§ 142.0

PART 142-SPECIAL PERMITS FOR IMMEDIATE DELIVERY PRIOR TO ENTRY

Sec.

142.0 Scope.

Subpart A-Application for Special Permit and Release of Merchandise

142.1 Merchandise eligible for special permit for immediate delivery. 142.2 Application for special permit for immediate delivery.

142.3 Term special permit.

142.4 Bond.

142.5 Simultaneous presentation of entry papers allowed.

142.6 Examination and release of merchandise.

142.7 Suspension of immediate delivery privileges.

Subpart B-Entry of Merchandise Released
Under Special Permit

142.11 Time limit for making entry after release of merchandise.

142.12 Examination invoice to be filed with entry.

142.13 Entry permit not required. 142.14 Entry not required for merchandise found to be prohibited.

142.15 Failure to make timely entry. 142.16 Other procedures applicable.

AUTHORITY: R.S. 251, as amended, secs. 448, 484, 624, 46 Stat. 714, as amended, 722, as amended, 759; 19 U.S.C. 66, 1448, 1484, 1624. Additional authority and statutes interpreted or applied are cited in the text or following the sections affected.

SOURCE: T.D. 73-175, 38 FR 17461, July 2, 1973, unless otherwise noted.

§ 142.0 Scope.

This part sets forth requirements and procedures relative to special permits for immediate delivery of merchandise prior to entry, as authorized by section 448(b), Tariff Act of 1930, as amended (19 U.S.C. 1448(b)).

Subpart A-Application for Special Permit and Release of Merchandise

§ 142.1 Merchandise eligible for special permit for immediate delivery.

A special permit for immediate delivery prior to entry may be issued for perishable merchandise and any other merchandise for which delivery can be

permitted with safety to the revenue, when immediate release of such merchandise is necessary to avoid unusual loss or inconvenience to the importer or to the carrier bringing the merchandise to the port, or more effectively to utilize Customs manpower or to eliminate or reduce congestion on docks, at airports, or other places. Merchandise intended for either formal or informal entry may be released under a special permit, since the term "formal entry" as used in section 448(b), Tariff Act of 1930, as amended (19 U.S.C. 1448(b)), refers to the process of making entry and does not specify a kind of entry.

§ 142.2 Application for special permit for immediate delivery.

(a) Form. Applications for special permits for immediate delivery shall be made in duplicate on Customs Form 3461, and shall be supported by evidence satisfactory to the district director of the right of the applicant to make entry of the merchandise.

(b) Merchandise from Canada OT Mexico. (1) When the customhouse is closed. In the case of merchandise arriving from Canada or Mexico when the customhouse is closed and destined to places other than the port of arrival, the application and the evidence of the right to make a entry may be submitted to the chief Customs officer on duty and a special permit may be issued for immediate release, provided the applicant has on file in the customhouse a term bond in accordance with § 142.4 (b) or (c).

(2) Fresh fruits and vegetables. Applications for special permits for immediate delivery may be made for the transportation of fresh fruits and vegetables for human consumption arriving from Canada or Mexico to the importer's premises within the port of importation, but removed from the area immediately contiguous to the border, under an appropriate stipulation to the bond provided for in § 142.4. The fresh fruits and vegetables shall be transported in the vehicles in which the merchandise crossed the border, or, if transshipment is necessary, in vehicles provided by the importer, to the importer's premises. The

produce may be examined at the importer's premises, those portions without commercial value segregated in accordance with the provisions of § 158.11(b) of this chapter, and the balance entered for consumption or transported in bond under an entry for immediate transportation without appraisement or an entry for transportation and exportation. Merchandise for which a special permit has been issued under the provisions of this paragraph shall be considered to remain in Customs custody.

(Secs. 552, 553, and 623, 46 Stat. 742, as amended (19 U.S.C. 1552, 1553, 1623))

[T.D. 73-175, 38 FR 17461, July 2, 1973, as amended by T.D. 76-220, 41 FR 33248, Aug. 9, 1976]

$142.3 Term special permit.

(a) Conditions for issuance. If the district director is satisfied that circumstances warrant such action, a term special permit for immediate delivery may be issued for a class or classes of merchandise particularly described in the application for such permit to be imported during a period not to exceed 1 year.

(b) Notation of value for each shipment. When applying for the release of a shipment of merchandise under a term special permit for immediate delivery, the importer shall note a value for the shipment on the document presented. The value so noted shall not be less than the invoice value.

§ 142.4 Bond.

