Recordkeeping Requirements

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 24, 111, 143, 162, and 163

RIN 1515-AB77

Recordkeeping Requirements

AGENCY: U.S. Customs Service; Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations by

adding a new part which will cover recordkeeping requirements and

reflect legislative changes to the Customs laws regarding

recordkeeping, examination of books and witnesses, regulatory audit

procedures and judicial enforcement. These statutory amendments are

contained in the Customs Modernization provisions of the North American

Free Trade Agreement Implementation Act. The new provisions are being

incorporated into the new part with the existing recordkeeping

requirements (presently in Part 162) which remain effective, although

they are being updated to permit the use of new technology and

alternative methods for record maintenance. The proposed amendment also

contains provisions establishing a voluntary recordkeeping compliance

program.

DATES: Comments must be submitted on or before June 23, 1997.

ADDRESSES: Written comments on the proposed regulation (preferably in

triplicate) must be submitted to the U.S. Customs Service, ATTN:

Regulations Branch, Franklin Court, 1301 Constitution Avenue, NW.,

Washington, D.C. 20229, and may be inspected at the Regulations Branch,

1099 14th Street, NW, Suite 4000, Washington, D.C.

Copies of the Recordkeeping Compliance Handbook are available from

the public access Customs Electronic Bulletin Board (703)-440-6155 or

by requests addressed or faxed to the following: U.S. Customs Service,

Regulatory Audit Division, Miami Branch 909 S.E. First Street, Suite

710, Miami, FL 33131, Attention: Recordkeeping Compliance Program, Fax:

(305-536-7442).

Written comments on the Recordkeeping Compliance Handbook may be

sent by facsimile or mail to the following address: U.S. Customs

Service, Regulatory Audit Division, Atlanta Branch 1691 Phoenix

Boulevard, Suite 250A, College Park, GA 30349, Attention: Recordkeeping

Compliance Program, Fax: (770-994-2270).

FOR FURTHER INFORMATION CONTACT: For questions relating to

recordkeeping in general, and the voluntary Recordkeeping Compliance

Program, call Stan Hodziewich, Regulatory Audit Division, Washington,

D.C. at (202-927-0999) or Howard Spencer, Regulatory Audit Division,

Atlanta Branch at (770-994-2273, Ext.158).

For questions relating to the Appendix ((a)(1)(A) list), its

underlying documents and other entry records/information call Rychelle

Ingram, Office of Trade Compliance 202-927-1131.

SUPPLEMENTARY INFORMATION:

Background

On December 8, 1993, the President signed Public Law 103-182, the

North American Free Trade Agreement Implementation Act (NAFTA

Implementation Act)(107 Stat. 2057). Title VI of this Act, known as the

Customs Modernization Act (the Mod Act), amended certain Customs laws.

Sections 614, 615, and 616 of the Mod Act amended Secs. 508, 509, and

510 of the Tariff Act of 1930, as amended (19 U.S.C. 1508, 1509, and

1510) which pertain to recordkeeping requirements established for

importers and others. Title II of the NAFTA Implementation Act,

entitled ``Customs Provisions'', also amended Secs. 508 and 509 of the

Tariff Act of 1930, as amended, to include recordkeeping requirements

for exportations to Canada and Mexico.

Part 162 of the Customs Regulations which addresses records,

recordkeeping and its associated requirements also covers unrelated

subjects. Because of the enhanced importance of recordkeeping, Customs

believes that a new part devoted solely to this subject is appropriate.

Accordingly, Customs is proposing to create a new Part 163 regarding

recordkeeping.

Recordkeeping Requirements

Before its amendment by the Mod Act, Sec. 508 of the Tariff Act of

1930 (19 U.S.C. 1508) limited recordkeeping requirements to any owner,

importer, consignee, or agent thereof who imported, or knowingly caused

to be imported any merchandise into the Customs territory of the United

States. Section 614 of the Mod Act amended

[[Page 19705]]

these requirements and expanded the parties subject to Customs

recordkeeping requirements to include parties who file an entry or

declaration, transport or store merchandise carried or held under bond,

file drawback claims, or cause an importation, or transportation or

storage of merchandise carried or held under bond. Section 614 of the

Mod Act further amended section 508 of the Tariff Act of 1930 to

clarify that all parties who must keep records for Customs purposes are

subject to recordkeeping requirements. The Mod Act further

distinguished between those business, financial or other records that

pertain to activities listed in section 508 of the Tariff Act and are

maintained in the normal course of business and those that are

identified as ``(a)(1)(A) list'' or entry records. As discussed more

fully later in this document, these latter records are those which have

been identified by Customs as being necessary for the entry of

merchandise. The failure to maintain, or produce these records upon

Customs demand could subject the responsible party to substantial

administrative penalties.

Proposed Sec. 163.2 sets forth the parties who are subject to

recordkeeping requirements. It is noted that the parties who are

required to maintain records for purposes of the U.S.--Canada Free

Trade Agreement and NAFTA are set forth respectively in parts 10 and

181.

In Sec. 163.2(a), a provision concerning recordkeeping requirements

for records kept in the ordinary course of business is proposed to

reflect the expanded parties to whom recordkeeping requirements extend.

The proposed section provides that records are to be made and kept by

such parties as carriers, cartmen, bonded warehouse proprietors,

foreign trade zone operators and drawback claimants.

Because Customs recognizes that the likelihood it will require or

request records from travelers regarding their baggage or oral

declarations after they have physically cleared the Customs facility is

extremely small except for large purchases, and because Customs does

not wish to impose an unnecessary recordkeeping burden on the general

public, Customs, in Sec. 163.2(g), is proposing to not require that

such travelers retain the documentation which supports their

declaration when the merchandise acquired abroad is covered by the

traveler's personal exemption or by a flat rate of duty (See, for

example, subheadings 9804.00.65--9804.00.72, 9816.00.20 and 9816.00.40,

Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), and

part 148 of the Customs Regulations). However, such travelers while not

being required to retain records for Customs purposes may deem it

advisable to retain them for other personal reasons, such as insurance

or warranty matters.

Section 163.4 of the proposed regulations provides that records

relating to drawback be retained for a period of three years from the

date the drawback claim is paid. Since entry records relating to the

merchandise for which the drawback claim was paid must be kept for five

years, it is possible that the total retention requirement could extend

to eight years' it is possible that the total retention requirement

could extend to eight years. All other records, except for packing

lists, that relate to filing an entry or declaration, transporting or

storing merchandise carried or held under bond, or causing an

importation, transportation or storage of merchandise carried or held

under bond into or from the Customs territory of the U.S. are required

to be kept for a five year period from the date of entry or

exportation, or other activity, as appropriate. An exception from the

normal retention period is made for packing lists because of the

limited period in which information contained on those lists would be

useful for either Customs or the importer.

The Mod Act also amended 19 U.S.C. 1508 to reflect the current

electronic environment in which both Customs and the importing and

exporting community operate and expanded the definition of ``records''

to include information and data maintained in the form of

electronically generated or machine readable data. The proposed

amendment reflects this expansion of the concept of what constitute

``records'' in Sec. 163.1(a).

Examination of Records

The Mod Act granted Customs authority not to require the

presentation of certain documentation or information at time of entry.

These provisions will allow Customs and the importing community to

reduce the documentation and information requirements at time of entry,

thereby facilitating the entry process without jeopardizing Customs

ability to obtain records from an importing party at a later date.

However, in exchange for not requiring presentation of documents at the

time of entry, Customs has the authority to require, after entry, the

production of any entry records whose presentation may not have been

requested at entry. Section 615 of the Mod Act amended Sec. 509 of the

Tariff Act of 1930 (19 U.S.C. 1509) to authorize Customs to examine any

records which are required by law for the entry of merchandise, whether

or not Customs required its presentation at the time of entry. Failure

to maintain or produce requested entry documents may result in the

imposition of substantial administrative penalties.

In the spirit of ``informed compliance'' and in fairness to those

who may be required to produce records, the Act requires Customs to

identify and make available to the importing community, by publication,

a list of all records, statements, declarations or documents required

by law or regulation for the entry of merchandise whose production may

or may not have been requested at time of entry and for which

substantial administrative penalties may be imposed for failure to

maintain or produce for Customs within a reasonable time. This list of

records has commonly been referred to as the ``(a)(1)(A) list'' because

of the section of the Mod Act which contained the requirement. This

list, which was published in the Customs Bulletin on January 3, 1996

(T.D. 96-1), and the Federal Register on July 15, 1996 (61 FR 36956) is

included as an Appendix to part 163.

It should be noted that while the ``(a)(1)(A) list'' pertains to

records or information required for the entry of merchandise, an owner,

importer, consignee, importer of record, entry filer, or other party

who imports merchandise, files a drawback claim, exports to a NAFTA

country or transports or stores bonded merchandise is also required to

make, keep and render for examination and inspection records

(including, but not limited to, statements, declarations, documents and

electronically generated or readable data) directly or indirectly

pertaining to such activity or to the information contained in the

records required by the Tariff Act of 1930, as amended, in connection

with any such activity and which are normally kept in the ordinary

course of business. Parties have the responsibility to maintain

supporting records, documents, and information which will demonstrate

that information on declarations regarding classification, valuation

and rate of duty at entry, as well as all other data on entry records

is accurate.

In the future, as Customs expands its electronic entry processes,

presentation of certain supporting paper documentation for entries may

be waived at the time of entry. However, importers shall be required to

maintain such documentation subject to this part. Before Customs

implements any new procedures which relate to the electronic entry of

goods, a Notice of

[[Page 19706]]

Proposed Rulemaking will be published in the Federal Register.

The present ``(a)(1)(A) list'' is based on existing entry

requirements. It contains a list of records that are required for the

entry of merchandise and that may be waived at the time of entry, but

that must be produced for Customs examination upon demand. A party who

fails to produce an ``(a)(1)(A) list'' record can be held liable for

penalties under the provisions of the Mod Act. Customs will presently

revise its processes relating to entry. It is expected that the

``(a)(1)(A) list'' will be extensively revised. The proposed

regulations incorporate Customs authority to waive the presentation of

certain documentation or information at the time of entry.

