Supporting U.S.C.

Page 223

(4) a plan for tracking in-bond cargo within
the Automated Commercial Environment
(ACE);
(5) an assessment of whether any particular
technologies should be required in the transport of in-bond cargo;
(6) an assessment of whether ports of arrival
should require any additional information regarding shipments of in-bond cargo;
(7) an evaluation of the criteria for targeting
and examining in-bond cargo; and
(8) an assessment of the feasibility of reducing the transit time for in-bond shipments, including an assessment of the impact of such a
change on domestic and international trade.
(b) Definition
In this section, the term ‘‘Commissioner’’
means the Commissioner responsible for the
United States Customs and Border Protection in
the Department of Homeland Security.
(June 17, 1930, ch. 497, title IV, § 553A, as added
Pub. L. 109–347, title IV, § 406, Oct. 13, 2006, 120
Stat. 1931.)
CODIFICATION
Another section 553A of act June 17, 1930, is classified
to section 1553a of this title.

§ 1553a. Recordkeeping for merchandise transported by pipeline
Merchandise in Customs 1 custody that is
transported by pipeline may be accounted for on
a quantitative basis, based on the bill of lading,
or equivalent document of receipt, issued by the
pipeline carrier. Unless the Customs Service has
reasonable cause to suspect fraud, the Customs
Service may accept the bill of lading, or equivalent document of receipt, issued by the pipeline
carrier to the shipper and accepted by the consignee to maintain identity. The shipper, pipeline operator, and consignee shall be subject to
the recordkeeping requirements of sections 1508
and 1509 of this title.
(June 17, 1930, ch. 497, title IV, § 553A, as added
Pub. L. 103–182, title VI, § 664, Dec. 8, 1993, 107
Stat. 2215.)
CODIFICATION
Another section 553A of act June 17, 1930, is classified
to section 1553–1 of this title.
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

§ 1554. Transportation through contiguous countries
With the consent of the proper authorities,
imported merchandise, in bond or duty-paid, and
products and manufactures of the United States
1 So

§ 1555

TITLE 19—CUSTOMS DUTIES

in original. Probably should not be capitalized.

may be transported from one port to another in
the United States through contiguous countries,
under such regulations as the Secretary of the
Treasury shall prescribe, unless such transportation is in violation of section 4347 of the Revised Statutes, as amended, section 55102 of title
46, or section 1588 of this title.
(June 17, 1930, ch. 497, title IV, § 554, 46 Stat. 743.)
REFERENCES IN TEXT
Section 4347 of the Revised Statutes, as amended, referred to in text, was not classified to the Code. It was
superseded by act Feb. 17, 1898, ch. 26, § 1, 30 Stat. 248,
which was classified to section 290 of former Title 46,
Shipping, and was subsequently repealed by Pub. L.
109–304, § 19, Oct. 6, 2006, 120 Stat. 1710. Provisions similar to those in section 1 of act Feb. 17, 1898, ch. 26, were
also contained in section 27 of act June 5, 1920, ch. 250,
41 Stat. 999, and were classified to section 883 of the
former Appendix to Title 46, Shipping. For disposition
of sections of the former Appendix to Title 46, see Disposition Table preceding section 101 of Title 46.
CODIFICATION
In text, ‘‘section 55102 of title 46’’ substituted for
‘‘section 27 of the Merchant Marine Act, 1920’’ on authority of Pub. L. 109–304, § 18(c), Oct. 6, 2006, 120 Stat.
1709, which Act enacted section 55102 of Title 46, Shipping.
PRIOR PROVISIONS
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 554, 42
Stat. 976. That section was superseded by section 554 of
act June 17, 1930, comprising this section, and repealed
by section 651(a)(1) of the 1930 act.
Prior provisions the same in effect as those in this
section, except that they did not contain the provision
commencing with the words ‘‘unless such transportation,’’ were contained in R.S. § 3006, which also provided that the merchandise transported should be
treated as if transported entirely within the United
States. R.S. § 3007 exempted cars and vehicles from the
payment of fees for receiving or certifying manifests.
Both sections were repealed by act Sept. 21, 1922, ch.
356, title IV, § 642, 42 Stat. 989.