Except as provided in § 10.101(d) of this chapter, no special permit for immediate delivery shall be issued until there has been filed a bond, with an approved corporate surety, of one of the following types:

(a) A single entry bond on Customs Form 7551, with the amount of the bond determined in accordance with § 113.14(g)(1) of this chapter. When any of the imported merchandise is subject to a tariff-rate quota and is to be released at a time when the applicable quota is filled, the full rates shall be used in computing the estimated duties to determine the amount of the bond.

(b) A term bond on Customs Form 7553, with the amount of the bond determined in accordance with § 113.14(g)(2) of this chapter. One term bond may be filed in connection with several applications for special permits to be filed during a period of not more than 1 year, or in connection with an application for a term special permit.

(c) A general term bond on Customs Form 7595.

(Secs. 623, 46 Stat. 759, as amended; 19 U.S.C. 1623)

[T.D. 73-175, 38 FR 17461, July 2, 1973, as amended by T.D. 74-227, 39 FR 32023, Sept. 4, 1974; T.D. 77-23, 42 FR 2312, Jan. 11, 1977]

If there is available sufficient information as to the quantities and values of the merchandise for a proper estimation of the duties and taxes which will be payable, there may be deposited with the application for a special permit all the papers, including an entry bond, in proper form for making entry for consumption. However, deposit of estimated duties shall not be permitted until after the merchandise has arrived within the limits of the port of entry, and such deposit shall be made only during the hours in which an entry could be presented in accordance with § 141.62 of this chapter.

§ 142.6 Examination and release of mer

chandise.

(a) Invoice required for examination. Examination and release of merchandise under a special permit for immediate delivery shall not be made unless the examining officer has been furnished an invoice, waybill, or other satisfactory document setting forth an adequate description of the merchandise and the quantities thereof, together with the values or approximate values thereof when values are needed for the purpose of examination. If the merchandise is to be released under a term special permit, such invoice or other document shall also show the term special permit number.

(b) Examination required before release. No merchandise shall be released under a special permit for immediate delivery until it has been examined, or until adequate samples have been taken in the case of merchandise which is to be classified and appraised by means of samples.

§ 142.7 Suspension of immediate delivery privileges.

(a) For failure to make timely entry. The district director may discontinue allowing the immediate delivery of merchandise for an importer who has repeatedly failed to make timely entry without sufficient justification, or who has not taken prompt action to settle a claim for liquidated damages issued under § 142.15 for failure to make timely entry. "Prompt action" means that the importer shall, within the time specified in the claim for liquidated damages, petition for relief or pay the amount claimed, and in appropriate cases shall also file entry (including deposit of estimated duties).

(b) For failure to pay Customs bills. Immediate delivery privileges may be suspended for an importer who is substantially or habitually delinquent on Customs bills issued him, in accordance with the following procedures:

(1) The importer shall be advised in writing by the Customs region in which he is substantially or habitually delinquent on Customs bills issued him that his immediate delivery privileges have been suspended in that region. The notice of suspension will state the reason for such action and will further advise the importer that, if payment of all Customs bills on which he is delinquent is not made within 10 working days from the date of notice of suspension, the importer's immediate delivery privileges shall also be suspended in every other Customs region.

(2) If the importer pays all of the Customs bills on which he is delinquent within 10 working days after the date of the notice of suspension, the suspension shall be lifted and the importer's immediate delivery privileges reinstated.

(3) If the importer has not paid all of the Customs bills on which he is de

linquent within 10 working days after the date of the notice of suspension, the importer's immediate delivery privileges shall also be suspended in every other Customs region. This suspension shall remain in effect in all ports of entry until notification is received from the Commissioner of Customs or his designee that the importer's immediate delivery privileges have been reinstated.

(4) Brokers shall not be permitted to circumvent the suspension in effect in one Customs region by applying in that or any other region for immediate delivery of the suspended importer's merchandise in their name and under their bond.

[T.D. 73-175, 38 FR 17461, July 2, 1973, as amended by T.D. 76-78, 41 FR 10603, Mar. 12, 1976]

Subpart B-Entry of Merchandise
Released Under Special Permit

§ 142.11 Time limit for making entry after release of merchandise.

(a) Usual limit. Except as otherwise provided for certain quota merchandise in paragraphs (b) and (c) of this section, entry shall be made (including deposit of estimated duties) within 10 days after the day on which the merchandise or any portion thereof is first released under a special permit.

(b) Tariff-rate quota merchandise. Merchandise subject to a tariff-rate quota, which is released at a time when the applicable quota is filled, must be entered (including deposit of estimated duties) not later than midnight on the last day before the applicable quota again opens. No extension beyond that midnight shall be granted.

