Sec. 146.71 Release and removal of merchandise from zone.
(a) General. Except as provided for in Sec. 146.43, no merchandise
will be transferred from a zone without a Customs permit on the
appropriate entry or withdrawal form or other document as required in
this part. This port director may authorize transfer from a zone without
physical supervision or examination by a Customs officer. Upon issuance
of a permit, the port director will authorize delivery of the
merchandise only to the operator, who then may release the merchandise
to the importer or carrier.
(b) Liability for discrepancy. When a transfer is not physically
supervised by a Customs officer, the operator will be relieved of
responsibility only for the merchandise in a zone in the condition and
quantity as shown on the entry, withdrawal, or other appropriate form.
The operator will be relieved of responsibility only if it receives the
signed receipt on the document of the importer or the carrier named in
that document. The responsibility of the operator may be adjusted by any
discrepancy report made jointly by the operator and the bonded cartman,
lighterman, or carrier, or the importer, and signed by the above or an
authorized representative within 15 days after transfer of the
merchandise from the zone. Any adjustment must be noted on the permit
copy of the entry, withdrawal, or other appropriate form or document. A
copy of any joint report of discrepancy must be submitted to the port
director within 10 working days of signing by the parties.
(c) Time limit. Except in the case of articles for use in a zone,
merchandise for which a Customs permit for transfer to Customs territory
has been issued must be physically removed from the zone within 5
working days of issuance of that permit. The port director, upon request
of the operator, may extend that period for good cause. Merchandise
awaiting removal within the required time limit will not be further
manipulated or manufactured in the zone, but will be segregated or
otherwise identified by the operator as merchandise that has been
constructively transferred to Customs territory.
(d) Retention or return of merchandise to zone for consumption. (1)
The port director shall cancel any entry for consumption where: (i) The
merchandise is not removed from the zone within the period specified in
paragraph (c) of this section, or (ii) the merchandise was removed from
the zone but did not enter the commerce of the U.S. in Customs territory
and was subsequently readmitted to a zone in domestic status. If the
port director has reason to believe any new entry would be cancelled
under the provisions of this paragraph, he may reject the entry or
demand a written stipulation, as a condition of entry acceptance, that
the merchandise will not be returned to a zone in domestic status.
Merchandise covered by an entry which has been cancelled under this
paragraph shall be restored to its last foreign status.
(2) A component of merchandise which has been entered, but not
physically removed from a zone, shall be restored to its last zone
status, provided the port director determines that the component was
included in the entry through clerical error, mistake of fact, or other
inadvertence not amounting to an error in the construction of the law.
Such an error, including that in appraisement of any entry or
liquidation due to the above circumstances, may be corrected pursuant to
section 520(c)(1), Tariff Act of 1930, as amended (19 U.S.C.
1520(c)(1)), in accordance with the procedures described in part 173 of
this chapter. If the port director decides there has been no error,
mistake, or inadvertence, or that the information was not timely
provided, the component will be considered as an overage and subject to
the provisions of Sec. 146.53(d).
(3) When merchandise which has been entered for consumption is
subsequently returned to a zone for a reason other than that specified
in paragraph (d)(1) of this section, it shall be admitted in domestic
status.
[T.D. 86-16, 51 FR 5049, Feb. 11, 1986; 51 FR 11012, Apr. 1, 1986]
