BON-1-03-CO:R:C:E 223372 PH
Mr. Lou Smith
Radex Transportation &
Container Freight Station
1342 South Rowan Avenue
Los Angeles, California 90023
RE: Container Freight Station; Cartman; Customs Form 6043; 19
CFR 19.45; 19 CFR Part 125; T.D. 72-68
Dear Mr. Smith:
In your letter of July 25, 1991, you request a ruling on the
use of Customs Form 6043 to transfer "non-cleared" cargo within a
Customs district. For your information, we have discussed this
matter with local Customs officers in Los Angeles. We found them
to be very knowledgeable about this issue. We are providing
Customs in Los Angeles with a copy of this ruling. If you have
questions about this matter, or if you have problems with the
procedures described in this ruling, please do not hesitate to
call on Mr. Paul Hegland, the case-handler of your inquiry in the
Entry Rulings Branch (202-566-5856). Our ruling follows.
FACTS:
You state that your company has experienced problems in its
use of Customs Forms 6043 to move cargo in bond within a
district. It is your opinion that "there are many routine
business requirements which are better/more economically resolved
by moving cargo to an 'off-dock' [Container Freight Station]."
You request a ruling that a Customs Form 6043 may be used to
transfer "non-cleared" cargo within a district. You state that
this transfer would be by a carrier with cartman's authority
unless the cargo is moved in vehicles operated by the Container
Freight Station to which the cargo is destined, in which case
cartman's authority would not be necessary.
Parenthetically, we note that although you request the ruling
as to the transfer of the described cargo "within a district"
(emphasis added), we are assuming that you mean to request the
ruling with regard to the transfer of the described cargo within
a port. Cartmen may only transport cargo within a port
(including a Customs station under the supervision of the Customs
port, see Treasury Decision (T.D. 78-278)) (see 19 CFR 112.1(b)
and ruling 306291, dated September 19, 1978). The transportation
of cargo between ports in the same Customs district or in
different districts is provided for in the Customs Regulations
concerning transportation in bond and merchandise in transit (19
CFR Part 18). There is no provision in Part 18 of the Customs
Regulations for the use your propose of a Customs Form 6043.
ISSUE:
May a Customs Form 6043 be used for the transfer of "non-
cleared" cargo from one point within a Customs port to a
container freight station within the Customs port, such transfer
to be by a cartman unless the cargo is moved in vehicles operated
by the container freight station?
LAW AND ANALYSIS:
The statutory provision for cartage of merchandise is found
in 19 U.S.C. 1565, which provides for the promulgation of
regulations pertaining to cartmen. Part 125 of the Customs
Regulations (19 CFR Part 125) is dedicated to cartmen. As
indicated above, a cartman is defined in the Customs Regulations
as one who undertakes to transport goods or merchandise within
the limits of a port (see 19 CFR 112.1(b)). Under 19 CFR 125.31,
when merchandise is carted to and received from a bonded store or
bonded warehouse it shall be accompanied by a Customs Form (CF)
6043, CF 7501, CF 7505-A, CF 7506, or CF 7512.
The Customs Regulations pertaining to container freight
stations are found in 19 CFR 19.40 - 19.49. These provisions
were promulgated in the Customs Regulations by T.D. 72-68. Under
19 CFR 19.42 - 19.45, procedures are established for the applica-
tion for, and the transfer of, a container to a container freight
station. Basically, under these procedures, the container
station operator files an application in duplicate substantially
like that in 19 CFR 19.42 with the Customs inspector at the place
of unlading of the container or, for merchandise transported in
bond, at the bonded carrier's facility, as designated by the
district director (19 CFR 19.43). Approval of the application
serves as a permit to transfer the container and its contents to
the container freight station (19 CFR 19.45).
Under 19 CFR 19.45, "[e]xcept when the container station
operator is moving the merchandise to his own station by his own
vehicle [see T.D. 74-54 for the background to this exception],
the merchandise may only be transferred to a container station by
a bonded cartman or bonded carrier [Note: under 19 U.S.C. 1565,
if the transfer of merchandise is between points within a port,
it must be by a bonded cartman, unless the exception applies]."
Therefore, there are two alternative procedures for the operation
under consideration. If the transfer of merchandise to the
container freight station is by a cartman, the procedures in 19
CFR Part 125 are applicable and a CF 6043 would be required to
accompany the merchandise. If the transfer of merchandise to the
container freight station is effected with the use of the
container freight station's own vehicle, the procedures in 19 CFR
19.40 - 19.49 are applicable and an approved application substan-
tially like that in 19 CFR 19.42 would serve as the permit for
the transfer of the container and its contents to the container
freight station.
HOLDING:
For the transfer of "non-cleared" cargo from one point within
a Customs port to a container freight station within the Customs
port--
(1) A CF 6043 is required to be used for the transfer if the
transfer of the merchandise is effected by a cartman; and
(2) An approved application substantially like that in 19
CFR 19.42 is required to be used as the permit for the
transfer if the transfer is effected with the use of the
container freight station's own vehicle.
Sincerely,
John Durant, Director
Commercial Rulings Division