (c) of this section, entry will not be accepted; there
will be sent to the appropriate guaranteeing association a demand for liquidated damages, duties, and taxes as
prescribed in § 18.8(d); and, if appropriate, there will also be sent to the
initial bonded carrier a demand for any
excess, as provided in § 114.22(e) of this
chapter. Demands must be made on the
forms specified in paragraph (d) of this
section.
(f) Allowance. An allowance in duty
on merchandise reported short at destination, including merchandise found
by the appraising officer to be damaged
and worthless, and animals and birds
found by the discharging officer to be
dead on arrival at destination, must be
made in in accordance with law.
(g) Rail and seatrain. In the case of
shipments arriving in the United
States by rail or seatrain, which are
forwarded under CBP in-bond seals
under the provisions of subpart D of
part 123 of this chapter, and § 18.11, or
§ 18.20, a notation must be made by the
carrier or shipper in the in-bond application, to show whether the shipment
was transferred to the car designated
in the manifest and whether it was
laden in the car in the foreign country.
If laden on the car in a foreign country,
the country must be identified in the
notation.

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§ 18.7 Lading for exportation; notice
and
proof
of
exportation;
verification.
(a) Exportation—(1) Notice. Within two
business days after the arrival at the
port of exportation of any portion of an
in-bond shipment, CBP must be notified via a CBP approved EDI of the arrival of the merchandise pursuant to
§ 18.1(j). Failure to report the arrival of
bonded merchandise within the prescribed period will constitute an irregular delivery.
(2) Time to export. Within 15 calendar
days after arrival of the last portion of
a shipment arriving at the port of exportation under a transportation and
exportation entry, the entire shipment
of merchandise must be exported. On
the 16th day the merchandise will become subject to general order requirements under § 4.37, § 122.50, or § 123.10 of
this chapter, as applicable.

§ 18.8

(3) Notice and proof of exportation.
Within two business days after exportation, the in-bond record must be updated via a CBP approved EDI system
to reflect that the merchandise has
been exported. The principal on any
bond filed to guarantee exportation
may be required by the port director to
provide evidence of exportation in accordance with § 113.55 of this chapter.
(b) Supervision. The port director will
require such supervision of the lading
for exportation of merchandise covered
by an entry or withdrawal for exportation or for transportation and exportation only as is reasonably necessary
to satisfy the port director that the
merchandise has been laden on the exporting conveyance.
(c) Verification. CBP may verify export entries and withdrawals against
the records of the exporting carriers.
Such verification may include an examination of the carrier’s records of
claims and settlement of export freight
charges and any other records that
may relate to the transaction. The exporting carrier must maintain these
records for five years from the date of
exportation of the merchandise.
§ 18.8 Liability for not meeting in-bond
requirements; liquidated damages;
payment of taxes, duties, fees, and
charges.
(a) Liability. The party whose bond is
obligated on the transportation entry
will be liable for breach of any of the
requirements found in this part, any
other regulations governing the movement of merchandise in bond, and any
of the other conditions specified in the
bond. This includes, but is not limited
to shortages, irregular delivery, or
non-delivery, at the port of destination
or port of exportation of the merchandise transported in-bond; the failure to
export merchandise transported in
bond pursuant to a transportation and
exportation or immediate exportation
entry; and, the failure to maintain intact seals or the unauthorized removal
of seals. Appropriate commercial or
government documentation may be
provided to CBP as proof of delivery
and/or exportation. Any loss found to
exist at the port of destination or port
of exportation will be presumed to have
occurred while the merchandise was in

