PART 18—TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1551, 1552, 1553, 1623, 1624; Section 18.1 also issued under 19 U.S.C. 1484, 1557, 1490; Section 18.2 also issued under 19 U.S.C. 1551a; Section 18.3 also issued under 19 U.S.C. 1565; Section 18.4 also issued under 19 U.S.C. 1322, 1323; Section 18.7 also issued under 19 U.S.C. 1490, 1557; 1646a; Section 18.11 also issued under 19 U.S.C. 1484; Section 18.12 also issued under 19 U.S.C. 1448, 1484, 1490; Section 18.13 also issued under 19 U.S.C. 1498(a); Section 18.14 also issued under 19 U.S.C. 1498. Section 18.25 also issued under 19 U.S.C. 1490. Section 18.26 also issued under 19 U.S.C. 1490. Section 18.31 also issued under 19 U.S.C. 1553a. Source: CBP Dec. 17-13, 82 FR 45394, Sept. 28, 2017, unless otherwise noted. Subpart A—General Provisions § 18.0 Scope; definitions. (a) Scope. (b) Definitions. Bonded carrier. Common carrier. Origination port. Port of destination. Port of diversion. Port of exportation. § 18.1 In-bond application and entry; general rules. (a) General requirement. (b) Types of transportation entries and withdrawals. (1) Entry for immediate transportation (IT). (2) Warehouse withdrawal for immediate transportation. (3) Warehouse withdrawal for immediate exportation or for transportation and exportation. (4) Entry for transportation and exportation (T&E). (5) Entry for immediate exportation (IE). (6) Entry of vessel and aircraft supplies for immediate exportation (IE). (7) Entry of vessel and aircraft supplies for transportation and exportation (T&E). (c) Who may file. (1) The carrier, or authorized agent of the carrier, that brings the merchandise to the origination port; (2) The carrier, or authorized agent of the carrier, that is to accept the merchandise under its bond or a carnet for transportation to the port of destination or the port of exportation; or (3) Any person or the authorized agent of any person, who has a sufficient interest in the merchandise as shown by the bill of lading or manifest, a certificate of the importing carrier (such as a power of attorney or letter of authorization), or by any other document. CBP may request evidence to demonstrate sufficient interest. (d) In-bond application. (1) Contents. (i) Commodity HTSUS number. (ii) Description of merchandise subject to regulation by another government agency. (iii) Other identifying information. (iv) Quantity. (v) Container number and seals. (vi) Destination. (2) Method of submission. (3) Timing. (e) Bond required. (f) Movement authorization required. (g) Supervision Generally. (2) Merchandise delivered from warehouse. (3) Merchandise delivered from foreign trade zone. (h) Updating and amending the in-bond record. (i) In-transit time Maximum in-transit time. (2) Extension of in-transit time. (3) Restriction of in-transit time. (j) Report of arrival. (k) General order merchandise; exportation. (l) Special classes of merchandise Health, safety and conservation. (2) Plants and plant products. (3) Prohibited articles. (4) Narcotics and other drugs, medicines, or chemicals Narcotics. (ii) Other drugs, medicines, or chemicals. (5) Explosives. (6) Livestock. (m) Divided shipments. § 18.2 Carriers, cartmen, and lightermen. (a) Transportation of merchandise in-bond by bonded carriers Generally. (2) Merchandise transported under a TIR carnet. (3) Merchandise transported under an A.T.A. or a TECRO/AIT carnet. (b) Transportation of merchandise in-bond between certain ports by bonded cartmen or lighterman. § 18.3 Transfers. (a) Transfer to another conveyance. (b) Transfer to another bonded carrier. (c) Transfer of merchandise covered by a TIR Carnet generally prohibited. (d) Transfer by bonded cartmen. § 18.4 Sealing conveyances, compartments, and containers. (a) Requirements, waiver, and TIR carnets Seals required. (2) Waiver. (ii) Examples of situations where CBP may waive the waiver of the sealing requirement are when the conveyance, compartment, or container cannot be effectively sealed, as in the case of merchandise shipped in open cars or barges or on the decks of vessels, when it is known that any seals would necessarily be removed outside the jurisdiction of the United States for the purpose of discharging or taking on cargo, or when it is known that the breaking of the seals will be necessary to ventilate the hatches. (3) TIR carnets. (b) Commingled merchandise Transported in a sealed conveyance, compartment, or container. (2) Transported in a conveyance, compartment, or container that is not sealed. (3) Warning label or tag Warning label. 1/2 U.S. Customs and Border Protection This package is under bond and must be delivered intact to the CBP officer in charge at the port of destination or to such other place as authorized by CBP. Warning. Two years' imprisonment, a fine, or both, is the penalty for unlawful removal of this package or any of its contents. (ii) Tag. (4) Merchandise transported under carnet. (c) Removal and replacement of seals. (d) Containers or road vehicles accepted for transport under customs seal; requirements Containers covered by the Customs Convention on Containers. (A) Durably marked with the name and address of the owner, particulars of tare, and identification marks and numbers, and (B) Constructed and equipped as outlined in Annex 1 to the Customs Convention on Containers, as evidenced by an accompanying unexpired