Part III—Ascertainment, Collection, and Recovery of Duties
§1481. Invoice; contents
(a) In general
All invoices of merchandise to be imported into the United States and any electronic equivalent thereof considered acceptable by the Secretary in regulations prescribed under this section shall set forth, in written, electronic, or such other form as the Secretary shall prescribe, the following:
(1) The port of entry to which the merchandise is destined;
(2) The time when, the place where, and the person by whom and the person to whom the merchandise is sold or agreed to be sold, or if to be imported otherwise than in pursuance of a purchase, the place from which shipped, the time when and the person to whom and the person by whom it is shipped;
(3) A detailed description of the merchandise, including the commercial name by which each item is known, the grade or quality, and the marks, numbers, or symbols under which sold by the seller or manufacturer in the country of exportation, together with the marks and numbers of the packages in which the merchandise is packed;
(4) The quantities in the weights and measures of the country or place from which the merchandise is shipped, or in the weights and measures of the United States;
(5) The purchase price of each item in the currency of the purchase, if the merchandise is shipped in pursuance of a purchase or an agreement to purchase;
(6) If the merchandise is shipped otherwise than in pursuance of a purchase or an agreement to purchase, the value for each item, in the currency in which the transactions are usually made, or, in the absence of such value, the price in such currency that the manufacturer, seller, shipper, or owner would have received, or was willing to receive, for such merchandise if sold in the ordinary course of trade and in the usual wholesale quantities in the country of exportation;
(7) The kind of currency, whether gold, silver, or paper;
(8) All charges upon the merchandise, itemized by name and amount when known to the seller or shipper; or all charges by name (including commissions, insurance, freight, cases, containers, coverings, and cost of packing) included in the invoice prices when the amounts for such charges are unknown to the seller or shipper;
(9) All rebates, drawbacks, and bounties, separately itemized, allowed upon the exportation of the merchandise; and
(10) Any other fact that the Secretary may by regulation require as being necessary to a proper appraisement, examination and classification of the merchandise.
(b) Shipments not purchased and not shipped by manufacturer
If the merchandise is shipped to a person in the United States by a person other than the manufacturer, otherwise than by purchase, such person shall state on the invoice the time when, the place where, the person from whom such merchandise was purchased, and the price paid therefor in the currency of the purchase, stating whether gold, silver, or paper.
(c) Importer provision of information
Any information required to be set forth on an invoice may alternatively be provided by any of the parties qualifying as an "importer of record" under
(d) Exceptions by regulations
The Secretary of the Treasury may by regulations provide for such exceptions from the requirements of this section as he deems advisable and may allow for the submission or electronic transmission of partial invoices, electronic equivalents of invoices, bills, or other documents or parts thereof, required under this section.
(June 17, 1930, ch. 497, title IV, §481,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §481,
Provisions as to the weights or measures, and currency, in which invoices should be made out and the contents of invoices, with additional provisions as to invoices of merchandise intended for immediate transportation without appraisement, and a provision as to the signing of the invoice, were contained in R.S. §2837 and act Oct. 3, 1913, ch. 16, §III, C,
R.S. §§2838, 2853 (as amended by Act June 10, 1880, ch. 190) and 2860, contained provisions concerning invoices and their contents, prior to repeal by Customs Administrative Act of June 10, 1890, ch. 407, §29,
Act May 27, 1921, ch. 14, §401,
Provisions on the subject matter of subdivision (c) of this section were contained in act Oct. 3, 1913, ch. 16, §III, W,
Amendments
1993—Subsec. (a).
Subsec. (a)(3).
Subsec. (a)(10).
Subsec. (c).
Subsec. (d).
§1482. Repealed. Pub. L. 103–182, title VI, §690(b)(8), Dec. 8, 1993, 107 Stat. 2223
Section, acts June 17, 1930, ch. 497, title IV, §482,
§1483. Repealed. Pub. L. 97–446, title II, §201(c), Jan. 12, 1983, 96 Stat. 2349
Section, acts June 17, 1930, ch. 497, title IV, §483,
Effective Date of Repeal
Repeal effective with respect to merchandise entered on and after 30th day after Jan. 12, 1983, see section 201(g) of
§1484. Entry of merchandise
(a) Requirement and time
(1) Except as provided in
(A) make entry therefor by filing with the Bureau of Customs and Border Protection such documentation or, pursuant to an authorized electronic data interchange system, such information as is necessary to enable the Bureau of Customs and Border Protection to determine whether the merchandise may be released from custody of the Bureau of Customs and Border Protection; 1
(B) complete the entry, or substitute 1 or more reconfigured entries on an import activity summary statement, by filing with the Customs Service the declared value, classification and rate of duty applicable to the merchandise, and such other documentation or, pursuant to an electronic data interchange system, such other information as is necessary to enable the Customs Service to—
(i) properly assess duties on the merchandise,
(ii) collect accurate statistics with respect to the merchandise, and
(iii) determine whether any other applicable requirement of law (other than a requirement relating to release from customs custody) is met.
(2)(A) The documentation or information required under paragraph (1) with respect to any imported merchandise shall be filed or transmitted in such manner and within such time periods as the Secretary shall by regulation prescribe. Such regulations shall provide for the filing of import activity summary statements, and permit the filing of reconfigured entries, covering merchandise released under a special delivery permit pursuant to
(B) When an entry of merchandise is made under this section, the required documentation or information shall be filed or electronically transmitted either by the owner or purchaser of the merchandise or, when appropriately designated by the owner, purchaser, or consignee of the merchandise, a person holding a valid license under
(C) The Secretary, in prescribing regulations to carry out this subsection, shall establish procedures which insure the accuracy and timeliness of import statistics, particularly statistics relevant to the classification and valuation of imports. Corrections of errors in such statistical data shall be transmitted immediately to the Director of the Bureau of the Census, who shall make corrections in the statistics maintained by the Bureau. The Secretary shall also provide, to the maximum extent practicable, for the protection of the revenue, the enforcement of laws governing the importation and exportation of merchandise, the facilitation of the commerce of the United States, and the equal treatment of all importers of record of imported merchandise.
