(Secs. 309, 317, 624, 46 Stat. 690, as amended, 696, as amended 759; 19 U.S.C. 1309, 1317, 1624)

[28 FR 14663, Dec. 31, 1963]

NOTE: For FR citations affecting §10.59, see List of CFR Sections Affected.

§ 10.60 Forms of withdrawals; bonds.

(a) Withdrawals from warehouse shall be made on Customs Form 7506 (Warehouse Withdrawal Conditionally Free of Duty). Each withdrawal shall contain the statement prescribed for withdrawals in § 144.32 of this chapter

and all of the statistical information as provided in § 141.61(e) of this chapter. Withdrawals from continuous Customs custody elsewhere than in a bonded warehouse shall be made on Customs From 7512, except as provided for by paragraph (h) of this section. When a withdrawal of supplies or other articles is made which may be used on a vessel while it is proceeding in ballast to another port as provided for by 10.59(a)(3), a notation of this fact shall be made on the withdrawal and the name of the other port given if known.

(b) If the withdrawal is made by other than the principal on the warehouse or rewarehouse entry, as the case may be, the assent of such principal shall be endorsed on the withdrawal, unless the principal has otherwise authorized such withdrawal in writing.

(c) A bond on Customs Form 7501 or other appropriate form shall be taken when the withdrawal from warehouse is made by a person other than the principal on the warehouse or rewarehouse entry, as provided for in paragraph (b) of this section.

(d) When the supplies are to be laden at a port other than the port of withdrawal from warehouse, they shall be withdrawn for transportation in bond to the port of lading. Three copies of the manifest on Customs Form 7512, in addition to six copies of the withdrawal on Customs Form 7506, shall be required. The procedure shall be the same as that prescribed in § 144.37 of this chapter (the six copies of Customs Form 7506 taking the place of the entry copies of Customs Form 7512).

(e) No bond shall be required in the case of war vessels.

(f) Unless transfer is permitted under the provisions of paragraph (h) of this section, when articles are withdrawn from continuous Customs custody elsewhere than in a bonded warehouse for lading at the port of withdrawal, the procedure provided for in § 18.25 of this chapter shall be followed, except that the bond required shall be on Customs Form 7557, 7559, or 7595. Unless transfer is permitted under the provisions of paragraph (h) of this section, when articles are with

drawn from continuous Customs custody elsewhere than in a bonded warehouse for lading at another port, the procedure set forth in § 18.26 of this chapter shall be followed, except that the withdrawal when filed shall be supported by a bond on Customs Form 7557, 7559, or 7595. There shall be such examination of the articles as may be necessary to satisfy the district director that they are subject to the privileges of section 309, Tariff Act of 1930, as amended, and that the value and quantity declared for them are,

correct.

(g) A withdrawal under § 10.59(e) shall be supported by a bond on Customs Form 7603 in lieu of any other bond.

(h) If a request is made for permission to transfer supplies or stores from one vessel to another which would be entitled to withdraw them free of duty and tax under section 309 or 317, Tariff Act of 1930, as amended, the district director in his discretion may permit the articles to be so transferred under Customs supervision under a permit on Customs Form 3171 in lieu of a formal withdrawal under the pertinent statute. In such a case, the pertinent statute shall be indicated by an endorsement made on the permit by the district director.

(Sec. 309, 46 Stat. 690, as amended; 19 U.S.C. 1309)

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17445, July 2, 1973; T.D. 73-312, 38 FR 30882, Nov. 8, 1973]

§ 10.61 Withdrawal permit.

Upon the filing of the withdrawal and the execution of the bond, when required, the district director shall issue a permit on Customs Form 7506 or 7512.

(Sec. 309(a), 46 Stat. 690, as amended; 19 U.S.C. 1309(a))

§ 10.62 Bunker fuel oil.

