able at the time the merchandise became subject to sale.

(d) The duties of the auctioneer shall be confined to selling the merchandise and his charge for such service shall in no case exceed the commissions usual at the port. Such commissions shall be allowed only on the gross sum actually realized on the sale.

(e) Accounts for the auctioneer's charges and all other expenses of sale which may be properly chargeable on the merchandise shall be presented to the collector for payment within 10 days from the date of sale. Such expenses shall be apportioned pro rata on the amounts received for the different lots sold.

(f) If a claim of the owner of unclaimed merchandise for the surplus proceeds of sale is properly established in accordance with §24.25 of this chapter, such proceeds of sale shall be paid to him pursuant to section 493, Tariff Act of 1930. Any doubtful claim shall be forwarded to the Bureau with all pertinent documents and information available to the collector for the instructions of the Bureau or for reference by it to the General Accounting Office for direct settlement.

(g) Claims of the owner or consignee for the surplus proceeds of a sale made pursuant to section 559, Tariff Act of 1930, shall be paid in the manner and subject to the conditions stated in paragraph (f) of this section.

(h) If the proceeds of sale of merchandise in warehouse beyond 3 years are insufficient to pay the duties after payment of all charges having priority, the deficiency shall be collected under the warehouse entry bond, by suit if necessary.

(i) When the proceeds of sale of unclaimed merchandise are insufficient to pay the charges and duties, the consignee shall be liable for the deficiency unless

'Household and personal effects of the character provided for in schedule 8, part 2A, Tariff Schedules of the United States, which belong to persons who have not arrived in this country before the effects become subject to sale are dutiable at the rates in effect when the effects become subject to sale, even though such persons arrive and make entry for the effects before they are sold.

"The surplus of the proceeds of sales under section 491 of this Act, after the payment of storage charges, expenses, duties, and the satisfaction of any lien for freight, charges, or contribution in general average,

the merchandise was shipped to him without his consent. If no entry for the merchandise has been filed and no other attempt to control the merchandise has been made, the merchandise shall be regarded as shipped to the consignee without his consent and no effort shall be made to collect any deficiency of duties or charges from such consignee.

(Secs. 491-493, 559, 46 Stat. 726, as amended, 727, 744, as amended, 77A Stat. 14; 19 U.S.C. 1202, 1491-1493, 1559) [28 F.R. 14773, Dec. 31, 1963, as amended by T.D. 56481, 30 F.R. 11853, Sept. 16, 1965]

21.6

21.7

21.8

21.9 21.10

Suspension or revocation of license of cartman or lighterman.

Supervision of cartage and lighterage. Liability; reports of loss or damage. Tickets for goods carted or lightered. Inability to deliver merchandise. AUTHORITY: The provisions of this Part 21 issued under secs. 565, 624, 46 Stat. 747, 759, sec. 101, 76 Stat. 72; 19 U.S.C. 1565, 1624, Gen. Hdnote. 11, Tariff Schedules of the United States, unless otherwise noted.

SOURCE: The provisions of this Part 21 appear at 28 F.R. 14776, Dec. 31, 1963, unless otherwise noted.

shall be deposited by the collector in the Treasury of the United States, if claim therefor shall not be filed with the collector within ten days from the date of sale, and the sale of such merchandise shall exonerate the master of any vessel in which the merchandise was imported from all claims of the owner thereof, who shall, nevertheless, on due proof of his interest, be entitled to receive from the Treasury the amount of any surplus of the proceeds of sale." (Tariff Act of 1930, sec. 493; 19 U.S.C. 1493)

toms. Before such a license is issued, the cartman or lighterman shall be required to execute a bond on customs Form 3855 in an amount to be fixed by the collector1 and pay the fee of $50 prescribed by § 24.12 of this chapter. A carrier or freight forwarder who has filed a carrier's bond, customs Form 3587, or a carrier who has filed a private carrier's bond, customs Form 3588, may be appointed or licensed as a customs cartman or lighterman for a port for which such bond provides coverage. The license shall remain in force and effect as long as the required bond is considered sufficient or until the license is suspended or terminated. Before customhouse licenses are issued for bonded lighters or other such vessels, the vessel's marine documents, if any have been issued, shall be presented to the collector and such documents shall be returned by the collector following his examination thereof. The collector may require the applicant for a license to furnish a list showing the names and addresses of the managing officers and members of the organization or of the persons who will receive or transport imported merchandise which has not been released from customs, or a list of all such persons and their addresses. An applicant shall be required in each case to undertake to surrender promptly to the collector the identification cards of persons no longer employed by the applicant or give reasons satisfactory to the collector why such cards cannot be surrendered. The collector may also require an applicant to undertake to furnish, at such times and intervals as the collector deems necessary, a current list showing the names and addresses of the managing officers and members of the organization