(b) Reconciliation
(1) In general
A party may elect to file a reconciliation with regard to such entry elements as are identified by the party pursuant to regulations prescribed by the Secretary. If the party so elects, the party shall declare that a reconciliation will be filed. The declaration shall be made in such manner as the Secretary shall prescribe and at the time the documentation or information required by subsection (a)(1)(B) or the import activity summary statement is filed with, or transmitted to, the Customs Service, or at such later time as the Customs Service may, in its discretion, permit. The reconciliation shall be filed by the importer of record at such time and in such manner as the Secretary prescribes but not later than 21 months after the date the importer declares his intent to file the reconciliation. In the case of reconciling issues relating to the assessment of antidumping and countervailing duties, the reconciliation shall be filed not later than 90 days after the date the Customs Service advises the importer that the period of review for antidumping or countervailing duty purposes has been completed. Before filing a reconciliation, an importer of record shall post bond or other security pursuant to such regulations as the Secretary may prescribe.
(2) Regulations regarding AD/CV duties
The Secretary shall prescribe, in consultation with the Secretary of Commerce, such regulations as are necessary to adapt the reconciliation process for use in the collection of antidumping and countervailing duties.
(c) Release of merchandise
The Customs Service may permit the entry and release of merchandise from customs custody in accordance with such regulations as the Secretary may prescribe. No officer of the Customs Service shall be liable to any person with respect to the delivery of merchandise released from customs custody in accordance with such regulations.
(d) Signing and contents
(1) Entries shall be signed by the importer of record, or his agent, unless filed pursuant to an electronic data interchange system. If electronically filed, each transmission of data shall be certified by an importer of record or his agent, one of whom shall be resident in the United States for purposes of receiving service of process, as being true and correct to the best of his knowledge and belief, and such transmission shall be binding in the same manner and to the same extent as a signed document. The entry shall set forth such facts in regard to the importation as the Secretary may require and shall be accompanied by such invoices, bills of lading, certificates, and documents, or their electronically submitted equivalents, as are required by regulation.
(2) The Secretary, in prescribing regulations governing the content of entry documentation, shall require that entry documentation contain such information as may be necessary to determine whether the imported merchandise bears an infringing trademark in violation of
(e) Production of invoice
The Secretary may provide by regulation for the production of an invoice, parts thereof, or the electronic equivalents thereof, in such manner and form, and under such terms and conditions, as the Secretary considers necessary.
(f) Statistical enumeration
The Secretary, the Secretary of Commerce, and the United States International Trade Commission shall establish from time to time for statistical purposes an enumeration of articles in such detail as in their judgment may be necessary, comprehending all merchandise imported into the United States and exported from the United States, and shall seek, in conjunction with statistical programs for domestic production and programs for achieving international harmonization of trade statistics, to establish the comparability thereof with such enumeration of articles. All import entries and export declarations shall include or have attached thereto an accurate statement specifying, in terms of such detailed enumeration, the kinds and quantities of all merchandise imported and exported and the value of the total quantity of each kind of article.
(g) Statement of cost of production
Under such regulations as the Secretary may prescribe, the Customs Service may require a verified statement from the manufacturer or producer showing the cost of producing the imported merchandise, if the Customs Service considers such verification necessary for the appraisement of such merchandise.
(h) Admissibility of data electronically transmitted
Any entry or other information transmitted by means of an authorized electronic data interchange system shall be admissible in any and all administrative and judicial proceedings as evidence of such entry or information.
(i) Special rule for foreign trade zone operations
(1) In general
Notwithstanding any other provision of law and except as provided in paragraph (3), all merchandise (including merchandise of different classes, types, and categories), withdrawn from a foreign trade zone during any 7-day period, shall, at the option of the operator or user of the zone, be the subject of a single estimated entry or release filed on or before the first day of the 7-day period in which the merchandise is to be withdrawn from the zone. The estimated entry or release shall be treated as a single entry and a single release of merchandise for purposes of
(2) Other requirements
The Secretary of the Treasury may require that the operator or user of the zone—
(A) use an electronic data interchange approved by the Customs Service—
(i) to file the entries described in paragraph (1); and
(ii) to pay the applicable duties, fees, and taxes with respect to the entries; and
(B) satisfy the Customs Service that accounting, transportation, and other controls over the merchandise are adequate to protect the revenue and meet the requirements of other Federal agencies.
(3) Exception
The provisions of paragraph (1) shall not apply to merchandise the entry of which is prohibited by law or merchandise for which the filing of an entry summary is required before the merchandise is released from customs custody.
(4) Foreign trade zone; zone
In this subsection, the terms "foreign trade zone" and "zone" mean a zone established pursuant to the Act of June 18, 1934, commonly known as the Foreign Trade Zones Act (
(j) Treatment of multiple entries of merchandise as single transaction
In the case of merchandise that is purchased and invoiced as a single entity but—
(1) is shipped in an unassembled or disassembled condition in separate shipments due to the size or nature of the merchandise, or
(2) is shipped in separate shipments due to the inability of the carrier to include all of the merchandise in a single shipment (at the instruction of the carrier),
the Customs Service may, upon application by an importer in advance, treat such separate shipments for entry purposes as a single transaction.