(c) Absolute quota merchandise. When merchandise is subject to an absolute (quantitative) quota which is nearing fulfillment and the approval of the Commissioner of Customs is required in accordance with § 12.50(e) of this chapter before release of the merchandise, the entry shall be made (including deposit of estimated duties) within 5 days after the date of the Commissioner's approval.

(d) Computing time limits. In computing the 10-day and 5-day limits in

142.13 Entry permit not required.

No entry permit on Customs Form 501-A or 5119-A is required to accomany an entry for merchandise reeased under a special permit for immediate delivery.

142.14 Entry not required for merchandise found to be prohibited.

(a) Exportation or destruction of prohibited merchandise. If merchandise imported under a special permit for immediate delivery is found to be prohibited, entry under § 142.11 is not required: Provided, that either:

(1) The merchandise is exported or destroyed under Customs supervision within the time limit for entry specified in § 142.11, or

(2) An entry for exportation or application to destroy is made within such time limit and the exportation or destruction is promptly accomplished. (b) Procedures for exportation or destruction. Exportation or destruction of prohibited merchandise in accordance with paragraph (a) of this section shall be made under the same procedures as exportation or destruction of prohibited merchandise covered by a consumption entry with remission or refund of duties (see §§ 158.41 and 158.45(c) of this chapter).

(c) Notation on exportation entry. A direct export or transportation and exportation entry made for prohibited merchandise for which no formal or informal entry for consumption has been filed shall be conspicuously

stamped or imprinted with the legend: PROHIBITED MERCHANDISE; NO OTHER ENTRY FILED.

(Sec. 558, 46 Stat. 744, as amended; 19 U.S.C. 1558)

§ 142.15 Failure to make timely entry.

If entry, when required, is not timely made, the district director shall make an immediate demand for liquidated damages in the entire amount of the bond in the case of a single entry bond. When the transaction has been charged against a term bond, the demand shall be for the amount that would have been demanded if the merchandise had been released under a single entry bond. Any application for cancellation of liquidated damages incurred shall be made in accordance with Part 172 of this chapter.

§ 142.16 Other procedures applicable.

Merchandise released under a special permit for immediate delivery is subject to the same procedures as all other imported merchandise, except where more specific procedures are set forth in this part.

§ 143.1 Form of consumption entry.

(a) Customs Form 7501. Entry for consumption shall be made on Customs Form 7501, except where a different form is prescribed elsewhere in this chapter (for example, certain free merchandise may be entered on a Customs Form 3311 in accordance with § 10.1 (d) or (e) of this chapter). A Customs Form 7501 shall be filed in triplicate for dutiable entries and in duplicate for free entries.

(b) Extra copy for Internal Revenue. An additional legible copy of the entry, marked or stamped "For Internal Revenue Purposes," shall be presented for each entry of cigarettes, cigars, or cigarette papers or tubes, when the entry of those articles is subject to Part 275 of the regulations of the Internal Revenue Service (26 CFR Part 275), and tax is payable to Customs upon release of such article, or if they are to be released without payment of tax under § 11.2(a) of this chapter.

(c) Other extra copies. The district director may require additional copies of the entry where the intended use has been specifically approved by the Commissioner of Customs.

§ 143.2 Deposit of estimated duties. Estimated duties shall be deposited in accordance with subpart G of Part 141 of this chapter.

§ 143.3 Release of merchandise.

Merchandise which has been entered for consumption shall not be released from Customs custody until an appropriate bond has been filed or the entry has been liquidated, as follows:

(a) Bond. Merchandise which has not been designated for examination shall be released to or upon the order of the carrier if a bond on Customs Form 7551, 7553, or other appropriate form has been filed. Merchandise designated for examination shall be released under the same bond after examination has been completed if it has been found to be truly and correctly invoiced, is entitled to admission into the commerce of the United States, and its release is not precluded by any law or regulation. In the case of shipments entered by a U.S. Government department or agency, the stipulation prescribed in § 141.102(d) of this chapter shall be accepted in lieu of a bond.

(b) After liquidation. If a bond has not been filed in accordance with paragraph (a) of this section, none of the merchandise shall be released before:

(1) The entry has been liquidated, and the full amount of all duties and taxes due, including dumping or other special duties and charges, have been paid or the right to free entry established;

(2) The district director determines that the merchandise has the right to admission into the commerce of the United States; and

(3) All documents relating to the merchandise which are required by law or regulation have been filed.

(Sec. 623, 46 Stat. 759, as amended; 19 U.S.C. 1623)

Subpart B-Appraisement Entry

§ 143.11 Merchandise eligible for appraisement entry.

(a) Without Commissioner's approval. An application for entry by appraisement may be approved by the district director without securing the ap