Imports (non-filed). Imports may be insured under inland marine
policies when the property is not subject to import risk covered under
marine (ocean) policies.
(1) Imports on consignment may be covered without restriction
as to time or location of the property, provided the coverage includes
transportation hazards. "On consignment" refers to property consigned
and entrusted to factors or agents to be held in their care, or under
their control:
(A) for sale; for account of another; or for exhibit,
trial, approval, or auction; and
(B) for return, if not disposed of.
(2) Imports not on consignment may be covered in places
of storage that are typically used by importers, provided the coverage
includes transportation hazards. These policies may also include the
same coverage for property purchased on cost-insurance-freight terms
or spot purchases included with or substituted for bona fide importations.
An import can remain covered under an inland marine policy as long
as the property remains segregated in the original form or package
in a way that it can be identified and has not become incorporated
and mixed with the general mass of property in the United States.
An import can no longer be covered under the inland marine policy
when the property has been:
(A) sold and delivered by the importer, factor, or
consignee;
(B) removed from its place of storage and placed on
sale as part of the importer's stock in trade at a point of sales
distribution; or
(C) delivered and accepted for manufacture, processing,
or change in form at the premises used for any of those purposes.
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