(June 17, 1930, ch. 497, title IV, §484,
References in Text
The Foreign Trade Zones Act, referred to in subsec. (i)(4), is act June 18, 1934, ch. 590,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §484,
Provisions requiring entry of goods, and prescribing the manner of making it, the documents to be produced, etc., were contained in R.S. §2785. Provision for entry when the particulars of the merchandise were unknown was made by R.S. §2788. A special provision regarding entry of distilled spirits and wines was contained in R.S. §2794. All of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
Provisions relating to the production of certified invoices were contained in act Oct. 3, 1913, ch. 16, §III, E,
R.S. §2842 required bond for the production of an invoice duly certified by the oath of the owner or one of them, in the case of merchandise belonging to a resident of the United States absent from the place of entry. R.S. §2852, provided that when merchandise was admitted to entry on invoice, the collector should certify the same, and no other evidence of value should be admitted on the part of the owner, except in corroboration of the entry. R.S. §2859, made special provision for entry of merchandise from countries where there was no United States consul, etc. These sections were all repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
R.S. §§2847 and 2848 authorized the Secretary of the Treasury to admit to entry in certain cases merchandise subject to ad valorem duty, belonging to a person not residing in the United States, not accompanied with an invoice verified and authenticated as required by preceding section. They became inoperative by the repeal of R.S. §§2843, 2845, by the Customs Administrative Act of June 10, 1890, ch. 407, §29,
R.S. §2858, provided that the Secretary of the Treasury, whenever it had become impracticable for the person desiring to make entry of merchandise to produce any invoice thereof, might authorize the entry thereof, and remit forfeitures in such cases, as in other cases under the revenue laws. It was repealed by the Customs Administrative Act of June 10, 1890, ch. 407, §29,
A provision relating to statistical enumeration of merchandise, except that the "accurate statement" was to be a part of the declaration therein provided for, and a further provision making it the duty of the consular officer to whom the invoice should be produced to require the information to be given, were contained in act Oct. 3, 1913, ch. 16, §III, F,
Prior provisions on the subject of subsequent entry of part of merchandise and separate entry of packages contained in packages for delivery to others were contained in act May 1, 1876, ch. 89, §1,
Amendments
2006—Subsec. (a)(1)(A).
"(i) such documentation or, pursuant to an electronic data interchange system, such information as is necessary to enable the Customs Service to determine whether the merchandise may be released from customs custody, and
"(ii) notification whether an import activity summary statement will be filed; and".
Subsec. (a)(2)(A).
2004—Subsec. (a)(1)(B).
Subsec. (a)(2)(A).
Subsec. (b)(1).
2000—Subsec. (i).
Subsec. (j).
1996—Subsec. (a)(1).
Subsec. (b)(1).
Subsec. (d).
1993—
1983—Subsec. (a)(1).
Subsec. (a)(2)(C), (D).
Subsec. (c).
Subsec. (d).
Subsec. (h).
Subsec. (i).
1978—Subsec. (a).
Subsec. (c)(3).
Subsec. (j).
1977—Subsec. (e).
1975—Subsec. (e).
1970—Subsec. (a).
Subsec. (c).
Subsec. (g).
Subsec. (j).
1953—Subsec. (a). Act Aug. 8, 1953, §16(b), substituted "five days" for "forty-eight hours".
Subsec. (b). Act Aug. 8, 1953, §16(c), granted the Secretary of the Treasury discretion to require certified invoices with respect to merchandise entered as he deems advisable and to establish terms under which merchandise may be imported without a certified invoice, in lieu of former provision that all such merchandise should be accompanied by an invoice certified by a United States consulate except in certain enumerated situations, and of the former provision that the Secretary might grant certain other exceptions.
Subsec. (f). Act Aug. 8, 1953, §3(b), inserted provision relating to acceptance at port of entry designated by consignee or his agent in cases of articles not subject to a quantitative or tariff-rate quota.
1938—Subsec. (f). Act June 25, 1938, inserted provision relating to authorization by the Secretary for inclusion of portions of merchandise in separate entries under such rules and regulations as he may prescribe.
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2000 Amendments
Amendment by
Effective Date of 1983 Amendment
Effective Date of 1978 Amendment
Effective Date of 1975 Amendment
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1953 Amendment; Savings Provision
Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
Effective Date of 1938 Amendment
Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as a note under
Regulations
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
Requirements Relating to Determination of Transaction Value of Imported Merchandise
"(a)
"(1)
"(2)
"(3)
"(b)
"(1)
"(2)
"(A) the number of importers that declare the transaction value of the imported merchandise is determined on the basis of the method described in subsection (a)(2);
"(B) the tariff classification of such imported merchandise under the Harmonized Tariff Schedule of the United States; and
"(C) the transaction value of such imported merchandise.
"(c)
"(1)
"(2)
"(A) the aggregate number of importers that declare the transaction value of the imported merchandise is determined on the basis of the method described in subsection (a)(2), including a description of the frequency of the use of such method;
"(B) the tariff classification of such imported merchandise under the Harmonized Tariff Schedule of the United States on an aggregate basis, including an analysis of the tariff classification of such imported merchandise on a sectoral basis;
"(C) the aggregate transaction value of such imported merchandise, including an analysis of the transaction value of such imported merchandise on a sectoral basis; and
"(D) the aggregate transaction value of all merchandise imported into the United States during the 1-year period specified in subsection (a)(3).
"(d)
"(1)
"(2)
"(A) consults with, and provides notice to, the appropriate congressional committees—
"(i) not less than 180 days prior to proposing a change; and
"(ii) not less than 90 days prior to publishing a change;
"(B) consults with, provides notice to, and takes into consideration views expressed by, the Commercial Operations Advisory Committee—
"(i) not less than 120 days prior to proposing a change; and
"(ii) not less than 60 days prior to publishing a change; and
"(C) receives the explicit approval of the Secretary of the Treasury prior to publishing a change.
