This document amends the Customs Regulations regarding the establishment and scope of operation of Centralized Examination Stations (CESs). To reflect Customs interest in maximizing compliance with export control laws and regulations without unduly impeding the movement of outbound merchandise, the definition of a CES is expanded to allow merchandise intended to be exported as well as imported merchandise to be handled by a CES. The amendment allows outbound cargo to be inspected at CESs at ports other than the shipment's designated port of exit. Further, to make the CES application procedure more amenable to local conditions, this amendment provides CES applicants with more flexibility regarding the time frame to conform a facility to meet Customs security or other physical or equipment requirements. Lastly, this amendment removes one of the criteria on the application to operate a CES because Customs believes it is too subjective. These changes are made in order to keep the CES program responsive to both Customs and the trade community's demands for the facilitated examinations of trade merchandise.