shipments on the transit air cargo manifest must be individually documented and transported under the regular procedures for transportation of merchandise in bond.

§ 6.21 Timely delivery and exportation.

(a) Transit air cargo destined to a final port of destination in the United States must be delivered to Customs at destination within 15 days from the date of receipt by the forwarding airline at the port of arrival.

(b) Transit air cargo destined for exportation at a port other than the port of arrival must be delivered to Customs at the port of exportation within 15 days from the date of receipt by the forwarding airline at the port of arrival. If all of the cargo shipments are not exported within the succeeding 15-day period, the individual cargo shipments must be made the subject of individual entries, as appropriate, at the port of exportation.

(c) In the case of transit air cargo to be exported from the port of arrival, exportation as transit air cargo must be required within 10 days from the date of receipt of the cargo by the exporting airline. After such 10-day period, the individual cargo shipments must be made the subject of individual entries, as appropriate.

§ 6.22 Transportation of transit air cargo to an interior port of destination.

(a) Air cargo shipments may be transferred for transportation as transit air cargo from the port of arrival, under such customs supervision as the collector deems necessary, to another port in the United States with the use of the following number of copies of transit air cargo manifest sheets:

(1) A "carrier manifest" copy to accompany the cargo shipments listed thereon and be delivered to Customs at destination;

(2) Three copies for presentation to Customs at the port of arrival at the time of entry of the arriving aircraft or at a subsequent time before expiration of the lay order period. One copy will be used as a "permit" copy by Customs at the port of arrival, one "mail manifest" copy will be mailed by Customs to the port of destination, and one "control" copy will be mailed to the headquarters port for the port of destination. These copies must be presented by or on behalf of the

carrier receipting for the transportatio of the cargo shipments to destination. (b) At the port of destination Custon must use the carrier manifest copy f control by noting thereon the dispositio of each cargo shipment listed.

(c) Transit air cargo is to be deliver to Customs at destination within 15 da of the date of receipt for it by t forwarding carrier at the port of arriva When all or part of the cargo covered the mail manifest copy received at dest nation from Customs at the port arrival is not closed out after 30 da from its receipt by a posted carrier man fest copy, the collector of customs mu inquire of the receipting carrier as the whereabouts of the shipment or shij ments not accounted for. He must each case of failure to deliver or irregul delivery of all or part of the transit cargo make a report to the port of arriva The report must be made no later than days from the date of receipt of the ma manifest copy. The report must made to, and action promptly take thereon by, Customs at the port arrival in the manner specified in §§ 18 and 18.8 of this chapter, except that th report on customs Form 3861 must no indicate the amount of duty or tax du when the amount is in doubt. In suc case, Customs at the port of arrival mu make the determination of tax and du due on information in the report, in th permit copy retained there, and ar necessary information obtained from th carriers.

(d) Upon receipt of a written noti of failure to deliver, the airline whi receipted for the transit cargo must responsible for furnishing within 90 da to the collector of customs any data documents available to it or to t importing airline concerning the descri tion and value of the cargo shipments question.

(e) Penalties imposed as liquidat damages under the common carrier bond for shortage, failure to deliver, et must be the same as prescribed in § 18 of this chapter. Under that section t basis for the assessment of liquidate damages is the value of the mercha dise. The transit air cargo manife does not reflect value. Therefore, whe it is necessary to determine the values merchandise shipped as transit air carg the value must be determined by th collector on the basis of the data or docu ments specified in paragraph (d) of th section and such other information avai

C

Ible to him relating to merchandise of he same or similar description or origin. However, when the data or documents equired to be furnished by paragraph d of this section are not received ithin the 90-day period prescribed, the ollector will make his determination of alue on the basis of such other informaon available to him.

6.23 Transportation of transit air cargo to another port for exportation.

(a) Air cargo shipments may be transerred for transportation as transit air Cargo from the port of arrival, under euch customs supervision as the collec

or deems necessary, to another port for Exportation therefrom with the use of he following number of copies of transit ir cargo manifest sheets:

(1) A “carrier manifest" copy to acompany the cargo shipments listed thereon and be delivered to Customs pon arrival of the shipments at the port of exportation;

(2) A copy which is stamped, labeled, br printed "diversion copy" in outline letters at least 1 inch in height to be attached to and accompany the carrier manifest copy and be delivered to Customs at the port of exportation;

(3) Three copies, called "permit", "mail manifest", and "control" copy, for presentation to Customs at the port of arrival either at the time of entry of the arriving aircraft or at a subsequent time before expiration of the lay order period. These copies must be presented by or on behalf of the airline receipting for the ransportation of the cargo shipments rom the port of arrival to the port of portation for lading for export at such place:

4 (4) Two copies, called "Exportation" ind "Clearance" copies, to be presented y the exporting airline to Customs at he port of exportation in connection with the exportation.