Penalties

The proposed regulations incorporate Customs authority to assess

administrative penalties for failure to produce entry records for

Customs examination within a reasonable time. In determining a

reasonable time, Customs proposes to take into account the number,

type, and age of the item asked to be produced. Included in the

proposed regulation is a chart that is intended to provide general

guidelines so the public will know the time frames within which Customs

expects documents to be produced. It is expected that all parties will

discuss the expected production date of any items Customs has requested

when that item has been requested. It is also expected that any party

anticipating difficulty in meeting the expected production date will

immediately inform Customs of that difficulty. Parties who have been

assessed administrative penalties for failure to produce demanded

``(a)(1)(A) list'' records will be able to petition for mitigation of

the penalties under the provisions of part 171 of the Customs

Regulations. In addition to administrative penalties, the Mod Act has

granted courts the authority to impose monetary penalties for the

failure to produce records summoned by Customs. These provisions are

contained in Sec. 163.12.

Requests for Production of Records, Summons

The proposed regulations contain provisions in Secs. 163.6 through

163.11 that are similar to existing regulations regarding Customs

ability to request and summon records when audits, inquiries, reviews

or investigations are being conducted or when such information is

otherwise necessary to verify information submitted to Customs or to

complete Customs processing of an entry. However, the regulations have

been expanded to include additional parties who are subject to Customs

summons authority.

Regulatory Audit Procedures

The proposed Sec. 163.13 details the role and responsibility of

Customs regulatory auditors and formally sets forth regulatory audit

procedures for conducting a regulatory audit that have been in place by

directive for several years. The regulations provide for time lines for

conducting an audit as well as issuance of audit reports.

Recordkeeping Compliance Program

The proposed regulations contain provisions that describe a

voluntary recordkeeping compliance program available to all parties who

are required to maintain and produce records under the Customs

Regulations and are in compliance with Customs laws and regulations.

Applicants to the program may have Customs review their recordkeeping

procedures and methods. If Customs determines that the party meets the

program requirements, Customs may certify that fact and permit him to

participate in the program. To assist the public in meeting Customs

recordkeeping requirements, Customs has prepared a Recordkeeping

Compliance Handbook which can be obtained from the Customs Electronic

Bulletin Board or by faxing or writing the Regulatory Audit Division,

Miami Field Office. Refer to the beginning of this document for the

address and/or fax number. Participants in the program are eligible for

alternatives to penalties and may be entitled to greater mitigation of

any recordkeeping penalty the party might be assessed should he be

unable to produce a requested record. However, repeated or willful

failure to produce records or failure to exercise reasonable care in

the maintenance of records or be in compliance with the recordkeeping

requirements may cause a party's removal from the program and subject

him to penalties. The recordkeeping compliance program will also permit

participants to receive approval of recordkeeping formats that are

tailored to the needs of their operations or involve conversion of

records from one format to another.

Other Sections Affected

In order to establish uniform recordkeeping requirements for

parties who transact business with Customs in accordance with

objectives of the Mod Act, the retention period for records relating to

user fees for arrivals by railcar, which are contained in

Sec. 24.22(d)(5), and those for passengers aboard commercial vessels

and commercial aircraft in Sec. 24.22(g)(6) is being amended to the

same five year period that other recordkeepers must observe.

However, it must be noted that while the regulations establish a

minimum requirement for the maintenance for records, this does not

preclude Customs auditors from examining fee remitters' records, if

records exist, to determine whether fees are owed for periods prior to

the record retention period. Under section 19 CFR 162.1d (proposed

163.6), and 19 U.S.C. 1508 and 1509, Customs officers currently have

the authority to examine records to determine the liability of any

person from whom duties, fees, and taxes are due, or that may be due,

and to determine compliance with the laws or regulations enforced by

the Customs Service. If a fee remitter refuses to supply records to

verify user fees, the Customs Service has the authority to summon those

records pursuant to 19 U.S.C. 1509 or, if Customs possesses information

to determine fee payments, collection action may be initiated. It

should be pointed out that there is no language in 19 U.S.C. 58c or in

the current regulations or other Customs laws that limits the liability

for fees owed to a particular period. All fee remitters are liable for

fees that are accrued on or after the effective dates of the statutes

enacting the fees. Statutory and regulatory requirements for keeping

fee-related records are not equivalent to statutes of limitations on

collecting fees.

The document also proposes to make several changes to parts 111 and

143. The reference to Sec. 162.1a and Sec. 162.1b in the definition of

records in Sec. 111.1(f) will be changed to Sec. 163.1(a) and

Sec. 163.2. An addition is made to Sec. 111.21 to add new paragraphs

(b) and (c). Section 111.21(b) will require brokers to comply with the

provisions of Sec. 163 when maintaining records that reflect on their

transactions as a broker. Section 111.21(c) will require brokers to

designate a recordkeeping officer and also designate a back-up

recordkeeping officer. A change is proposed to Sec. 111.22 (b), (c),

(d), and (e) that will permit requests for exemptions for recordkeeping

formats to be granted by the Field Director, Regulatory Audit

responsible for the geographical area in which the designated broker's

recordkeeping officer is located rather than requiring that the request

be referred to port directors.

A change is being proposed to Sec. 111.23(a)(1) that will permit

brokers to consolidate all records they are required to maintain if

their proposed consolidation plan is approved by the

[[Page 19707]]

Field Director of Regulatory Audit who has responsibility for the

geographical area in which the designated broker's recordkeeping

officer is located. This potentially shortens the approval time by

removing port directors from the review and approval process. The

current regulations permit brokers to centralize only accounting

records and requires they maintain entry records within the district to

which they relate. Brokers will also be permitted to store powers of

attorney in alternative formats, if such storage has been approved in

accordance with Part 163. These proposed changes will give brokers more

flexibility in their record maintenance options.

The document contains proposals to amend Secs. 143.35 and 143.36 to

reflect Customs present practice relating to the submission of paper

documents when entries are transmitted electronically through the ACS

system. As Customs and the business community proceed into the

paperless, electronic operating environment it is anticipated that

actual transfer of documentation will occur less frequently and usually

only at Customs request. However, Customs decision not to request

presentation or submission of documents at the time of entry does not

relieve the filer from the responsibility of maintaining those

documents or records in accordance with the provisions of this part.

Amendments to Sec. 143.37 are also proposed. A new proposed section

(a) will require all brokers and importers to maintain records in

accordance with the new part 163. The proposed language means that hard

copy or electronic documentation supporting electronic immediate

delivery, entry, and entry summary must be retained in the condition as

received by the filer or importer, unless the filer has received

permission to store such documentation in accordance with Sec. 163.5.

This change establishes uniform procedures for storing records in

alternative formats. It is also proposed that Sec. 143.37(c) be amended

to permit filers to consolidate and store records and electronic data

in alternative formats if their proposed plan is approved by the Field

Director, Regulatory Audit who has responsibility for the geographical

area in which the designated broker's recordkeeping officer is

situated. Appeals from the decision of the Field Director would be to

the Director of the Regulatory Audit Division in Washington, DC. This

eliminates the need to refer the request to the Assistant Commissioner,

Field Operations, as the current regulations require.

Other language changes to Sec. 143.37(c) are proposed. The term

``centralized locations'' is replaced with ``consolidated locations''.

This proposed change is intended to give filers more flexibility in

their record maintenance. Finally, Sec. 143.39 is being amended to

state that the failure to produce records in a timely manner could

subject importers to penalties pursuant to part 163 and brokers to

penalties pursuant to parts 111 and 163.

Comments

Before adopting this proposal, consideration will be given to any

written comments (preferably in triplicate) that are timely submitted

to Customs. All such comments received from the public pursuant to this

notice of proposed rulemaking will be available for public inspection

in accordance with the Freedom of Information Act (5 U.S.C. 552),

Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and

Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular

business days between the hours of 9:00 a.m. and 4:30 p.m. at the

Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, DC.

Regulatory Flexibility Act

Insofar as the proposed regulation closely follows legislative

direction, pursuant to the provisions of the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.), it is certified that the amendment, if adopted,

will not have a significant economic impact on a substantial number of

small entities. Accordingly, it is not subject to the regulatory

analysis or other requirements of 5 U.S.C. 603 and 604.

Executive Order 12866

The proposed amendment does not meet the criteria for a

``significant regulatory action'' under E.O. 12866.

Paperwork Reduction Act

The collection of information contained in this rulemaking has been

submitted to the Office of Management and Budget (OMB) in accordance

with the Paperwork Reduction Act of 1995. (44 U.S.C. 3507).

An agency may not conduct or sponsor, and a person is not required

to respond to a collection of information unless the collection of

information displays a valid control number.

The collection of information in these regulations is in

Secs. 163.2, 163.3 and 163.14. Although other parts of the Customs

Regulations are being amended, all information required by this

proposed amendment is contained or identified in the above-cited

sections. This information is to be maintained in the form of records

which are necessary to ensure that the Customs Service will be able to

effectively administer the laws it is charged with enforcing while, at

the same time, imposing a minimum burden on the public it is serving.

Respondents or recordkeepers are already required by statute or

regulation to maintain the vast majority of the information covered in

this proposed regulation. The likely respondents or recordkeepers are

business organizations including importers, exporters and

manufacturers.

Estimated total annual reporting and/or recordkeeping burden:

732,600 hours.

Estimated average annual burden per respondent/recordkeeper: 117.2.

Estimated number of respondents and/or recordkeepers: 6250.

Estimated annual frequency of responses: 4.

Comments concerning the collections of information should be sent

to the Office of Management and Budget, Attention: Desk Officer of the

Department of the Treasury, Office of Information and Regulatory

Affairs, Washington, D.C. 20503. A copy should also be sent to the

Regulations Branch, Office of Regulations and Rulings, U.S. Customs

Service, 1301 Constitution Avenue, N.W., Washington, D.C. 20229.

Comments should be submitted within the time frame that comments are

due regarding the substance of the proposal.

Comments are invited on: (a) whether the collection of information

is necessary for the proper performance of the functions of the agency,

including whether the information shall have practical utility; (b) the

accuracy of the agency's estimate of the burden of the collection of

information; (c) ways to enhance the quality, utility, and clarity of

the information to be collected; and (d) ways to minimize the burden of

the collection of information on respondents, including through the use

of automated collection techniques or other forms of information

technology.

Drafting Information

The principal authors of this document are Peter T. Lynch,

Regulations Branch, Office of Regulations and Rulings and Cindy Covell,

Regulatory Audit Division, U.S. Customs Service. However, personnel

from other offices participated in its development.

List of Subjects

19 CFR Part 24

Accounting, Customs duties and inspection, Reporting and

recordkeeping requirements, Harbors, Taxes.

[[Page 19708]]

19 CFR Part 111

Administrative practice and procedures, Customs duties and

inspection, Brokers, Reporting and recordkeeping requirements,

Penalties.

19 CFR Part 143

Customs duties and inspection, Reporting and recordkeeping

requirements.

