13 amended, or the place designated for its performance is not suitable for preventing confusion as to the identity or status of the merchandise and for safeguarding the revenue. (d) In the event of the denial of any application by the collector for any reason, the applicant, the grantee of the zone, or the operator of the zone, may appeal the adverse ruling to the Board. If any revenue protection considerations are involved in such an application, the Board shall be guided by the determinations of the Secretary of the Treasury with respect to them. (e) When any privileged merchandise is to be manipulated in any way or manufactured, the person performing the operation shall maintain records containing the following information: (1) A full identification, as specified in paragraph (b) of this section, of each lot of privileged merchandise used in the operation, (2) The unit and total values of each such lot, the values in the case of privileged foreign merchandise to be those declared in the zone customs entry, including any amendment thereof, (3) The commercial name or description of the product resulting from the operation, or of each such product if there are more than one, (4) The quantity of such product or of each such product, as the case may be, (5) The commercial name or description and quantity of each kind of waste recovered from the operation, and (6) The description (i. e., evaporation, leakage, spillage, dust, etc.) and quantity 13 The fourth proviso is quoted in footnote 12. 44 Provided further, That no operation involving any foreign or domestic merchandise brought into a zone which operation would be subject to any provision or provisions of section 1807, chapter 15, chapter 16, chapter 17, chapter 21, chapter 23, chapter 24, chapter 25, chapter 26, or chapter 32 of the Internal Revenue Code if performed in customs territory, or involving the manufacture of any article provided for in paragraph 367 or paragraph 368 of the Tariff Act of 1930, shall be permitted in a zone except those operations (other than rectification of distilled spirits and wines, or the manufacture or production of alcoholic products unfit for beverage purposes) which were permissible under this Act prior to July 1, 1949: (19 U. S. C. 81c) of each kind of total physical loss resulting from the operation. If any non-privileged merchandise is to be used in the operation, records shall be maintained containing a full identification, as specified in paragraph (b) of this section, and the unit and total values of each lot of the merchandise used in the operation. § 30.13 Destruction of merchandise in a zone. (a) Each application to destroy merchandise in a zone shall be filed with the collector on zone Form E. (b) The application shall include a description of the proposed method of destruction, a designation of the place where the destruction is to be accomplished, and an identification of the merchandise as in the case of an application for permission to manipulate (§ 30.12 (b)). (c) The destruction of distilled spirits, wines, and fermented malt liquors having a zone-restricted status may not be authorized in view of the exception in the fourth proviso to section 3 of the act, as amended. In any other case, if the collector is satisfied that the destruction will be effective and that the revenue will be adequately protected, he shall approve the application. If proper destruction can not be effectively accomplished within the zone, the collector may permit it to be done elsewhere, in whole or in part, under such conditions as he shall specify for protecting the revenue. Any residue of destruction which is entirely worthless may be removed to customs territory for disposal. § 30.14 Sending merchandise from a zone into customs territory. (a) When privileged domestic merchandise which has not been mixed, combined, or repacked in the zone with merchandise having a different zone status is to be transferred from the zone to customs territory, the zone grantee shall submit to the collector a description of the proposed transaction, in triplicate, and signed by him which shall include: (1) The proposed date of transfer; (4) Identification of the merchandise by zone storage location, lot number, marks and numbers of the packages, description, quantity, and zone status; and (5) A notation as to any shortage or damage. If the transfer is aproved by the collector the original of the description shall be so stamped to serve as a permit of delivery, the original and one copy shall be returned to the grantee, and the triplicate shall be retained by the collector. If a form of tally prepared by the zone grantee for its purposes contains the necessary information, it may be accepted by the collector as the description required by this paragraph. No document other than the permit of delivery shall be required to release the merchandise to the grantee and authorize is transfer into customs territory. (b) When privileged foreign merchandise which has not been mixed, combined, or repacked in the zone is to be transferred to customs territory otherwise than for exportation, a zone withdrawal on customs Form 7505 shall be filed as an application for the transfer (see § 30.4). Such withdrawal shall be supported by a bond on customs Forms 7551, 7553, or other appropriate form, and the applicant shall pay the liquidated duties and determined taxes, as assessed in the liquidation of the pertinent zone customs entry, for the quantity of merchandise to be transferred. Such bond shall not be required when all the