operated by one proprietor in the same Customs district may be included in one bond. (b) The application shall be accompanied by a certificate signed by the president or secretary of a board of fire underwriters, and at ports where no such board exists by an officer or agent of each of two or more insurance companies, stating that the building is a suitable warehouse and acceptable for fire-insurance purposes. The application shall also be accompanied by a blueprint showing measurements, openings, etc., of the building or space to be bonded. If the warehouse to be bonded is a tank, the blueprint shall show all outlets, inlets, and pipe lines and shall be certified as correct by the proprietor of the tank. A gauge table showing the capacity of the tank in United States gallons per inch or fraction of an inch of height, certified by the proprietor to be correct, shall accompany the application. When a part or parts of a building are to be used as the warehouse, there shall be given a detailed description of the materials and construction of all partitions. When the proprietor is the lessee of the premises covered by the application and bond, he shall furnish a stipulation concurred in by the sureties, agreeing that, prior to the expiration of the lease covering the premises without renewal thereof, he will (1) transfer any merchandise remaining in the bonded warehouse to an approved bonded warehouse, (2) pay all duties, charges, or exactions due on such merchandise, or (3) otherwise disposed of such merchandise in accordance with the Customs laws and regulations. (c) On approval of the application to bond a warehouse of class 2, 3, 4, 5, or 8, a bond shall be executed on Customs Form 3581.8 (d) On approval of the application to bond a proprietor's manufacturing warehouse, class 6, a bond shall be executed in duplicate on Customs Form 3583. In the case of a bonded smelting and refining warehouse, class 7, the bond shall be executed with the required number of copies and in the form prescribed in T. D. 50267, as amended by T. D. 52403. All documents referred to in paragraph (b) of this section as may relate to proprietor's warehouse bonds, class 6 or 7, shall be submitted in duplicate. (e) Any proprietor of a bonded warehouse may be required on 10 days' notice from the district director to furnish a new proprietor's warehouse bond; and if he fails to do so, no more goods shall be sent to the warehouse and those therein shall be removed at the expense of such proprietor. A new bond is required if the bonded warehouse is substantially altered or rebuilt. (Sec. 555, 556, 46 Stat. 743; 19 U.S.C. 1555, 1556.) TDs 52019, 53399. 19.3 Bonded warehouses; alterations; suspensions; discontinuance.--(a) Al- TD 52019. terations in bonded warehouses, class 6 or 7, may be made by permission of the district director, unless they constitute a material change in the premises, in which case the approval of Headquarters, U.S. Customs Service is required. All alterations to warehouses of class 2, 3, 4, 5, or 8, or combinations thereof, may be made by permission of the district director without approval of Headquarters, U.S. Customs Service. (b) The use of all or part of a bonded warehouse or bonded floor or space TD 53759. may be temporarily suspended by the district director on written application of the proprietor if there are no bonded goods in the area concerned. Upon the removal of all free goods, if any, the premises may again be used for the storage of bonded goods upon written application of the proprietor. In each case the district director of Customs shall indicate his action by endorsement on the application. Rebonding will not be necessary. *** Before any imported merchandise not finally released from customs custody shall be stored in any such premises, the owner or lessee thereof shall give a bond in such sum and with such sureties as may be approved by the Secretary of the Treasury [Commissioner of Customs] to secure the Government against any loss or expense connected with or arising from the deposit, storage, or manipulation of merchandise in such warehouse. * * "(Tariff Act of 1930. sec. 555; 19 U. S. C. 1555.) TDs 38652, 52019. TD 71-39. TD 71-39. TD 53336. TD 52019. (c) Headquarters, U.S. Customs Service may discontinue the bonded status of a warehouse at any time for reasonable cause. The district director may take similar action in the case of a warehouse of class 2, 3, 4, 5, or 8. When the proprietor desires to discontinue the bonded status of his warehouse, he shall make written application therefor to the district director. If the application is approved by the district director, he shall require all goods in such warehouse upon which the duty has not been paid to be transferred to another bonded warehouse without expense to the Government. The number of warehouses covered by a general bond may be reduced by discontinuance without necessitating a new bond unless the proprietor so desires. (d) The bonded status of a warehouse may be discontinued if, within 30 days after the date of receipt of a written demand by the district director, the proprietor fails to submit a written list of the names, addresses, social security numbers, and dates and places of birth of all persons employed by him in the carriage, receiving, storage or delivery of imported merchandise; or if, having furnished such a list, the proprietor fails to advise the district director in writing of the names, addresses, social security numbers, and dates and places of birth of any new personnel employed by him in the carriage, receiving, storage or delivery of imported merchandise within 10 days after such employment. If the employment of any such person is terminated, the proprietor shall promptly advise the district director. For the purpose