§ 1555. Bonded warehouses
(a) Designation; preconditions; bonding requirements; supervision
Subject to subsection (b) of this section, buildings or parts of buildings and other enclosures
may be designated by the Secretary of the
Treasury as bonded warehouses for the storage
of imported merchandise entered for warehousing, or taken possession of by the appropriate customs officer, or under seizure, or for
the manufacture of merchandise in bond, or for
the repacking, sorting, or cleaning of imported
merchandise. Such warehouses may be bonded
for the storing of such merchandise only as shall
belong or be consigned to the owners or proprietors thereof and be known as private bonded
warehouses, or for the storage of imported merchandise generally and be known as public bonded warehouses. Before any imported merchandise not finally released from customs custody
shall be stored in any such premises, the owner
or lessee thereof shall give a bond in such sum
and with such sureties as may be approved by
the Secretary of the Treasury to secure the Government against any loss or expense connected
with or arising from the deposit, storage, or ma-

§ 1555

TITLE 19—CUSTOMS DUTIES

nipulation of merchandise in such warehouse.
Except as otherwise provided in this chapter,
bonded warehouses shall be used solely for the
storage of imported merchandise and shall be
placed in charge of a proper officer of the customs, who, together with the proprietor thereof,
shall have joint custody of all merchandise
stored in the warehouse; and all labor on the
merchandise so stored shall be performed by the
owner or proprietor of the warehouse, under supervision of the officer of the customs in charge
of the same, at the expense of the owner or proprietor. The compensation of such officer of the
customs and other customs employees appointed
to supervise the receipt of merchandise into any
such warehouse and deliveries therefrom shall
be reimbursed to the Government by the proprietor of such warehouse.
(b) Duty-free sales enterprises
(1) Duty-free sales enterprises may sell and deliver for export from the customs territory
duty-free merchandise in accordance with this
subsection and such regulations as the Secretary may prescribe to carry out this subsection.
(2) A duty-free sales enterprise may be located
anywhere within—
(A) the same port of entry, as established
under section 1 of the Act of August 24, 1912 (37
Stat. 434), from which a purchaser of duty-free
merchandise departs the customs territory; or
(B) 25 statute miles from the exit point
through which the purchaser of duty-free merchandise will depart the customs territory; or
(C) a port of entry, as established under section 1 of the Act of August 24, 1912 (37 Stat.
434), or within 25 statute miles of a staffed
port of entry if reasonable assurance can be
provided that duty-free merchandise sold by
the enterprise will be exported by individuals
departing from the customs territory through
an international airport located within the
customs territory.
(3) Each duty-free sales enterprise—
(A) shall establish procedures to provide reasonable assurance that duty-free merchandise
sold by the enterprise will be exported from
the customs territory;
(B) if the duty-free sales enterprise is an airport store, shall establish and enforce, in accordance with such regulations as the Secretary may prescribe, restrictions on the sale
of duty-free merchandise to any one individual
to personal use quantities;
(C) shall display in prominent places within
its place of business notices which state clearly that any duty-free merchandise purchased
from the enterprise—
(i) has not been subject to any Federal
duty or tax,
(ii) if brought back into the customs territory, must be declared and is subject to Federal duty and tax, and
(iii) is subject to the customs laws and regulation of any foreign country to which it is
taken;
(D) shall not be required to mark or otherwise place a distinguishing identifier on individual items of merchandise to indicate that