"(3)
"(e)
"(1)
"(2)
"(3)
"(4)
[
Drug Paraphernalia
"(a)
"(b)
Study of Commodity Classification Systems
Investigation by United States International Trade Commission; Formulation of International Commodity Code
Cooperation of Governmental Agencies With Secretary of Commerce and United States International Trade Commission in Studies and Investigations
1 So in original. The word "and" probably should appear at end.
§1484a. Articles returned from space not to be construed as importation
The return of articles from space shall not be considered an importation, and an entry of such articles shall not be required, if:
(1) such articles were previously launched into space from the customs territory of the United States aboard a spacecraft operated by, or under the control of, United States persons and owned—
(A) wholly by United States persons, or
(B) in substantial part by United States persons, or
(C) by the United States;
(2) such articles were maintained or utilized while in space solely on board such spacecraft or aboard another spacecraft which meets the requirements of paragraph (1)(A) through (C) of this section; and
(3) such articles were returned to the customs territory directly from space aboard such spacecraft or aboard another spacecraft which meets the requirements of paragraph (1)(A) through (C) of this section;
without regard to whether such articles have been advanced in value or improved in condition by any process of manufacture or other means while in space.
(June 17, 1930, ch. 497, title IV, §484a, as added
Effective Date
Section applicable with respect to articles launched into space from the customs territory of the United States on or after Jan. 1, 1985, see section 214(c)(4) of
§1484b. Deferral of duty on large yachts imported for sale at United States boat shows
(a) In general
Notwithstanding any other provision of law, any vessel meeting the definition of a large yacht as provided in subsection (b) and which is otherwise dutiable may be imported without the payment of duty if imported with the intention to offer for sale at a boat show in the United States. Payment of duty shall be deferred, in accordance with this section, until such large yacht is sold.
(b) Definition
As used in this section, the term "large yacht" means a vessel that exceeds 79 feet in length, is used primarily for recreation or pleasure, and has been previously sold by a manufacturer or dealer to a retail consumer.
(c) Deferral of duty
At the time of importation of any large yacht, if such large yacht is imported for sale at a boat show in the United States and is otherwise dutiable, duties shall not be assessed and collected if the importer of record—
(1) certifies to the Customs Service that the large yacht is imported pursuant to this section for sale at a boat show in the United States; and
(2) posts a bond, which shall have a duration of 6 months after the date of importation, in an amount equal to twice the amount of duty on the large yacht that would otherwise be imposed under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States.
(d) Procedures upon sale
(1) 1 Deposit of duty
If any large yacht (which has been imported for sale at a boat show in the United States with the deferral of duties as provided in this section) is sold within the 6-month period after importation—
(A) entry shall be completed and duty (calculated at the applicable rates provided for under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States and based upon the value of the large yacht at the time of importation) shall be deposited with the Customs Service; and
(B) the bond posted as required by subsection (c)(2) shall be returned to the importer.
(e) Procedures upon expiration of bond period
(1) In general
If the large yacht entered with deferral of duties is neither sold nor exported within the 6-month period after importation—
(A) entry shall be completed and duty (calculated at the applicable rates provided for under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States and based upon the value of the large yacht at the time of importation) shall be deposited with the Customs Service; and
(B) the bond posted as required by subsection (c)(2) shall be returned to the importer.
(2) Additional requirements
No extensions of the bond period shall be allowed. Any large yacht exported in compliance with the bond period may not be reentered for purposes of sale at a boat show in the United States (in order to receive duty deferral benefits) for a period of 3 months after such exportation.
(f) Regulations
The Secretary of the Treasury is authorized to make such rules and regulations as may be necessary to carry out the provisions of this section.
(June 17, 1930, ch. 497, title IV, §484b, as added
References in Text
The Harmonized Tariff Schedule of the United States, referred to in subsecs. (c)(2), (d)(1)(A), and (e)(1)(A), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
Effective Date
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
1 So in original. No par. (2) has been enacted.
§1485. Declaration
(a) Requirement; form and contents
Every importer of record making an entry under the provisions of
(1) Whether the merchandise is imported in pursuance of a purchase or an agreement to purchase, or whether it is imported otherwise than in pursuance of a purchase or agreement to purchase;
(2) That the prices set forth in the invoice are true, in the case of merchandise purchased or agreed to be purchased; or in the case of merchandise secured otherwise than by purchase or agreement to purchase, that the statements in such invoice as to value or price are true to the best of his knowledge and belief;
(3) That all other statements in the invoice or other documents filed with the entry, or in the entry itself, are true and correct; and
(4) That he will produce at once to the appropriate customs officer any invoice, paper, letter, document, or information received showing that any such prices or statements are not true or correct.
(b) Books and periodicals
The Secretary of the Treasury is authorized to prescribe regulations for one declaration in the case of books, magazines, newspapers, and periodicals published and imported in successive parts, numbers, or volumes, and entitled to free entry.
(c) Agents
In the event that an entry is made by an agent under the provisions of
(d) Liability of importer of record for increased duties
An importer of record shall not be liable for any additional or increased duties if (1) he declares at the time of entry that he is not the actual owner of the merchandise, (2) he furnishes the name and address of such owner, and (3) within ninety days from the date of entry he produces a declaration of such owner conditioned that he will pay all additional and increased duties, under such regulations as the Secretary of the Treasury may prescribe. Such owner shall possess all the rights of an importer of record.
(e) Separate forms for purchase and nonpurchase importations
The Secretary of the Treasury shall prescribe separate forms for the declaration in the case of merchandise which is imported in pursuance of a purchase or agreement to purchase and merchandise which is imported otherwise than in pursuance of a purchase or agreement to purchase.
(f) Deceased or insolvent persons; partnerships and corporations
Whenever such merchandise is consigned to a deceased person, or to an insolvent person who has assigned the same for the benefit of his creditors, the executor or administrator, or the assignee of such person or trustee in a case under title 11, shall be considered as the importer of record; when consigned to a partnership the declaration of one of the partners only shall be required, and when consigned to a corporation such declaration may be made by any officer of such corporation. Whether the importer of record is an individual, a partnership, or a corporation, the declaration may be made by any person who has knowledge of the facts and who is specifically authorized by such individual, a member of such partnership, or an officer of such corporation to make such declaration.