of this part, a person shall not be deemed to be employed by a warehouse proprietor if he is an officer or employee of an independent contractor engaged by the warehouse proprietor to load, unload, transport, or otherwise handle imported merchandise. (e) The district director may at any time serve notice in writing upon any proprietor of a bonded warehouse to show cause why his right to continue the bonded status of his warehouse should not be discontinued for failure to comply with the requirements established in accordance with paragraph (d) of this section. Such notice shall advise him of the allegations and shall afford him the right to respond in writing within 10 days. Thereafter, the district director shall consider the allegations and responses made by the said proprietor unless the proprietor in his response requests a hearing. If a hearing is requested, it shall be held before a hearing officer designated by the Secretary of the Treasury or his designee within 30 days following request therefor. The proprietor may be represented by counsel at such hearing, and all evidence and testimony of witnesses in such proceedings, including substantiation of the allegations and the responses thereto shall be presented, with the right of cross-examination to both parties. A stenographic record of any such proceeding shall be made and a copy thereof shall be delivered to the proprietor of the warehouse. At the conclusion of such proceeding or review of a written response, the hearing officer or the district director, as the case may be, shall forthwith transmit all papers and the stenographic record of the hearing, if held, to the Commissioner of Customs together with his recommendation for final action. The proprietor may submit in writing additional views or arguments to the Commissioner, following a hearing on the basis of the stenographic record, within 10 days after delivery, to him of a copy of such record. The Commissioner shall thereafter render his decision in writing, stating his reasons therefor, with respect to the action proposed by the hearing officer or the district director. Such decision shall be served on the proprietor of the warehouse. (Secs. 555, 556, 46 Stat. 743; 19 U.S.C. 1555, 1556.) 19.4 Offices; safety and sanitary requirements; supervision.--(a) Suitable accommodations for the Customs warehouse officer shall be provided by the proprietor of the warehouse. An office for the accommodation of the warehouseman may be allowed in the bonded premises if separated by a partition from the space used for the storage of bonded goods. (b) Fires shall not be permitted in any warehouse, other than warehouses of classes 6, 7, and 8, except in the office of the Customs warehouse officer and warehouseman. When lights are required, only safety lanterns or electric lights shall be used. (c) All the doors and other entrances of bonded warehouses shall be secured by Customs locks. (d) In the case of merchandise subject to the Federal Food, Drug, and Cosmetic Act particular care shall be exercised by the warehouseman to keep the premises clean and free of rodents, insect infestation, trash, or other insanitary conditions. (4th Rev. – Feb, 1971) CR-384 (e) The character and extent of the customs supervision to be exercised in connection with any warehouse or transaction provided for in this part 19 shall be in accordance with section 23.35. (Secs. 555,556, 46 Stat. 743; 19 U.S.C. 1555, 1556.) 19.5 Customs warehouse officer; compensation of.--(a) The collector shall, when necessary, designate one or more employees to act as customs warehouse officer of each bonded warehouse or public store.' (b) The charge to be made for the services of a customs warehouse officer or a customs employee temporarily assigned to act as a customs warehouse officer at a bonded warehouse on a regular workday during his basic 40-hour workweek shall be computed at a rate per hour equal to 137 percent of the hourly rate of regular pay of the particular employee with an addition equal to any night pay differential actually payable under 5 U.S.C. 5545. The rate per hour equal to 137 percent of the hourly rate of regular pay is computed as follows: TD 53336. TDs 37374 (83), 39797. TDs 51075, 51295, 51387, 51508, 52980, 53399, 66-175, 69-169, 70-261. 2080 239 2319 Gross number of working hours in 52 40-hour weeks 1696 The charge to be made for the services of a Customs warehouse officer or a Customs employee temporarily assigned to act as a Customs warehouse officer at a bonded warehouse on a holiday or outside his established basic workweek shall be the amount actually payable to the employee for such services under the Federal Employees Pay Act of 1945, as amended (5 U.S.C. 5542(a), 5546), or the Customs overtime laws (19 U.S.C. 267, 1451), or both, as the case may be. When services of a Customs warehouse officer or a Customs employee temporarily assigned to act as a Customs warehouse officer at a bonded warehouse are performed by an intermittent when-actually-employed employee, the charge for such services shall be computed at a rate per hour equal to 108 percent of the hourly rate of the regular pay of such employee to provide for reimbursement of the Government's contribution under the Federal Insurance Contributions Act, as amended (26 U.S.C. 3101, et seq.), and employee uniform allowance. The time charged shall include any time within the regular working hours of the employee required for travel between the duty assignment and the place where the TDs 71-287, 74-139. Except as otherwise provided in this Act, bonded warehouses shall be used solely for the storage of imported merchandise and shall be placed in charge of a proper officer of the customs, who, together with the proprietor thereof, shall have joint custody of all merchandise