(a) When all the bunker fuel oil in a Customs bonded tank is intended only for lading duty free as supplies on vessels under section 309 of the Tariff Act of 1930, as amended, delivery of the oil, either by pipeline or by Customs bonded carrier, under withdrawals on Customs Form 7506, either

single or monthly (blanket), may be effected without the presence of a Customs officer upon the condition that Customs Form 7505-B, Order to Release Merchandise on Order of the Warehouse Proprietor, is executed by the withdrawer for each delivery of oil from the tank. Customs Form 7505-B shall be filed by him with the district director of Customs at the time of withdrawal or at such other time as the district director may specify and shall include the following additional data:

(1) Type of oil withdrawn.

(2) Number of other identification of sales order therefor.

(3) Name of bonded carrier, date it received oil.

(4) Receipt signed by master or other person in charge of delivering conveyance identified by number or name and, if a Customs bonded lighterman or cartman, by the carrier's license number.

(5) Name and location of vessel obtaining oil.

(6) Quantity and identification of each type of oil received with date, and signature and title of receiving officer. If all the oil is laden on the receiving vessel at the port of withdrawal via pipeline from the bonded storage tank, subparagraphs (3) and (4) of this paragraph shall be deemed to be inapplicable.

(b) If a blanket free withdrawal of bunker fuel oil is filed, to comply with Bureau of the Census requirements the withdrawal on Customs Form 7506 shall be endorsed "Estimated Withdrawals" and limited to the aggregate quantity and value of fuel oil which it is estimated will be physically removed from Customs bond during the calendar month in which the withdrawal is filed for lading on vessels entitled to duty-free vessel supplies under section 309 of the Tariff Act of 1930, as amended.

(c) (1) As an incident of the delivery of fuel oils classifiable at different rates of duty to a vessel or vessels under section 309 of the tariff act, the district director of Customs may, when necessary to enable a supplier to meet fuel specifications, permit the blending of the oils in the delivering convey

ance or in other suitable facilities after withdrawal from the bonded tanks, upon the condition that, to the extent of the amount of oil withdrawn classifiable at the higher rate, duty at the higher rate will be paid on any portion of the blended fuel oil not delivered within a reasonable time to a qualified vessel. The withdrawer shall be required to file a withdrawal for consumption for the excess quantity withdrawn. For example, if the quantity withdrawn consists of 1,500 barrels of bunker C fuel oil classifiable at the rate of one-eighth cent per gallon and 500 barrels of diesel oil classifiable at the rate of one-fourth cent per gallon but only 1,400 barrels of the blended oil are actually laden as fuel supplies on qualified vessels, withdrawals for consumption are required for 500 barrels of diesel oil at the higher rate and for 100 barrels of bunker C fuel oil at the lower rate.

(2) The receipt of the delivering carrier on Customs Form 7505-B for fuel oil which has been blended in accordance with subparagraph (1) of this paragraph with components classifiable at different rates of duty shall show for each warehouse entry number and withdrawal number involved the type and quantity of oil received.

(d) Fuel oil withdrawn as vessel supplies at one port may be laden at another port on a vessel or vessels entitled to the free withdrawal privileges of section 309 of the tariff act, under procedures prescribed in this section, provided the movement to the receiving vessel or vessels is under the bond of a qualified carrier as described in § 18.1(a) of this chapter. In such cases, the provisions of § 10.60(d) of this chapter shall be deemed inapplicable.

(e) If a vessel not entitled to dutyfree withdrawal of supplies from Customs bonded warehouses under section 309 of the Tariff Act of 1930, as amended should be supplied with fuel oil from a Customs bonded tank described in paragraph (a) of this section because of an emergency, a duty paid withdrawal therefor shall be filed on the first day that the customhouse is open for the general transaction of business after the day on which the oil

is laden on the using vessel. If there should be willful or repeated instances of late filing of a duty-paid withdrawal in such cases, the district director of Customs shall require a duty-paid withdrawal to be filed prior to the removal of fuel oil from the bonded tank. Immediate Customs supervision over the removal of oil under this paragraph is not required.