19 CFR Part 162

Administrative practice and procedure, Customs duties and

inspection, Recordkeeping and reporting requirements, Trade agreements.

19 CFR Part 163

Administrative practice and procedure, Customs duties and

inspection, Recordkeeping and reporting requirements, Trade agreements.

Proposed Amendments to the Regulations

It is proposed to amend Chapter I of Title 19, Code of Federal

Regulations (19 CFR Chapter I) by amending parts 24, 111, 143 and 162,

and by adding a new part 163 to read as follows:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

1. The general authority citation for Part 24 continues to read in

part as follows:

Authority: 5 U.S.C. 301, 19 U.S.C. 58a-58c, 66, 1202 (General

Note 20, Harmonized Tariff Schedule of the United States), 1624; 31

U.S.C. 9701.

* * * * *

2. It is proposed to amend Sec. 24.22(d)(5) by removing the phrase

``shall be maintained for a period of 3 years'' and adding, in its

place, the phrase ``shall be maintained in the United States for a

period of 5 years''.

3. It is proposed to amend Sec. 24.22(g)(6) by removing the phrase

``shall be maintained for a period of 2 years'' and adding, in its

place, the phrase ``shall be maintained in the United States for a

period of 5 years''.

PART 111--CUSTOMS BROKERS

1. The general authority citation for Part 111 continues to read in

part as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20 Harmonized Tariff

Schedule of the United States), 1624, 1641.

* * * * *

2. In Sec. 111.1, it is proposed to remove the section references

``Sec. 162.1a'' and ``Sec. 162.1b'' in the definition of ``Records''

and add, in their place, respectively, the following section

references: ``Sec. 163.1a'' and ``Sec. 163.2''.

3. Section 111.21 is proposed to be amended by designating the

existing paragraph as paragraph (a) and adding new paragraphs (b) and

(c) to read as follows:

Sec. 111.21 Record of transactions.

(a) * * *

(b) Each broker shall comply with the provisions of part 163 of

this chapter when maintaining records that reflect on his transactions

as a broker.

(c) Each broker will designate a knowledgeable company employee to

be the broker's recordkeeping officer as well as a back-up

recordkeeping officer for broker-wide entry and financial recordkeeping

requirements.

Sec. 111.22 [Amended]

4. Section 111.22 is proposed to be amended by removing the titles

of ``port director'' and ``director of the port'' and adding, in their

place, the phrase, ``Field Director of Regulatory Audit responsible for

the geographical area in which the broker's designated recordkeeping

officer is located.''

5. Section 111.23 is proposed to be amended by revising paragraphs

(a)(1) and (b) to read as follows, by removing paragraphs (c) and (d),

and by redesignating paragraph (e) as paragraph (c) and revising it by

removing the word ``centralized'' and adding the word ``consolidated''

each time it appears, and by removing the words ``office of Field

Operations, Headquarters'' and adding the words ``Field Director,

Regulatory Audit Division responsible for the geographic area in which

the broker's designated recordkeeping officer is located'' in its

place.

Sec. 111.23 Retention of records.

(a) Place and period of retention--(1) Place. The records, as

defined in Sec. 111.1(f), and required by Sec. 111.21 and Sec. 111.22

to be kept by the broker, shall be retained within the broker district

that covers the Customs port to which they relate unless approval for

consolidation of records by the broker has been received from the Field

Director of Regulatory Audit responsible for the geographical area in

which the broker's designated recordkeeping officer is located. Appeals

from a denial of consolidation privileges shall be filed with the

Director, Regulatory Audit Division, U.S. Customs Service, Washington,

DC 20229 within 30 days from the mailing of the Field Director's

decision.

* * * * *

(b) Maintenance of records. All records must be maintained in

accordance with standards set forth in part 163 of this chapter.

* * * * *

PART 143--SPECIAL ENTRY PROCEDURES

1. The general authority citation for part 143 continues to read as

follows:

Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.

2. Section 143.31 is proposed to be amended by removing the

reference to Sec. 162.1a(a) in paragraph (n) and replacing it with

``Part 163''.

3. Section 143.35 is proposed to be revised to read as follows:

Sec. 143.35 Procedure for electronic entry summary.

In order to obtain entry summary processing electronically, the

filer will submit certified entry summary data electronically through

ABI. Data will be validated and, if found error-free, will be accepted.

If it is determined through selectivity criteria and review of data

that documentation is required for further processing of the entry

summary, Customs will so notify the filer. Documentation submitted

before being requested by Customs will not be accepted or retained by

Customs. The entry summary will be scheduled for liquidation once

payment is made under statement processing (see Sec. 24.25 of this

chapter).

4. Section 143.46 is proposed to be amended by revising the first

sentence of paragraph (a), and the first sentence of paragraph (c) to

read as follows:

Sec. 143.36 Forms of immediate delivery, entry and entry summary.

(a) Electronic form of data. If Customs determines that the

immediate delivery, entry or entry summary data is satisfactory under

Secs. 143.34 and 143.35, the electronic form of the immediate delivery,

entry or entry summary through ABI shall be deemed to satisfy all

filing requirements under this part. * * *

(b) * * *

(c) Submission of invoice. The invoice will be retained by the

filer unless requested by Customs. If the invoice is submitted by the

filer before a request is made by Customs, it will not be accepted or

retained by Customs. When Customs requests presentation of the invoice,

invoice data must be submitted in one of the following forms:

* * * * *

5. Section 143.37(a) is proposed to be revised to read as follows:

[[Page 19709]]

Sec. 143.37 Retention of records.

(a) Record maintenance requirements. All records received or

generated by a broker or importer must be maintained in accordance with

part 163 of this chapter.

* * * * *

6. In Sec. 143.37, paragraph (c) is proposed to be amended by

removing the words ``Assistant Commissioner, Field Operations, U.S.

Customs Service, Washington, D.C.'' and adding the phrase ``Field

Director, Regulatory Audit Division responsible for the geographical

area in which the broker's designated recordkeeping officer is located

for consolidation of entry and/or financial records by the broker'' in

its place and removing the word ``centralized'' wherever it appears and

replacing it with the word ``consolidated'.

Sec. 143.37 [Amended]

7. Section 143.37 (d) is proposed to be amended by removing the

title ``Assistant Commissioner, Field Operations'' each time it appears

and adding in its place, the title ``Director, Regulatory Audit

Division''.

8. Section 143.39 is proposed to be revised to read as follows:

Sec. 143.39 Penalties.

(a) Brokers. Brokers unable to produce documents requested by

Customs within a reasonable time will be subject to penalties pursuant

to parts 111 and/or 163 of this chapter.

(b) Importers. Importers unable to produce documents requested by

Customs within a reasonable time will be subject to penalties pursuant

to part 163 of this chapter.

PART 162--INSPECTION, SEARCH, AND SEIZURE

1. The authority citation for Part 162 continues to read in part as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1624.

* * * * *

2. The heading of Part 162 is proposed to be revised to read as set

forth above.

3. Section 162.0 is proposed to be revised to read as follows:

Sec. 162.0 Scope.

This part contains provisions for the inspection, examination, and

search of persons, vessels, aircraft, vehicles, and merchandise

involved in importation, for the seizure of property, and for the

forfeiture and sale of seized property. It also contains provisions for

Customs enforcement of the controlled substances, narcotics and

marihuana laws. Provisions relating to petitions for remission or

mitigation of fines, penalties, and forfeitures incurred are contained

in part 171 of this chapter.

4. In Subpart A, the Subpart heading is proposed to be revised to

read as follows:

Subpart A--Inspection, Examination, and Search

5. In Subpart A, Secs. 162.1a through 162.1i are proposed to be

removed.

6. Part 163 is proposed to be added to read as follows:

PART 163--RECORDKEEPING

Sec.

163.0 Scope.

163.1 Definitions.

163.2 Parties required to maintain records.

163.3 Entry records.

163.4 Record retention period.

163.5 Alternate methods for storage of records.

163.6 Notices for production and examination of records and

witnesses; penalties.

163.7 Summons.

163.8 Contents of summons.

163.9 Service of summons.

163.10 Third-party recordkeeper.

163.11 Enforcement of summons.

163.12 Failure to comply with court order; penalties.

163.13 Regulatory audit procedures.

163.14 Recordkeeping compliance program.

163.15 Denial, Suspension, Revocation, and Appeal Procedures.

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1508, 1509, 1510, 1624.

Sec. 163.0 Scope.

This part sets forth the recordkeeping requirements and procedures

governing the maintenance, production, and examination of records. It

also sets forth the procedures governing the examination of persons in

connection with any audit, compliance assessment or other inquiry or

investigation conducted for the purposes of ascertaining the

correctness of any entry, for determining the liability of any person

for duties, fees and taxes due or that may be due, for determining

liability for fines, penalties and forfeitures, or for insuring

compliance with the laws and regulations administered or enforced by

Customs. Additional provisions concerning records maintenance and

examination applicable to U.S. importers, exporters, and producers

under the U.S. Canada Free Trade Agreement and the North American Free

Trade Agreement are contained in parts 10 and 181 of this chapter,

respectively.

Sec. 163.1 Definitions.

When used in this part, the following terms shall have the meaning

indicated:

(a) Records. The term ``records'' means any information made or

kept in the ordinary course of business that pertain directly or

indirectly to the activities listed in paragraph (a)(1) of this

section. Further, the term includes any information required for the

entry of merchandise (the ``(a)(1)(A) List'') and other information

pertaining directly or indirectly to any information element set forth

in a collection of information required by the Tariff Act of 1930, as

amended, in connection with any activity listed in paragraph (a)(1) of

this section.

(1) Activities. The following are activities for purposes of the

definition of ``records'' in paragraph (a) of this section:

(i) any importation, declaration or entry;

(ii) the transportation or storage of merchandise carried or held

under bond into or from the customs territory of the United States;

(iii) the filing of a drawback claim;

(iv) any exportation to a NAFTA country;

(v) the collection or payment of fees and taxes to Customs; or

(vi) any other activity required to be undertaken pursuant to the

laws or regulations administered by the Customs Service.

(2) Examples. Examples of information which are considered records

include but are not limited to: statements, declarations, documents or

electronically generated or machine readable data, books, papers,

correspondence, accounts, financial accounting data, technical data,

computer programs necessary to retrieve information in a usable form,

and entry records (contained on the ``(a)(1)(A)'' list).

(b) ``(a)(1)(A) list''. See Entry Records.