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§ 18.8

19 CFR Ch. I (4–1–20 Edition)

the possession of the party whose bond
was obligated under the transportation
entry, unless conclusive evidence to
the contrary is produced.
(b) Liquidated damages. (1) The party
whose bond is obligated on the transportation entry is liable for payment of
liquidated damages if there is a failure
to comply with any of the requirements found in this part, any other
regulations governing the movement of
merchandise in bond, and any of the
other conditions specified in the bond.
(2) Petition for relief. In any case in
which liquidated damages are imposed
in accordance with this section and
CBP is satisfied by the evidence submitted with a petition for relief filed in
accordance with the provisions of part
172 of this chapter that any violation of
the terms and conditions of the bond
occurred without any intent to evade
any law or regulation, CBP may cancel
such claim upon the payment of any
lesser amount or without the payment
of any amount as may be deemed appropriate under the law and in view of
the circumstances.
(c) Taxes, duties, fees, and charges. In
addition to the liquidated damages described in paragraph (b) of this section,
the party whose bond is obligated on
the transportation entry will be liable
for any duties, taxes, and fees accruing
to the United States on the missing
merchandise, together with all costs,
charges, and expenses, caused by the
failure to make the required transportation, report, delivery, entry and/or
exportation. The amount of duties,
taxes, fees, and charges owed to the
United States under this paragraph is
not limited to the amount of the bond
obligated on the transportation entry.
(d) Carnets—(1) TIR carnets. (i) The
domestic guaranteeing association will
be jointly and severally liable with the
initial bonded carrier for duties, taxes,
and fees accruing to the U.S., and any
other charges imposed, in lieu thereof,
as the result of any shortage, irregular
delivery, or nondelivery at the port of
destination or port of exportation of
merchandise covered by a TIR carnet.
The liability of the domestic guaranteeing association is limited to $50,000
per TIR carnet for duties, taxes, and
sums collected in lieu thereof. Penalties imposed as liquidated damages

against the initial bonded carrier, and
sums assessed against the guaranteeing
association in lieu of duties and taxes
for any shortage, irregular delivery, or
nondelivery will be in accordance with
this section. If a TIR carnet has not
been discharged or has been discharged
subject to a reservation, the guaranteeing association will be notified
within one year of the date upon which
the carnet is taken on charge, including time for receipt of the notification,
except that if the discharge was obtained improperly or fraudulently the
period will be two years. However, in
cases that become the subject of legal
proceedings during the above-mentioned period, no claim for payment
will be made more than one year after
the date when the decision of the court
becomes enforceable.
(ii) Within three months from the
date demand for payment is made by
the port director as provided by
§ 18.6(e), the guaranteeing association
must pay the amount claimed, except
that if the amount claimed exceeds the
liability of the guaranteeing association under the carnet (see § 114.22(d) of
this chapter), the carrier must pay the
excess. The amount paid will be refunded if, within a period of one year
from the date on which the claim for
payment was made, it is established to
the satisfaction of the Commissioner of
CBP that no irregularity occurred.
CBP may cancel liquidated damages
assessed against the guaranteeing association to the extent authorized by
paragraph (b) of this section.
(2) A.T.A. or TECRO/AIT carnets. The
domestic guaranteeing association is
jointly and severally liable with the
initial bonded carrier for pecuniary
penalties, liquidated damages, duties,
fees, and taxes accruing to the United
States and any other charges imposed
as the result of any shortage, irregular
delivery, failure to comply with sealing
requirements in this part, and any nondelivery at the port of destination or
port of exportation of merchandise covered by an A.T.A. or TECRO/AIT
carnet. However, the liability of the
guaranteeing association must not exceed the amount of the import duties
by more than 10 percent. If an A.T.A.
or TECRO/AIT carnet is unconditionally discharged with respect to certain

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U.S. Customs and Border Protection, DHS; Treas.
goods, the guaranteeing association
will no longer be liable on the carnet
with respect to those goods unless it is
subsequently discovered that the discharge of the carnet was obtained
fraudulently or improperly or that
there has been a breach of the conditions of temporary admission or of
transit. No claim for payment will be
made more than one year following the
date of expiration of the validity of the
carnet. The guaranteeing association
will be allowed a period of six months
from the date of any claim by the port
director in which to furnish proof of
the reexportation of the goods or of
any other proper discharge of the
A.T.A. or TECRO/AIT carnet. If such
proof is not furnished within the time
specified, the guaranteeing association
must either deposit or provisionally
pay the sums. The deposit or payment
will become final three months after
the date of the deposit or payment,
during which time the guaranteeing association may still furnish proof of the
reexportation of the goods to recover
the sums deposited or paid.

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§ 18.9 New in-bond movement for forwarded or returned merchandise.
The carrier or any of the parties
named in § 18.1(c) must, in accordance
with the filing requirements of § 18.1,
submit a new in-bond application in
order to forward or return merchandise
from the port of destination or port of
exportation named in the original inbond application, or from the port of
diversion, to any another port. If the
merchandise is moving under cover of a
carnet, the carnet may be accepted as
a transportation entry.
§ 18.10 Special manifest.
(a) General. Merchandise for which no
other type of bonded movement is appropriate (e.g., prematurely discharged
or overcarried merchandise and other
such types of movements whereby the
normal transportation-in-bond procedures are not applicable) may be
shipped in-bond from the port of unlading to the port of destination, port of
exportation or port of diversion where
applicable, upon approval by CBP.
(b) Filing requirements. The carrier or
any of the parties named in § 18.1(c)
may, in accordance with the filing re-

§ 18.11

quirements of § 18.1, submit an in-bond
application, requesting permission to
transport merchandise described in
paragraph (a) of this section in-bond as
a special manifest. Authorization for
the movement of merchandise will be
transmitted via a CBP-approved EDI
system. The party submitting the inbond application must identify the relevant merchandise and also identify
the date and entry number of any entry
made at the port of destination covering the merchandise to be returned,
if known. For diversion of cargo, see
§§ 4.33, 4.34, and 18.5 of this chapter.
When no entry is identified, the port
director may approve the shipment
pursuant to this section.