(g) Exported merchandise returned as undeliverable
With respect to any importation of merchandise to which General Headnote 4(e) of the Harmonized Tariff Schedule of the United States applies, any person who gained any benefit from, or met any obligation to, the United States as a result of the prior exportation of such merchandise shall, in accordance with regulations prescribed by the Secretary, within a reasonable time inform the Customs Service of the return of the merchandise.
(June 17, 1930, ch. 497, title IV, §485,
References in Text
The Harmonized Tariff Schedule of the United States, referred to in subsec. (g), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §485,
Prior provisions for a declaration to be filed when merchandise was entered by invoice, were contained in the Customs Administrative Act of June 10, 1890, ch. 407, §5,
R.S. §2786, requiring entries to be verified by oath, was superseded by the Customs Administrative Act of June 10, 1890, ch. 407, §§4, 5, 22,
R.S. §2841 prescribed the forms of oaths of which one, according to the nature of the case, was required to be administered by the collector at the time of the entry of merchandise by invoice. It was modified by act May 1, 1876, ch. 89, §2,
The provisions for the abolition of fees and oaths on entry of goods, made by the Customs Administrative Act of June 10, 1890, ch. 407, §22,
Act May 1, 1876, ch. 89, §2,
R.S. §2849, relative to oaths when merchandise belonged in part to a resident of the United States and in part to a non-resident was superseded in part by the Customs Administrative Act of June 10, 1890, ch. 407, §§5, 22, 29,
Prior provisions requiring a bond to be taken when entry was made by an agent, factor, or person other than the owner or ultimate consignee, and prescribing the conditions, etc., of the bond, and the circumstances under which it might be canceled with a proviso authorizing the taking of a general penal bond, were contained in R.S. §2787, as amended by act Mar. 2, 1905, ch. 1306,
Provisions concerning the statement to be presented to the collector when merchandise entered for customs duty had been consigned for sale to a person, agent, partner, or consignee, were contained in act Oct. 3, 1913, ch. 16, §III, J,
A prior provision relative to oaths to invoices when merchandise belonged to estates of deceased persons or of persons insolvent was contained in R.S. §2846, which was superseded, in part, by the abolition of all oaths administered by officers of the customs, except as provided therein, by the Customs Administrative Act of June 10, 1890, ch. 407, §22,
Amendments
1993—Subsec. (a).
Subsec. (d).
Subsec. (g).
1983—Subsec. (a).
Subsec. (c).
Subsecs. (d), (f).
1978—Subsec. (f).
1970—Subsec. (a).
1938—Subsec. (f). Act June 25, 1938, changed the comma to a period after "such declaration may be made by any officer of such corporation", struck out "or by any other person specifically authorized by any officer of such corporation to make the same" after said comma, and inserted in lieu thereof a new sentence providing that whether the consignee is an individual, a partnership, or a corporation, the declaration may be made by any person having knowledge of the facts and authorized to make such declaration.
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1938 Amendment
Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as a note under
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
§1486. Administration of oaths; verification of documents
(a) Customs officers
The following officers and employees may administer any oaths required or authorized by law or regulations promulgated thereunder in respect of any matter coming before such officers or employees in the performance of their official duties: (1) Any customs officer appointed by the President; (2) the chief assistant of any such officer, or any officer or employee of the customs field service designated for the purpose by such officer or by the Secretary of the Treasury; and (3) any officer or employee of the United States Customs Service designated for the purpose by the Secretary of the Treasury.
(b) Postmasters
The postmaster or assistant postmaster of the United States at any post office where customs officers are not stationed, is authorized to administer any oaths required to be made to statements in customs documents by importers of merchandise, not exceeding $100 in value, through the mails.
(c) No compensation
No compensation or fee shall be demanded or accepted for administering any oath under the provisions of this section.
(d) Verification in lieu of oath
The Secretary of the Treasury may by regulation prescribe that any document required by any law administered by the Customs Service to be under oath may be verified by a written declaration in such form as he shall prescribe, such declaration to be in lieu of the oath otherwise required.
(June 17, 1930, ch. 497, title IV, §486,
Amendments
1953—Subsec. (d). Act Aug. 8, 1953, amended section catchline generally and added subsec. (d). Prior to amendment, catchline read as follows: "Administration of oaths".
1953—Subsec. (d). Act Aug. 8, 1953, added subsec. (d).
Change of Name
"United States Customs Service" substituted in text for "Bureau of Customs" pursuant to Treasury Department Order 165–23, Apr. 4, 1973, eff. Aug. 1, 1973, 38 F.R. 13037. See, also,
Effective Date of 1953 Amendment; Savings Provision
Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
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
Functions of all officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935,
§1487. Value in entry; amendment
The importer of record or his agent may, under such regulations as the Secretary of the Treasury may prescribe, at the time entry is made, make in the entry such additions to or deductions from the cost or value given in the invoice as, in his opinion, may raise or lower the same to the value of such merchandise.
(June 17, 1930, ch. 497, title IV, §487,
Prior Provisions
Provisions somewhat similar to those in this section were contained in act Oct. 3, 1913, ch. 16, §III, I,
Provisions for addition to the invoice values made by R.S. §2900, were repealed by section 29 of the Customs Administrative Act.
Amendments
1983—
1953—Act Aug. 8, 1953, struck out "or at any time before the invoice or the merchandise has come under the observation of the appraiser for the purpose of appraisement," after "at the time entry is made,".