(c) Audit. ``Audit'' means a Customs regulatory audit verification

of records and other information required to be maintained and produced

by parties listed in Sec. 163.2 or other applicable laws and

regulations administered by the Customs Service. The purpose of an

audit is to determine that information submitted or required is

accurate, complete and in accordance with laws and regulations

administered by the Customs Service.

(d) Certified recordkeeper. A ``certified recordkeeper'' is a

party, required to keep and maintain records, who is the primary

responsible participant of a Customs approved recordkeeping compliance

agreement in accordance with Sec. 163.14. An agent may not be a

certified recordkeeper unless the agent is the importer of record and

meets the requirements of Sec. 163.14;

[[Page 19710]]

however a Customs broker may be a certified recordkeeper's agent in its

own name and on its own account for records required by Sec. 111.21

without client participation. The parties who are certified by Customs

as participants in a recordkeeping compliance program with Customs will

consist of the following: Customs and a certified recordkeeper, or

Customs and a certified recordkeeper and its certified recordkeeping

agent, or Customs and a Customs broker who requests certification in

its own name and on its own account.

(e) Certified recordkeeper's agent. A ``certified recordkeeper's

agent'' is a party, other than a certified recordkeeper, who will keep

and maintain records on behalf of a certified recordkeeper, pursuant to

a Customs approved agreement, subject to the provisions of Sec. 163.14.

(f) Compliance assessment. A ``compliance assessment'' is the first

phase of an audit. During this phase, Customs officers review, examine

and test samples of an auditee's documentation (records normally kept

in the ordinary course of business that support statements and

declarations made to Customs), internal controls, operations, and

procedures to ensure compliance with laws and regulations administered

byCustoms. The completion of a compliance assessment does not

necessarily mandate that a detailed audit be performed. However, if a

compliance assessment is expanded, auditors will conduct detailed audit

steps to further examine non-compliant practices, to identify causes,

effects, and necessary corrective action, to implement corrective

action plans and to conduct follow-up of corrective actions.

(g) Entry records/``(a)(1)(A) list''. The terms ``entry records''

and ``(a)(1)(A) list'' refer to records or information required by law

or regulation for the entry of merchandise (whether or not Customs

required its presentation at the time of entry). The ``(a)(1)(A) list''

is contained in the Appendix.

(h) Original records/information. The terms ``original records'' or

``original information'' mean paper documents or electronic data

retained in the condition they were received by the party responsible

for maintaining records pursuant to 19 U.S.C. 1508. Electronic

information which was used to develop paper documents will be

considered the original record/information. Original electronic

information or paper documents must be provided to Customs within a

reasonable time if requested or demanded pursuant to Sec. 163.6.

Electronic information shall be provided to Customs officials in a

readable format such as in a facsimile paper format or an electronic or

hardcopy spreadsheet. If a paper record or document is part of a multi-

part form where all copies are made by the same impression, a carbon-

copy original form, a facsimile copy, or a photocopy of the original

will be acceptable. When an original record or document is provided to

another government agency which retains it, a certified copy will be

acceptable, and penalties will not be assessed for not having the

original information/records in accordance with Sec. 163.6. When

requested by Customs, a signed statement shall accompany the copy

certifying it to be a true copy of the original record or document.

(i) Summons. ``Summons'' means any summons issued that requires

either the production of records or the giving of testimony, or both.

(j) Technical data. ``Technical data'' are records which include

diagrams, and other data with regard to a business or an engineering or

exploration operation, whether conducted inside or outside the United

States, and whether on paper, cards, photographs, blueprints, tapes,

microfiche, film, magnetic storage or other media.

(k) Third-party recordkeeper. ``Third-party recordkeeper'' means

any attorney, any accountant or any Customs broker unless such Customs

broker is the importer of record on an entry.

Sec. 163.2 Parties required to maintain records.

(a) Recordkeeping required. The following parties shall make, keep,

and render for examination and inspection such records as defined in

Sec. 163.1(a):

(1) An owner, importer, consignee, importer of record, entry filer,

or other party who--

(i) imports merchandise into the customs territory of the United

States, files a drawback claim, or transports or stores merchandise

carried or held under bond, or

(ii) knowingly causes the importation or transportation or storage

of merchandise carried or held under bond into or from the customs

territory of the United States;

(2) An agent of any party described in paragraph (a)(1); or

(3) A person whose activities require the filing of a declaration

or entry, or both.

(b) Domestic transaction excluded. A person ordering merchandise

from an importer in a domestic transaction who does not knowingly cause

merchandise to be imported is not required to make and keep records

unless:

(1) The terms and conditions of the importation are controlled by

the person placing the order with the importer (e.g., the importer is

not an independent contractor but the agent of the person placing the

order. For example: The average consumer who purchases an imported

automobile would not be required to maintain records, but a transit

authority that prepared detailed specifications from which imported

subway cars or buses were manufactured would be required to maintain

records); or

(2) Technical data, molds, equipment, other production assistance,

material, components, or parts are furnished by the person placing the

order with the importer with knowledge that they will be used in the

manufacture or production of the imported merchandise.

(c) Recordkeeping required for exporters. Any party that exports to

Canada or Mexico pursuant to the North American Free Trade Agreement

must maintain records in accordance with the regulations as set forth

in part 181 of this chapter.

(d) Recordkeeping required for Customs brokers. Each Customs broker

shall maintain and produce records in accordance with parts 111 and 163

of this chapter.

(e) Recordkeeping required for parties filing drawback claims. A

party filing a drawback claim shall make, keep and render for

examination records required by the Customs Regulations and other

records which pertain to that activity and are ordinarily kept in the

normal course of business.

(f) Recordkeeping required for other activities. Each party who

transports or stores merchandise carried or held under bond into or

from the customs territory of the United States shall make, keep and

render for examination records which pertain to such Customs activity

and are ordinarily kept in the normal course of business or are

required by law or regulation for the entry of merchandise.

(g) Recordkeeping required for travelers. After having physically

cleared the Customs facility, a traveler who made a baggage or oral

declaration upon arrival in the United States will not be required to

maintain supporting records regarding non-commercial merchandise

acquired abroad which falls within the traveler's personal exemptions

or which is covered by a flat rate of duty.

Sec. 163.3 Entry records.

Any party described in Sec. 163.2(a) in connection with an import

transaction shall be prepared to produce or transmit

[[Page 19711]]

to Customs within a reasonable time after demand any records which are

required by law or regulation for the entry of merchandise (``(a)(1)(A)

list''). If the records are returned by Customs, or production at the

time of entry is waived by Customs, the party shall retain such

records. Copies of records which are kept ordinarily in the normal

course of business, must be retained whether or not a copy is retained

by Customs. In any situation, the responsible party shall, upon demand

by Customs, taking into consideration the number, type, and age of the

items demanded, produce such records within a reasonable time. (See

Sec. 163.6)

Sec. 163.4 Record retention period.

(a) General rule. Any record required to be made, kept, and

rendered for examination and inspection by Customs under Sec. 163.2

shall be kept for 5 years from the date of entry, if the record relates

to an entry, or 5 years from the date of the activity which required

creation of the record unless excepted pursuant to paragraph (b) of

this section.

(b) Exceptions. (1) Any record relating to a drawback claim shall

be kept until the third anniversary of the date of payment of the

claim.

(2) Packing Lists shall be retained for a period of 60 days from

the end of the release or conditional release period, or, if a demand

for recall has been issued, for a period of 60 days from the date the

goods are redelivered, or by the date specified in the notice as the

latest redelivery date.

(3) If another regulation in this chapter specifies a different

record retention period than this section for a specific type of

record, the other regulation controls.

Sec. 163.5 Methods of storage for records.

(a) Original Records/Information. All parties listed in Sec. 163.2

must maintain all records required by law and regulation for the

required retention periods, in the original formats as defined in

Sec. 163.1(h), whether paper or electronic, unless alternative storage

methods have been approved in writing by the director of the regulatory

audit field office who has responsibility for the geographical area in

which the designated requestor's recordkeeping officer resides. The

records must be capable of being retreived upon lawful request or

demand by Customs.

(b) Approval for alternative method of storage. Any of the parties

listed in Sec. 163.2 may request Customs approval to maintain any

records in an alternative format by writing to the director of the

regulatory audit field office who has audit oversight responsibility

for the geographical area in which the designated requestor's

recordkeeping officer resides and describing the proposed system of

storage, the conversion techniques to be used and the security

safeguards that will be employed to prevent alteration. If the

applicable director of the regulatory audit field office is satisfied

that the alternative methods proposed by the recordkeeper will insure

the accuracy and availability of the records when required, written

approval will be granted.

(c) Standards for alternative storage methods. Among methods

commonly used in standard business practice for storage of records are:

Machine readable data, CD ROM, and Microfiche. Methods that are in

compliance with generally accepted business standards will generally

satisfy Customs requirements provided that the method used is capable

of retrieving records requested within a reasonable time after the

request and that adequate provisions exist to prevent alteration,

destruction, or deterioration of the records. The following are minimum

standards that will be considered by Customs in evaluating proposals

for alternative storage methods:

(1) A responsible and knowledgeable recordkeeping officer and a

back up officer are designated to be accountable for the alternative

storage of records;

(2) Operational and written procedures are in place to ensure that

the imaging and/or other media storage process preserves the integrity,

readability, and security of the original records. Procedures must also

indicate and it must be certified (i) that documents that are required

by other Federal or state agencies and that are similar to Customs

records, are created and stored by the same procedures and (ii) that

there is a standardized retrieval process for such records.

Additionally, written procedures must document the electronic media

used to store records and the life cycle and disposition procedures.

(3) The medium to which the transfer will occur is shown to be

reliable. (Vendor specifications/documentation and benchmark data must

be available for Customs review.)

(4) The data retention and transfer procedures are documented and

provide reasonable assurance that the integrity, reliability, and

security of the original data will be maintained. Procedures must

include descriptions of authorized personnel access processes and back

up and recovery systems.

(5) There is an audit trail describing the data transfer.

(6) The medium cannot be destroyed, discarded, or written over. The

recordkeeper, after appropriate transition, and exception-reporting/

testing of accuracy and readability of information, will transfer all

information to non-erasable storage.

(7) The transfer process includes all relevant notes, worksheets,

and other papers necessary for reconstructing or understanding the

records (this also includes appropriate back-up procedures).

(8) There is an effective labeling, naming, filing, and indexing

system that will permit easy retrieval in a timely fashion of records/

information. Any indices, registers, or other finding aids shall be at

the beginning of the records to which they relate unless alternative

indexing is specifically authorized.