Subpart B—Immediate Transportation Without Appraisement
§ 18.11 General rules.
(a) Delivery outside port limits. Merchandise covered by an entry for immediate transportation, including a TIR
carnet, or a manifest of baggage
shipped in-bond (other than baggage to
be forwarded in-bond to a CBP station—see § 18.13(a)), may be delivered to
a place outside a port of entry for examination and release as contemplated
by 19 U.S.C. 1484(c), and in accordance
with the provisions of § 151.9 of this
chapter.
(b) Divided shipments. One or more entire packages of merchandise covered
by an invoice from one consignor to
one consignee may be entered for consumption or warehouse at the port of
first arrival, and the remainder entered
for immediate transportation, provided
that all of the merchandise covered by
the invoice is entered and a TIR carnet
which may cover such merchandise is
discharged as to that merchandise.
(c) Consolidated loads and combined
shipments. Several importations may be
consolidated into one immediate transportation entry when bills of lading or
carrier’s certificates name only one
consignee at the port of first arrival.
However, merchandise moving under
cover of a TIR carnet may not be consolidated with other merchandise.
(d) Textiles. Textiles and textile products subject to § 204, Agricultural Act
of 1956, as amended (7 U.S.C. 1854) must
be described in such detail as to enable

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§ 18.12

19 CFR Ch. I (4–1–20 Edition)

the port director to estimate the duties
and taxes, if any, due. The port director may require evidence to satisfy him
or her of the approximate correctness
of the value and quantity stated in the
entry (e.g., detailed quantity description: 14 cartons, 2 dozen per carton);
detailed description of the textiles or
textile products including type of commodity and chief fiber content (e.g.,
men’s cotton jeans or women’s wool
sweaters); net weight of the textiles or
textile products (including immediate
packing but excluding pallet); total
value of the textiles or textile products; manufacturer or supplier; country of origin; and name(s) and address(es) of the person(s) to whom the
textiles and textile products are consigned.

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§ 18.12

Entry at port of destination.

(a) Arrival procedures. Merchandise received under an immediate transportation entry at the port of destination
may be admitted to a FTZ, entered
into a bonded warehouse, entered for
consumption, transportation and exportation, immediate exportation, immediate transportation, or any other
form of entry, within 15 calendar days
from the date of arrival at the port of
destination and is subject to all the
conditions pertaining to merchandise
entered at a port of first arrival.
(b) Entry. The right to make entry at
the port of destination will be determined in accordance with the provisions of 19 U.S.C. 1484 and the regulations promulgated thereunder.
(c) Entry at subsequent ports. When a
portion of a shipment is entered at the
port of first arrival and the remainder
of the shipment is entered for consumption or warehouse at one or more
subsequent ports, the entry at each
subsequent port may be made on an extract of the invoice as provided for in
§ 141.84 of this chapter.
(d) General order merchandise. All
merchandise included in an immediate
transportation entry not entered pursuant to § 18.12(a) within 15 calendar
days from the date of arrival at the
port of destination will become subject
on the 16th day to general order requirements pursuant to § 4.37, § 122.50,
or § 123.10 of this chapter, as applicable.

Subpart C—Shipment of Baggage
In-Bond
§ 18.13

Procedure; manifest.

(a) In-bond application required. Baggage may be forwarded in-bond to another port of entry, or to a Customs
station listed in § 101.4 of this chapter
without examination or assessment of
duty at the port or station of first arrival at the request of the passenger,
the transportation company, or the
agent of either, by filing an in-bond application in accordance with the provisions of § 18.1.
(b) Coast to coast transportation. Baggage arriving in-bond or otherwise at a
port on the Atlantic or Pacific coast,
destined to a port on the opposite
coast, may be laden under CBP supervision, without examination and without being placed in-bond, on a vessel
proceeding to the opposite coast, provided the vessel will proceed to the opposite coast without stopping at any
other port on the first coast.
§ 18.14 Shipment of baggage in transit
to foreign countries.
The baggage of any person in transit
through the United States from one
foreign country to another may be
shipped over a bonded route for exportation. Such baggage must be shipped
under the regulations prescribed in
§ 18.13. See § 123.64 of this chapter for
the regulations applicable to baggage
shipped in transit through the United
States between points in Canada or
Mexico.

