PART 112—CARRIERS, CARTMEN, AND LIGHTERMEN Authority: 19 U.S.C. 66, 1551, 1565, 1623, 1624. Source: T.D. 73-140, 38 FR 13551, May 23, 1973, unless otherwise noted. § 112.0 Scope. This part sets forth regulations providing for the bonding of carriers which will receive merchandise for transportation in bond, the licensing of cartmen and lightermen, and the procedures for applying for such bonds and licenses. This part also sets forth the regulations concerning the obtaining of identification cards by cartmen and lightermen, and their employees and the procedures for revoking or suspending licenses and identification cards. Provisions setting forth the duties and responsibilities of cartmen and lightermen are set forth in part 125 of this chapter. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 94-81, 59 FR 51494, Oct. 12, 1994] Subpart A—General Provisions § 112.1 Definitions. When used in this part, the following terms shall have the meaning indicated: Carrier. Cartman. Common carrier. Contract carrier. District. Freight forwarder. Lighterman. Private carrier. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 95-77, 60 FR 50019, Sept. 27, 1995] § 112.2 Bond or license required. (a) Carriers. (b) Cartmen and lightermen Necessity for bond. (2) Necessity for license. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 94-81, 59 FR 51494, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995] Subpart B—Authorization of Carriers To Carry Bonded Merchandise § 112.11 Carriers which may be authorized. (a) From port to port in the United States. (1) Common carriers. (2) Contract carriers. (3) Freight forwarders. (4) Private carriers, if: (i) The merchandise (including containerized merchandise) to be transported is the property of the private carrier; and (ii) The private carrier files a bond on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter, (b) Between ports in Canada or Mexico through the United States. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 81-243, 46 FR 45602, Sept. 14, 1981; T.D. 84-213, 49 FR 41171, Oct. 19, 1984] § 112.12 Application for authorization. (a) General requirements. (b) Special requirements. (1) Common carriers other than railroad, steamship, or airline companies. (2) Contract carriers and freight forwarders. (3) Private carriers. (4) Motor carriers. (i) A detailed description of the terminal facilities employed by the principal at the points of origin and destination on the routes covered; and (ii) A statement showing that facilities are available for the segregation and safeguarding of the packages designated by the port director for examination from a particular shipment. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 81-243, 46 FR 45602, Sept. 14, 1981; T.D. 84-213, 49 FR 41171, Oct. 19, 1984; T.D. 86-16, 51 FR 5063, Feb. 11, 1986] § 112.13 Approval of applications. The port director shall approve an application for authorization as carriers of bonded merchandise and the bond filed, authorizing the applicant to act as a carrier of bonded merchandise provided he is satisfied that: (a) The amount of the bond is sufficient. (b) All documents required by this subpart have been furnished and are in proper form; and (c) The fee prescribed has been paid. § 112.14 Discontinuance of carrier bonds. Carrier bonds may be discontinued at any time by the Commissioner of Customs or by the director of the port where the bond is filed. Authorized carriers desiring to terminate such bonds shall make application therefor to such port director. Subpart C—Licensing of Cartmen and Lightermen § 112.21 License required. A customhouse cartage or lighterage license issued by the port director in accordance with this part or specific authorization of the Commissioner of Customs shall be required to perform Customs cartage or lighterage, except as provided in §§ 18.3 and 125.12 of this chapter or, as provided in § 112.2(b), when such merchandise is to be transported under the bond of the foreign trade zone operator, bonded warehouse proprietor, centralized examination station operator, container station operator, or a bonded carrier. [T.D. 94-81, 59 FR 51495, Oct. 12, 1994] § 112.22 Application for license. (a) General requirements. (1) A bond on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter, in an amount specified by the port director. (2) Payment of a fee of $100. A check or money order shall be made payable to the United States Customs Service. (3) If required by the port director, 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 custody, or a list of all such persons and their addresses. (b) Special requirements Cartman licensed by city or State. (2) Lighterman. (c) Reapplication by certain terminated licensees. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 74-200, 39 FR 27128, July 25, 1974; T.D. 76-324, 41 FR 50822, Nov. 18, 1976; T.D. 84-213, 49 FR 41171, Oct. 19, 1984] § 112.23 Investigation of applicant. The port director may refer the application for a cartman's or lighterman's license to the appropriate special agent in charge where investigation and report concerning the character, qualification, and experience of the applicant as well as the nature and fitness of the equipment to be used. § 112.24 Issuance of license. The port director shall issue a customhouse cartage and lighterage license on Customs Form 3857 provided he is satisfied that: (a) The character, qualifications, and experience of the applicant and fitness of his equipment are satisfactory. (b) The applicant has complied with all the requirements of § 112.22. § 112.25 Bonded carriers. A carrier or freight forwarder who has filed a bond on Customs Form 301 containing the bond conditions set forth in § 113.63 of this chapter may transport merchandise within a port for which the bond provides coverage. [T.D. 94-81, 59 FR 51495, Oct. 12, 1994] § 112.26 Duration of license. A license issued in accordance with this subpart shall remain in force and effect until the license is suspended or revoked pursuant to § 112.30 or until the required bond is terminated pursuant to § 113.27 of this chapter. [T.D. 76-324, 41 FR 50822, Nov. 18, 1976, as amended by T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984; T.D. 97-82, 62 FR 51770, Oct. 3, 1997] § 112.27 Marking of vehicles and vessels. (a) Marking required. (b) Size of marking. (c) Place of marking Carts, trucks, drays, and other vehicles. (2) Barges, scows, lighters, and other vessels. (d) Removal of marking upon termination of license. