Aug. 15, 1980; 45 FR 58333, Sept. 3, 1980; 46 FR 1660, Jan. 7, 1981; 52 FR 19463, May 22, 1987]

§ 6.27 Use of licenses.

(a) The article entered must be a product of the country of orgin specified in the license under which it is entered.

(b) Subject to § 6.30, a quota share may be imported from only one country of origin.

(c) Notwithstanding any other rules, regulations, or procedures for the importation of goods, the article entered under license may be entered or withdrawn from warehouse only in the name of the licensee either by the licensee or by the licensee's agent acting in the licensee's name under the power of attorney, and the quantity so entered must, on the date of entry, be owned by the licensee and must be charged against the license in effect. The article entered under license must be accompanied by:

(1) An invoice from a seller in the country of origin to a purchaser in the United States and a through bill of lading from the country of origin to the United States; or

(2) If the seller is not located in the country of origin, a through bill of lading from the country of origin to the United States and a certificate of origin issued in the country of origin which shall indicate the United States as the destination of the merchandise and state the quantity and description of the merchandise in the shipment. Provided, That, these requirements as well as those in paragraph (c)(1) of this section may be temporarily waived by the Licensing Authority upon his or her determination that compliance therewith, during periods of strikes, lockouts, or other such emergencies, affecting the importation of articles would interfere with the entry of such articles.

(d) In the event of a sale in transit, an article may be entered for consumption under a license issued to an authorized person to whom the sale has been made against a properly endorsed through bill of lading and a certified copy of the bill of sale from the original consignee showing the amount paid, the date of purchase,

and the licensee as the owner of the article at such time.

(e) In the event of the loss of the original through bill of lading, a carrier's certificate showing the licensee as consignee and certifying that the shipment is a through shipment may be substituted therefor.

(f) An article may be entered from bonded warehouse only in the manner prescribed above for consumption entries. In the event of sale while in bonded warehouse, entry may be made under license issued to an authorized person or firm to whom the sale has been made and only upon the presentation of a properly endorsed Customs Form 7505 and a certified copy of the bill of sale, showing the amount, date of sale, and that the licensee is the owner of the article at such time.

(g) Consolidated entries or withdrawals from warehouse for consumption may not be made except with the written approval of the Licensing Authority.

(h) Each entry or withdrawal from warehouse for consumption must be accompanied by a copy of Customs entry Form 7501 or Customs warehouse withdrawal Form 7505 (with the appropriate license number noted on it), required through bill of lading and required invoice. The Customs Service will stamp the copy of the completed form 7501 or 7505 with the date of entry and the Customs entry or withdrawal number and submit it to the Licensing Authority as soon as practicable.

§ 6.28 Records and inspection.

Any person making an entry, except as provided in § 6.23, of an article listed in either Appendix 1 or Appendix 2 is required to retain all records, including invoices of all purchases, entries, withdrawals, sales and deliveries of such articles for a period of not less than 2 years subsequent to the end of the quota year during which entry was made. The Licensing Authority or his or her designee is entitled to make such audit and inspection of such records, to inspect the premises and stocks of articles of such person, and to make such other investigations as may be necessary or appropriate in

the enforcement or administration of the regulation.

[44 FR 75596, Dec. 20, 1979]

§ 6.29 Suspension or revocation of eligibility.

(a) Failure to import quota share— (1) If the Licensing Authority has reason to believe that a person with a historical quota share for any article has failed to enter any of such article for two consecutive quota years, or three nonconsecutive quota years within a five year period, the eligibility of such person for a historical license to enter such article will be suspended for the following quota year pending receipt by the Licensing Authority of documentary evidence of entry against such quota share during one or more of said years, unless the reason for failure to enter is acceptable to the Licensing Authority and an application to receive a license to import such article is received and approved by the Licensing Authority no later than 3 months after the beginning of such following quota year.

(2) If the Licensing Authority determines that a person with a historical quota share for any article has failed to import any of such article during two consecutive years, or three nonconsecutive years within a five year period, the eligibility of such person will be revoked unless the licensee establishes that he or she was unable to import such article due to extraordinary circumstances acceptable to the Licensing Authority.

(b) Violations of the regulation—(1) Charge against licenses. Any quantity of an article entered by any person contrary to this regulation may be charged against any unused import license held by, or to be issued to, such person.

(2) Civil and criminal liability. Any person who violates any provision of the regulation may be prosecuted under any and all applicable laws. Civil action may also be instituted to enforce any liability or duty created by, or enjoin any violation of any provision of, the regulation or —equirement pursuant hereto.