Subpart D—Transportation and
Exportation
§ 18.20

General rules.

(a) Classes of goods for which a transportation and exportation entry is authorized. Entry for transportation and exportation may be made under § 553,
Tariff Act of 1930, as amended (19
U.S.C. 1553), for any merchandise, except as provided under § 18.1(l).
(b) Filing requirement. Transportation
and exportation entries must be filed
via a CBP-approved EDI system and in
accordance with § 18.1.
(c) Entry procedures. Except as provided for in subparts D, E, F and G of

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U.S. Customs and Border Protection, DHS; Treas.
part 123 of this chapter (relating to
merchandise in transit through the
United States between two points in
contiguous foreign territory), when
merchandise is entered for transportation and exportation, a (TIR) carnet,
three copies of an air waybill (see
§ 122.92 of this chapter), or the in-bond
application must be submitted to CBP
(see § 18.1). The port director may require the carrier to provide to CBP additional information and documentation related to the delivery of the merchandise to the bonded carrier.
(d) No bonded common carrier facilities
available. Except for merchandise covered by a carnet (see § 18.2(a)(2) and (3)),
in places where no bonded common carrier facilities are reasonably available
and merchandise is permitted to be
transported otherwise than by a bonded common carrier, the port director
may permit entry in accordance with
the procedures outlined in this section
if he or she is satisfied that the revenue will not be endangered. A bond on
CBP Form 301, containing the bond
conditions set forth in § 113.62 of this
chapter in an amount equal to double
the estimated duties that would be
owed will be required when the port director deems such action necessary.
The principal on any bond filed to
guarantee exportation may be required
by the port director to provide evidence of exportation in accordance
with § 113.55 of this chapter within 30
days of exportation.
(e) Electronic Export Information. Filing of Electronic Export Information
(EEI) is not required for merchandise
entered for transportation and exportation, provided the merchandise has
not been entered for consumption or
warehousing, or admitted into an FTZ.
If the merchandise requires an export
license, the merchandise is subject to
the filing requirements of the licensing
Federal agency. See 15 CFR part 30,
subpart A.
(f) Time to export. Any portion of an
in-bond shipment entered for transportation and exportation must be exported within 15 calendar days from
the date of arrival of the last portion of
the shipment at the port of exportation, unless an extension has been
granted by CBP pursuant to § 18.24. On
the 16th day, the merchandise will be-

§ 18.23

come subject to general order requirements under § 4.37, § 122.50, or § 123.10 of
this chapter, as applicable.
(g) Notice of arrival and proof of exportation. Arrival must be reported within
two business days after the arrival at
the port of exportation, in accordance
with § 18.1. Within two business days
after exportation, the in-bond record
must be updated via a CBP approved
EDI system to reflect that the merchandise has been exported. The principal on any bond filed to guarantee exportation may be required by the port
director to provide evidence of exportation in accordance with § 113.55 of
this chapter.
§ 18.21

[Reserved]

§ 18.22 Procedure at port of exportation.
(a) Transfer of bonded merchandise to
another conveyance. If in-bond merchandise must be transferred to another
conveyance at the port of exportation,
the procedure will be as prescribed in
§§ 18.3 and 18.4(c).
(b) Transfer of baggage by express shipment. An express consignment carrier
that is bonded as a common carrier and
is responsible under its bond for delivery to the CBP officer in charge of the
exporting conveyance of articles shown
to be baggage in the in-bond record
may transfer the baggage by express
shipment without a permit from the
port director and without the use of a
transfer ticket or other CBP formality
from its terminal to the exporting conveyance for lading under CBP supervision. The in-bond record must be updated to reflect the name of the owner
of the baggage or article and the name
of the conveyance transporting the
owner of the baggage. See § 18.1.
§ 18.23 Change of port of exportation
or first foreign port; change of
entry.
(a) Change of port of exportation or
first foreign port. The carrier or any of
the parties provided for in § 18.1(c) must
notify CBP of a change of the port of
exportation or first foreign port that
was provided in the original in-bond
application by updating the in-bond
record via a CBP-approved EDI system
within two business days of learning of
the change in accordance with § 18.1(h).