Page 224

the items were sold by a duty-free sales enterprise, unless the Secretary finds a pattern in
which such items are being brought back into
the customs territory without declaration;
(E) may unpack merchandise into saleable
units after it has been entered for warehouse
and placed in a duty-free sales enterprise,
without requirement of further permits; and
(F) shall deliver duty-free merchandise—
(i) in the case of a duty-free sales enterprise that is an airport store—
(I) to the purchaser (or a family member
or companion traveling with the purchaser) in an area that is within the airport and to which access to passengers is
restricted to those departing from the customs territory;
(II) to the purchaser (or a family member or companion traveling with the purchaser) at the exit point of a specific departing flight;
(III) by placing the merchandise within
the aircraft on which the purchaser will
depart for carriage as passenger baggage;
or
(IV) if the duty-free sales enterprise has
made a good faith effort to effect delivery
for exportation through one of the methods described in subclause (I), (II), or (III)
but is unable to do so, by any other reasonable method to effect delivery; or
(ii) in the case of a duty-free sales enterprise that is a border store—
(I) at a merchandise storage location at
or beyond the exit point; or
(II) at any location approved by the Secretary before the date of enactment of the
Omnibus Trade Act of 1987.
(4) If a State or local or other governmental
authority, incident to its jurisdiction over any
airport, seaport, or other exit point facility, requires that a concession or other form of approval be obtained from that authority with respect to the operation of a duty-free sales enterprise under which merchandise is delivered to or
through such facility for exportation, merchandise incident to such operation may not be withdrawn from a bonded warehouse and transferred
to or through such facility unless the operator
of the duty-free sales enterprise demonstrates to
the Secretary that the concession or approval
required for the enterprise has been obtained.
(5) This subsection does not prohibit a dutyfree sales enterprise from offering for sale and
delivering to, or on behalf of, individuals departing from the customs territory merchandise
other than duty-free merchandise, except that
such other merchandise may not be stored in a
bonded warehouse facility other than a bonded
facility used for retail sales.
(6)(A) Except as provided in subparagraph (B),
merchandise that is purchased in a duty-free
sales enterprise is not eligible for exemption
from duty under subchapter IV of chapter 98 of
the Harmonized Tariff Schedule of the United
States if such merchandise is brought back to
the customs territory.
(B) Except in the case of travel involving transit to, from, or through an insular possession of
the United States, merchandise described in sub-

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TITLE 19—CUSTOMS DUTIES

paragraph (A) that is purchased by a United
States resident shall be eligible for exemption
from
duty
under
subheadings
9804.00.65,
9804.00.70, and 9804.00.72 of the Harmonized Tariff
Schedule of the United States upon the United
States resident’s return to the customs territory
of the United States, if the resident meets the
eligibility requirements for the exemption
claimed. Notwithstanding any other provision of
law, such merchandise shall be considered to be
an article acquired abroad as an incident of the
journey from which the resident is returning, for
purposes of determining eligibility for any such
exemption.
(7) The Secretary shall by regulation establish
a separate class of bonded warehouses for dutyfree sales enterprises. Regulations issued to
carry out this paragraph shall take into account
the unique characteristics of the different types
of duty-free sales enterprises.
(8) For purposes of this subsection—
(A) The term ‘‘airport store’’ means a dutyfree sales enterprise which delivers merchandise to, or on behalf of, individuals departing
from the customs territory from an international airport located within the customs
territory.
(B) The term ‘‘border store’’ means a dutyfree sales enterprise which delivers merchandise to, or on behalf of, individuals departing
from the customs territory through a land or
water border by a means of conveyance other
than an aircraft.
(C) The term ‘‘customs territory’’ means the
customs territory of the United States and
foreign trade zones.
(D) The term ‘‘duty-free sales enterprise’’
means a person that sells, for use outside the
customs territory, duty-free merchandise that
is delivered from a bonded warehouse to an
airport or other exit point for exportation by,
or on behalf of, individuals departing from the
customs territory.
(E) The term ‘‘duty-free merchandise’’
means merchandise sold by a duty-free sales
enterprise on which neither Federal duty nor
Federal tax has been assessed pending exportation from the customs territory.
(F) The term ‘‘exit point’’ means the area in
close proximity to an actual exit for departing
from the customs territory, including the gate
holding area in the case of an airport, but only
if there is reasonable assurance that duty-free
merchandise delivered in the gate holding area
will be exported from the customs territory.
(G) The term ‘‘personal use quantities’’
means quantities that are only suitable for
uses other than resale, and includes reasonable quantities for household or family consumption as well as for gifts to others.
(c) International travel merchandise
(1) Definitions
For purposes of this section—
(A) the term ‘‘international travel merchandise’’ means duty-free or domestic merchandise which is placed on board aircraft
on international flights for sale to passengers, but which is not merchandise incidental to the operation of a duty-free sales
enterprise;

