HQ 222425: Internal Advice; Transportation and Exportation Entry; Bond Required; Container Station; Warehouse; 19 U.S.C. 1553

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 222425

                        October 19, 1990

TRA-8-CO:R:C:E 222425 PH

CATEGORY:  Entry

District Director
U.S. Customs Service
77 Southeast 5th Street,
Miami, Florida 33131

RE:  Internal Advice; Transportation and Exportation Entry; Bond
     Required; Container Station; Warehouse; 19 U.S.C. 1553

Dear Madam:

     With your May 18, 1990, memorandum (File:  TRA 8-DD:C E CC)
you forwarded a request for advice dated April 12, 1990, filed by
Peter S. Herrick, Esq., on behalf of Marine Cargo Management,
Inc. (the "inquirer").  Our ruling on the request follows.

FACTS:

    According to the file, the inquirer has two wholly owned
subsidiaries, TecMarine Lines, Inc. ("subsidiary 1"), and Marine
Agencies, Inc. ("subsidiary 2").  The inquirer is an approved
bonded carrier and is licensed as a bonded cartman for the ports
of Miami, Port Everglades, and West Palm Beach, Florida, and
currently holds Class 3 (International Carrier), Class 3a
(Instruments of International Traffic), and Class 2 (Basic
Custodial) bonds, each in the amount of $100,000.  The inquirer
does not hold a Class 1 (Basic Importation and Entry) bond.
Subsidiary 1 is an international ocean carrier and subsidiary 2
is the ocean carrier's shipping agent.  We understand that the
inquirer is not licensed as a Customs broker.

    The inquirer receives ocean shipments of cargo in containers
at each of the above-named Florida ports.  These shipments are
bound for ultimate exportation from the United States to the
country of final destination.  Cargo may also be transported in
bond on a Transportation and Exportation Entry by other bonded
carriers from ports of arrival outside the Miami Customs District
and delivered to the inquirer and subsidiary 1 at any of its
approved Customs Freight Station facilities where the inquirer
holds a license.  At the Customs Freight Station the cargo is
recontainerized and/or consolidated for ultimate exportation
from the United States to the country of final destination.

    The cargo is often transported from the port of arrival in
the United States, or from the Customs Freight Station following
delivery to the inquirer or subsidiary 1, by the inquirer as a
bonded carrier or cartman on a Transportation and Exportation
Entry to a bonded warehouse.  At the bonded warehouse the cargo
is stripped from the container in which it arrived and stuffed
into a second container for exportation.  The reason given for
this change in containers is that the first container is not to
be forwarded to the ultimate destination of the cargo.  The cargo
may also be consolidated in the second container with other cargo
in bond to be exported and shipped to the same foreign
destination by subsidiary 2.

    After the second container is stuffed, it is moved by the
inquirer under bond from the bonded warehouse to the port of
exportation.  The port of exportation may be the port at which
the cargo arrived or it may be a different port.  This latter
movement is being done on a second Transportation and
Exportation Entry.

    The cargo is normally containerized and shipped under a
single bill of lading covering carriage of the cargo from its
initial foreign point of shipment to its final foreign port of
destination, including such transportation in bond as is
necessary in the United States.

    The inquirer requests a ruling on the issues set forth below.

ISSUES:

    1.  Whether the movement of and activities related to the
cargo as described above may be done on a single Transportation
and Exportation Entry.

    2.  Whether, in the circumstances described above, the
inquirer is required to hold a Class 1 (Basic Importation and
Entry) bond.

LAW AND ANALYSIS:

    The basic statute concerning the entry of merchandise is
found in section 484, Tariff Act of 1930, as amended (19 U.S.C.
1484).  Under paragraph (a) of this statute, the right to make
such entry is limited to the owner or purchaser of the
merchandise or a Customs broker (see section 641, Tariff Act of
1930, as amended (19 U.S.C. 1641) when appropriately designated
by the owner, purchaser, or consignee of the merchandise.  Under
section 552, Tariff Act of 1930 (19 U.S.C. 1552), merchandise,
with an exception irrelevant in this case, may be entered for
transportation in bond to another port, under such rules and
regulations as are prescribed by the Secretary of the Treasury.
Under section 553, Tariff Act of 1930, as amended (19 U.S.C.
1553), merchandise, with an exception irrelevant in this case,
shown to be destined to a foreign country may be entered for
transportation in bond through the United States by bonded
carrier under such rules and regulations as are prescribed by the
Secretary of the Treasury.  The entry and withdrawal procedures
for a Customs bonded warehouse are provided for in section 557,
Tariff Act of 1930, as amended (19 U.S.C. 1557).