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§ 18.24

19 CFR Ch. I (4–1–20 Edition)

(b) Change of entry. Merchandise received at the anticipated port of exportation may, in lieu of export, be admitted into an FTZ, entered for consumption, warehouse, or any other form of
entry, and is subject to all the conditions pertaining to merchandise entered at a port of first arrival.

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§ 18.24 Retention of goods within port
limits; dividing of shipments.
(a) Retention of goods within port limits. Upon receipt of a written request
by the carrier or any of the parties provided for in § 18.1(c), the port director,
in his or her discretion, may allow intransit merchandise, including merchandise covered by a (TIR) carnet, to
remain within the port limits of the
port of exportation under CBP supervision without extra expense to the
Government for a period not exceeding
90 days. Upon obtaining CBP approval,
the carrier or any of the parties provided for in § 18.1(c) must submit an immediate exportation in-bond application pursuant to §§ 18.1 and 18.25 of this
chapter. Upon further requests, additional extensions of 90 days or less may
be granted by the port director, but the
merchandise may not remain in the
port limits for more than one year
from the date of arrival of the importing conveyance at the port of first arrival. Any merchandise that remains in
the port limits without authorization
is subject to general order requirements under § 4.37, § 122.50, or § 123.10 of
this chapter, as applicable.
(b) Divided shipments at the port of exportation. The dividing of an in-bond
shipment after it has arrived at the
port of exportation will be permitted
when exportation in its entirety is not
possible by reason of the different destinations to which portions of the shipment are destined, when the exporting
vessel cannot properly accommodate
the entire quantity, or in similar circumstances. The carrier or any of the
parties named in § 18.1(c) must update
the in-bond record with the new information regarding the divided shipment
within two business days of the dividing of the shipment. In the case, however, of merchandise being transported
under cover of a carnet, the dividing of
a shipment is not permitted.

Subpart E—Immediate Exportation
§ 18.25 Direct exportation.
(a) Merchandise—(1) General. Except
for exportations by mail as provided
for in subpart F of part 145 of this chapter (see also § 158.45 of this chapter), an
in-bond application must be transmitted as provided under § 18.1, for the
following merchandise when it is to be
directly exported without transportation to another port:
(i) Merchandise in CBP custody for
which no entry has been made or completed;
(ii) Merchandise covered by an unliquidated consumption entry; or
(iii) Merchandise that has been entered in good faith but is found to be
prohibited under any law of the United
States.
(2) Carnets. If a TIR carnet covers the
merchandise that is to be exported directly without transportation, the
carnet will be discharged or canceled,
as appropriate (see part 114 of this
chapter), and an in-bond application
must be transmitted, as provided by
this part. If an A.T.A. carnet covers the
merchandise that is to be exported directly without transportation, the
carnet must be discharged by the certification of the appropriate transportation and reexportation vouchers by
CBP officers as necessary.
(b) Restriction on immediate exportation
by truck. Trucks arriving at a U.S. port
of entry, carrying shipments for which
an immediate exportation entry is presented as the sole means of entry, may
be denied authorization to proceed. The
port director may require the truck to
return to the country from which it
came or may allow the filing of a new
entry.
(c) Time to export. Any portion of an
in-bond shipment entered for immediate exportation pursuant to an inbond entry must be exported within 15
calendar days from the date of arrival
at the port of exportation, unless an
extension has been granted by CBP
pursuant to § 18.24(a). On the 16th day,
the merchandise will become subject to
general order requirements under § 4.37,
§ 122.50, or § 123.10 of this chapter, as applicable.
(d) Electronic Export Information. Filing of Electronic Export Information

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U.S. Customs and Border Protection, DHS; Treas.