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1953 Amendment; Savings Provision
Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
§1488. Repealed. Pub. L. 91–271, title II, §204(b), June 2, 1970, 84 Stat. 283
Section, act June 17, 1930, ch. 497, title IV, §488,
Effective Date of Repeal
For effective date of repeal, see section 203 of
§1489. Repealed. Pub. L. 87–456, title III, §301(a), May 24, 1962, 76 Stat. 75
Section, acts June 17, 1930, ch. 497, title IV, §489,
Effective Date of Repeal
For effective date of repeal, see section 501(a) of
§1490. General orders
(a) Incomplete entry
(1) Whenever—
(A) the entry of any imported merchandise is not made within the time provided by law or by regulation prescribed by the Secretary;
(B) the entry of imported merchandise is incomplete because of failure to pay the estimated duties, fees, or interest;
(C) in the opinion of the Customs Service, the entry of imported merchandise cannot be made for want of proper documents or other cause; or
(D) the Customs Service believes that any merchandise is not correctly and legally invoiced;
the carrier (unless subject to subsection (c)) shall notify the bonded warehouse of such unentered merchandise.
(2) After notification under paragraph (1), the bonded warehouse shall arrange for the transportation and storage of the merchandise at the risk and expense of the consignee. The merchandise shall remain in the bonded warehouse until—
(A) entry is made or completed and the proper documents are produced;
(B) the information and data necessary for entry are transmitted to the Customs Service pursuant to an authorized electronic data interchange system; or
(C) a bond is given for the production of documents or the transmittal of data.
(b) Request for possession by Customs
At the request of the consignee of any merchandise, or of the owner or master of the vessel or the person in charge of the vehicle in which the same is imported, any merchandise may be taken possession of by the Customs Service after the expiration of one day after the entry of the vessel or report of the vehicle and may be unladen and held at the risk and expense of the consignee until entry thereof is made.
(c) Government merchandise
Any imported merchandise that—
(1) is described in any of subparagraphs (A) through (D) of subsection (a)(1); and
(2) is consigned to, or owned by, the United States Government;
shall be stored and disposed of in accordance with such rules and procedures as the Secretary shall by regulation prescribe.
(June 17, 1930, ch. 497, title IV, §490,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §490,
Prior provisions authorizing the collector to take possession of, or store merchandise were contained in the following sections, all of which were repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
R.S. §2789, authorizing the collector, when an entry was imperfect, to take the merchandise into his custody until the quantity, quality, or value could be ascertained;
R.S. §2840, providing that when the collector should suspect that merchandise was not invoiced at a sum equal to that for which it had usually been sold, he should take possession and retain the same until its value had been ascertained and the duties paid or secured;
R.S. §2926, providing that merchandise of which incomplete entry had been made, or entry without specification of particulars, should be conveyed to some warehouse or designated by the collector to remain until the particulars, cost or value should have been ascertained, and the duties paid or secured, and a permit for delivery granted;
R.S. §2963, providing that when merchandise had not been entered it should be deposited in a public warehouse, and there remain until an invoice was produced, but that it should not be construed to prohibit sales of merchandise to discharge duties and charges;
R.S. §2964, authorizing the collector to take possession of merchandise, and deposit it in public stores, or other stores to be agreed on, in case of failure or neglect to pay duties, or when the owner, etc., should make entry for warehousing;
R.S. §2965, providing for the storage in a public warehouse, or private bonded warehouse, of unclaimed merchandise required to be taken possession of by collectors, and making provision for payment of charges and expenses;
R.S. §2966, as amended by act June 26, 1884, ch. 121, §24,
A prior provision authorizing the collector to require a bond for the production of proof to enable the collector to ascertain the class or description of manufacture, or rate of duty to which merchandise was liable, was contained in R.S. §2925, which was also repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1996—Subsec. (c)(1).
1993—Subsec. (a).
Subsec. (b).
Subsec. (c).
1970—
Effective Date of 1970 Amendment
For effective date of amendment by
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
§1491. Unclaimed merchandise; disposition of forfeited distilled spirits, wines and malt liquor
(a) Appraisal and sale of unclaimed merchandise
Any entered or unentered merchandise (except merchandise entered under
(b) Notice of title vesting in United States
At the end of the 6-month period referred to in subsection (a), the Customs Service may, in lieu of sale of the merchandise, provide notice to all known interested parties that the title to such merchandise shall be considered to vest in the United States free and clear of any liens or encumbrances, on the 30th day after the date of the notice unless, before such 30th day—
(1) the subject merchandise is entered or withdrawn for consumption; and
(2) payment is made of all duties, taxes, fees, transfer and storage charges, and other expenses that may have accrued thereon.
(c) Retention, transfer, destruction, or other disposition
If title to any merchandise vests in the United States by operation of subsection (b), such merchandise may be retained by the Customs Service for official use, transferred to any other Federal agency or to any State or local agency, destroyed, or otherwise disposed of in accordance with such regulations as the Secretary shall prescribe. All transfer and storage charges or expenses accruing on retained or transferred merchandise shall be paid by the receiving agency.
(d) Petition
Whenever any party, having lost a substantial interest in merchandise by virtue of title vesting in the United States under subsection (b), can establish such title or interest to the satisfaction of the Secretary within 30 days after the day on which title vests in the United States under subsection (b), or can establish to the satisfaction of the Secretary that the party did not receive notice under subsection (b), the Secretary may, upon receipt of a timely and proper petition and upon finding that the facts and circumstances warrant, pay such party out of the Treasury of the United States the amount the Secretary believes the party would have received under
(e) Appraisal and sale or other disposition of forfeited distilled spirits, wines, and malt liquor
All distilled spirits, wines, and malt liquor forfeited to the Government summarily or by order of court, under any provision of law administered by the United States Customs Service, shall be appraised and disposed of by—
(1) delivery to such Government agencies, as in the opinion of the Secretary have a need for such distilled spirits, wines, and malt liquor for medical, scientific, or mechanical purposes, or for any other official purpose for which appropriated funds may be expended by a Government agency:
(2) gifts to such eleemosynary institutions as, in the opinion of the Secretary, have a need for such distilled spirits, wines, and malt liquor for medical purposes;
(3) sale by Customs Service at public auction under such regulations as the Secretary shall prescribe, except that before making any such sale the Secretary shall determine that no Government agency or eleemosynary institution has established a need for such spirits, wines, and malt liquor under paragraph (1) or (2); or
(4) destruction.
