OT:RR:BSTC:CCR H327129 HKC
Mr. Joseph Wilburn, LCB
C.H. Robinson Worldwide, Inc.
800 S. Cherry St.
Ste. 520
Glendale, CO 80240
Via E-mail: [email protected]
RE: In-Bond Seal Changes; 19 C.F.R. § 18.4(c)
Dear Mr. Wilburn,
This is in response to your correspondence, dated August 10, 2022, requesting a ruling as to how best to electronically comply with the regulatory requirements set forth in 19 C.F.R. § 18.4(c) when seals have been changed for merchandise traveling in-bond. Our decision follows.
FACTS:
The following facts were extracted from the ruling request dated August 10, 2022, and received by U.S. Customs and Border Protection (“CBP”) on September 6, 2022. C.H. Robinson intends to unlade bonded ocean containers at Tacoma, WA. The ocean containers would then have their seals broken, with the merchandise packed into different containers and re-sealed for in-bond rail transportation to Indianapolis, IN. C.H. Robinson notes that the CBP Automated Commercial Environment (‘ACE”) online platform does not permit an importer to change the seal numbers on an existing in-bond bill of lading. C.H. Robinson requests a binding ruling as to “how best to electronically comply with the regulatory requirements set forth in 19 CFR 18.4(c)”.
ISSUE:
The issue is how an importer may comply with the regulatory requirement at 19 C.F.R. § 18.4(c) when transporting in-bond merchandise from the initial port of unlading, with subsequent re-sealing for in-bond transportation to a second port.
LAW AND ANALYSIS:
19 C.F.R. § 18.4(c) provides that:
If it becomes necessary at any point in transit to remove seals from a conveyance, compartment, or container containing bonded merchandise for the purpose of transferring its contents to another conveyance, compartment, or container, or to gain access to the shipment because of casualty or for other good reason, such as when required by law enforcement or another government agency, a responsible agent of the carrier may remove the seals, supervise the transfer or handling of the merchandise, and seal the conveyance, compartment, or container in which the shipment goes forward. Updated seal numbers must be transmitted to CBP pursuant to § 18.1(h) and general recordkeeping requirements under 19 CFR part 163 apply.
19 C.F.R. § 18.1(h) states:
The filer of the in-bond application or any other party named in paragraph (c) of this section, with authorization of the party whose bond is obligated, must update and/or amend the in-bond record as required under the provisions of this part via a CBP-approved EDI system. The in-bond record must be updated or amended within two business days of the event that requires updating and/or amending of the in-bond record.
As C.H. Robinson notes, there is no mechanism currently in ACE for an importer to modify an existing import bill to add new seal numbers for subsequent transportation out of a bonded warehouse.
However, CBP regulations suggest the above provisions are inapplicable to C.H. Robinson’s proposed transportation. 19 C.F.R. § 18.1(a) provides that:
In order to transport merchandise in-bond (transport imported merchandise, secured by a bond, from one port to another prior to the appraisement of the merchandise and without the payment of duties), an in-bond application as described in paragraph (d) of this section is required. An in-bond application consists of a transportation entry and a manifest…
Here, the facts indicate the merchandise will be transported by a vessel in sealed containers to Tacoma, WA. The merchandise will then be resealed in new containers at a bonded warehouse in Tacoma, WA for rail conveyance to Indianapolis, IN, where it will be entered into the U.S. Because the importer is transporting merchandise in-bond from one port (Tacoma, WA) to another (Indianapolis, IN), it will be required to file a separate, in-bond application for this ground transportation.
This requirement to file a new bill of lading for the in-bond transportation from Tacoma, WA to Indianapolis, IN is consistent with the guidance contained in the ACE implementation guide, which states:
“This [QP65] record is required for in-bond moves from a Foreign Trade Zone or bonded warehouse. When reporting in-bond moves from a Foreign Trade Zone or bonded warehouse all carriers are non-automated and the filer must provide full bill of lading information related to the movement out of the facility. Do not use the original import bill.”
HOLDING:
The importer is required to file a separate bill of lading for ground in-bond transportation between Tacoma, WA and Indianapolis, IN. The original ocean bill of lading for importation to Tacoma, WA may not be utilized for the subsequent in-bond transportation from the Tacoma, Washington, bonded warehouse to the port of Indianapolis. CBP’s ACE system will permit the importer to add seal numbers to this new bill of lading.
Sincerely,
W. Richmond Beevers
Chief, Cargo Security, Carriers and Restricted Merchandise Branch
Office of International Trade, Regulations and Rulings
U.S. Customs and Border Protection