§ 1555

(B) the term ‘‘staging area’’ is an area controlled by the proprietor of a bonded warehouse outside of the physical parameters of
the bonded warehouse in which manipulation of international travel merchandise in
carts occurs;
(C) the term ‘‘duty-free merchandise’’
means merchandise on which the liability
for payment of duty or tax imposed by reason of importation has been deferred pending
exportation from the customs territory;
(D) the term ‘‘manipulation’’ means the
repackaging, cleaning, sorting, or removal
from or placement on carts of international
travel merchandise; and
(E) the term ‘‘cart’’ means a portable container holding international travel merchandise on an aircraft for exportation.
(2) Bonded warehouse for international travel
merchandise
The Secretary shall by regulation establish
a separate class of bonded warehouse for the
storage and manipulation of international
travel merchandise pending its placement on
board aircraft departing for foreign destinations.
(3) Rules for treatment of international travel
merchandise and bonded warehouses and
staging areas
(A) The proprietor of a bonded warehouse established for the storage and manipulation of
international travel merchandise shall give a
bond in such sum and with such sureties as
may be approved by the Secretary of the
Treasury to secure the Government against
any loss or expense connected with or arising
from the deposit, storage, or manipulation of
merchandise in such warehouse. The warehouse proprietor’s bond shall also secure the
manipulation of international travel merchandise in a staging area.
(B) A transfer of liability from the international carrier to the warehouse proprietor
occurs when the carrier assigns custody of
international travel merchandise to the warehouse proprietor for purposes of entry into
warehouse or for manipulation in the staging
area.
(C) A transfer of liability from the warehouse proprietor to the international carrier
occurs when the bonded warehouse proprietor
assigns custody of international travel merchandise to the carrier.
(D) The Secretary is authorized to promulgate regulations to require the proprietor and
the international carrier to keep records of
the disposition of any cart brought into the
United States and all merchandise on such
cart.
(June 17, 1930, ch. 497, title IV, § 555, 46 Stat. 743;
Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84
Stat. 287; Pub. L. 98–573, title II, § 211, Oct. 30,
1984, 98 Stat. 2977; Pub. L. 100–418, title I,
§ 1908(b), Aug. 23, 1988, 102 Stat. 1315; Pub. L.
101–382, title I, § 139(a)(1), Aug. 20, 1990, 104 Stat.
653; Pub. L. 104–295, § 29, Oct. 11, 1996, 110 Stat.
3535; Pub. L. 106–36, title II, § 2417, June 25, 1999,
113 Stat. 176; Pub. L. 106–476, title I, § 1454, Nov.
9, 2000, 114 Stat. 2168.)

§ 1556

TITLE 19—CUSTOMS DUTIES
REFERENCES IN TEXT

For provisions relating to ports of entry established
under section 1 of the Act of August 24, 1912 (37 Stat.
434), referred to in subsec. (b)(2)(A), (C), see Prior Provisions note under section 1 of this title.
The date of enactment of the Omnibus Trade Act of
1987, referred to in subsec. (b)(3)(F)(ii)(II), probably
means the date of enactment of the Omnibus Trade and
Competitiveness Act of 1988, Pub. L. 100–418, which was
approved Aug. 23, 1988.
The Harmonized Tariff Schedule of the United States,
referred to in subsec. (b)(6), is not set out in the Code.
See Publication of Harmonized Tariff Schedule note set
out under section 1202 of this title.

Page 226

1984—Pub. L. 98–573 designated existing provisions as
subsec. (a), substituted ‘‘Subject to subsection (b) of
this section, buildings’’ for ‘‘Buildings’’, and added subsec. (b).
1970—Pub. L. 91–271 substituted reference to appropriate customs officer for reference to collector.
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Pub. L. 106–476, except as otherwise
provided, applicable with respect to goods entered, or
withdrawn from warehouse, for consumption, on or
after the 15th day after Nov. 9, 2000, see section 1471 of
Pub. L. 106–476, set out as a note under section 58c of
this title.

PRIOR PROVISIONS

EFFECTIVE DATE OF 1988 AMENDMENT

Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 555, 42
Stat. 976. That section was superseded by section 555 of
act June 17, 1930, comprising this section, and repealed
by section 651(a)(1) of the 1930 act.
Prior provisions dealing with the subject matter of
this section were contained in R.S. § 2958, authorizing
cellars and vaults of stores for storage of wines and distilled spirits, and yards for storage of coal, etc., to be
constituted bonded warehouses; section 2959, authorizing parts of buildings to be bonded for the storage of
grain; section 2960, requiring private warehouses to be
used solely for the storage of warehoused merchandise,
and be approved by the Secretary of the Treasury, and
be in charge of a proper officer of the customs, etc.; section 2961 requiring bonds to hold the United States
harmless, and providing that imports deposited in
warehouses should be at the risk and expense of the
owner or importer; section 2968, authorizing the extension of warehouse privileges to the port of Albany; and
section 2988, as amended by act Feb. 27, 1877, ch. 69, § 1,
19 Stat. 247, requiring collectors to make reports of
merchandise in warehouses. All of these sections were
repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42
Stat. 989.