1 "The cartage of merchandise entered for warehouse shall be done by cartmen to be appointed and licensed by the collector of customs and who shall give a bond in penal sum to be fixed by such collector, for the protection of the Government against any loss of, or damage to, such merchandise while being so carted. The cartage of merchandise designated for examination at the appraiser's stores and of merchandise taken into custody by the collector as unclaimed shall be performed by such persons as may be designated, under contract or otherwise, by the Secretary of the Treasury, and under such regulations for the protection of the owners thereof and of the revenue as the Secretary of the Treasury shall prescribe." (Tariff Act of 1930, sec. 565; 19 U.S.C. 1565)

or of the persons who will receive or transport imported merchandise which has not been released from customs, or a list of all such persons and their addresses. A license shall be subject to suspension for failure to comply with the requirements of the two preceding sentences, or it may be revoked for sufficiently good cause.

(b) Any cartman licensed by the city or State authorities who produces evidence of good moral character and his city or State license may be licensed as a customhouse cartman.

(c) Every licensed vehicle used for customs cartage and every licensed barge, scow, or other lighter used for customs lighterage shall be conspicuously marked with the legend "Customhouse License No. and the name of the person or firm to whom the license has been issued. The abbreviated legend "C.H.L. No. may be used if so desired.

(d) The markings prescribed by this section shall appear in letters and figures not less than 3 inches high and in the case of carts, trucks, drays, and other vehicles, such markings shall be placed on each side by painting directly onto the vehicle or by the attachment of signs bearing the required marking. However, in the case of vehicles, if such marking is not found to be practicable by the collector, he may designate some other conspicuous place upon the vehicle wher the number shall appear.

(e) These markings shall be removed upon termination of the license in accordance with the provisions of the bond, customs Form 3855, or the cartman or lighterman shall be liable for the payment of liquidated damages as provided for in such bond.

(f) Customs officers shall not deliver any bonded goods to vehicles or lighters which are not properly marked.

(R.S. 251, sec. 624, 46 Stat. 759; 5 U.S.C. 301, 19 U.S.C. 66, 1624) [28 F.R. 14776, Dec. 31, 1963, as amended by T.D. 56107, 29 F.R. 2336, Feb. 11, 1966; T.D. 70-102, 35 F.R. 6805, Apr. 30, 1970]

§ 21.2 Employees' identification cards.

When required for purposes of local administration, each licensed cartman or lighterman and each employee thereof who receives or transports imported merchandise which has not been released from customs shall possess an identification card, customs Form 3873, with

his photograph securely affixed thereto with glue or other adhesive substance. The card shall also bear his signature in the space provided. Such identification card shall be issued by the collector only upon application on customs Form 3078 of the licensed cartman or lighterman. The application shall be filed personally at the customhouse by the person for whom the application for the identification card is made, together with a photograph (or two if required for purposes of local administration) of such person in addition to the one to be affixed to the application. If required for purposes of local administration, the fingerprints of such person shall be taken on customs Form 3872 and at the time of the filing of the application. The identification card shall become valid when the United States customs seal has been impressed thereon, which seal shall not be impressed until after the card has been otherwise completed. If required for purposes of local administration, the identification card shall be prepared in duplicate. The original, after having impressed thereon the customs seal, shall be presented to the person in whose name the card is issued and shall be in his possession at all times when he is engaged in receiving or transporting imported merchandise. The duplicate, when required, shall be retained as an office record. It shall be the responsibility of each person to whom an identification card is issued to protect it with an appropriate transparent cover so that the face and back of the card are visible without removing the cover. Whenever the employment of the holder of an identification card is changed to another licensed cartman or lighterman, the card, supported by an application in proper form, shall be submitted promptly to the collector so that the change may be made officially on the card and on the custom house records. The collector may authorize such exceptions to the requirements of the preceding sentence as he deems necessary and advisable when the employment of the holder of an identification card is changed only temporarily to another licensed cartman or lighterman. The card shall be submitted promptly to the collector when there is a change of address of the holder. New cards shall be issued when necessary. Should an identification card be presented by a person other than the one