(9) There are adequate internal control systems, including

segregation of duties, particularly between those responsible for

maintaining and producing the original records and those responsible

for the transfer process.

(10) All original records must be maintained for a minimum of one

year after the date of transfer and internal sampling-exception-

reporting/testing of accuracy and readability must be performed on a

quarterly basis. No original records will be destroyed after a year

unless there is acceptable proof that records/information are being

accurately transferred.

(11) There is a system of continuing surveillance over the medium

transfer system. Files of all internal reviews will be made available

to Customs within a reasonable time after demand is made and retained

for five years from the date of entry or the activity unless

maintenance of records is required for another time period.

(12) There are procedures for preventing the destruction of any

hard copy records that are required to be maintained by existing laws

or regulations.

(13) All parties listed in Sec. 163.2 who requested and were

granted permission to use alternative storage methods shall have the

capability to make hard-copy reproductions of alternatively stored

records. Parties shall bear the expense of the cost of making hardcopy

reproductions of any or all alternatively stored records required by

proper Customs officials for audit, inquiry, investigation, or

inspection of such records/information.

(d) Retention of records. All parties listed in Sec. 163.2 who

requested and were granted permission to use alternative storage

methods shall retain and keep available two copies of the records/

information on approved media

[[Page 19712]]

at different locations for the periods specified in Sec. 163.4.

(e) Retrievability of records. All parties listed in Sec. 163.2 who

requested and were granted permission to use alternative storage

methods shall produce records as specified by Sec. 163.6. A certified

hardcopy may be used when information is received and stored

electronically for Customs requests for information. Records shall be

kept of the frequency and to whom copies of the records were given.

(f) Changes to alternate storage procedures. No changes to

alternate recordkeeping procedures may be made without the approval of

the appropriate Field Director, Regulatory Audit.

(g) Notification of non-compliance. Notification of non-compliance

with the agreed upon alternative storage methods must be made within 10

business days to the applicable Field Director, Regulatory Audit.

Notification must be in writing and it must detail what corrective

action will take place.

(h) Penalties. All parties listed in Sec. 163.2 who requested and

were granted permission to use alternative storage methods who fail to

maintain or produce records in a reasonable time period shall be

subject to penalties pursuant to Sec. 163.6 for (a)(1)(A) records, and

sanctions pursuant to Secs. 163.11 and 163.12 for other records, and

will have their alternative storage privileges revoked immediately by

written notice.

(i) Revocation of privilege to maintain alternative records. All

parties listed in Sec. 163.2 who requested and were granted permission

to use alternative storage methods and who fail to meet regulatory

conditions and requirements shall, upon written notice, have the

privilege revoked by the applicable regulatory audit field office

director. The revocation shall be effective on the date of issuance of

the written notice and shall remain in effect pending any appeal.

Revocation requires the party immediately to begin to maintain original

records and subjects them to penalties provided for in Sec. 163.6 for

failure to do so.

(j) Appeal procedures for denial of alternate storage method or

revocation action taken. The denial of any proposed alternate method

for the storage of records required to be maintained or any revocation

of the privilege to store records in alternative formats may be

appealed. Any appeal of such denial or revocation shall be in writing

and directed to the Director, Regulatory Audit Division, Office of

Strategic Trade, U.S. Customs Service, Washington, DC 20229. Appeals

shall be filed within 30 days from the mailing of the Field Director's

decision.

Sec. 163.6 Notices for production and examination of records and

witnesses; penalties.

(a) Production of entry records. (1) Upon written, oral, or

electronic notice, Customs may require the production of records

required by law or regulation for the entry of merchandise, whether or

not presentation was requested at the time of entry. Any oral request

for records will be followed by a written request. The records shall be

produced timely taking into consideration the number, type, and age of

the item demanded. In order to provide the public with general

guidelines of the time frames within which Customs expects parties to

produce requested records, the following table shows various ages of

records and the maximum length of time Customs expects to wait for

their production. Should any recordkeeper from whom Customs has

requested records foresee the inability to comply with the given time

periods, Customs expects that they will immediately notify Customs,

provide an explanation for the inability to meet the deadline, and

provide Customs with a date on which the records will be produced.

------------------------------------------------------------------------

Maximum period

for production

Age of entry/entry summary of records

(business

days)

------------------------------------------------------------------------

1 day to 1 month........................................ 5

1 month to 6 months..................................... 10

6 months to 1 year...................................... 15

1 year to 3 years....................................... 20

3 years to 5 years...................................... 30

------------------------------------------------------------------------

(2) If the request includes records previously requested by Customs

and provided to a Customs officer, the recordkeeper will provide the

following information concerning the record: a copy of the Customs

notice letter which originally requested the record, the date the

record was provided to Customs, and the name and address of the person

to whom the record was provided.

(b) Nonproduction of entry records--(1) Penalties applicable for

failure to maintain or produce entry records. If the record Customs

wishes to have produced is required by law or regulation for the entry

of merchandise, the following penalties may be imposed if a person

described in Sec. 163.2(a) fails to comply with a lawful demand for the

record and is not excused from a penalty in accordance with paragraph

(b)(2) of this section:

(i) If the failure to comply is a result of the willful failure of

the person to maintain, store, or retrieve the demanded record, such

person shall be subject to a penalty for each release of merchandise

not to exceed $100,000, or an amount equal to 75 percent of the

appraised value of the merchandise, whichever amount is less.

(ii) If the failure to comply is a result of negligence of the

person in maintaining, storing, or retrieving the demanded information,

such person shall be subject to a penalty, for each release of

merchandise, not to exceed $10,000, or an amount equal to 40 percent of

the appraised value of the merchandise, whichever amount is less.

(2) Additional actions. In addition to any penalty imposed under

paragraph (b)(1)(i) and (b)(1)(ii) of this section, regarding demanded

records, if the demanded record relates to the eligibility of

merchandise for a column 1 special rate of duty in the Harmonized

Tariff Schedule of the United States, the entry of such merchandise,

unless subject to the exception in paragraph (b)(3) of this section:

(i) If unliquidated, shall be liquidated at the applicable column 1

general rate of duty; or

(ii) If liquidated within the 2-year period preceding the date of

the demand, shall be reliquidated, notwithstanding the time limitation

in 19 U.S.C. 1514 or 1520, at the applicable column 1 general rate of

duty;

(3) Exceptions. Any liquidation or reliquidation under paragraph

(b)(2)(i) or (b)(2)(ii) of this section shall be at the applicable

column 2 rate of duty if the Customs Service demonstrates that the

merchandise should be dutiable at such rate.

(4) Avoidance of penalties for failure to maintain or produce entry

records. No penalty may be assessed under paragraph (b)(1) of this

section if the person described in Sec. 163.2(a) who fails to comply

with a lawful demand for entry records can show:

(i) That the loss of the demanded information was the result of an

act of God or other natural casualty or disaster beyond the fault of

such person or an agent of the person;

(ii) On the basis of other evidence satisfactory to Customs, that

the demand was substantially complied with;

(iii) That the information demanded was presented to and retained

by the Customs Service at the time of entry or submitted in response to

an earlier demand; or

(iv) that he is a participant in the recordkeeping compliance

program (see Sec. 163.14(b)(1)) and that this is his first violation

and that it is a non-willful violation.

(5) Penalties for failure to maintain or produce entry records not

exclusive. Any penalty imposed under paragraph

[[Page 19713]]

(b)(1) of this section shall be in addition to any other penalty

provided by law except for:

(i) A penalty imposed under 19 U.S.C. 1592 for a material omission

of the demanded information, or

(ii) Disciplinary action taken under 19 U.S.C. 1641.

(6) Remission or mitigation of penalties for failure to maintain or

produce entry records. A penalty imposed under this section may be

remitted or mitigated under 19 U.S.C. 1618.

(7) Customs summons. In addition to assessing penalties, Customs

may issue a summons, pursuant to Sec. 163.7 or seek its enforcement,

pursuant to Secs. 163.11-163.12, to compel the furnishing of any

records required by law or regulation for the entry of merchandise.

(c) Examination of records--(1) Reasons for. Customs may initiate

an inquiry, audit, compliance assessment or investigation to:

(i) Determine the correctness of any entry, the liability of

duties, taxes and fees due or which may be due, or any liability for

fines, penalties and forfeitures; or

(ii) Insure compliance with the laws and regulations administered

or enforced by the Customs Service.

(2) Availability of records. During the course of any inquiry,

audit, compliance assessment or investigation, a Customs officer,

during normal business hours, and to the extent possible, at a time

mutually convenient to the parties, may examine or cause to be

examined, any relevant records, statements, declarations, or other

documents by providing the person responsible for such records with

notice, either electronically, orally or in writing, that describes the

records with reasonable specificity.

(3) Examination notice not exclusive. In addition to, or in lieu

of, issuing an examination notice under this section, Customs may issue

a summons pursuant to Sec. 163.7 and seek its enforcement, pursuant to

Secs. 163.11 and 163.12, to compel the furnishing of any records

required by law or regulation.

Sec. 163.7 Summons.

(a) Who may be served. During the course of any inquiry, audit,

compliance assessment, or investigation initiated for the reasons set

forth in Sec. 163.6, the Commissioner of Customs or his designee, but

no designee of the Commissioner below the rank of port director,

regulatory audit field director, or special agent in charge, may, upon

reasonable notice, issue a summons requiring certain persons to produce

records or to give testimony or both. Such summons may be issued to any

person who:

(1) Imported or knowingly caused to be imported merchandise into

the customs territory of the United States;

(2) Exported merchandise or knowingly caused merchandise to be

exported to Canada or Mexico pursuant to the North American Free Trade

Agreement Implementation Act (19 U.S.C. 3301(4)), or to Canada during

such time as the United States-Canada Free Trade Agreement was in force

with respect to, and the United States applied that Agreement to,

Canada;

(3) Transported, or stored merchandise that was or is carried or

held under customs bond, or knowingly caused such transportation or

storage;

(4) Filed a declaration, entry, or drawback claim with the Customs

Service;

(5) Is an officer, employee, or agent of any person described in

this paragraph; or

(6) Had possession, custody or care of records related to the

importation or other activity described in this paragraph or;

(7) Customs otherwise deems proper.

(b) Transcript of testimony under oath. Testimony of any person

taken pursuant to a summons may be taken under oath and when so taken

shall be transcribed. When testimony is transcribed, a copy shall be

made available on request to the witness unless for good cause shown

the issuing officer determines under 5 U.S.C. 555 that a copy should

not be provided. In that event, the witness shall be limited to

inspection of the official transcript of the testimony. The testimony

or transcript may be in the form of a written statement under oath

provided by the person examined at the request of the Customs officer.