(June 17, 1930, ch. 497, title IV, §491,
Prior Provisions
Provisions similar to those in this section were contained in R.S. §§2973, 2975 and 2976, all of which were superseded by act Sept. 21, 1922, ch. 356, title IV, §491,
Amendments
1996—Subsec. (a).
1993—Subsec. (a).
Subsecs. (b) to (d).
Subsec. (e).
1978—
1970—
1938—Act June 25, 1938, amended generally so much of this section as preceded "shall be considered unclaimed and abandoned".
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1938 Amendment
Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as a note under
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
Extension of One-Year Period
For extension of one year period prescribed in this section, see Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 Stat. c41, set out as a note under
Proc. No. 2599, Nov. 6, 1943, 8 F.R. 15359,
1 So in original. The word "in" probably should not appear.
§1492. Destruction of abandoned or forfeited merchandise
Except as provided in R.S. §3369 (relating to tobacco and snuff), and in section 901 of the Revenue Act of 1926 (relating to distilled spirits), any merchandise abandoned or forfeited to the Government under the preceding or any other provision of the customs laws, which is subject to internal revenue tax and which the Customs Service shall be satisfied will not sell for a sufficient amount to pay such taxes, shall be forthwith destroyed, retained for official use, or otherwise disposed of under regulations to be prescribed by the Secretary of the Treasury, instead of being sold at auction.
(June 17, 1930, ch. 497, title IV, §492,
References in Text
R.S. §3369, referred to in text, is covered by
Section 901 of Revenue Act of 1926, referred to in text, is covered by
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §492,
Prior to its incorporation into the Code, this section read: "Except as provided in section 3369 of the Revised Statutes, as amended," etc. R.S. §3369, as amended by act Oct. 14, 1921, ch. 107,
Amendments
1993—
1970—
Effective Date of 1970 Amendment
For effective date of amendment by
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
§1493. Proceeds of sale
The surplus of the proceeds of sales under
(June 17, 1930, ch. 497, title IV, §493,
Prior Provisions
Provisions substantially similar in most respects to those in this section, with further provisions concerning the documents to be forwarded by the collector to the Treasury Department, were contained in R.S. §2974, which was superseded and more nearly assimilated to the present section by act Sept. 21, 1922, ch. 356, title IV, §493,
Amendments
1993—
1970—
Effective Date of 1970 Amendment
For effective date of amendment by
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
Appropriations
Act June 26, 1934, ch. 756, §2,
§1494. Expense of weighing and measuring
In all cases in which the invoice or entry does not state the weight, quantity, or measure of the merchandise, the expense of ascertaining the same shall be collected from the importer of record before its release from customs custody.
(June 17, 1930, ch. 497, title IV, §494,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §494,
A prior provision requiring merchandise to be weighed, gauged or measured at the expense of the owner, agent or consignee, in cases in which the invoice or entry did not contain the weight, quantity or measure was contained in R.S. §2920, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1983—
Effective Date of 1983 Amendment
Amendment by
§1495. Partnership bond
When any bond is required by law or regulations to be executed by any partnership for any purpose connected with the transaction of business at any customhouse, the execution of such bond by any member of such partnership shall bind the other partners in like manner and to the same extent as if such other partners had personally joined in the execution, and an action or suit may be instituted on such bond against all partners as if all had executed the same.
(June 17, 1930, ch. 497, title IV, §495,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §495,
Provisions substantially similar to those in this section, except that they applied to bonds for the payment of duties or for any other purpose connected with the general transaction of business at any customs house, were contained in act June 20, 1876, ch. 136,
§1496. Examination of baggage
The appropriate customs officer may cause an examination to be made of the baggage of any person arriving in the United States in order to ascertain what articles are contained therein and whether subject to duty, free of duty, or prohibited notwithstanding a declaration and entry therefor has been made.
(June 17, 1930, ch. 497, title IV, §496,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §496,
Amendments
1970—
Effective Date of 1970 Amendment
For effective date of amendment by
§1496a. Clearance restrictions of individuals returning from abroad; special circumstances; "baggage and effects" defined
Except as otherwise provided by law, no individual returning to the United States from abroad shall be—
(1) entitled to the admission of his or her baggage and effects free of duty without entry; or
(2) entitled to expedited customs examination and clearance of his or her baggage and effects.
Paragraph (2) shall not apply to individuals in special circumstances (including being seriously ill or infirm, having been summoned by news of affliction or disaster, and accompanying the body of a deceased relative). For purposes of this section, the term "baggage and effects" means any article which was in the possession of the individual while abroad and is being imported in connection with his or her arrival and is intended for his or her bona fide personal or household use. Such term does not include any article imported as an accommodation to others or for sale or other commercial use.
(
Codification
Section was enacted as part of Customs Procedural Reform and Simplification Act of 1978, and not as part of Tariff Act of 1930 which comprises this chapter.
Clearance Procedures Study; Report to Congressional Committees
§1497. Penalties for failure to declare
(a) In general
(1) Any article which—
(A) is not included in the declaration and entry as made or transmitted; and
(B) is not mentioned before examination of the baggage begins—
(i) in writing by such person, if written declaration and entry was required, or
(ii) orally, if written declaration and entry was not required;
shall be subject to forfeiture and such person shall be liable for a penalty determined under paragraph (2) with respect to such article.
(2) The amount of the penalty imposed under paragraph (1) with respect to any article is equal to—
(A) if the article is a controlled substance, either $500 or an amount equal to 1,000 percent of the value of the article, whichever amount is greater; and
(B) if the article is not a controlled substance, the value of the article.
(b) Value of controlled substances
(1) Notwithstanding any other provision of this chapter, the value of any controlled substance shall, for purposes of this section, be equal to the amount determined by the Secretary in consultation with the Attorney General of the United States, to be equal to the price at which such controlled substance is likely to be illegally sold to the consumer of such controlled substance.