(b) Upon arrival of the transit air argo shipments at the port of exportaion, the transit air cargo may be deivered direct to the exporting carrier with the exportation and clearance opies after the name of such carrier is legibly noted on the carrier manifest and diversion copies and such copies are delivered to Customs.

(c) The exporting carrier will retain all cargo listed on a transit air cargo manifest in one place which must be separate from the specially designated

area for storage of shipments coming within the provisions of paragraph (e) of this section. When the goods are ready for lading on the exporting aircraft, Customs will be notified sufficiently in advance so as to be able to make any required supervision of the lading of the cargo and any further checks for Federal Government purposes.

(d) When presented to Customs, the exportation and clearance copies must each show the exporting aircraft's number and flight number and date. The exporting airline must file these documents (including the clearance copies of transit air cargo manifests) for the departing aircraft. The clearance copies of air transit cargo manifests shall be grouped together in the outward manifest separately and not intermingled with other outward manifest pages. The exportation copies shall be grouped together separately from the outward clearance documents.

(e) The customs officer receiving the carrier manifest and diversion copies of the transit air cargo manifest must review them for export licensing requirements of the Secretary of State covering arms, ammunitions, and implements of war, and of the Bureau of International Programs, Department of Commerce. A shipment for which the manifest information is not adequate to enable the officer to determine that no licensing or other requirements are applicable to the particular transit air cargo must be checked either by examination or by inspecting the air waybill or accompanying invoice. In this case, in order not to delay the onward movement of other goods, this shipment may be struck from the transit air cargo manifest and the remaining shipments may proceed. If a licensing or other requirement is found applicable, the exporting airline must be immediately notified that the particular shipment cannot be exported until an appropriate license or approval is obtained. This shipment must be placed under constructive customs custody in a specially designated area of the exporting airline's cargo terminal for such shipments until the necessary customs or other approval for shipment is obtained.

(f) The diversion copy of each transit air cargo manifest sheet must be sent by the port of diversion, with an endorsement of exportation showing the port, date, and exporting carrier, to the port of indicated exportation when all cargo

shipments listed thereon have been exported at the port of diversion. It shall normally be sent as soon as the exportation copy or copies are presented at the port of exportation and are attached to the carrier manifest, and it is verified that all shipments listed thereon are exported. If exceptions are found by Customs at the port of exportation, they must be noted on the diversion copy before it is sent. However, if the carrier's manifest copy is not fully closed out at the port of diversion within 30 days from the date of the carrier's receipt on the carrier manifest and diversion copies, the diversion copy must be immediately sent to the port of indicated exportation to forestall a report to the port of arrival (see paragraph (g) of this section). The diversion copy must be noted before sending, "Exportation copy not yet received-further report will follow if necessary."

(g) When the mail manifest copy is received, Customs will file it according to identification number (see § 6.19); that is, numerically by port of arrival. When all or part of the cargo covered by a mail manifest copy is not closed out by an exportation copy, or a diversion copy endorsed by Customs at another port, within 40 days from the date of receipt of the mail manifest copy, the collector of customs must, without making inquiry of any carrier, make an appropriate report to the port of arrival and this report must be processed and action taken in accordance with § 6.22 (c), (d), and (e) of these regulations.

(h) If all of the cargo listed on one transit air cargo manifest sheet is not laden for exportation from the same port in the United States by the same airline, individual entries on customs Form 7512 for transportation and exportation in accordance with § 6.15 or for direct exportation in accordance with § 18.25 of this chapter must be required for each cargo shipment listed on such transit air cargo manifest sheet. Until all cargo shipments covered by one transit air cargo manifest are received at a port for exportation, none may be exported except under individual entries. If it is necessary to export on more than one aircraft of the same airline the cargo shipments listed on one transit air cargo manifest sheet, the procedure in § 6.24(f) shall be applicable. When individual entries are required or the cargo is exported at the same port on more than one aircraft, the carrier manifest copy will be posted and

used by Customs as in the case of the carrier manifest for cargo destined to port of destination in the United State (see § 6.22(b)).