merchandise to be transferred to customs territory has been inspected, examined, and appraised, and has been found to comply with all laws and regulations governing its admission into the commerce of the United States, and there have been produced all documents for the production of which a bond is required by law or regulations if not filed at the time of entry. If the pertinent zone customs entry has not been liquidated estimated duties and taxes shall be deposited. Upon acceptance of the withdrawal, the collector shall release the merchandise to the grantee for delivery. (c) When a product of a manipulation or manufacture in a zone composed of or derived from privileged merchandise only, whether all foreign, or partly foreign and partly domestic, is to be transferred to customs territory otherwise than for exportation, a zone withdrawal shall be filed as prescribed in paragraph (b) of this section. There shall be filed with the withdrawal a statement in the form of an invoice containing the information specified in § 30.12 (e), and when necessary to support the withdrawal, application may be made for a certificate on zone Form F covering identification as shown by the customs records of any privileged domestic or privileged foreign merchandise used in the manipulation or manufacture. (d) When merchandise described in paragraph (b) or (c) of this section is to be transferred to customs territory otherwise than for exportation and it is desired to pay the duties and taxes at a port other than the port in which the zone is located, the merchandise shall be withdrawn for transportation to the other port on customs Form 7512 which shall clearly indicate the status of the merchandise, and the withdrawal for consumption at the other port shall be made in the manner prescribed in paragraph (b) or (c) of this section except that customs Form 7519 shall be used. The collector at the zone port shall issue a certificate in triplicate, describing the merchandise in its present condition and certifying the amount of duties and taxes and applicable to the shipment, and the duplicate copy of such certificate shall be given to the importer to be filed with the withdrawal for consumption. (e) When merchandise described in paragraph (b) or (c) of this section is to be transferred to customs territory for exportation, a withdrawal for exportation, or for transportation and exportation, shall be filed on customs Form 7512. Upon acceptance of the withdrawal the collector shall make a notation as to the status of the merchandise on the document, and release the merchandise to the grantee for delivery to the bonded cartman, lighterman, or carrier. (f) When merchandise not covered by paragraph (a), (b), (c), (d), or (e) of this section, or either of the last two sentences of § 30.13 (c), is to be transferred from a zone to customs territory, the grantee shall make an application to the collector on zone Form C. The applicant shall state the name and address of the person who will be deemed the consignee of the merchandise when it is transferred to customs territory. The collector shall not accept a term application on Form C. The applicant shall also include a complete identification of the merchandise as it entered the zone, including the lot numbers, marks and numbers of the packages, status of each lot, description, and quantities. If any change in respect of any of the foregoing items of identification occurred while the merchandise was in the zone, the current information with respect to each such item which has been changed shall also be stated. (g) Upon the approval by the collector of an application on zone Form C, the merchandise is transferred to constructive customs territory, without physical removal from the zone. The collector shall note on the application the date of such constructive transfer and the zone status of the merchandise. Merchandise so constructively transferred shall be marked or labeled with the initials "C. T.". For all customs and internal revenue purposes the merchandise shall be considered to have been imported into customs territory at the time of the constructive transfer. (h) (1) If a customs entry for disposition in customs territory of the constructively transferred merchandise has not been filed in proper form before 5 p. m. of the second working day after the constructive transfer of the merchandise, or within such longer time as may be specified in a lay-order issued by the collector upon a written application of the grantee or designated consignee filed with the collector on customs Form 3189, and approved by the grantee if made by the consignee, the merchandise shall be deposited by the collector in general order storage. However, if it is desired to restore the merchandise to a zone status after it has been constructively transferred and before the expiration of the lay-order period specified above, a new zone Form D may be filed and the same procedure followed as though the merchandise had then first arrived in the zone from or through customs territory (§ 30.5 (d)). In such a case, the zone grantee shall be deemed the carrier which brought the merchandise to the port. (2) As an alternative to the filing of a new zone Form D the applicant may, if he so desires, arrange for the redelivery to the collector, prior to the filing of a customs entry and prior to the expiration of the lay-order period specified above, of the grantee's original copy of the zone Form C with a request that it be cancelled. (i) The original of zone Form C, when approved by the collector