Sec. 163.8 Contents of summons.

(a) Summons for person. Any summons issued under Sec. 163.7 to

compel appearance shall state:

(1) The name, title, and telephone number of the Customs officer

before whom the appearance shall take place;

(2) The address where the person shall appear, not to exceed 100

miles from the place where the summons was served;

(3) The time of appearance; and

(4) The name, address, and telephone number of the Customs officer

issuing the summons.

(b) Summons of records. If the summons requires the production of

records, the summons, in addition to containing the information

required by paragraph (a) of this section, shall describe the records

with reasonable specificity.

Sec. 163.9 Service of summons.

(a) Who may serve. Any Customs officer is authorized to serve a

summons issued under Sec. 163.7.

(b) Method of service.--(1) Natural person. Service upon a natural

person shall be made by personal delivery.

(2) Corporation, partnership, or association. Service shall be made

upon a domestic or foreign corporation, or upon a partnership or other

unincorporated association which is subject to suit under a common

name, by delivery to an officer, managing or general agent, or any

other agent authorized by appointment or law to receive service of

process.

(c) Certificate of service. On the hearing of an application for

the enforcement of a summons, the certificate of service signed by the

person serving the summons is prima facie evidence of the facts it

states.

Sec. 163.10 Third-party recordkeeper.

(a) Notice. Except as provided by paragraph (f) of this section, if

a summons issued under Sec. 163.7 to a third-party recordkeeper

requires the production of records or testimony relating to

transactions of any person other than the person summoned, and the

person is identified in the description of the records in the summons,

notice of the summons shall be provided to the person identified in the

description of the records contained in the summons.

(b) Time of notice. Notice of service of summons required by

paragraph (a) of this section should be provided by the issuing officer

immediately after service of summons is obtained under Sec. 163.9, but

in no event shall notice be given less than 10 business days before the

date set in the summons for the examination of records or persons.

(c) Contents of notice. The issuing officer shall insure that any

notice issued under this section includes a copy of the summons and

contains the following information:

(1) That compliance with the summons may be stayed if written

direction is given by the person receiving notice to the person

summoned not to comply with the summons;

(2) That a copy of the direction not to comply and a copy of the

summons shall be mailed by registered or certified mail to the person

summoned at the addresses in the summons and to the issuing Customs

officer; and

(3) That the actions under paragraphs (c)(1) and (c)(2) of this

section shall be accomplished not later than the day before the day

fixed in the summons as

[[Page 19714]]

the day upon which the records are to be examined or testimony given.

(d) Service of notice. The issuing officer shall serve the notice

required by paragraph (a) of this section in the same manner as is

prescribed in Sec. 163.9 for the service of a summons, or by certified

or registered mail to the last known address of the person entitled to

notice.

(e) Examination precluded. If notice is required by this section,

no record may be examined and no testimony may be taken before the date

fixed in the summons as the date to examine the records or to take the

testimony. If the owner, importer, consignee, or their agent, or any

other person concerned issues a stay of the summons, no examination

shall take place, and no testimony shall be taken, without the consent

of the person staying compliance, or without an order issued by a U.S.

district court.

(f) Exceptions to notice --(1) Personal liability for duties, fees

and taxes. This section does not apply to any summons served on the

person, or any officer or employee of the person, with respect to whose

liability for duties, fees, and taxes the summons is issued.

(2) Verification. This section does not apply to any summons issued

to determine whether or not records of the transactions of an

identified person have been made or kept.

(3) Court order. Notice shall not be given if a U.S. district court

determines, upon petition by the issuing Customs officer, that

reasonable cause exists to believe giving notice may lead to an

attempt:

(i) To conceal, destroy, or alter relevant records;

(ii) To prevent the communication of information from other persons

through intimidation, bribery, or collusion; or,

(iii) To flee to avoid prosecution, testifying, or production of

records.

Sec. 163.11 Enforcement of summons.

Whenever any person does not comply with a summons issued under

Sec. 163.7, the issuing officer may request the appropriate U.S.

attorney to seek an order requiring compliance from the U.S. district

court for the district in which the person is found or resides or is

doing business.

Sec. 163.12 Failure to comply with court order; Penalties.

(a) Monetary penalties. The U.S. district court of the United

States for any district in which a party who has been served with a

Customs summons is found or resides or is doing business may order a

party to comply with the summons. Upon the failure of a party to obey a

court order to comply with a Customs summons, the court may find such

party in contempt, assess a monetary penalty, or do both.

(b) Importations prohibited. If a person fails to comply with a

court order enforcing the summons and is adjudged guilty of contempt,

the Commissioner of Customs, with the approval of the Secretary of the

Treasury, for so long as that person remains in contempt:

(1) May prohibit importation of merchandise by that person,

directly or indirectly, or for that person's account; and

(2) May withhold delivery of merchandise imported by that person,

directly, or indirectly, or for that person's account.

(c) Sale of merchandise. If any person remains in contempt for more

than 1 year after the Commissioner issues instructions to withhold

delivery, the merchandise shall be considered abandoned, and shall be

sold at public auction or otherwise disposed of in accordance with

Subpart E of part 162.

Sec. 163.13 Regulatory audit procedures.

(a) Conduct of a Customs regulatory audit. In conducting an audit

under this section (which does not include a quantity verification for

a customs bonded warehouse or general purpose foreign trade zone or an

inquiry), Customs auditors, except as provided in paragraph (b) of this

section, shall:

(1) Provide notice, telephonically and in writing, to the person

being audited, in advance of the audit with a reasonable estimate of

the time required for the audit;

(2) Inform the party to be audited, in writing, before commencing

an audit, of his right to an entrance conference at which time the

purpose of the audit and the estimated termination date would be given;

(3) Provide a further estimate of such additional time if in the

course of an audit it becomes apparent that additional time will be

required;

(4) Schedule a compliance assessment (first phase of an audit)

closing conference upon completion of the assessment to explain the

preliminary results of the assessment;

(5) Write a compliance assessment report if, after the assessment,

it is determined that no audit will be performed and all on-site work

will end;

(6) At the conclusion of the compliance assessment, if it is

determined that an audit is warranted, schedule and hold an audit

entrance conference to explain the objectives, records requirements,

and time required. If it is decided that an audit will be conducted, it

will not be necessary for a formal compliance assessment report to be

prepared for the party being audited;

(7) Schedule a closing conference to explain preliminary results of

the audit upon completion of the audit field work;

(8) Complete the formal written audit report within 90 days

following the closing conference, provided paragraph (b) of this

section is not applicable, unless the Director, Regulatory Audit

Division, at Customs Headquarters provides written notice to the person

being audited of the reason for any delay and the anticipated

completion date; and

(9) After application of any exception contained in 5 U.S.C. 552,

send a copy of the formal written audit report to the person audited

within 30 days following completion of the report unless a formal

investigation has commenced. All pertinent details should be explained

at the compliance assessment closing conference and reiterated in the

final audit report.

(b) Exception to procedures. Paragraphs (a)(4) through (a)(6) and

(a)(8) through (a)(9) and (c) of this section shall not apply after

Customs commences a formal investigation with respect to the issue

involved.

(c) Petitioning procedures for the failure to conduct closing

conference. Except as provided in paragraph (b) of this section, if the

estimated or actual termination date for an audit passes without a

Customs auditor providing a closing conference to explain the results

of the audit, the person being audited may petition in writing for such

a conference to the Director, Regulatory Audit Division, at Customs

Headquarters. Upon receipt of such a request, the Director shall

provide for such a conference to be held within 15 days after the date

of receipt.

Sec. 163.14 Recordkeeping Compliance Program.

The Recordkeeping Compliance Program is a voluntary program under

which certified recordkeepers are eligible for alternatives to

penalties and may be entitled to greater mitigation of any

recordkeeping penalty that might be assessed should they be unable to

produce a requested record.

(a) Certification procedures.--(1) Who may apply. Any party

described in Sec. 163.2 (a) and (c), and any person or organization

designated to maintain entry records for those entities previously

listed may apply to participate in Customs Recordkeeping Compliance

Program. Participation in Customs Recordkeeping Compliance Program is

voluntary.

[[Page 19715]]

(2) Where to apply. Applications shall be submitted to the U.S.

Customs Service, Field Director, Regulatory Audit Division, 909 S.E.

First Street, Miami, Florida 33131. Applications shall be submitted in

accordance with guidelines in the Recordkeeping Compliance Handbook.

(3) Certification requirements. A recordkeeper may be certified and

enter into a recordkeeping agreement with Customs as a participant in

the recordkeeping compliance program after meeting the general

recordkeeping requirements established by Customs or after negotiating

an alternative program suited to the needs of the recordkeeper and

Customs. To be certified, a recordkeeper must be in compliance with

Customs laws and regulations. Customs will take into account, the size

and nature of the importing business, volume of imports and Customs

workload constraints, prior to proceeding with any certification. In

order to be certified, a recordkeeper is required to:

(i) Comply with the requirements set forth in the applicable

Customs Recordkeeping Compliance Handbook;

(ii) Understand the legal requirements for recordkeeping, including

the nature of the records required to be maintained and produced and

the required time periods;

(iii) Have in place procedures to explain the recordkeeping

requirements to those employees who are involved in the preparation,

maintenance and production of required records;

(iv) Have in place procedures regarding the preparation and

maintenance of required records, and the production of such records to

Customs;

(v) Have designated a dependable individual or individuals to be

responsible for recordkeeping compliance under the program whose duties

include maintaining familiarity with the recordkeeping requirements of

Customs;

(vi) Have a record maintenance procedure approved by Customs for

original records, or, if approved by Customs, for alternative records

or recordkeeping formats other than original records; and

(vii) Have procedures for notifying Customs of occurrences of

variances to, and violations of, the requirements of the recordkeeping

compliance program or negotiated alternative program, and for taking

corrective action when notified by Customs of violations or problems

regarding such program. The term ``variance'' means a deviation from

the signed recordkeeping agreement that does not involve a failure to

maintain or produce records or a failure to maintain the requirements

set forth in this paragraph. The term ``violation'' means a deviation

from the signed agreement that involves a failure to maintain or

produce records or a failure to maintain the requirements set forth in

this paragraph.

(b) Benefits of participation.--(1) Alternatives to penalties.