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(EEI) is not required for merchandise
entered under an Immediate Exportation entry provided that the merchandise has not been entered for consumption, for warehousing, or admitted to a FTZ. If the merchandise requires an export license, the merchandise is subject to the filing requirements of the licensing Federal agency.
See 15 CFR part 30, subpart A.
(e) Exportation without landing, vessels. If the merchandise is exported on
the arriving vessel without landing, a
representative of the vessel who has
knowledge of the facts must certify
that the merchandise entered for exportation was not discharged during
the vessel’s stay in port. A charge will
be made against the continuous bond
on CBP Form 301, containing the bond
conditions set forth in § 113.64 of this
chapter, if on file. If a continuous bond
is not on file, a single entry bond containing the bond conditions set forth in
§ 113.64 will be required. If the merchandise is covered by a TIR carnet, the
carnet must not be taken on charge
(see § 114.22(c)(2) of this chapter).
(f) Notice and proof of exportation.
Within two business days after exportation of merchandise described in
paragraph (a) of this section, the inbond record must be updated via a
CBP-approved EDI system to reflect
that the merchandise has been exported. The principal on any bond filed
to guarantee exportation may be required by the port director to provide
evidence of exportation in accordance
with § 113.55 of this chapter within 30
days of exportation.
(g) Explosives. Gunpowder and other
explosive substances, the deposit of
which in any public store or bonded
warehouse is prohibited by law, may be
entered on arrival from a foreign port
for immediate exportation in-bond by
sea, but must be transferred directly
from the importing to the exporting
vessel.
(h) Transfer by express shipment. The
transfer of articles by express shipment
must be in accordance with the procedures set forth in § 18.22.
§ 18.26 Indirect exportation.
(a) Indirect exportation, vessels. Merchandise that had been intended to be
exported without landing from an im-

§ 18.26

porting vessel in accordance with
§ 18.25(e) may instead be transported inbond to another port for exportation
and entered for transportation and exportation in accordance with the procedure in § 18.20, upon the transmission of
an in-bond application to CBP pursuant to § 18.1, via a CBP-approved EDI
system. Upon acceptance of the entry
by CBP and acceptance of the merchandise by the bonded carrier, the bonded
carrier assumes liability for the transportation and exportation of the merchandise. If the merchandise was prohibited entry by any Government agency, that fact must be noted in the inbond application.
(b) Carnets. If merchandise to be
transported in-bond to another port for
exportation was imported under cover
of a TIR carnet, the carnet must be discharged or canceled at the port of importation and the merchandise transported under an electronic in-bond application (see § 18.20). If merchandise to
be transported in-bond to another port
for exportation was imported under
cover of an A.T.A. carnet, the appropriate transit voucher will be accepted
in lieu of an electronic in-bond application. One transit voucher will be certified by CBP officers at the port of importation and a second transit voucher,
together with the reexportation voucher, will be certified at the port of exportation.
(c) Transfer at selected port of exportation. If the merchandise is to be
transferred to another conveyance
after arrival at the port selected for exportation pursuant to paragraph (a) of
this section, the procedure prescribed
in § 18.4(c) will be followed. The provisions of §§ 18.23 and 18.24 will also be
followed in applicable cases.
(d) Time to export. Any portion of an
in-bond shipment entered for indirect
exportation following an in-bond entry
must be exported within 15 calendar
days from the date of arrival at the
port of exportation, unless an extension has been granted by CBP pursuant
to § 18.24(a). On the 16th day, the merchandise will become subject to general order requirements under § 4.37,
§ 122.50, or § 123.10 of this chapter, as applicable.

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§ 18.27

19 CFR Ch. I (4–1–20 Edition)

(e) Notice and proof of exportation.
Within two business days after exportation, the in-bond record must be updated via a CBP-approved EDI system
to reflect that the merchandise has
been exported. The principal on any
bond filed to guarantee exportation
may be required by the port director to
provide evidence of exportation in accordance with § 113.55 of this chapter
within 30 days of exportation.
§ 18.27 Port marks.
Port marks may be added by authority of the port director and under the
supervision of a CBP officer. The original marks and the port marks must appear in all documentation or the electronic equivalent must appear in electronic records pertaining to the exportation.

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Subpart F—Merchandise
Transported by Pipeline
§ 18.31 Pipeline
transportation
of
bonded merchandise.
(a) General procedures—(1) Applicability. Merchandise may be transported
by pipeline under the procedures in
this part, as appropriate, and unless
otherwise specifically provided for in
this section.
(2) In-bond application. For purposes
of this section, the in-bond application
will be made by submitting a CBP
Form 7512 or by electronic submission
via a CBP-approved EDI system.
(b) Bill of lading to account for merchandise. Unless CBP has reasonable
cause to suspect fraud, CBP will accept
a bill of lading or equivalent document
of receipt issued by the pipeline operator to the shipper and accepted by the
consignee to account for the quantity
of merchandise transported by pipeline
and to maintain the identity of the
merchandise.
(c) Procedures when pipeline is only
carrier. When a pipeline is the only carrier of the in-bond merchandise and
there is no transfer to another carrier,
the bill of lading or equivalent document of receipt issued by the pipeline
operator to the shipper must be submitted with the in-bond application. If
there are no discrepancies between the
bill of lading or equivalent document
of receipt and the in-bond application