(3) Revocation of license eligibility. The Licensing Authority, upon reasonable cause to believe-after records are

reviewed and a preliminary investigation is made by the Department-that a licensee has violated the provisions of the regulation or has furnished false or incomplete information in connection with the application for or use of licenses issued hereunder, may, after notice to the licensee, revoke said licensee's eligibility (a permanent revocation of historical eligibility) and may bar such person from receiving any supplementary or nonhistorical licenses for a period of not more than three years. Any person whose eligibility has been revoked pursuant to provisions of this section will have the opportunity to appeal the determination to the Director, Dairy, Livestock and Poultry Division, Foreign Agricultural Service (FAS), or his or her designee within 30 days from the date of notification. The request for reconsideration will be presented in writing specifically stating any reason as to why such determination should not stand. The Director, Dairy, Livestock and Poultry Division, FAS will provide such person with an opportunity for a hearing on such matter. A further appeal may be made to the Administrator, FAS within five working days of the notification of the decision of the Director, Dairy, Livestock and Poultry Division, FAS.

[44 FR 75596, Dec. 20, 1979, as amended at 46 FR 1661, Jan. 7, 1981]

§ 6.30 Adjustment of countries of origin.

(a) Upon submission by a licensee of proof satisfactory to the Licensing Authority that said licensee will be unable to enter during a quota year his or her quota share of an article from the country of origin specified in his or her license, the Licensing Authority or his or her designee may authorize the licensee and other licensees similarly situated after taking due account of any special factors which may have affected or may be affecting the trade in the article concerned, to obtain the unfilled portion of their quota shares of such article from:

(1) Other countries specified in Part 3 of the appendix to the Tariff Schedules of the United States as countries of origin for such article;

(2) Any country of origin (global) whenever countries of origin for such article are not specified.

(b) In the event that it is shown to the satisfaction of the Licensing Authority that the country of origin discriminates against a licensee as to either price or availability of an article, the Licensing Authority shall not impose any penalties with respect to failure to use 85% or more of his or her quota share during such quota year and/or the Licensing Authority may adjust the country of origin.

§ 6.31 Delegation of authority.

The powers vested in the Administrator, FAS, insofar as such powers relate to the functions vested in the Licensing Authority by this regulation are hereby delegated to the Licensing Authority.

§ 6.32 Supersedure of Import Regulation 1, revision 6.

This regulation will supersede the provisions of Import Regulation 1, Revision 6, as amended, heretofore in effect. With respect to violations, rights accrued, liabilities incurred, or appeals taken concerning Import Regulation 1, as amended and revised, prior to the effective date hereof, all provisions of said Import Regulation 1, as amended and revised, in effect at the time when such violations occurred, rights accrued, liabilities incurred, or appeals taken will be deemed to continue in full force and effect for the purpose of sustaining any proper suit, action, or other proceeding with respect to any such violation, right, liability, or appeal.

(a) A fee will be charged for each license issued to a person by the Licensing Authority to reimburse the Department for the costs of administering the licensing system under this regulation.

(b) The fee for each license will be determined by dividing the cost of administering the licensing system (determined in accordance with paragraph (c) of this section) by the average number of licenses issued per year for the three years immediately preceding the year for which the fee is to

be assessed. To the extent practicable, the fee will be announced by the Licensing Authority no later than July 31 of the year preceding the year for which the fee is to be assessed. The fee will be set out in a notice filed with the FEDERAL REGISTER.

(c) The Licensing Authority shall determine the costs (both incurred and estimated) of administering the licensing system for the calendar year preceding the year for which the fee is to be charged using the following criteria:

(1) The cost of staff and supervisory hours devoted directly to administering the licensing system;

(2) The cost of the computer on-line entry system used to administer the licensing system; and

(3) Other miscellaneous costs directly related to administering the licensing system.

(d) The fee each license is due upon the date of issuance of the license and must be paid by the licensee no later than May 15 of the year for which the license is issued or such date as may be specified in the announcement issued by the Licensing Authority in accordance with paragraph (b) of this section. The fee for any license issued after April 15 of any year must be paid by the licensee no later than 30 days from the date of issuance of the license. Fee payments shall be made by check or money order payable to the Treasurer of the United States.

(e) If the fee for a license is not paid by the licensee by the final payment date, (1) the authority of the licensee to import any article under such license held by the licensee will be automatically suspended by the Licensing Authority until the fee has been paid or arrangements satisfactory to the Licensing Authority have been made for the payment of such fee, and (2) the licensee's eligibility for licenses to enter any article will be subject to revocation and suspension in accordance with § 6.29 (b)(3).

[50 FR 30262, July 25, 1985]

§ 6.34 Paperwork Reduction Act assigned

number.

The Office of Management and Budget has approved the information