Participants in the program are eligible for alternatives to the

recordkeeping penalties and to greater mitigation of any recordkeeping

penalty the party might be assessed should they be unable to produce a

requested entry record. If a certified participant does not produce a

demanded entry record or information for a specific release or provide

information by acceptable alternate means, Customs shall, in the

absence of willfulness or repeated violations and in lieu of a monetary

penalty, issue a written notice of violation to the party as described

in paragraph (b)(2) of this section. Willful failure to produce records

or repeated violations of the recordkeeping requirements with no

attempt to correct deficiencies and/or a failure to exercise reasonable

care in the maintenance of records or compliance with recordkeeping

requirements may cause a certified recordkeeper to be removed from the

program and may subject the recordkeeper to immediate penalty action

for failing to produce records.

(2) Contents of notice. A notice of violation issued for failure to

release or provide information to Customs by a participant in the

recordkeeping compliance program shall:

(i) State that the recordkeeper has violated the recordkeeping

requirements;

(ii) Indicate the record or information which was demanded and not

produced;

(iii) Warn the recordkeeper that future failures to produce

demanded records or information may result in the imposition of

monetary penalties; and

(iv) Warn the recordkeeper that noncompliance could result in the

removal of the participant from the recordkeeping compliance program.

(c) Application, approval and certification process.--(1)

Application procedures. Applicants must follow the guidance and

requirements contained in Customs Recordkeeping Compliance Handbook.

This handbook may be obtained by downloading it from the Customs

Electronic Bulletin Board (703-440-6155) or, by mail from the U.S.

Customs Service, Office of Strategic Trade, Regulatory Audit Division,

Recordkeeping Compliance Program, 909 S.E. First Street, Suite 710,

Miami, FL 33131.

(2) Action on applications. The regulatory audit field office

designee will process the application coordinating with the appropriate

Customs headquarters and field officials. The regulatory audit field

office will review and verify the information contained within the

application and may perform an on-site verification prior to

certification. If an on-site visit is warranted, the regulatory audit

field office shall inform the applicant. If additional information is

necessary to process the application, the applicant shall be notified.

Customs requests for information not submitted with the application or

additional explanation of details will cause delays in the

certification of applicants. Requests by Customs for information will

result in the suspension of the application certification process. Upon

receipt of satisfactory information the certification process will

recommence.

(3) Approval and certification. If, upon review, Customs determines

that certification shall be granted, the applicable Regulatory Audit

Field Director shall issue a certification with all the conditions

stated.

Sec. 163.15 Denial, suspension, revocation, and appeal procedures.

(a) General information. Applicants and program participants may

appeal the following decisions for administrative review:

(1) Denial of program participation application;

(2) Certification suspension; or

(3) Certification revocation.

(b) Denials of Program Eligibility or Certification--(1) Applicants

and participants may appeal Field Director application denials by

filing an appeal with the Director, Office of Regulatory Audit, U.S.

Customs Service, Washington, DC 20229.

(2) Appeals must be received by the Director, Office of Regulatory

Audit within 30 days after notice of the denial.

(3) The Director, Office of Regulatory Audit will review the appeal

and respond with a decision within 30 days. If a decision cannot be

made within 30 days, the Director will advise the appellant of the

reasons for the delay and further actions which will be carried out to

resolve the matter and the planned completion date.

(c) Certification suspension--(1) A Regulatory Audit Field Director

may suspend the program participation for a certified recordkeeper or a

certified recordkeeper's agent when Customs discovers that:

[[Page 19716]]

(i) The participant refuses or neglects to obey any proper Customs

order or request for records;

(ii) The participant is convicted of acts which would constitute a

felony or misdemeanor involving tax fraud, theft, smuggling or other

crime involving Customs business;

(iii) The participant commits repeated violations of its

recordkeeping compliance program agreement and fails to take corrective

action;

(iv) The participant repeatedly fails to produce and maintain

records;

(v) The participant's continuous bond has been terminated;

(vi) The participant has failed to file the biennial statement;

(vii) The participant fails to exercise reasonable care in the

maintenance of records subject to the recordkeeping requirements; or

(viii) The participant fails to comply with Customs requirements

generally.

(2) The suspension shall be effective on the date of issuance and

shall remain in effect pending any appeal. Suspension may immediately

subject parties to penalties pursuant to Sec. 163.6. Suspension of a

certified recordkeeper's agent for a single certified recordkeeper

shall also cause suspension for that certified recordkeeper. Suspension

of a certified recordkeeper's agent who is an agent for multiple

certified recordkeepers and has committed violations of the agreements

for multiple clients may also cause suspension for all certified

recordkeepers for whom the agent is acting or receiving reimbursement

for acting as an agent. Customs will review the agent's recordkeeping

procedures to determine whether such action is necessary. It shall be

the duty of the agent to provide notification of the suspension to all

certified recordkeepers and other recordkeepers for whom the agent is

acting or receiving reimbursement for acting as an agent. Failure of an

agent to provide such notification shall be grounds for revocation of

an agent's certification for all certified recordkeepers. Customs shall

publish in the Federal Register all agent suspensions.

(d) Certification revocation. (1) A Regulatory Audit Field Director

may revoke the program certification of a certified recordkeeper or a

certified recordkeeper's agent after appropriate notice when the

following conditions are discovered:

(i) The certification privilege was obtained through fraud or

mistake of fact;

(ii) The participant fails to take corrective action after

notification of a suspension by Customs;

(iii) The participant fails to provide entry information or

documents when requested by Customs on a recurring basis;

(iv) A certified recordkeeper's agent fails to notify all certified

recordkeepers for whom it acts as an agent that it has been suspended

for actions relating to one of the certified recordkeepers for whom it

acts;

(v) The participant is convicted of or has committed acts which

would constitute a felony, or a misdemeanor involving theft, smuggling,

or a theft-connected crime; or

(vi) The participant fails to exercise reasonable care in the

maintenance of records in accordance with the recordkeeping

requirements.

(2) The revocation shall be effective on the date of issuance and

shall remain in effect pending any appeal. Revocation subjects parties

to penalties pursuant to Sec. 163.6. Revocation of a certified

recordkeeper's agent for a single certified recordkeeper shall also

cause revocation for that certified recordkeeper. Revocation of a

certified recordkeeper's agent who is an agent for multiple certified

recordkeepers and has committed violations of the agreements for

multiple clients shall also cause revocation for all certified

recordkeepers for whom the agent is acting or receiving reimbursement

for acting as an agent. It shall be the duty of the agent to provide

notice of the revocation to all certified recordkeepers and other

recordkeepers for whom the agent is acting or receiving reimbursement

for acting as an agent. Customs shall publish in the Federal Register

all agent revocations.

(e) Procedures for revocation or suspension. A Regulatory Audit

Field Director may for due cause serve notice in writing to a certified

recordkeeper suspending or revoking certification. Such notice shall

advise the recordkeeper of the grounds for the action and shall inform

the recordkeeper of the procedures which should be followed should the

recordkeeper wish to appeal the suspension or revocation.

(f) Appeal of revocation or suspension. (1) A recordkeeper who has

received a notice of revocation or suspension of certification in the

recordkeeping compliance program may appeal the decision of the Field

Director to the Director, Regulatory Audit Division at Customs

Headquarters.

(2) The Director, Regulatory Audit Division at Customs Headquarters

shall consider the allegations and responses made by the recordkeeper

and shall render his decision, in writing, within 30 days.

Appendix to Part 163--Interim (a)(1)(A) List

List of Records Required for the Entry of Merchandise General

Information

Section 508 of the Tariff Act of 1930, as amended (19 U.S.C. 1508),

sets forth the general record keeping requirements for Customs-related

activities. Section 509 of the Tariff Act of 1930, as amended (19

U.S.C. 1509) sets forth the procedures for the production and

examination of those records (which includes, but is not limited to,

any statement, declaration, document, or electronically generated or

machine readable data).

Section 509(a)(1)(A) of the Tariff Act of 1930, as amended by title

VI of Public Law 103-182, commonly referred to as the Customs

Modernization Act (19 U.S.C. 1509(a)(1)(A)), requires the production,

within a reasonable time after demand by the Customs Service is made

(taking into consideration the number, type and age of the item

demanded) if ``such record is required by law or regulation for the

entry of the merchandise (whether or not the Customs Service required

its presentation at the time of entry)''. Section 509(e) of the Tariff

Act of 1930, as amended by Public Law 103-182 (19 U.S.C. 1509(e))

requires the Customs Service to identify and publish a list of the

records and entry information that is required to be maintained and

produced under subsection (a)(1)(A) of section 509 (19 U.S.C.

1509(a)(1)(A)). This list is commonly referred to as ``the (a)(1)(A)

list.''

The Customs Service has tried to identify all the presently

required entry information or records on the following list. However,

as automated programs and new procedures are introduced, these may

change. In addition, errors and omissions to the list may be discovered

upon further review by Customs officials or the trade. Pursuant to

section 509(g), the failure to produce listed records or information

upon reasonable demand may result in penalty action or liquidation or

reliquidation at a higher rate than entered. A record keeping penalty

may not be assessed if the listed information or records are

transmitted to and retained by Customs.

Other recordkeeping requirements: The importing community and

Customs officials are reminded that the (a)(1)(A) list only pertains to

records or information required for the entry of merchandise. An owner,

importer, consignee, importer of record, entry filer, or other party

who imports merchandise, files a drawback claim or transports or stores

bonded

[[Page 19717]]

merchandise, any agent of the foregoing, or any person whose activities

require them to file a declaration or entry, is also required to make,

keep and render for examination and inspection records (including, but

not limited to, statements, declarations, documents and electronically

generated or machine readable data) which pertain to any such activity

or the information contained in the records required by the Tariff Act

in connection with any such activity; and are normally kept in the

ordinary course of business. While these records are not subject to

administrative penalties, they are subject to examination and/or

summons by Customs officers. Failure to comply could result in the

imposition of significant judicially imposed penalties and denial of

import privileges.

The following list does not replace entry requirements, but is

merely provided for information and reference. In the case of the list

conflicting with regulatory or statutory requirements, the latter will

govern.

List of Records and Information Required for the Entry of

Merchandise

The following records (which includes, but is not limited to, any

statement, declaration, document, or electronically generated or

machine readable data) are required by law or regulation for the entry

of merchandise and are required to be maintained and produced to

Customs upon reasonable demand (whether or not Customs required its

presentation at the time of entry). Information may be submitted to

Customs at time of entry in a Customs authorized electronic or paper

format. Not every entry of merchandise requires all of the following

information. Only those records or information applicable to the entry

requirements for the merchandise in question will be required/

mandatory. The list may be amended as Customs reviews its requirements

and continues to implement the Customs Modernization Act. When a record

or information is filed with and retained by Customs, the record is not

subject to record keeping penalties, although the underlying backup or

supporting information from which it is obtained may also be subject to

the general record retention regulations and examination or summons

pursuant to 19 U.S.C. 1508 and 1509.