§ 6.24 Exportation of transit air carg at port of arrival.

(a) Transit air cargo may be transferred for exportation at the port of arrival in the United States with the us of three copies of the transit air carg manifest; a "review" copy, an "expor tation" copy, and a "clearance" copy.

(b) At the port of arrival, transit ai cargo may be transferred for exportation immediately: Provided, (1) That, as soon as it is known to which airline cargo shipments will be transferred for expor tation, the importing airline files with Customs a copy of each transit air cargo manifest sheet covering such cargo shipments, which copy need not be receipted by the airline to which the cargo will be transferred, but the name of the exporting airline must be inserted on such review copy by the importing airline; and (2) that the transfer is subject to supervision, examination of cargo, manifest review, etc., as may be required for compliance with regulations of other Federal agencies.

(c) The exportation copy and the clearance copy must be filed with Customs by or on behalf of the exporting airline which receipts for the shipments. The clearance copy must be presented with and retained in the departing aircraft's clearance documents. The exportation copy must be presented at the time the clearance documents are presented to Customs. Both copies must, in addition to bearing the receipt of the exporting airline, show the exporting aircraft's number, flight number, and date.

(d) Upon receipt of the review copy of the transit air cargo manifest sheets Customs must make the review prescribed in the case of the carrier manifest copy in § 6.23(e). The reviewing officer must take appropriate action if a license is found to be applicable for any cargo. The exporting airline will be notified to place under constructive customs custody any transit air cargo shipment subject to special license. The exporting airline must then place any transit air cargo shipment subject to special license in a specially designated area of its cargo terminal until the necessary license is obtained.

(e) When exportation copies are filed, Customs must use them to close out the transit air cargo manifest sheets in the inward manifest of the aircraft on which the transit air cargo arrived at the port. (f) If all transit air cargo shipments listed on any one transit air cargo manifest sheet are not exported directly on the same aircraft, an additional exportation and clearance copy must be required for each shipment or group of shipments listed thereon departing on any other aircraft of the exporting airline. In this event, each copy of the transit air cargo manifest sheet must be clearly marked to show which shipment or shipments listed thereon are covered thereby.

(g) Separate export entries on customs Form 7512 in accordance with 18.25 of this chapter must be required for all shipments listed on any one transit air cargo manifest sheet if not all such shipments are exported from the same port by the same aircarrier. When separate export entries are required, the copy of the transit air cargo manifest sheet in the inward manifest of the importing aircarrier must be posted as in the case of the carrier manifest for cargo destined to a port of destination in the United States (see § 6.22(b)).

"All laws affecting imports of articles, goods, wares, and merchandise from foreign countries shall apply to articles, goods, wares, and merchandise and persons coming from the Canal Zone, Isthmus of Panama, and seeking entry into any State or Territory of the United States or the District of Columbia." (33 Stat. 843; 19 U. S. C. 126)

The customs administration of the said Canal Zone is under the jurisdiction of the Governor of the Panama Canal. (T. D.'s 20163, 28815, 30254. 30448, 39402, C. D. 530)

For the treaty between the United States and the Republic of Panama see 33 Stat. 2234.

2

(a) When spirits and wines are withdrawn from a bonded manufacturing warehouse for shipment in bond to Puerto Rico pursuant to section 311, Tariff Act of 1930, as amended, the warehouse withdrawal shall contain on the face thereof a statement of the kind and quantity of all imported merchandise (in its condition as imported) and imported containers used in the manufacture and putting up of such spirits and wines. The duty assessed on the imported merchandise and containers so used, and their classification and value, shall be shown on the withdrawal in accordance with § 8.34 of this chapter. If no imported merchandise or containers have been used, the warehouse withdrawal shall bear an endorsement to that effect. (See § 22.26 of this chapter.)

(b) The spirits and wines shall be forwarded in accordance with the general provisions of the regulations governing the transportation of merchandise in bond, Part 18 of this chapter.

