(e) When merchandise described in ragraph (b) or (c) of this section is be transferred to customs territory for portation, a withdrawal for exportan, or for transportation and exportan, shall be filed on customs Form 7512. on acceptance of the withdrawal the lector shall make a notation as to the tus of the merchandise on the docunt, and release the merchandise to grantee for delivery to the bonded tman, lighterman, or carrier.

f) The applicant on customs Form 45 or 7519 for purposes described in Sagraph (b), (c), or (d) of this section Will be the consignee named in zone Em B as approved by the grantee (see 0.6 (j)), except that such consignee y transfer the right to transfer the rchandise from the zone to customs ritory by an endorsement on customs Em 7505 or 7519, whichever is applile, naming a designated transferee. stoms Form 7505 or 7519 so endorsed h the name of a designated transsee who has been approved by the intee shall be accepted by the collec* to identify the transferee named rein as the consignee of the merandise to be transferred and the ner thereof for customs purposes. g) When merchandise not covered by ragraph (a), (b), (c), (d), or (e) of s section, or either of the last two itences of § 30.13 (c), is to be transred from a zone to customs territory, grantee shall make an application to ⚫ collector on zone Form C. The apcant shall state the name and address the person who will be deemed the signee of the merchandise when it is nsferred to customs territory. The lector shall not accept a term applica1 on Form C. The applicant shall also lude a complete identification of the rchandise as it entered the zone, inding the lot numbers, marks and nbers of the packages, status of each

description, and quantities. If any inge in respect of any of the foregoing ns of identification occurred while the rchandise was in the zone, the current ormation with respect to each such n which has been changed shall also stated.

h) Upon the approval by the collector an application on zone Form C, the rchandise is transferred to construce customs territory, without physical noval from the zone. The collector ill note on the application the date of th 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.

(i) (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.

(j) The original of zone Form C, when approved by the collector and endorsed as provided for in paragraph (h) 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.

(k) 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.

(1) 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 (h) 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(d) of this chapter. The value of such products shall be determined in accordance with sections 402 and 500 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 filled 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.

(m) The consumption or warehouse entry covering a product provided for in paragraph (1) of this section shall be liquidated in accordance with Part 16 of this chapter, except that in the case of articles described in paragraph (1)

(2) of this section adjustment shall: made for that part of the product why consists of or has been derived from privileged merchandise.

(n) Unless the Foreign-Trade Zora Board has ruled that the return of th merchandise to customs territory for de mestic consumption is in the public terest, zone-restricted merchandise sha not be transferred to customs territor except under an entry for exportation for transportation and exportation, for destruction (except destruction distilled spirits, wines, and fermente malt liquors), or for transfer from on zone to another. Each such entry sha be subject to the pertinent provisions paragraphs (g) to (k), inclusive, of thi section, except that if the entry has ne been filed in proper form before the ex piration of the period mentioned in th first sentence of paragraph (i) of thi section, the merchandise shall not be de posited by the collector in general-orde storage but shall be considered as having been returned from constructive c toms territory to the zone. Upon ceptance of the entry, it shall be endorse by a customs officer to show that actua exportation of the merchandise is re quired by the fourth proviso to sectio 3 of the act, as amended. If the Boar has ruled that the return of the me chandise to customs territory is in th public interest, after the merchand has been constructively transferred customs territory it may be entered fo consumption, warehousing, or immediat transportation without appraisemea unless the Board in its ruling has spec fied which of these forms of entry sha be made. The entry shall be endorse by the collector to show the authorit under which the entry was made an that the merchandise is subject to th provisions of paragraph 1615 (f) of th Tariff Act of 1930, as amended.

(0) Articles produced or manufac tured in a zone and returned to custom territory of the United States after hav ing been exported without first havin been transferred to customs territor otherwise than for exportation or fo transportation and exportation shall subject to the duties and taxes applicab to like articles of wholly foreign orig unless it is conclusively established th they were produced or manufactured e clusively with the use of privileged & mestic merchandise, the identity which was maintained in accordan with the pertinent provisions of the

foreign-trade zone regulations, in which case they shall be subject to the pertinent provisions of paragraph 1615, Tariff Act of 1930."