for the merchandise, and provided that
CBP has no reasonable cause to suspect
fraud, the bill of lading or equivalent
document of receipt will be accepted by
CBP as establishing the quantity and
identity of the merchandise transported. The pipeline operator is responsible for any discrepancies, including
shortages, irregular deliveries, or nondeliveries at the port of destination or
exportation (see § 18.8).
(d) Procedures when there is more than
one carrier (i.e., transfer of the merchandise)—(1) Pipeline as initial carrier. When
a pipeline is the initial carrier of merchandise to be transported in-bond and
the merchandise is transferred to another conveyance (either a different
mode of transportation or a pipeline
operated by another operator), the procedures for transfers in § 18.3 and paragraph (c) of this section must be followed, except that—
(i) When the merchandise is to be
transferred to one conveyance, a copy
of the bill of lading or equivalent document issued by the pipeline operator to
the shipper must be delivered to the
person in charge of the conveyance for
transmission to CBP; or
(ii) When the merchandise is to be
transferred to more than one conveyance, a copy of the bill of lading or
equivalent document issued by the
pipeline operator to the shipper must
be delivered to the person in charge of
each additional conveyance, for transmission to CBP.
(2) Transfer to pipeline from initial carrier other than a pipeline. When merchandise initially transported in-bond
by a carrier other than a pipeline is
transferred to a pipeline, the procedures in § 18.3 and paragraph (c) of this
section must be followed, except that
the bill of lading or other equivalent
document of receipt issued by the pipeline operator to the shipper must be
transmitted to CBP.
(3) Initial carrier liable for discrepancies. In the case of either paragraph
(d)(1) or (2) of this section, the initial
carrier will be responsible for any discrepancies, including shortages, irregular deliveries, or nondeliveries, at the
port of destination or failure to export
at the port of exportation (see generally § 18.8).

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U.S. Customs and Border Protection, DHS; Treas.
(e) Recordkeeping. The shipper, pipeline operator, and consignee are subject to the recordkeeping requirements
in 19 U.S.C. 1508 and 1509, as provided
for in part 163 of this chapter.

Subpart G—Merchandise Not Otherwise Subject to CBP Control
Exported Under Cover of a TIR
Carnet
§ 18.41

Applicability.

The provisions of §§ 18.41 through
18.45 apply only to merchandise to be
exported under cover of a TIR carnet
for the convenience of the U.S. exporter or other party in interest and do
not apply to merchandise otherwise required to be transported in bond under
the provisions of this chapter. Merchandise to be exported under cover of
a TIR carnet for the convenience of the
U.S. exporter or other party in interest
may be transported with the use of the
facilities of either bonded or non-bonded carriers.

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§ 18.42

Direct exportation.

At the port of exportation, the container or road vehicle, the merchandise, and the TIR carnet shall be made
available to the port director. Any required Electronic Export Information
(EEI) shall be filed in accordance with
the applicable regulations of the Bureau of the Census (15 CFR part 30).
The port director shall examine the
merchandise to the extent he believes
necessary to determine that the carnet
has been properly completed and shall
verify that the container or road vehicle has the necessary certificate of approval or approval plate intact and is
in satisfactory condition. After completion of any required examination
and supervision of loading, the port director will seal the container or road
vehicle with customs seals and ascertain that the TIR plates are properly
affixed and sealed. See § 18.4(d). In the
case of heavy or bulky goods moving
under cover of a TIR carnet, the port
director shall cause a customs seal or
label, as appropriate, to be affixed. He
shall also remove two vouchers from
the carnet, execute the appropriate
counterfoils, and return the carnet to

§ 18.45

the carrier or agent to accompany the
merchandise.
§ 18.43 Indirect exportation.
(a) Filing of Electronic Export Information. When merchandise is to move
from one U.S. port to another for actual exportation at the second port,
any Electronic Export Information
(EEI) required to be validated shall be
filed in accordance with the procedures
described in the applicable regulations
of the Bureau of the Census (15 CFR
part 30).
(b) Origination port procedure. The
port director shall follow the procedure
provided in § 18.42 in respect to examination of the merchandise, supervision
of loading, sealing or labeling, and
affixing of TIR plates. The port director will remove one voucher from the
carnet, execute the appropriate counterfoil, and return the carnet to the
carrier or agent to accompany the container or road vehicle to the port of actual exportation.
(c) Port of exportation procedure. At
the port of actual exportation, the
carnet and the container (or heavy or
bulky goods) or road vehicle shall be
presented to the port director who
shall verify that seals or labels are intact and that there is no evidence of
tampering. After verification, the port
director shall remove the appropriate
voucher from the carnet, execute the
counterfoil, and return the carnet to
the carrier or agent.
§ 18.44 Abandonment of exportation.
In the event that exportation is
abandoned at any time after merchandise has been placed under cover of a
TIR carnet, the carrier or agent shall
deliver the carnet to the nearest CBP
office or to the CBP office at the origination port for cancellation (see
§ 114.26(c) of this chapter). When the
carnet has been canceled, the carrier or
agent may remove customs seals or labels and unload the container (or heavy
or bulky goods) or road vehicle without
customs supervision.
§ 18.45 Supervision of exportation.
The provisions of §§ 18.41 through
18.44 do not require the director of the
port of actual exportation to verify
that merchandise moving under cover