    The Customs Regulations issued under the foregoing and other
proper authorities and pertaining to the entry of merchandise are
found in 19 CFR Parts 141, 142, and 143; those pertaining to
Customs brokers are found in 19 CFR Part 111; those pertaining to
transportation in bond are found in 19 CFR Part 18; and those
pertaining to merchandise entry and withdrawal procedures for
Customs bonded warehouses are found in 19 CFR Part 144.  The
Customs Regulations pertaining to Customs container stations are
found in 19 CFR 19.40-19.49.

    In the interest of clarity, we will summarize the facts, as
we understand them, below.  This ruling is based on this summary
of facts.  Basically, in this case containerized cargo arriving
by vessel in the United States and destined for a foreign country
is transported by bonded carrier or cartman to a container
station or a bonded warehouse.  At the container station the
cargo is re-containerized and/or consolidated and transported by
bonded carrier either to the port of exportation or to a bonded
warehouse.  At the bonded warehouse the cargo is stripped from
the container in which it arrived and stuffed into a second
container for exportation and transported by bonded carrier to
the port of exportation.  The container station is operated by
the bonded carrier which transports the containers from the
container station to the port of exportation or the bonded
warehouse and from the bonded warehouse to the port of
exportation.  The bonded carrier which transports the containers
to the container station may be operated by the operator of the
container station or it may be an unrelated party.

    In the case of the containerized cargo transported from the
port of arrival in the United States by the inquirer-bonded
carrier and cartman to the container station where it is re-
containerized and/or consolidated and then transported by the
inquirer-bonded carrier and cartman directly to the port of
exportation, a single Transportation and Exportation Entry may be
filed by the inquirer to cover the entire movement.  The movement
would be subject to the procedural requirements in 19 CFR 18.20-
18.24, 18.11(b), 18.1-18.8 (note, in particular, sections
18.2(c) and (d), 18.3, and 18.8), 18.10 (listing the kinds of
entries and withdrawals which may be made for merchandise to be
transported in bond - we have ruled that these entries and
withdrawals may be made by a bonded carrier), and 19.40-19.49
(note, in particular, sections 19.42-19.45).  The inquirer would
not need a Class 1 bond for this movement.

    In the case of the containerized cargo transported from the
port of arrival in the United States by a bonded carrier other
than the inquirer to the container station where it is re-
containerized and/or consolidated and then transported by the
inquirer-bonded carrier and cartman directly to the port of
exportation, a single Transportation and Exportation Entry, filed
by the initial bonded carrier, could cover the entire movement.
However, it is difficult to imagine a situation in which the
initial bonded carrier, if actually not related to the inquirer,
would wish to file a Transportation and Exportation Entry for the
entire movement, because in doing so the bonded carrier would be
making itself liable (see 19 CFR 18.8) for shortages, irregular
deliveries, or nondeliveries occurring during the entire movement
(except for the time the cargo was at the container station,
after formal receipt by the container station operator (see 19
CFR 19.44)), including that part of the transportation and
delivery of the cargo performed by an unrelated party (i.e., the
inquirer).  A more likely scenario would be, as you suggest, for
the initial bonded carrier to transport the cargo to the
container station on an Immediate Transportation Entry and for
the inquirer to transport the cargo from the container station to
the port of exportation on a Transportation and Exportation Entry
which it (i.e., the inquirer) had filed.  The inquirer would not
need a Class 1 bond in this movement.