30.15 Direct exportation from a zone. Regardless of its zone status, any merchandise in a zone may be exported diectly therefrom upon compliance with the procedure prescribed in § 30.14 (a) or the transfer of privileged domestic Inerchandise to customs territory.

30.16 Supplies, equipment, and repair material for vessels or aircraft.

(a) Any article in a zone, including one-restricted merchandise, which is uitable for use on a vessel or aircraft enitled 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 and, in addition, the pertinent provisions of §§ 10.59 to 10.65, inclusive, of this chapter shall also apply as though the article were being withdrawn in customs territory from continuous customs custody elsewhere than in a bonded warehouse for such lading. If the 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

14

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)

33-583-65 -36

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.

§ 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 (g) through (j) 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 ex

penses.

(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 31-CUSTOMHOUSE BROKERS Sec.

31.1

31.2

31.3

31.4

31.5

31.6

31.7

31.8

31.9

31.10

31.11 31.12

31.13

31.14 31.15

Scope of part.

Licenses for customhouse brokers re-
quired.
Definitions.

Application for license; investigation
and examination.

Issuance or denial of license.

Other representation by customhouse brokers.

Licenses for more than one customs
district.

License, when not required.
Books and papers.

Other duties and obligations of cus-
tomhouse brokers.

Revocation or suspension of licenses.
Cancellation of licenses.

Licenses issued under prior acts of
Congress.

Appeal from the Secretary's decision.
Records of the Commissioner.

AUTHORITY: The provisions of this Part 31 issued under R.S. 161, 251, secs. 624, 641, 46 Stat. 759, as amended, sec. 101, 76 Stat. 72, 5 U.S.C. 22, 19 U.S.C. 66, 1624, 1641, Gen. Hdnote. 11, Tariff Schedules of the United States.

SOURCE: The provisions of this Part 31 appear at 28 F.R. 14829, Dec. 31, 1963, unless otherwise noted.

§ 31.1 Scope of part.

This part sets forth regulations providing for the licensing as customhouse brokers of persons, including individuals, corporations, partnerships, and associations, desiring to transact business as customhouse brokers, the procedure for applying for licenses, and the qualifications required of the applicants. regulations also prescribe the duties and responsibilities of customhouse brokers, the grounds for revocation or suspension of the licenses, and the procedures for such revocation or suspension. § 31.2

The

Licenses for customhouse brokers required.

(a) No person shall transact the business of a customhouse broker unless he

has first been granted a license in ac cordance with the provisions of section 641, Tariff Act of 1930, as amended.' A

1"(a) Regulations for licensing. The Secretary of the Treasury may prescribe rules and regulations governing the licensing a customhouse brokers of citizens of the United States of good moral character, and of corporations, associations, and partnerships, and may require as a condition to the granting of any license, the showing of such facts as he may deem advisable as to the qualifications of the applicant to render valuable service to importers and exporters. No such license shall be granted to any corporation, association, or partnership unless licenses as customhouse brokers have been issued to at least two of the officers of such corporation or association, or two of. the members of such partnership, and such licenses are in force. Any license granted to any such corporation, association, or partnership shall be deemed revoked if for any continuous period of more than sixty days after the issuance of such license there are not at least two officers of such corporation or association or two members of such partnership who are qualified to transact business as customhouse brokers. Ex. cept as provided in subdivision (c) of this section, no person shall transact business as a customhouse broker without a license granted in accordance with the provisions of this subdivision, but nothing in this section shall be construed to authorize the requiring of a license in the case of any person transacting at a customhouse business pertaining to his own importations.

"(b) Revocation or suspension. The collector or chief officer of the customs may at any time, for good and sufficient reasons, serve notice in writing upon any customhouse broker so licensed to show cause why said license shall not be revoked or suspended, which notice shall be in the form of a statement specifically setting forth the ground of complaint. The collector or chief officer of customs shall within ten days thereafter notify the customhouse broker in writing of a hearing to be held before him within five days upon said charges. At such hearing the customhouse broker may be represented by counsel, and all proceedings, including the proof of the charges and the answer thereto, shall be presented. with the right of cross-examination to both parties, and a stenographic record of the same shall be made and a copy thereof shall be delivered to the customhouse broker. At the conclusion of such hearing the collector or chief officer of customs shall forthwith transmit all papers and the stenographic report of the hearing, which shall constitute the record of the case, to the Secretary of the Treasury for his action. Thereupon the said Secretary of the Treasury shall have the right to revoke or suspend the license of any customhouse broker shown to be incompetent, disreputable, or who has refused

icense to transact business as a customhouse broker may be granted by the * Commissioner of Customs upon applicaion submitted therefor, in accordance with the regulations in this part.