certificate of approval in the form prescribed by Annex 2 to that Convention or by a metal plate showing design type approval by a competent authority. (ii) Containers carrying merchandise covered by a TIR carnet. (A) Durably marked with the name and address of the owner, particulars of tare, and identification marks and numbers, (B) Constructed and equipped as outlined in Annex 6 to the TIR Convention, as evidenced by an accompanying unexpired certificate of approval in the form prescribed by Annex 8 to that Convention, or by a metal plate showing design type approval by a competent authority, and (C) If the container or road vehicle hauling the container has affixed to it a rectangular plate bearing the letters “TIR” in accordance with Article 31 of the TIR Convention. (2) Road vehicles carrying merchandise covered by a TIR carnet. (i) Durably marked with the name and address of the owner, particulars of tare, and identification marks and numbers, (ii) Constructed and equipped as outlined in Annex 3 to the TIR Convention, as evidenced by an accompanying unexpired certificate of approval in the form prescribed by Annex 5 to that Convention, or by a metal plate showing design type approval by a competent authority, and (iii) If the road vehicle has affixed to it a rectangular plate bearing the letters “TIR” in accordance with Article 31 of the TIR Convention. (3) CBP refusal. (4) CBP acceptance for transport. § 18.5 Diversion. (a) Procedure. (b) In-transit time. (c) Diversion of cargo subject to restriction, prohibition or regulation by other federal agency or authority. § 18.6 Short shipments; shortages; entry and allowance. (a) Notification of short shipment. (b) New in-bond application required. (c) Demand for redelivery; entry. (d) Failure to redeliver; entry. (e) Failure to redeliver merchandise covered by a carnet. (f) Allowance. (g) Rail and seatrain. § 18.7 Lading for exportation; notice and proof of exportation; verification. (a) Exportation Notice. (2) Time to export. (3) Notice and proof of exportation. (b) Supervision. (c) Verification. § 18.8 Liability for not meeting in-bond requirements; liquidated damages; payment of taxes, duties, fees, and charges. (a) Liability. (b) Liquidated damages. (2) Petition for relief. (c) Taxes, duties, fees, and charges. (d) Carnets TIR carnets. (ii) Within three months from the date demand for payment is made by the port director as provided by § 18.6(e), the guaranteeing association must pay the amount claimed, except that if the amount claimed exceeds the liability of the guaranteeing association under the carnet (see § 114.22(d) of this chapter), the carrier must pay the excess. The amount paid will be refunded if, within a period of one year from the date on which the claim for payment was made, it is established to the satisfaction of the Commissioner of CBP that no irregularity occurred. CBP may cancel liquidated damages assessed against the guaranteeing association to the extent authorized by paragraph (b) of this section. (2) A.T.A. or TECRO/AIT carnets. § 18.9 New in-bond movement for forwarded or returned merchandise. The carrier or any of the parties named in § 18.1(c) must, in accordance with the filing requirements of § 18.1, submit a new in-bond application in order to forward or return merchandise from the port of destination or port of exportation named in the original in-bond application, or from the port of diversion, to any another port. If the merchandise is moving under cover of a carnet, the carnet may be accepted as a transportation entry. § 18.10 Special manifest. (a) General. (b) Filing requirements. Subpart B—Immediate Transportation Without Appraisement § 18.11 General rules. (a) Delivery outside port limits. (b) Divided shipments. (c) Consolidated loads and combined shipments. (d) Textiles. § 18.12 Entry at port of destination. (a) Arrival procedures. (b) Entry. (c) Entry at subsequent ports. (d) General order merchandise. Subpart C—Shipment of Baggage In-Bond § 18.13 Procedure; manifest. (a) In-bond application required. (b) Coast to coast transportation. § 18.14 Shipment of baggage in transit to foreign countries. The baggage of any person in transit through the United States from one foreign country to another may be shipped over a bonded route for exportation. Such baggage must be shipped under the regulations prescribed in § 18.13. See § 123.64 of this chapter for the regulations applicable to baggage shipped in transit through the United States between points in Canada or Mexico. Subpart D—Transportation and Exportation § 18.20 General rules. (a) Classes of goods for which a transportation and exportation entry is authorized. (b) Filing requirement. (c) Entry procedures. (d) No bonded common carrier facilities available. (e) Electronic Export Information. (f) Time to export. (g) Notice of arrival and proof of exportation. § 18.21 [Reserved] § 18.22 Procedure at port of exportation. (a) Transfer of bonded merchandise to another conveyance. (b) Transfer of baggage by express shipment. § 18.23 Change of port of exportation or first foreign port; change of entry. (a) Change of port of exportation or first foreign port. (b) Change of entry. § 18.24 Retention of goods within port limits; dividing of shipments. (a) Retention of goods within port limits. (b) Divided shipments at the port of exportation. Subpart