Container Freight Station; Cartman; Customs Form 6043; 19CFR 19.45; 19 CFR Part 125; T.D. 72-68

HQ 223372 December 23, 1991 BON-1-03-CO:R:C:E 223372 PH CATEGORY: Entry/Liquidation Mr. Lou Smith Radex Transportation & Container Freight Station 1342 South Rowan Avenue Los Angeles, California 90023 RE: Container Freight Station; Cartman; Customs Form 6043; 19 CFR 19.45; 19 CFR Part 125; T.D. 72-68 Dear Mr. Smith: In your letter of July 25, 1991, you request a ruling on the use of Customs Form 6043 to transfer "non-cleared" cargo within a Customs district. For your information, we have discussed this matter with local Customs officers in Los Angeles. We found them to be very knowledgeable about this issue. We are providing Customs in Los Angeles with a copy of this ruling. If you have questions about this matter, or if you have problems with the procedures described in this ruling, please do not hesitate to call on Mr. Paul Hegland, the case-handler of your inquiry in the Entry Rulings Branch (202-566-5856). Our ruling follows. FACTS: You state that your company has experienced problems in its use of Customs Forms 6043 to move cargo in bond within a district. It is your opinion that "there are many routine business requirements which are better/more economically resolved by moving cargo to an 'off-dock' [Container Freight Station]." You request a ruling that a Customs Form 6043 may be used to transfer "non-cleared" cargo within a district. You state that this transfer would be by a carrier with cartman's authority unless the cargo is moved in vehicles operated by the Container Freight Station to which the cargo is destined, in which case cartman's authority would not be necessary. Parenthetically, we note that although you request the ruling as to the transfer of the described cargo "within a district" (emphasis added), we are assuming that you mean to request the ruling with regard to the transfer of the described cargo within a port. Cartmen may only transport cargo within a port (including a Customs station under the supervision of the Customs port, see Treasury Decision (T.D. 78-278)) (see 19 CFR 112.1(b) and ruling 306291, dated September 19, 1978). The transportation of cargo between ports in the same Customs district or in different districts is provided for in the Customs Regulations concerning transportation in bond and merchandise in transit (19 CFR Part 18). There is no provision in Part 18 of the Customs Regulations for the use your propose of a Customs Form 6043. ISSUE: May a Customs Form 6043 be used for the transfer of "non- cleared" cargo from one point within a Customs port to a container freight station within the Customs port, such transfer to be by a cartman unless the cargo is moved in vehicles operated by the container freight station? LAW AND ANALYSIS: The statutory provision for cartage of merchandise is found in 19 U.S.C. 1565, which provides for the promulgation of regulations pertaining to cartmen. Part 125 of the Customs Regulations (19 CFR Part 125) is dedicated to cartmen. As indicated above, a cartman is defined in the Customs Regulations as one who undertakes to transport goods or merchandise within the limits of a port (see 19 CFR 112.1(b)). Under 19 CFR 125.31, when merchandise is carted to and received from a bonded store or bonded warehouse it shall be accompanied by a Customs Form (CF) 6043, CF 7501, CF 7505-A, CF 7506, or CF 7512. The Customs Regulations pertaining to container freight stations are found in 19 CFR 19.40 - 19.49. These provisions were promulgated in the Customs Regulations by T.D. 72-68. Under 19 CFR 19.42 - 19.45, procedures are established for the applica- tion for, and the transfer of, a container to a container freight station. Basically, under these procedures, the container station operator files an application in duplicate substantially like that in 19 CFR 19.42 with the Customs inspector at the place of unlading of the container or, for merchandise transported in bond, at the bonded carrier's facility, as designated by the district director (19 CFR 19.43). Approval of the application serves as a permit to transfer the container and its contents to the container freight station (19 CFR 19.45). Under 19 CFR 19.45, "[e]xcept when the container station operator is moving the merchandise to his own station by his own vehicle [see T.D. 74-54 for the background to this exception], the merchandise may only be transferred to a container station by a bonded cartman or bonded carrier [Note: under 19 U.S.C. 1565, if the transfer of merchandise is between points within a port, it must be by a bonded cartman, unless the exception applies]." Therefore, there are two alternative procedures for the operation under consideration. If the transfer of merchandise to the container freight station is by a cartman, the procedures in 19 CFR Part 125 are applicable and a CF 6043 would be required to accompany the merchandise. If the transfer of merchandise to the container freight station is effected with the use of the container freight station's own vehicle, the procedures in 19 CFR 19.40 - 19.49 are applicable and an approved application substan- tially like that in 19 CFR 19.42 would serve as the permit for the transfer of the container and its contents to the container freight station. HOLDING: For the transfer of "non-cleared" cargo from one point within a Customs port to a container freight station within the Customs port-- (1) A CF 6043 is required to be used for the transfer if the transfer of the merchandise is effected by a cartman; and (2) An approved application substantially like that in 19 CFR 19.42 is required to be used as the permit for the transfer if the transfer is effected with the use of the container freight station's own vehicle. Sincerely, John Durant, Director Commercial Rulings Division