comply with the rules and regulations sued under this section, or who has, with atent to defraud, in any manner willfully nd knowingly deceived, misled, or threatned any importer, exporter, claimant, or llent, or prospective importer, exporter, laimant, or client, by word, circular, letter r by advertisement. ***An appeal may be taken by any licensed ustomhouse broker from any order of the Secretary of the Treasury suspending or reoking a license. Such appeal shall be taken 27 filing, in the circuit court of appeals of the nited States within any circuit wherein such Person resides or has his principal place of usiness, or in the United States Court of ppeals for the District of Columbia, within ixty days after the entry of such order, written petition praying that the order of he Secretary of the Treasury be modified or et aside in whole or in part. A copy of such etition shall be forthwith transmitted by he Clerk of the Court to the Secretary of The Treasury, or any officer designated by him for that purpose, and thereupon the Secreary of the Treasury shall file in the court he record upon which the order complained f was entered, as provided in section 2112 of itle 28, United States Code. Upon the filing of such petition such court shall have excluive jurisdiction to affirm, modify, or set aside uch order, in whole or in part. No objection o the order of the Secretary of the Treasury hall be considered by the court unless such objection shall have been urged before the collector or chief officer of customs or unless here were reasonable grounds for failure so o do. The finding of the Secretary of the Creasury as to the facts, if supported by subtantial evidence, shall be conclusive. If ny party shall apply to the Court for leave o adduce additional evidence, and shall how to the satisfaction of the court that uch additional evidence is material and hat there were reasonable grounds for failire to adduce such evidence in the proceedng before the collector or chief officer of ustoms, the court may order such additional vidence to be taken before the collector or hief officer of customs and to be adduced ipon the hearing in such manner and upon uch terms and conditions as to the court nay seem proper. The Secretary of the Creasury may modify his findings as to the acts by reason of the additional evidence

taken, and he shall file with the court Tuch modified or new findings, which, if supported by substantial evidence, shall be conclusive, and his recommendation, if any, for the modification or setting aside of the original order. The judgment and decree of the court afirming, modifying, or setting side, in whole or in part, any such order

When used in the regulations in this part, the following terms shall have the meanings, respectively, indicated:

(a) "Customhouse broker" includes any person who, acting on behalf of others, transacts customs business not limited to a kind described in § 31.8.

(b) "Treasury Department or any representative thereof" includes any division, branch, bureau, office, or unit of the Treasury Department, whether in Washington or in the field, and any officer or employee of any such division, branch, bureau, office or unit.

(c) "Commissioner" means the Commissioner of Customs.

(d) "Person" includes individuals, corporations, partnerships, and associations.

(e) "Books and papers" includes all books, accounts, records, papers, documents, and correspondence of a customhouse broker relating to his customs business.

of the Secretary of the Treasury shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254, title 28 of the United States Code. The commencement of proceedings under this subsection shall, unless specifically ordered by the court, operate as a stay of the Secretary of the Treasury's order.

"(c) Prior licenses. Licenses issued under the Act of June 10, 1910 (36 Stat. 454; U. S. C., title 19, sec. 415), or under the provisions of subdivision (a) of this section prior to the effective date of this amendment, shall continue in force and effect, subject to suspension and revocation as provided in subdivision (b) of this section.

"(d) Regulations by Secretary. The Secretary of the Treasury shall prescribe such rules and regulations as he may deem necessary to protect importers and the revenue of the United States, and to carry out the provisions of this section, including rules and regulations requiring the keeping of books, accounts, and records by customhouse brokers, and the inspection thereof, and of their papers, documents, and correspondence by, and the furnishing by them of information relating to their business to, any duly accredited agent of the United States." (Tariff Act of 1930, sec. 641, as amended; 19 U. S. C 1641.)