Section 1908(c) of Pub. L. 100–418 provided that: ‘‘The
amendment made by this section [amending this section] shall take effect on the date that is 15 days after
the date of enactment of this Act [Aug. 23, 1988].’’

AMENDMENTS
2000—Subsec. (c). Pub. L. 106–476 added subsec. (c).
1999—Subsec. (b)(2)(B), (C). Pub. L. 106–36 substituted
‘‘; or’’ for period at end of subpar. (B) and added subpar.
(C).
1996—Subsec. (b)(6). Pub. L. 104–295 designated existing provisions as subpar. (A), substituted ‘‘Except as
provided in subparagraph (B), merchandise’’ for ‘‘Merchandise’’, and added subpar. (B).
1990—Subsec. (b)(6). Pub. L. 101–382, which directed
substitution of ‘‘subchapter IV of chapter 98 of the Harmonized Tariff Schedule of the United States’’ for ‘‘subpart A of part 2 of schedule 8 of the Tariff schedules of
the United States’’, was executed by making the substitution for ‘‘subpart A of part 2 of schedule 8 of the Tariff Schedules of the United States’’ to reflect the probable intent of Congress.
1988—Subsec. (b). Pub. L. 100–418 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘If a State or local governmental authority, incident to its jurisdiction over any airport, seaport, or
other exit point facility, requires that a concession or
other form of approval be obtained from that authority
with respect to the operation of a duty-free sales enterprise under which merchandise is delivered to such facility for exportation, merchandise incident to such operation may not be withdrawn from a bonded warehouse and transferred to such facility unless the operator of the duty-free sales enterprise demonstrates to
the Secretary of the Treasury that the concession or
approval required for the enterprise has been obtained.
For purposes of this subsection, the term ‘duty-free
sales enterprise’ means an entity that sells, in less
than wholesale quantities, duty-free or tax-free merchandise that is delivered from a bonded warehouse to
an airport, seaport, or point of exit from the United
States for exportation by, or on behalf of, individuals
departing from the United States.’’

EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–573 effective on 15th day
after Oct. 30, 1984, see section 214(a), (b) of Pub. L.
98–573, set out as a note under section 1304 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
For effective date of amendment by Pub. L. 91–271,
see section 203 of Pub. L. 91–271, set out as a note under
section 1500 of this title.
DUTY-FREE SALES ENTERPRISES; FINDINGS
Section 1908(a) of Pub. L. 100–418 provided that: ‘‘The
Congress finds that—
‘‘(1) duty-free sales enterprises play a significant
role in attracting international passengers to the
United States and thereby their operations favorably
affect our balance of payments;
‘‘(2) concession fees derived from the operations of
authorized duty-free sales enterprises constitute an
important source of revenue for the State, local and
other governmental authorities that collect such
fees;
‘‘(3) there is inadequate statutory and regulatory
recognition of, and guidelines for the operation of,
duty-free sales enterprises; and
‘‘(4) there is a need to encourage uniformity and
consistency of regulation of duty-free sales enterprises.’’

§ 1556. Bonded warehouses; regulations for establishing
The Secretary of the Treasury shall from time
to time establish such rules and regulations as
may be necessary for the establishment of bonded warehouses and to protect the interests of the
Government in the conduct, management, and
operation of such warehouses and in the withdrawal of and accounting for merchandise deposited therein.
(June 17, 1930, ch. 497, title IV, § 556, 46 Stat. 743.)
PRIOR PROVISIONS
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 556, 42
Stat. 976. That section was superseded by section 556 of
act June 17, 1930, comprising this section, and repealed
by section 651(a)(1) of the 1930 act.
Prior provisions on the subject matter of this section
were contained in R.S. § 2989, as amended by act Feb. 27,
1877, ch. 69, § 1, 19 Stat. 247, authorizing the Secretary
of the Treasury to establish rules and regulations for
the execution of the provisions of that chapter (chapter
7 of Title 34 of the Revised Statutes, The Bond and
Warehouse System); and in act June 22, 1874, ch. 391,
§ 24, 18 Stat. 191, authorizing the Secretary to make