(All references, unless otherwise indicated, are to title 19, Code

of Federal Regulations, April 1, 1995 Edition, as amended by subsequent

Federal Register notices.)

I. General list or records required for most entries. Information

shown with an asterisk (*) is usually on the appropriate form and filed

with and retained by Customs:

141.11-.15 Evidence of right to make entry (airway bill/bill of lading

or *carrier certificate, etc.) when goods are imported on a common

carrier.

141.19 *Declaration of entry (usually contained on the entry summary

or warehouse entry)

141.32 Power of attorney (when required by regulations)

141.54 Consolidated shipments authority to make entry (if this

procedure is utilized)

142.3 Packing list (where appropriate)

142.4 Bond information (except if 10.101 or 142.4(c) applies)

Parts 4, 18, 122, 123 *Vessel, Vehicle or Air Manifest (filed by

the carrier)

II. The following records or information are required by 141.61 on

Customs Form (CF) 3461 or CF 7533 or the regulations cited. Information

shown with an asterisk (*) is contained on the appropriate form and/or

otherwise filed with and retained by Customs:

142.3, .3a *Entry Number

*Entry Type Code

*Elected Entry Date

*Port Code

142.4 *Bond information

141.61, 142.3a *Broker/Importer Filer Number

141.61, 142.3 *Ultimate Consignee Name and Number/street address of

premises to be delivered

141.61 *Importer of Record Number

*Country of Origin

141.11 *IT/BL/AWB Number and Code

*Arrival Date

141.61 *Carrier Code

*Voyage/Flight/Trip

*Vessel Code/Name

*Manufacturer ID Number (for AD/CVD must be actual mfr.)

*Location of Goods-Code(s)/Name(s)

*U.S. Port of Unlading

*General Order Number (only when required by the regulations)

142.6 *Description of Merchandise

142.6 *HTSUSA Number

142.6 *Manifest Quantity

*Total Value

*Signature of Applicant

III. In addition to the information listed above, the following

records or items of information are required by law and regulation for

the entry of merchandise and are presently required to be produced by

the importer of record at the time the Customs Form 7501 is filed.

141.61 *Entry Summary Date

141.61 *Entry Date

142.3 *Bond Number, Bond Type Code and Surety code

142.3 *Ultimate Consignee Address

141.61 *Importer of Record Name and Address

141.61 *Exporting Country and Date Exported

*I.T. (In-bond) Entry Date (for IT Entries only)

*Mode of Transportation (MOT Code)

141.61 *Importing Carrier Name

141.82 Conveyance Name/Number

*Foreign Port of Lading

*Import Date and Line Numbers

*Reference Number

*HTSUS Number

141.61 *Identification number for merchandise subject to Anti-dumping

or Countervailing duty order (ADA/CVD Case Number)

141.61 *Gross Weight

*Manifest Quantity

141.61 *Net Quantity in HTSUSA Units

141.61 *Entered Value, Charges, and Relationship

141.61 *Applicable HTSUSA Rate, ADA/CVD Rate, I.R.C. Rate, and/or

Visa Number, Duty, I.R. Tax, and Fees (e.g. HMF, MPF, Cotton)

141.61 Non-Dutiable Charges

141.61 *Signature of Declarant, Title, and Date

*Textile Category Number

141.83, .86 Invoice information which includes--e.g., date, number,

merchandise (commercial product) description, quantities, values, unit

price, trade terms, part, model, style, marks and numbers, name and

address of foreign party responsible for invoicing, kind of currency

Terms of Sale

Shipping Quantities

Shipping Units of Measurements

Manifest Description of Goods

Foreign Trade Zone Designation and Status Designation (if

applicable)

Indication of Eligibility for Special Access Program (9802/GSP/CBI)

141.89 CF 5523

141.89, et al Corrected Commercial Invoice

141.86(e) Packing List

177.8 *Binding Ruling Identification Number (or a copy of the ruling)

10.102 Duty Free Entry Certificate (9808.00.30009 HTS)

10.108 Lease Statement

IV. Documents/records or information required for entry of special

categories of merchandise (The listed documents or information is only

required for merchandise entered (or required to be entered) in

accordance with the provisions of the sections of 19 CFR (the Customs

Regulations) listed). These are In addition to any documents/records or

information required by other agencies in their regulations for the

entry of merchandise:

[[Page 19718]]

4.14 CF 226 Information for vessel repairs, parts and equipment

7.8(a) CF 3229 Origin certificate for insular possessions

7.8(b) CF 3311 and Shipper's declaration for insular possessions

Part 10 Documents required for entry of articles exported and

returned:

10.1-10.6 foreign shipper's declaration or master's certificate,

declaration for free entry by owner, importer or consignee

10.7 certificate from foreign shipper for reusable containers

10.8 declaration of person performing alterations or repairs

declaration for non-conforming merchandise

10.9 declaration of processing

10.24 declaration by assembler endorsement by importer

10.31, .35 Documents required for Temporary Importations Under Bond:

Information required, Bond or Carnet

10.36 Lists for samples, professional equipment, theatrical effects

Documents required for Instruments of International Traffic:

10.41 Application, Bond or TIR carnet

Note: additional 19 U.S.C. 1508 records: see 10.41b(e)

10.43 Documents required for exempt organizations

10.46 Request from head of agency for 9808.00.10 or 9808.00.20 HTSUS

treatment

Documents required for works of art

10.48 declaration of artist, seller or shipper, curator, etc.

10.49, .52 declaration by institution

10.53 declaration by importer

USFWS Form 3-177, if appropriate

10.59, .63 Documents/ CF 5125/ for withdrawal of ship supplies

10.66,.67 Declarations for articles exported and returned

10.68, .69 Documents for commercial samples, tools, theatrical effects

10.70, .71 Purebred breeding certificate

10.84 Automotive Products certificate

10.90 Master records and metal matrices: detailed statement of cost of

production

10.98 Declarations for copper fluxing material

10.99 Declaration of non-beverage ethyl alcohol, ATF permit

10.101-.102 Stipulation for government shipments and/or certification

for government duty-free entries, etc.

10.107 Report for rescue and relief equipment

15 CFR 301 Requirements for entry of scientific and educational

apparatus

10.121 Certificate from USIA for visual/auditory materials

10.134 Declaration of actual use (When classification involves actual

use)

10.138 End Use Certificate

10.171- Documents, etc. required for entries of GSP merchandise

10.173, 10.175 GSP Declaration (plus supporting documentation)

10.174 Evidence of direct shipment

10.179 Certificate of importer of crude petroleum

10.180 Certificate of fresh, chilled or frozen beef

10.183 Civil aircraft parts/simulator documentation and certifications

10.191-.198 Documents, etc. required for entries of CBI merchandise

CBI declaration of origin (plus supporting information)

10.194 Evidence of direct shipment

[10.306 Evidence of direct shipment for CFTA]

[10.307 Documents, etc. required for entries under CFTA

Certificate of origin of CF 353]

[CFTA provisions are suspended while NAFTA remains in effect.

See part 181]

12.6 European Community cheese affidavit

12.7 HHS permit for milk or cream importation

12.11 Notice of arrival for plant and plant products

12.17 APHIS Permit animal viruses, serums and toxins

12.21 HHS license for viruses, toxins, antitoxins, etc for treatment

of man

12.23 Notice of claimed investigational exemption for a new drug

12.26-.31 Necessary permits from APHIS, FWS & foreign government

certificates when required by the applicable regulation

12.33 Chop list, proforma invoice and release permit from HHS

12.34 Certificate of match inspection and importer's declaration

12.43 Certificate of origin/declarations for goods made by forced

labor, etc.

12.61 Shipper's declaration, official certificate for seal and otter

skins

12.73, 12.80 Motor vehicle declarations

12.85 Boat declarations (CG-5096) and USCG exemption

12.91 FDA form 2877 and required declarations for electronics products

12.99 Declarations for switchblade knives

12.104-.104i Cultural property declarations, statements and

certificates of origin

12.105-.109 Pre-Columbian monumental and architectural sculpture and

murals certificate of legal exportation evidence of exemption

12.110- Pesticides, etc. notice of arrival

12.118-.127 Toxic substances: TSCA statements

12.130 Textiles & textile products

Single country declaration

Multiple country declaration

VISA

12.132 NAFTA textile requirements

54.5 Declaration by importer of use of use of certain metal articles

54.6(a) Re-Melting Certificate

114 Carnets (serves as entry and bond document where applicable)

115 Container certificate of approval

128 Express consignments

128.21 *Manifests with required information (filed by carrier)

132.23 Acknowledgment of delivery for mailed items subject to quota

133.21(b)(6) Consent from trademark or trade name holder to import

otherwise restricted goods

134.25, .36 Certificate of marking; notice to repacker

141.88 Computed value information

141.89 Additional invoice information required for certain classes of

merchandise including, but not limited to:

Textile Entries: Quota charge Statement, if applicable including

Style Number, Article Number and Product

Steel Entries Ordering specifications, including but not limited

to, all applicable industry standards and mill certificates, including

but not limited to, chemical composition

143.13 Documents required for appraisement entries

bills, statements of costs of production

value declaration

143.23 Informal entry: commercial invoice plus declaration

144.12 Warehouse entry information

145.11 Customs Declaration for Mail, Invoice

145.12 Mail entry information (CF 3419 is completed by Customs but

formal entry may be required)

148 Supporting documents for personal importations

151 subpart B Scale Weight

151 subpart B Sugar imports sampling/lab information (Chemical

Analysis)

151 subpart C Petroleum imports sampling/lab information

Out turn Report 24. to 25.--Reserved

151 subpart E Wool and Hair invoice information, additional documents

151 subpart F Cotton invoice information, additional documents

181.22 NAFTA Certificate of origin and supporting records

19 USC 1356k Coffee Form O (currently suspended)

[[Page 19719]]

Other Federal and State Agency Documents

State and Local Government Records

Other Federal Agency Records (See 19 CFR Part 12, 19 U.S.C. 1484, 1499)

Licenses, Authorizations, Permits

Foreign Trade Zones

146.32 Supporting documents to CF 214

Approved: December 30, 1996.

Samuel H. Banks,

Acting Commissioner of Customs.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 97-10130 Filed 4-22-97; 8:45 am]

BILLING CODE 4820-02-P