(f) When the procedures prescribed in this section are followed, representatives of the regional commissioner of Customs will from time to time verify various withdrawals against all pertinent records, including financial records, of the withdrawers, deliverers, and receivers of the oil.

(Sec. 309, 46 Stat. 690, as amended; 19 U.S.C. 1309)

[T.D. 69-99, 34 FR 6520, Apr. 16, 1969]

§ 10.62a Blanket withdrawals for certain merchandise.

(a) Under this section, a blanket withdrawal on Customs Form 7506 may be filed for all or part of any merchandise, except fuel oil covered by a warehouse entry intended for withdrawal under section 309 or 317 of the Tariff Act of 1930, as amended, for use on qualified vessels. The withdrawal form shall bear in the top margin the wording Master Withdrawal for Vessel Supplies conspicuously stamped or printed but without the summary statement described in § 144.32 of this chapter.

(b) The blanket withdrawal shall be executed in quadruplicate or in quintuplicate if an additional copy is required for control purposes in local administratio... The original shall be forwarded to the Customs warehouse officer to serve as a permit to withdraw the merchandise covered thereby upon the filing of supplemental withdrawals as provided in paragraph (c) of this section. One copy shall be kept with the related entry. One copy shall be returned to the withdrawer for use in preparing the supplemental withdrawals. One copy (statistical) shall be forwarded to the Bureau of the Census.

(c) A supplemental withdrawal on Customs Form 7506, in duplicate or in triplicate if an extra copy is needed for local control, shall be filed directly

with the Customs warehouse officer as merchandise covered by the blanket withdrawal is needed for delivery to a using vessel. The supplemental withdrawals shall be consecutively numbered by the withdrawer immediately after the serial number of the master withdrawal. Each supplemental withdrawal shall bear the summary statement described in § 144.32 of this chapter. The original of the supplemental withdrawal shall accompany the merchandise for delivery to the Customs officers who will supervise the lading.

(Secs. 309, 317, 46 Stat. 690, as amended, 696, as amended; 19 U.S.C. 1309, 1317) [T.D. 69-177, 34 FR 12433, July 30, 1969, as amended by T.D. 73-175, 38 FR 17445, July 2, 1973]

§ 10.63 Landing of supplies and stores from receiving vessel in the United States.

Supplies or stores laden on a vessel duty and tax free under section 309, Tariff Act of 1930, as amended, may be landed under Customs supervision under proper permit, the same as if they had been laden in a foreign country. See 88 4.39 and 23.4 of this chapter. Except when transfer to another vessel entitled to the free withdrawal privilege is permitted under the original withdrawal under section 309, Tariff Act of 1930, as amended, the landed articles shall be treated as an importation from a foreign country. 58 (Sec. 309(a), 46 Stat. 690, as amended; 19 U.S.C. 1309(a))

§ 10.64 Crediting or cancellation of bonds. (a) Except as stated below, the warehouse or rewarehouse entry bond or the bond identified in § 10.60 (c) or (f) for articles withdrawn under section 309, Tariff Act of 1930, as amended, for use as supplies, equipment, or for repair of a vessel may be credited or

58 (c) Articles removed in, or returned to, the United States. Any article exempted from duty or tax, or in respect of which drawback has been allowed, under this section or section 317 of this Act and thereafter removed in the United States from any vessel or aircraft, or otherwise returned to the United States, shall be treated as an importation from a foreign country.

canceled in respect of such articles upon the vessel's departure from the port of lading in a class of trade or business entitling the articles to exemption from duty and tax under the statute. If the vessel is not operated by the United States and proceeds in ballast from the port where the articles are laden to another port to lade passengers or cargo for carriage in a class of trade specified in section 309, Tariff Act of 1930, as amended, the bond may be credited or canceled upon the filing with the district director at the port of withdrawal within 3 months after the date of withdrawal of a proper declaration as prescribed below. The declaration shall be executed by one of the following who has knowledge of the facts:

(1) The operations manager or port captain for the vessel on which the articles are laden but not a representative of the supplier.