to whom it was issued, such card shall be forthwith confiscated. The identification card shall be surrendered when the holder thereof leaves the employment of a licensed cartman or lighterman for employment of some other character. All outstanding identification cards issued to a licensed cartman or lighterman and to the employees thereof, shall be taken up by the collector upon the suspension or termination of the license of the cartman or lighterman. An identification card shall not be issued to any person whose employment in connection with the transportation of bonded merchandise will, in the judgment of the collector, endanger the revenue.

(a) The cartage of packages designated for examination at the public stores shall be done under contract or other specific authority for that purpose, by a cartman licensed as a customhouse cartman. Contracts for Government cartage shall be procured by formally advertised solicitation for bids and award of contract or by negotiation in accordance with the appropriate provisions of the Federal Procurement Regulations, as supplemented by the special procurement requirements of the Bureau of Customs. At ports where no contract for Government cartage is in effect, the cartage of packages designated for examination at the public stores shall be done by licensed customhouse cartmen designated by the district director of customs for this purpose. The cost of the cartage shall be paid from the appropriation "Salaries and Expenses, Bureau of Customs."

(b) Merchandise designated for examination at an importer's premises or other place not in charge of a customs officer may be carted, lightered, or carried to any such place by the importer without a cartman's or lighterman's license, when in the judgment of the collector the revenue will not be endan

gered. Otherwise, such transfer shall be done by a licensed cartman, who shall be the contract cartman whenever practicable.

(c) When

merchandise withdrawn

from general order for regular entry is to be conveyed to a place designated by the district director of customs for examination, the cartage shall be at the expense of the importer and shall be under the cartage arrangements established at the port for hauling examination packages under the provisions of paragraph (a) of this section. Reimbursement of the amount paid shall be collected from the importer prior to release of the merchandise from customs custody.

(d) Unclaimed merchandise shall be carted to the public stores or a bonded warehouse designated by the district director of customs under the cartage arrangements established at the port for hauling examination packages under the provisions of paragraph (a) of this section. Reimbursement of the amount paid shall be collected from the importer prior to release if entry is made or from the proceeds of sale of the merchandise.

(e) Seized merchandise shall be delivered to the custody of the collector by the most practicable means available to the seizing officer.

[28 F.R. 14776, Dec. 31, 1963, as amended by T.D. 68-155, 33 F.R. 8731, June 14, 1968]

§ 21.5 Importers' cartage.

(a) Any licensed customhouse cartman may transfer merchandise at the expense of the importer or other party in interest from the importing vessel or other conveyance to bonded warehouse, from one vessel or conveyance to another, from one bonded warehouse to another, from the public stores to a bonded warehouse, from warehouse for transportation or for exportation, and from an internal-revenue warehouse for exportation under the internal-revenue laws without payment of tax.

(b) The collector may license any importer as a customhouse cartman for the purpose of carting his own imported merchandise.

(c) Importers and exporters shall designate on the entry and permit of bonded merchandise the bonded cartman or lighterman by whom they wish their merchandise to be conveyed and approval of such designation shall be indicated on the entry papers by the initials

of the appropriate customs officer placed in close proximity to the designation.

(d) If an importer does not cart his merchandise or designate a licensed customhouse cartman for the purpose, it shall be carted by a public-store cartman authorized by contract or designated by the collector for that purpose, the cost thereof to be paid by the importer or owner of the merchandise before its release from customs custody.

(e) Nothing in this section shall apply to the cartage of examination packages to the place of examination.