stored in the warehouse; and all labor on the merchandise so stored shall be performed by the owner or proprietor of the warehouse, under supervision of the officer of the customs in charge of the same, at the expense of the owner or proprietor. The compensation of such officer of the customs and other customs employees appointed to supervise the receipt of merchandise into any such warehouse and deliveries therefrom shall be reimbursed to the Government by the proprietor of such warehouse." (Tariff Act of 1930, sec. 555; 19 U. S. C. 1555.) CR-384-A TD 74-139. employee is regularly employed excluding lunch periods, charged in multiples of 1 hour, any fractional part of an hour to be charged as 1 hour when the services are performed during the regularly scheduled tour of duty of the warehouse officer or between the hours of 8:00 a.m. and 5:00 p.m. on weekdays when the officer has no regularly scheduled tour of duty. In no case shall the charge be less than $1.00. CR-384-B TDs 51387, 51407, (c) The necessary transportation expenses and any authorized per diem expenses of a customs employee assigned to perform services at a warehouse at 54876, 55222. which he is not regularly assigned shall be reimbursed by the warehouse proprietor. TDs 51387, 54486, (d) When a customs officer is regularly assigned to duty at more than one warehouse, the charge for his compensation and transportation expenses in going 54876, 55222. from one bonded warehouse to another shall be equitably apportioned among the respective warehouse proprietors concerned. However, no charge shall be made for transportation expenses when a customs employee is reporting to as a first assignment, or leaving from as a last assignment, a place where he is regularly assigned to duty. (e) Upon the failure of the warehousemen to pay such charges when due, or to comply with the laws and regulations applicable to bonded warehouses, the collector shall refuse entry of merchandise for such warehouse and report the facts to the Bureau. (Sec. 5, 36 Stat. 901, as amended, secs. 451, 555, 556, 46 Stat 715, as amended, 743, as amended, 68A Stat. 416, as amended; 5 U.S.C. 5332, 5504, 5542, 5545, 5546, 6101, 19 U.S.C. 267, 1451, 1555, 1556, 26 U.S.C. 3111) 19.6 Permits; releases.--(a) Upon the receipt of a permit signed by the collector, or other Customs officer designated for such purpose, the Customs warehouse officer shall release the merchandise covered thereby to the warehouse proprietor, unless the proprietor furnishes a delivery order authorizing release to some other person, in which case the merchandise shall be released to the person designated by the proprietor. If the permit bears the endorsement provided for in section 144.38(e), release in accordance with the foregoing shall be withheld, subject to the provisions of section 127.14(c), pending the lodging of an order to release on Customs Form 7505-B. 10 (b) Before delivery is permitted, the permit shall be endorsed to show that storage, cartage, labor, and other charges due the Government have been paid. (c) Merchandise covered by a notice of lien filed by the carrier shall not be released until the lien has been satisfied or discharged. (Secs. 484(j), 555, 556, 46 Stat. 723, 743; 19 U.S.C. 1484(j), 1555, 1556.) 11 TDS 54876, 3 Pet. 292. TDs 16545, 16693, 16896, 17188, 17720, 19242, 19340, 19378, 19813, 53336, 73-175, 74-114, ID 21158. 13 Wallace 29. 3 Woods, 408. TD's 22346, 24894, 19.7 Expenses of labor and storage.--(a) All merchandise deposited in public stores or in bonded warehouses shall be held liable for the expenses of labor and 28306. storage chargeable thereon at the customary rates and for all other expenses accruing upon the goods. (b) The rates of storage and labor shall be agreed upon between the importer and the warehouse proprietor, but in case of disagreement the collector may, with the consent of all parties in interest, determine the rates to be charged. (c) Except in cases provided for by section 141.102(d), when merchandise is CIE 395/40. stored in a public store under a warehouse entry, general order, or otherwise, TD, 52156, 73-175. the charges for storage due the Government shall be paid before the packages are delivered. The charges shall be based upon the existing bonded warehouse tariff of the port for storage and labor (Secs. 555, 556, 46 Stat. 743; 19 U.S.C. 1555, 1556.) 19.8 Examination of goods by importer; sampling; repacking; examination of TDs 46325, 53336. merchandise by prospective purchasers.--Importers may, upon application approved by the collector on customs Form 3499 and under the supervision of the customs warehouse officer, examine, sample, and repack" or transfer merchandise in bonded warhouse. Where there will be no interference with theorderly conduct of customs business and no danger to the revenue, prospective purchasers may be permitted to examine merchandise in bonded warehouses upon the written request of the owner, importer, consignee, or transferee. (Secs. 555, 556, 562, 46 Stat. 743, 745, as amended; 19 U.S.C. 1555, 1556, 1562.) merchandise in a bonded warehouse shall be released from customs custody only to or upon the order of the proprietor of the warehouse, ***''(Tariff Act of 1930, sec. 484 (j); 19 U. S. C. 1484 (j).) The Government will not compel a warehouseman to deliver bonded goods as the interest of the Government is in the collection of the duty on the merchandise or its exportation, and any question of infringement of private rights by the warehouseman must be left to the parties in interest. Imported goods in bonded warehouse are exempt from taxation or judicial process of any state or subdivision (See T. C. B000 Repacking shall be considered a manipulation within the purview of sec. 562, Tariff Act of 1930, as amended. CR-385 |