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 84-213, 49 FR 41171, Oct. 19, 1984] § 112.28 Production of license. Inspectors or other Customs officers may require any person claiming to be a licensed customhouse cartman or lighterman to produce his license for inspection. § 112.29 Records. (a) Records of cartage and lighterage. (b) Current list of officers, members, or employees. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 79-159, 44 FR 31968, June 4, 1979] § 112.30 Suspension or revocation of license. (a) Grounds for suspension or revocation of licenses. (1) His license is not promptly produced upon demand; (2) His vehicle or vessel is not properly marked, as required by § 112.27; (3) The cartman or lighterman refuses or neglects to obey any proper order of a Customs officer or any Customs order, rule, or regulation relative to the cartage or lighterage of merchandise, including the making, keeping, and submitting of current written records relating to cartage and lighterage; (4) The license was obtained through fraud or the misstatement of a material fact; (5) The holder of such a license or an officer of a corporation holding such a license is convicted of or has committed acts which would constitute a felony, or a misdemeanor involving theft, smuggling, or a theft-connected crime. Any change in the employment status of the corporate officer (e.g., discharge, resignation, demotion, or promotion) prior to conviction of a misdemeanor involving theft, smuggling, or a theft-connected crime, resulting from acts committed while a corporate officer, will not preclude application of this provision; (6) The holder of such license permits it to be used by any other person; (7) The holder of such license fails to surrender promptly, or satisfactorily explain the failure to surrender, to the port director, identification cards of persons no longer employed by him where identification cards are required pursuant to § 112,41; (8) The holder of such license fails to furnish a current list of names and addresses of officers and members or employees when required by the port director pursuant to § 112.29; (9) The holder is guilty of any negligence, dishonest or deceptive practices or carelessness in the conduct of his business; or (10) The port director determines that the bond is not sufficient in amount or lacks sufficient sureties, and a satisfactory new bond with good and sufficient sureties is not furnished within a reasonable time. (b) Notice of revocation or suspension. (c) Notice of appeal. (d) Hearing on appeal Notification of and time of hearing. (2) Conduct of hearing. (3) Additional arguments. (4) Failure to appear. (e) Decision on the appeal. (f) Review by the Court of International Trade. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 85-90, 50 FR 21431, May 24, 1985; T.D. 88-63, 53 FR 40220, Oct. 14, 1988] Subpart D—Identification Cards § 112.41 Identification cards required. A port director may require each licensed cartman or lighterman and each employee thereof who receives, transports, or otherwise handles imported merchandise which has not been released from Customs custody to carry and display upon request of a Customs officer an identification card issued by Customs. The card shall be in the possession of the person in whose name it is issued at all times when he is engaged in transactions with respect to imported merchandise. 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 port director, endanger the revenue. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 99-64, 64 FR 43266, Aug. 10, 1999] § 112.42 Application for identification card. An application for an identification card required pursuant to § 112.41 of this part, shall be filed personally by the applicant with the port director on Customs Form 3078 together with two 1 1/4 1/4 [T.D. 93-18, 58 FR 15772, Mar. 24, 1993, as amended by T.D. 01-14, 66 FR 8767, Feb. 2, 2001] § 112.43 Form of identification card. The identification card shall be issued on Customs Form 3873 and shall not be valid unless signed by the employee and a Customs officer and the U.S. Customs seal is impressed thereon. The holder shall encase the card in protective transparent plastic so that both sides are clearly visible. § 112.44 Changes in information on identification cards. Where there has been a change in the name, address, or employer of the holder, the card shall be promptly submitted by the cardholder to the port director, supported by application in proper form indicating the change so that it may be officially changed on the Customs records. New cards shall be issued when necessary. § 112.45 Surrender of identification cards. The identification card shall be surrendered by the holder or licensee to the port director when: (a) The employee holder leaves the employment of the licensed cartman or lighterman; (b) The cartman or lighterman bond or license is terminated; or (c) The card is revoked or suspended pursuant to § 112.48. § 112.46 Report of loss or theft. The loss or theft of an identification card shall be promptly reported by the cardholder to the port director. § 112.47 Wrongful presentation. If an identification card is presented by a person other than the one to whom it was issued, such card shall be forthwith confiscated. § 112.48 Revocation or suspension of identification cards. (a) Grounds for revocation or suspension of identification cards. (1) Such card was obtained through fraud or the misstatement of a material fact; (2) The holder of such card is convicted of a felony, or convicted of a misdemeanor involving theft, smuggling, or any theft-connected crime; (3) The holder permits the card to be used by any other person, or refuses to produce it upon the proper demand of a Customs officer; or (4) The holder fails to abide by the rules and regulations prescribed in § 112.45 and part 125 of this chapter. (b) Notice of revocation or suspension. (c) Notice of appeal. (d) Hearing on appeal Notification of and time of hearing. (2) Conduct of hearing. (3) Additional arguments. (4) Failure to appear. (e) Decision on the appeal. § 112.49 Temporary identification cards. (a) Issuance. (b) Validity and renewal. (c) Withdrawal of temporary card. (d) Bond. [T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 84-213, 49 FR 41171, Oct. 19, 1984]