and endorsed as provided for in paragraph (g) of this section, shall be accepted by the collector as the equivalent of a bill of lading or carrier's certificate to identify the person designated in such Form C as the consignee of the merchandise and its owner for customs purposes. (j) When a consumption entry is accepted for zone merchandise which is in constructive customs territory, the collector shall release the merchandise to the grantee for delivery to the consignee. When any other entry is accepted for such merchandise, the release of the merchandise by the collector for physical removal to the designated destination in customs territory shall be in accordance with the customs regulations as to merchandise imported into customs territory, the zone grantee to be considered as the importing carrier. (k) The products described in subparagraphs (1), (2), or (3) of this paragraph, upon transfer from a zone and entry for consumption, either immediately or after transportation in bond, shall be subject to appraisement and tariff classification in accordance with their character, condition, and quantity at the time of their constructive transfer to customs territory in accordance with paragraph (g) of this section, and at the rate or rates of duty and tax in force at the time entry is made in customs territory as stated in § 8.4 of this chapter. The value of such products shall be determined in accordance with sections 402 and 503 of the Tariff Act of 1930 and the related provisions of law. (1) Articles composed entirely of, or derived entirely from, non-privileged merchandise, foreign or domestic. (2) Articles composed in part of, or derived in part from, non-privileged merchandise, domestic or foreign, and in part of or from privileged merchandise, domestic or foreign. (3) Recoverable waste resulting from the manipulation or manufacture in a zone of privileged foreign merchandise. Any of the articles described in subparagraphs (1), (2), or (3) of this paragraph, except articles composed in part of, or derived in part from, privileged foreign merchandise, may be transferred from a zone for entry for warehousing, either immediately or after transportation in bond, subject to the treatment specified in the first two sentences of this paragraph. There shall be filed with each entry covering articles described in subparagraph (2) of this paragraph a statement in the form of an invoice containing the information specified in § 30.12 (e). When necessary to support the entry, application may be made for a certificate on zone Form F covering identification as shown by the customs records of any privileged domestic or privileged foreign merchandise in the articles. (1) The consumption or warehouse entry covering a product provided for in paragraph (k) of this section shall be liquidated in accordance with Part 16 of this chapter, except that in the case of articles described in paragraph (k) (2) of this section adjustment shall be made for that part of the product which consists of or has been derived from privileged merchandise. (m) Unless the Foreign-Trade Zones Board has ruled that the return of the merchandise to customs territory for domestic consumption is in the public interest, zone-restricted merchandise shall not be transferred to customs territory except under an entry for exportation or for transportation and exportation, or for destruction (except destruction of distilled spirits, wines, and fermented malt liquors), or for transfer from one zone to another. Each such entry shall be subject to the pertinent provisions of paragraphs (f) to (j), inclusive, of this section, except that if the entry has not been filed in proper form before the expiration of the period mentioned in the first sentence of paragraph (h) of this section, the merchandise shall not be deposited by the collector in general-order storage but shall be considered as having been returned from constructive customs territory to the zone. Upon acceptance of the entry, it shall be endorsed by a customs officer to show that actual exportation of the merchandise is required by the fourth proviso to section 3 of the act, as amended. If the Board has ruled that the return of the merchandise to customs territory is in the public interest, after the merchandise has been constructively transferred to customs territory it may be entered for consumption, warehousing, or immediate transportation without appraisement, unless the Board in its ruling has specified which of these forms of entry shall be made. The entry shall be endorsed by the collector to show the authority under which the entry was made and that the merchandise is subject to the provisions of paragraph 1615 (f) of the Tariff Act of 1930, as amended. (n) Articles produced or manufactured in a zone and returned to customs territory of the United States after having been exported without first having been transferred to customs territory otherwise than for exportation or for transportation and exportation shall be subject to the duties and taxes applicable to like articles of wholly foreign origin, unless it is conclusively established that they were produced or manufactured exclusively with the use of privileged domestic merchandise, the identity of which was maintained in accordance with the pertinent provisions of these foreign-trade zone regulations, in which case they shall be subject to the pertinent provisions of paragraph 1615, Tariff Act of 1930.