E—Immediate Exportation § 18.25 Direct exportation. (a) Merchandise General. (i) Merchandise in CBP custody for which no entry has been made or completed; (ii) Merchandise covered by an unliquidated consumption entry; or (iii) Merchandise that has been entered in good faith but is found to be prohibited under any law of the United States. (2) Carnets. (b) Restriction on immediate exportation by truck. (c) Time to export. (d) Electronic Export Information. (e) Exportation without landing, vessels. (f) Notice and proof of exportation. (g) Explosives. (h) Transfer by express shipment. § 18.26 Indirect exportation. (a) Indirect exportation, vessels. (b) Carnets. (c) Transfer at selected port of exportation. (d) Time to export. (e) Notice and proof of exportation. § 18.27 Port marks. Port marks may be added by authority of the port director and under the supervision of a CBP officer. The original marks and the port marks must appear in all documentation or the electronic equivalent must appear in electronic records pertaining to the exportation. Subpart F—Merchandise Transported by Pipeline § 18.31 Pipeline transportation of bonded merchandise. (a) General procedures Applicability. (2) In-bond application. (b) Bill of lading to account for merchandise. (c) Procedures when pipeline is only carrier. (d) Procedures when there is more than one carrier (i.e., transfer of the merchandise) Pipeline as initial carrier. (i) When the merchandise is to be transferred to one conveyance, a copy of the bill of lading or equivalent document issued by the pipeline operator to the shipper must be delivered to the person in charge of the conveyance for transmission to CBP; or (ii) When the merchandise is to be transferred to more than one conveyance, a copy of the bill of lading or equivalent document issued by the pipeline operator to the shipper must be delivered to the person in charge of each additional conveyance, for transmission to CBP. (2) Transfer to pipeline from initial carrier other than a pipeline. (3) Initial carrier liable for discrepancies. (e) Recordkeeping. Subpart G—Merchandise Not Otherwise Subject to CBP Control Exported Under Cover of a TIR Carnet § 18.41 Applicability. The provisions of §§ 18.41 through 18.45 apply only to merchandise to be exported under cover of a TIR carnet for the convenience of the U.S. exporter or other party in interest and do not apply to merchandise otherwise required to be transported in bond under the provisions of this chapter. Merchandise to be exported under cover of a TIR carnet for the convenience of the U.S. exporter or other party in interest may be transported with the use of the facilities of either bonded or non-bonded carriers. § 18.42 Direct exportation. At the port of exportation, the container or road vehicle, the merchandise, and the TIR carnet shall be made available to the port director. Any required Electronic Export Information (EEI) shall be filed in accordance with the applicable regulations of the Bureau of the Census (15 CFR part 30). The port director shall examine the merchandise to the extent he believes necessary to determine that the carnet has been properly completed and shall verify that the container or road vehicle has the necessary certificate of approval or approval plate intact and is in satisfactory condition. After completion of any required examination and supervision of loading, the port director will seal the container or road vehicle with customs seals and ascertain that the TIR plates are properly affixed and sealed. See § 18.4(d). In the case of heavy or bulky goods moving under cover of a TIR carnet, the port director shall cause a customs seal or label, as appropriate, to be affixed. He shall also remove two vouchers from the carnet, execute the appropriate counterfoils, and return the carnet to the carrier or agent to accompany the merchandise. § 18.43 Indirect exportation. (a) Filing of Electronic Export Information. (b) Origination port procedure. (c) Port of exportation procedure. § 18.44 Abandonment of exportation. In the event that exportation is abandoned at any time after merchandise has been placed under cover of a TIR carnet, the carrier or agent shall deliver the carnet to the nearest CBP office or to the CBP office at the origination port for cancellation (see § 114.26(c) of this chapter). When the carnet has been canceled, the carrier or agent may remove customs seals or labels and unload the container (or heavy or bulky goods) or road vehicle without customs supervision. § 18.45 Supervision of exportation. The provisions of §§ 18.41 through 18.44 do not require the director of the port of actual exportation to verify that merchandise moving under cover of a TIR carnet is loaded on board the exporting carrier. Subpart H—Importer Security Filings § 18.46 Changes to Importer Security Filing information. For merchandise transported in bond, which at the time of transmission of the Importer Security Filing as required by § 149.2 of this chapter is intended to be entered as an immediate exportation (IE) or transportation and exportation (T&E) shipment, permission from the port director of the origination port is needed to change the in-bond entry into a consumption entry. Such permission will only be granted upon receipt by CBP of a complete Importer Security Filing as required by part 149 of this chapter.