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§ 18.46

19 CFR Ch. I (4–1–20 Edition)

of a TIR carnet is loaded on board the
exporting carrier.

Subpart H—Importer Security
Filings
§ 18.46 Changes to Importer Security
Filing information.
For merchandise transported in bond,
which at the time of transmission of
the Importer Security Filing as required by § 149.2 of this chapter is intended to be entered as an immediate
exportation (IE) or transportation and
exportation (T&E) shipment, permission from the port director of the origination port is needed to change the inbond entry into a consumption entry.
Such permission will only be granted
upon receipt by CBP of a complete Importer Security Filing as required by
part 149 of this chapter.

PART 19—CUSTOMS WAREHOUSES,
CONTAINER
STATIONS
AND
CONTROL OF MERCHANDISE
THEREIN
Sec.
19.1 Classes of customs warehouses.
GENERAL PROVISIONS
19.2
19.3

Applications to bond.
Bonded warehouses; alterations; relocation; suspensions; discontinuance.
19.4 CBP and proprietor responsibility and
supervision over warehouses.
19.5 [Reserved]
19.6 Deposits, withdrawals, blanket permits
to withdraw and sealing requirements.
19.7 Expenses of labor and storage.
19.8 Examination of goods by importer;
sampling; repacking; examination of
merchandise by prospective purchasers.
19.9 General order, abandoned, and seized
merchandise.
19.10 Examination packages.
MANIPULATION IN BONDED WAREHOUSES AND
ELSEWHERE
19.11 Manipulation in bonded warehouses
and elsewhere.
ACCOUNTS
19.12 Inventory control and recordkeeping
system.

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MANUFACTURING WAREHOUSES
19.13 Requirements for establishment
warehouse.
19.13a Recordkeeping requirements.

of

19.14 Materials for use in manufacturing
warehouse.
19.15 Withdrawal for exportation of articles
manufactured in bond; waste or byproducts for consumption.
19.16 [Reserved]
SMELTING AND REFINING WAREHOUSES
19.17 Application to establish warehouse;
bond.
19.18 Smelting and refining; allowance for
wastage; withdrawal for consumption.
19.19 Manufacturers’ records; annual statement.
19.20 Withdrawal of products from bonded
smelting or refining warehouses.
19.21 Smelting and refining in separate establishments.
19.22 Withdrawal of metal refined in part
from imported crude metal and in part
from crude metal produced from imported materials.
19.23 Withdrawal for exportation from one
port to be credited on warehouse entry
account at another port.
19.24 Theoretical transfer without physical
shipment of dutiable metal.
19.25 Credit to be applied under various
forms of withdrawals.
SPACE BONDED FOR THE STORAGE OF WHEAT
19.29 Sealing of bins or other bonded space.
19.30 Domestic wheat not to be allowed in
bonded space.
19.31 Bulk wheat of different classes and
grades not to be commingled in storage.
19.32 Wheat manipulation; reconditioning.
19.33 General order; transportation in bond.
19.34 Customs supervision.
DUTY-FREE STORES
19.35 Establishment of duty-free stores
(Class 9 warehouses).
19.36 Requirements for duty-free store operations.
19.37 Crib operations.
19.38 Supervision of exportation.
19.39 Delivery for exportation.
CONTAINER STATIONS
19.40 Establishment, relocation or alteration of container stations.
19.41 Movement of containerized cargo to a
container station.
19.42 Application for transfer of merchandise.
19.43 Filing of application.
19.44 Carrier responsibility.
19.45 Transfer of merchandise, approval and
method.
19.46 Employee lists.
19.47 Security.
19.48 Suspension or revocation of the privilege of operating a container station;
hearings.
19.49 Entry of containerized merchandise.

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