** [T. D. 53010, 17 F. R. 5318, June 11, 1952, as amended by T. D. 53336, 18 F. R. 5425, Sept. 9, 1953] § 30.15 Direct exportation from a zone. Regardless of its zone status, any merchandise in a zone may be exported directly therefrom upon compliance with the procedure prescribed in § 30.14 (a) for the transfer of privileged domestic merchandise to customs territory. (a) § 30.16 Supplies, equipment, and repair material for vessels or aircraft. Any article in a zone, including zonerestricted merchandise, which is suitable for use on a vessel or aircraft entitled to the privileges of section 309, Tariff Act of 1930, as amended, as supplies, equipment, or repair material may be laden on such a vessel or aircraft in the zone or transferred from the zone to such a vessel or aircraft at a port of entry in the United States outside the zone, subject to any applicable limitation prescribed in such section 309. (b) If the article is laden on the vessel or aircraft in the zone, the provisions of § 30.15 pertaining to direct exportations from the zone shall apply. If the 1ས ་་་ Provided further, That articles produced or manufactured in a zone and exported therefrom shall on subsequent importation into the customs territory of the United States be subject to the import laws applicable to like articles manufactured in a foreign country, except that articles produced or manufactured in a zone exclusively with the use of domestic merchandise, the identity of which has been maintained in accordance with the second proviso of this section, may, on such importation, be entered as American goods, returned." (19 U. S. C. 81c) article is to be transferred from the zone to the vessel or aircraft at a port of entry outside the zone, the provisions of 30.14 pertaining to transfers from a zone to customs territory for exportation shall apply, in which case, when constructive transfer to customs territory has been accomplished, the merchandise shall thereafter be liable to or exempt from duty or tax and be subject to any other applicable provisions of sections 309 and 317, Tariff Act of 1930, I. R. C. section 3451, and §§ 10.59 to 10.65, inclusive, of this chapter as though it were imported merchandise which had remained in continuous customs custody in customs territory elsewhere than in a bonded warehouse. (c) Any article in a zone which is suitable for use as ground equipment for aircraft entitled to the privileges prescribed in section 309 or 317, Tariff Act of 1930, as amended, with respect to ground equipment may be used in the zone, or transferred to customs territory for use, as ground equipment for such aircraft without payment of duty or any internal-revenue tax imposed upon or by reason of importation. [T. D. 53336, 18 F. R. 5425, Sept. 9, 1953] 30.17 Transfer of merchandise from one zone to another. (a) The transfer of merchandise, other than privileged domestic, from a zone in one port of entry to a zone in another port shall be by bonded carrier under an entry for immediate transportation on customs Form 7512. The sending of the merchandise from the first zone into customs territory and its admission into the zone of destination shall be in accordance with 30.14 (f) through (i) and § 30.5 (d), respectively. All copies of the entry for immediate transportation shall bear a notation that the merchandise is being taken from the first zone for the purpose of transfer to the second zone. (b) Upon removal of merchandise as specified in paragraph (a) of this section from the first zone, the collector in charge of the port in which such zone is located shall immediately forward to the collector in charge of the port in which the zone of destination is located a history of the merchandise as shown by the records of the first zone. (c) The transfer of privileged domestic merchandise from one zone to another is not subject to customs control except that the removal of the merchandise from the first zone and its admission into the zone of destination shall be in accordance with §§ 30.14 (a) and 30.5 (d), respectively. $ 30.18 Reimbursement of customs expenses. (a) The Commissioner of Customs will assign to each zone the necessary customs officers and guards to maintain appropriate customs control over merchandise in a zone and to protect the revenue. (b) All necessary cost of maintaining the additional customs services required under the act and these foreign-trade zone regulations shall be reimbursed to the Government by the grantee of the zone," payment to be made monthly to the collector of customs. Part 51-Imports and Exports Subject to the Provisions of Executive Order 8389, as Amended, and Proclamation 2497, Regarding "Blocked Nationals" Sec. 51.1 Presentation of license before acceptance of entries for consumption, etc. 51.2 Necessity for license under the Export Control Act. AUTHORITY: §§ 51.1 and 51.2 issued under 40 Stat. 415, as amended, 54 Stat. 714, as amended; 12 U. S. C. 95a, 50 U. S. C. App.. 701. E. O. 8389, as amended, Apr. 10, 1940. and Proc. 2497, July 17, 1941; 3 CFR, 1943 Cum. Supp. SOURCE: $51.1 and 51.2 appear at 13 F. R. 8117, Dec. 18, 1948. § 51.1 Presentation of license before acceptance of entries for consumption, etc. Except as otherwise directed, Treasury licenses shall not be required with respect to the entry, withdrawal, or exportation of merchandise notwithstanding General Ruling No. 11, as amended (8 CFR § 511.211), or that the consignee, consignor, or other person having an interest in the merchandise, or in the transaction, is a foreign country designated in Executive Order No. 8389, Apr. 10, 1940, as amended (3 CFR, 1943 Cum. Supp.), or a national thereof. |