    In the case of the containerized cargo transported from the
port of arrival in the United States by the inquirer-bonded
carrier and cartman to the bonded warehouse where it is stripped
from the container in which it arrived and stuffed into a second
container which is transported by the inquirer-bonded carrier and
cartman to the port of exportation, three entries would be
required.  The cargo would be transported from the port of
arrival to the bonded warehouse on an Immediate Transportation
Entry filed by the inquirer.  The cargo would have to be entered
into the bonded warehouse by a party with the right to make entry
(in this case, probably a Customs broker, see 19 U.S.C. 1484)
with an entry under 19 CFR 144.11.  The cargo would be withdrawn
for exportation or transportation and exportation under the
provisions of 19 CFR 144.37 (i.e., it could be withdrawn and
transported from the bonded warehouse to the port of exportation
on an Exportation Entry or a Transportation and Exportation Entry
filed by the inquirer).  The inquirer would not need a Class 1
bond for the movements from the port of arrival to the bonded
warehouse and from the bonded warehouse to the port of
exportation.  The inquirer would need a Class 1 bond to make
warehouse entry but, more importantly, may not make such entry
unless it has the right to make entry (see 19 CFR 111.4, with
regard to the penalties for intentionally transacting customs
business without holding a valid Customs broker's license).

    In the case of the containerized cargo transported from the
port of arrival in the United States by a bonded carrier other
than the inquirer to the bonded warehouse where it is stripped
from the container in which it arrived and stuffed into a second
container which is transported by the inquirer-bonded carrier and
cartman to the port of exportation, the same entries as described
in the immediately preceding paragraph would be required, except
that the movement performed by the initial bonded carrier would
be on an Immediate Transportation Entry filed by that bonded
carrier.

    In the case of the containerized cargo transported from the
port of arrival in the United States by the inquirer-bonded
carrier and cartman to the container station where it is re-
containerized and/or consolidated and then transported to the
bonded warehouse where it is stripped from the container in which
it arrived and stuffed into a second container which is
transported by the inquirer-bonded carrier and cartman to the
port of exportation, three entries also would be required.  The
cargo could be transported from the port of arrival to the
container station and from the container station to the bonded
warehouse on a single Immediate Transportation Entry filed by the
inquirer.  The cargo would have to be entered into the bonded
warehouse by a party with the right to make entry (in this case,
probably a Customs broker, see 19 U.S.C. 1484) with an entry
under 19 CFR 144.11.  The cargo would be withdrawn for
exportation or transportation and exportation under the
provisions of 19 CFR 144.37 (i.e., it could be withdrawn and
transported from the bonded warehouse to the port of exportation
on an Exportation Entry or a Transportation and Exportation Entry
filed by the inquirer).  The inquirer would not need a Class 1
bond for the movements from the port of arrival to the container
station and then the bonded warehouse and from the bonded
warehouse to the port of exportation.  The inquirer would need a
Class 1 bond to make warehouse entry but, as stated above, may
not make such entry unless it has the right to make entry.

    In the case of the containerized cargo transported from the
port of arrival in the United States by a bonded carrier other
than the inquirer to the container station where it is re-
containerized and/or consolidated and then transported by the
inquirer-bonded carrier and cartman to the bonded warehouse where
it is stripped from the container in which it arrived and stuffed
into a second container which is transported by the inquirer-
bonded carrier and cartman to the port of exportation, for the
reasons noted above, four entries should be used.  The entire
movement from the port of arrival to the bonded warehouse via the
container station could be on a single Immediate Transportation
Entry filed by the bonded carrier other than the inquirer but if
such a procedure were followed, that bonded carrier would be
making itself liable for shortages, irregular deliveries, or
nondeliveries occurring during the entire movement (except for
the time the cargo was at the container station, after formal
receipt by the container station operator), including that part
of the transportation and delivery of the cargo performed by an
unrelated party (i.e., the inquirer).  As noted above, a more
likely scenario would be for the initial bonded carrier to
transport the cargo from the port of arrival to the container
station on an Immediate Transportation Entry which it filed and
for the inquirer-bonded carrier and cartman to transport the
cargo from the container station to the bonded warehouse on an
Immediate Transportation Entry which it filed.  Once again, the
cargo would have to be entered into the bonded warehouse by a
party with the right to make entry.  The cargo could be withdrawn
for exportation or transportation and exportation and moved to
the port of exportation on an Exportation Entry or a
Transportation and Exportation Entry filed by the inquirer.  The
cargo could be transported from the port of arrival to the
container station and from the container station to the bonded
warehouse on a single Immediate Transportation Entry filed by the
inquirer.  The inquirer would not need a Class 1 bond for the
movements from the container station to the bonded warehouse and
from the bonded warehouse to the port of exportation.  The
inquirer would need a Class 1 bond to make warehouse entry but,
as stated above, may not make such entry unless it has the right
to make entry.