[28 F.R. 14776, Dec. 31, 1963, as amended by T.D. 68-155, 33 F.R. 8731, June 14, 1968] § 21.6 Suspension or revocation of license of cartman or lighterman. Inspectors or other customs officers may demand of any person claiming to be a customhouse cartman or lighterman, or employee thereof, his license or identification card for inspection. If it is not produced, or if the vehicle is not properly marked, or if the cartman or lighterman refuses or neglects to obey any proper order of the inspector or any customs order, rule, or regulation relative to the cartage or lighterage of merchandise, the collector may suspend or revoke the license of the cartman or lighterman chargeable with the offense. Such customs order or rule may include a requirement by the collector that customs licensed cartmen and lightermen shall make, keep, and promptly submit for customs inspection and examination upon request therefor such current written records relating to cartage and lighterage as may be needed for purposes of local customs administration.

§ 21.7 Supervision of cartage and lighterage.

(a) All licensed vehicles or lighters shall be subject to the control and direction of the officer having charge of the merchandise being carried.

(b) The vehicles or lighters designated for the purpose shall be present to take the merchandise when the customs officer in charge is ready to send it; otherwise, after waiting a reasonable time, such officer shall send the merchandise by any licensed vehicle or lighter available.

§ 21.8 Liability; reports of loss or damage.

(a) The cartman or lighterman conveying the merchandise, including mer

chandise covered by a TIR carnet which has not been "taken on charge" (see § 114.22(c) (2) of this chapter), shall be liable under his bond for its prompt delivery in sound condition, or in no worse than the damaged condition noted on the delivery ticket, customs Form 6043, Elliott Fisher ticket, or customs Form 7502-A, 7506, or 7512, if damage is so noted. Any negligence, dishonest or deceptive practice, or carelessness shall be cause for revocation of the license.

(b) Any loss or detention of bonded goods and any accident happening to a licensed vehicle or lighter while carrying them shall be immediately reported by the cartman or lighterman to the collector.

(c) The district director may cancel liquidated damages not in excess of $20,000 incurred under a cartman's bond or a lighterman's bond upon the payment of such lesser amount, or without the payment of any amount, as he may deem appropriate under the circumstances. Application for cancellation of liquidated damages incurred shall be made in accordance with the provisions of Part 172 of this chapter.

(Interprets or applies sec. 623, 46 Stat. 759, as amended; 19 U.S.C. 1623) [28 F.R. 14776, Dec. 31, 1963, as amended by T.D. 70-249, 35 F.R. 18265, Dec. 1, 1970; T.D. 71-70, 36 F.R. 4490, Mar. 6, 1971]

(a) When merchandise is carted or lightered and received in a bonded store or bonded warehouse, the representative of the proprietor shall check the goods against the delivery ticket, customs Form 6043, or copy of warehouse or rewarehouse permit, customs Form 7502-A, used in lieu of a ticket, and countersign such ticket or copy of the permit. A receipt shall be taken for all goods delivered from public store or bonded store. Such receipt may be taken on the delivery ticket, customs Form 6043 or on the appraising officer's release ticket at the time delivery is made. Customs Form 6043 may also be used as a receipt for goods delivered from customs custody in any other case where the district director of customs deems such receipt necessary. In case of withdrawals from bonded warehouse for consumption, the merchandise shall be released only to or upon the order of the proprietor of the warehouse, who shall acknowledge such

release on customs Form 7505-A or 7505-B.

(b) The cartman or lighterman shall countersign the ticket, receipts, extra copy of warehouse or rewarehouse permit, or the copy of the entry or withdrawal document, customs Form 7502–A, 7506, or 7512, used in lieu of a delivery ticket, customs Form 6043, in the space provided as a receipt for the goods, noting any bad order or discrepancy. When available, the importing carrier's tally slip for the merchandise shall be attached to the delivery ticket, customs Form 6043, or the copy of customs Form 7502-A, 7506, or 7512 used in lieu of a delivery ticket, which accompanies the merchandise while it is being so carted or lightered in bond, for the use of customs officers only at destination. [T.D. 68-141, 33 F.R. 7820, May 29, 1968] § 21.10 Inability to deliver merchandise.

If the warehouse is closed or the warehouseman refuses to receive the merchandise, it shall be returned to the sending inspector or deposited in the public store for safekeeping, unless otherwise ordered by the collector. The cartman shall notify such inspector of his inability to deliver the merchandise and the reason therefor. The inspector shall proptly report the facts to the collector (to the surveyor at New York) for instructions.