2

Distilled spirits and wines which are rectified in bonded manufacturing warehouses, class six, and distilled spirits which are reduced in proof and bottled in such warehouses, shall be deemed to have been manufactured within the meaning of this section and may be withdrawn as hereinbefore provided, and likewise for shipment in bond to Puerto Rico, subject to the provisions of this section, and under such regulations as the Secretary of the Treasury may prescribe, there to be withdrawn for consumption or be rewarehoused and subsequently withdrawn for consumption: Provided, That upon withdrawal in Puerto Rico for consumption, the duties imposed by the customs laws of the United States shall be collected on all imported merchandise (in its condition as imported) and imported containers used in the manufacture and putting up of such spirits and wines in such warehouses: Provided further, That no internalrevenue tax shall be imposed on distilled spirits and wines rectified in class six warehouses if such distilled spirits and wines are exported or shipped in accordance with the provisions of this section, (Tariff Act of 1930, sec. 311, as amended; 19 U. S. C. 1311)

"

(c) A regular entry shall be made for all foreign-grown coffee shipped to Puerto Rico from the United States, but special customs invoices shall not be required for such shipments.3

(Secs. 311, 319, 484 (a), 46 Stat. 691, as amended, 696, 722, as amended; 19 U. S. C. 1311, 1319, 1484 (a))

§ 7.8 Insular possessions of the United States other than Puerto Rico.

(a) When articles coming directly into the United States, from an insular possession, other than Puerto Rico, in a shipment valued over $25 are sought to be admitted free of duty under the provisions of General Headnote 3(a), Tariff Schedules of the United States," relating to certain articles produced in such insular possessions, there shall be filed in connection with the entry a certificate of origin covering articles shipped from insular possessions (except Puer

Section 319, Tariff Act of 1930, authorizes the Legislature of Puerto Rico to impose a duty on coffee imported into Puerto Rico, including coffee grown in a foreign country coming into Puerto Rico from the United States, and the Legislature of Puerto Rico has imposed such a duty.

14 "(1) Articles imported from insular possessions of the United States which are outside the customs territory of the United States are subject to the rates of duty set forth in column numbered 1 of the schedules, except that all articles the growth or product of any such possession, or manufactured or produced in any such possession from materials the growth, product, or manufacture of any such possession or of the customs territory of the United States, or of both, which do not contain foreign materials to the value of more than 50 percent of their total value, coming to the customs territory of the United States directly from any such possession, and all articles previously imported into the customs territory of the United States with payment of all applicable duties and taxes imposed upon or by reason of importation which were shipped from the United States, without remission, refund, or drawback of such duties or taxes, directly to the possession from which they are being returned by direct shipment, are exempt from duty.

"(ii) In determining whether an article produced or manufactured in any such insular possession contains foreign materials to the value of more than 50 percent, no material shall be considered foreign which, at the time such article is entered, may be imported into the customs territory from a foreign country, other than Cuba or the Philippine Republic, and entered free of duty." (General Headnote 3 (a), Tariff Schedules of the United States.)

to Rico) to the United States, customs Form 3229, signed by the chief or assistant chief customs officer at the port of shipment,15 showing that such merchandise is the growth or product of such possession, or manufactured or produced in such possession, from materials the growth, product, or manufacture of any such possession or of the United States, or of both, which do not contain foreign materials to the value of more than 50 per centum of their total value. Such certificate shall not be required for any shipment valued at $25 or less.

(b) When articles coming directly into the United States from an insular possession, other than Puerto Rico, in a shipment valued over $25 are sought to be admitted free of duty under the provisions of General Headnote 3(a), Tariff Schedules of the United States relating to certain articles returned to the United States, there shall be filed in connection with the entry the following evidence:

(1) A certificate, customs Form 4467, of the collector of customs at the port from which the merchandise was shipped from the United States, except that no such certificate shall be required if the collector is satisfied by reason of the nature of the articles or otherwise that no drawback of duties or refund or remission of taxes was allowed on the merchandise by reason of such shipment. This certificate shall be issued on application of the importer, or of the collector at the importer's request, and shall be mailed by the issuing officer directly to the port at which it is to be used. If the merchandise was shipped from the port

15 Guam, Wake Island, Midway Islands, Kingman Reef, Johnston Island and American Samoa are American territory, but not within the customs territory of the United States. Importations into those islands are not governed by the Tariff Act of 1930 or these customs regulations. The customs administration of American Samoa is under the Jurisdiction of the Department of the Interior (Office of Territories). The customs administration of Wake Island is under the jurisdiction of the Department of Commerce (Civil Aeronautics Administration). The customs administration of Midway Islands is under the jurisdiction of the Department of the Navy. The customs administration of Guam is under the Government of Guam. A certificate signed by the Commander at the Johnston Island Air Force Base, or his assistant, shall be acceptable as proof of origin. Kingman Reef is understood to be uninhabited.