HOLDING:

    1.  Except for the movement of the cargo from the port of
arrival to the container station where it is re-containerized
and/or consolidated and from the container station to the port of
exportation, in which all of the transportation is provided by
the inquirer-bonded carrier and cartman, none of the described
activities would be done on a single Transportation and
Exportation Entry.  The procedures for the other movements and
activities are as follows:

    a.  The movement of the cargo from the port of arrival to the
    container station by the bonded carrier other than the
    inquirer would be on an Immediate Transportation Entry and
    the movement from the container station to the port of
    exportation by the inquirer-bonded carrier and cartman would
    be on a Transportation and Exportation Entry.  The initial
    bonded carrier could file a single Transportation and
    Exportation Entry for the entire movement but it is extremely
    unlikely that it would do so because by doing so it would be
    making itself liable for shortages, irregular deliveries, or
    nondeliveries during not only the time when it was
    transporting the cargo but also the time when the inquirer
    was handling the cargo.

    b.  The movement of the cargo from the port of arrival to the
    bonded warehouse where it is stripped from the container in
    which it arrived and stuffed into a second container which is
    transported to the port of exportation would require three
    entries whether the first leg of the transportation was
    provided by the inquirer-bonded carrier and cartman or
    another bonded carrier:  an Immediate Transportation Entry
    filed by the bonded carrier providing the transportation for
    the first leg of transportation; a Warehouse Entry by a party
    who is entitled to make entry in the bonded warehouse; and a
    Transportation and Exportation Entry for the movement to the
    port of exportation.

    c.  The movement of the cargo from the port of arrival to the
    container station where it is re-containerized and/or
    consolidated and then transported to the bonded warehouse
    where it is stripped from the container in which it arrived
    and stuffed into a second container which is transported to
    the port of exportation would require three entries when all
    of the transportation was provided by the inquirer-bonded
    carrier and cartman:  one Immediate Transportation Entry
    filed by the inquirer for the movement to the container
    station and then the warehouse; a Warehouse Entry by a party
    who is entitled to make entry in the bonded warehouse; and a
    Transportation and Exportation Entry for the movement to the
    port of exportation.

    d.  The movement of the cargo from the port of arrival to the
    container station where it is re-containerized and/or
    consolidated and then transported to the bonded warehouse
    where it is stripped from the container in which it arrived
    and stuffed into a second container which is transported to
    the port of exportation, when the transportation from the
    port of arrival to the container station is provided by a
    bonded carrier other than the inquirer-bonded carrier and
    cartman, should, for the reasons given in Holding 1a above,
    be done on four entries:  one Immediate Transportation Entry
    filed by the initial bonded carrier for the movement to the
    container station; a second Immediate Transportation Entry
    filed by the inquirer-bonded carrier and cartman for the
    movement from the container station to the warehouse; a
    Warehouse Entry by a party who is entitled to make entry in
    the bonded warehouse; and a Transportation and Exportation
    Entry for the movement to the port of exportation.

    2.  A bonded carrier may make entries for immediate
transportation, transportation and exportation, or exportation
and warehouse withdrawals for transportation, exportation, or
transportation and exportation.  Only the owner or purchaser of
merchandise, or a customs broker when appropriately designated by
the owner, purchaser, or consignee of the merchandise, may make a
warehouse entry.  The inquirer may not make entry of any of the
cargo into the bonded warehouse in the situations described above
(see Holdings 1b, 1c, and 1d) unless the inquirer is a party
entitled to make entry under 19 U.S.C. 1484 (i.e., the owner or
purchaser of the merchandise, or a Customs broker appropriately
designated by the owner, purchaser, or consignee of the
merchandise), in which case the inquirer would be required to
hold a Class 1 bond.  The inquirer, as a bonded carrier, may make
the Immediate Transportation Entries, the Transportation and
Exportation Entries, and the withdrawals from warehouse for
Transportation and Exportation in the situations described above
without holding a Class 1 bond.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division