(2) The master or other officer of the vessel on which the articles are laden. The declaration shall be in substantially the following form:

clare that I have knowledge of the facts set forth herein, and that upon the lading of the articles described below covered by withdrawal No. filed at

-(Name of port), the vessel then proceeded in ballast to (Name of port) to lade cargo or passengers; that the vessel was suitable for service in the class of trade checked below with fittings, outfit, and equipment for such trade already installed when it so departed in ballast; and that upon arrival it proceeded to engage in the carriage of cargo or passengers in such trade, except as stated below:

(If no exception, note "None")

1. Foreign Trade.

2. Trade between Atlantic and Pacific ports of the United States, when such trade is not prohibited by coastwise laws. 3. Trade between the United States and any of its possessions, when such trade is not prohibited by coastwise laws.

4. Trade between Alaska or Hawaii and any other part of the United States, when such trade is not prohibited by coastwise laws.

Description of articles:

(Name and title)

(b) A declaration as to the intended business or trade of a vessel may, in the discretion of the district director, be accepted in lieu of a declaration prescribed in paragraph (a) of this section when the amount of duty or tax, or both, involved in a single lading is less than $100.

(Sec. 309, 46 Stat. 690, as amended; 19 U.S.C. 1309)

§ 10.64a Bonded fuel laden as aircraft supplies.

(a) In addition to other provisions of the regulations for the withdrawal of bonded fuel, for each fueling of an aircraft with fuel withdrawn from a Customs bonded warehouse without payment of duty and internal revenue tax under section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309), or for each duty-paid and tax-paid withdrawal, except duty-paid withdrawals filed in connection with a reconciliation of the consolidated report (see paragraph (f) of this section), or for any other type of withdrawal of fuel including transfer of a quantity of bonded fuel covered by the same warehouse entry, the person making the withdrawal or his designated agent shall prepare, in duplicate, and sign a Bonded Fuel Control Card, Customs Form 7309. The withdrawer shall file with the district director the executed Bonded Fuel Control Card, Customs Form 7309, within 15 days after the date of the transaction. Upon request of the withdrawer, for good cause shown, the district director may extend the time for filing up to 21 days after the date of the respective transaction. A copy of the fuel sales ticket may be used in place of the Bonded Fuel Control Card, Customs Form 7309, providing it contains all of the data and is in the same format as Customs Form 7309 and prior Customs approval has been obtained.

(b) If bonded fuel covered by a particular warehouse entry cannot be withdrawn within 90 days after the date of entry, a withdrawer may request one or more extensions of 30 or 60 days in order to postpone receipt of the consolidated report sent to him for response pursuant to paragraph (f) of this section. The withdrawer shall use a copy of Customs Form 7309 for this purpose, noting over his signature the region-district-port code number, the warehouse or rewarehouse entry

number, and the extension requested. The withdrawer shall file the original completed form with the district director at the port of withdrawal.

(c) When imported fuel withdrawn under section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309), is laden on a qualified U.S.-registered aircraft which departs directly for a foreign country or for a possession of the United States from a port where it is not otherwise required to clear Customs, an authorized representative of the carrier shall file an executed Flight Verification Card, Customs Form 7309-A, in duplicate, with the district director at the port of departure within 48 hours after departure. If the port of departure is not a U.S. Customs port, the executed Flight Verification Card, Customs Form 7309-A, shall be delivered to the district director at the Customs port nearest the final U.S. port of departure.

(d) In the case of an aircraft of U.S. registry arriving in the United States from a foreign country or from a possession of the United States and fueling with bonded fuel for use on the remaining leg(s) of a qualified flight to a U.S. destination for which a permit to proceed is not required, an authorized representative of the carrier shall file an executed Flight Verification Card, Customs Form 7309-A, in duplicate, with the district director at the U.S. port of destination (termination) of the flight within 48 hours after the arrival of the aircraft at that port. If the port of destination is not a U.S. Customs port of entry, the executed flight verification card, in duplicate, shall be filed within the 48 hours with the district director at the Customs port of