(2) The Secretary and the Attorney General of the United States shall establish a method of determining the price at which each controlled substance is likely to be illegally sold to the consumer of such controlled substance.
(June 17, 1930, ch. 497, title IV, §497,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §497,
A prior provision for forfeiture of any article subject to duty found in baggage, and not mentioned to the collector before whom entry was made, and for a penalty of treble the value of the article, was contained in R.S. §2802, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1993—Subsec. (a)(1)(A).
Subsec. (a)(2)(A).
1988—Subsec. (a)(2)(A).
1986—
§1498. Entry under regulations
(a) Authorized for certain merchandise
The Secretary of the Treasury is authorized to prescribe rules and regulations for the declaration and entry of—
(1) Merchandise, when—
(A) the aggregate value of the shipment does not exceed an amount specified by the Secretary by regulation, but not more than $2,500; or
(B) different commercial facilitation and risk considerations that may vary for different classes or kinds of merchandise or different classes of transactions may dictate;
(2) Products of the United States, when the aggregate value of the shipment does not exceed such amounts as the Secretary may prescribe and the products are imported.
(A) for the purposes of repair or alteration prior to reexportation, or
(B) after having been either rejected or returned by the foreign purchaser to the United States for credit;
(3) Merchandise damaged on the voyage of importation, by fire or through marine casualty or any other cause, without fault on the part of the shipper;
(4) Merchandise recovered from a wrecked or stranded vessel;
(5) Household effects used abroad and personal effects, not imported in pursuance of a purchase or agreement for purchase and not intended for sale;
(6) Articles sent by persons in foreign countries as gifts to persons in the United States;
(7) Articles carried on the person or contained in the baggage of a person arriving in the United States;
(8) Tools of trade of a person arriving in the United States;
(9) Personal effects of citizens of the United States who have died in a foreign country;
(10) Merchandise within the provisions of sections 1465 1 and 1466 of this title (relating to supplies, repairs, and equipment on vessels and railway cars) at the first port of arrival;
(11) Merchandise when in the opinion of the Secretary of the Treasury the value thereof cannot be declared; and
(12) Merchandise within the provisions of paragraph 1631 of
(b) Application of general provisions
The Secretary of the Treasury is authorized to include in such rules and regulations any of the provisions of
(June 17, 1930, ch. 497, title IV, §498,
References in Text
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §498,
Provision for an entry, separate from that of other merchandise, of wearing apparel, personal baggage, and tools and implements of a mechanical trade, was made by R.S. §2799, which also prescribed the contents of such entry, and of the accompanying oath. R.S. §2800 provided for a bond when the person making entry was not the owner. R.S. §2801 provided for a landing permit, and for an examination of baggage when deemed proper by the collector and naval officer, and for entry of articles not exempt from duty. All of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1993—Subsec. (a)(1).
"(A) chapters 50 through 63;
"(B) chapters 39 through 43, 61 through 65, 67 and 95; and
"(C) subchapters III and IV of
of the Harmonized Tariff Schedule of the United States, or to any other article for which formal entry is required without regard to value.;".
Subsec. (a)(2).
1988—Subsec. (a)(1).
"(A) schedule 3,
"(B) parts 1, 4A, 7B, 12A, 12D, and 13B of schedule 7, and
"(C) parts 2 and 3 of the Appendix,".
1984—Subsec. (a)(1).
1980—Subsec. (a).
1953—Subsec. (a)(1). Act Aug. 8, 1953, §16(d), increased valuation figure with respect to informal entries from $100 to $250, and inserted provisions with respect to possible variation for different classes or kinds of merchandise and different classes of transactions.
Subsec. (a)(11). Act Aug. 8, 1953, §16(e), substituted "paragraph 1631 of
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1953 Amendment; Savings Provision
Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
Customs Declarations; Proximity of Livestock
1 See References in Text note below.
§1499. Examination of merchandise
(a) Entry examination
(1) In general
Imported merchandise that is required by law or regulation to be inspected, examined, or appraised shall not be delivered from customs custody (except under such bond or other security as may be prescribed by the Secretary to assure compliance with all applicable laws, regulations, and instructions which the Secretary or the Customs Service is authorized to enforce) until the merchandise has been inspected, appraised, or examined and is reported by the Customs Service to have been truly and correctly invoiced and found to comply with the requirements of the laws of the United States.
(2) Examination
The Customs Service—
(A) shall designate the packages or quantities of merchandise covered by any invoice or entry which are to be opened and examined for the purpose of appraisement or otherwise;
(B) shall order such packages or quantities to be sent to such place as is designated by the Secretary by regulation for such purpose;
(C) may require such additional packages or quantities as the Secretary considers necessary for such purpose; and
(D) shall inspect a sufficient number of shipments, and shall examine a sufficient number of entries, to ensure compliance with the laws enforced by the Customs Service.
(3) Unspecified articles
If any package contains any article not specified in the invoice or entry and, in the opinion of the Customs Service, the article was omitted from the invoice or entry—
(A) with fraudulent intent on the part of the seller, shipper, owner, agent, importer of record, or entry filer, the contents of the entire package in which such article is found shall be subject to seizure; or
(B) without fraudulent intent, the value of the article shall be added to the entry and the duties, fees, and taxes thereon paid accordingly.
(4) Deficiency
If a deficiency is found in quantity, weight, or measure in the examination of any package, the person finding the deficiency shall make a report thereof to the Customs Service. The Customs Service shall make allowance for the deficiency in the liquidation of duties.
(5) Information required for release
If an examination is conducted, any information required for release shall be provided, either electronically or in paper form, to the Customs Service at the port of examination. The absence of such information does not limit the authority of the Customs Service to conduct an examination.
(b) Testing laboratories
(1) Accreditation of private testing laboratories
The Customs Service shall establish and implement a procedure, under regulations promulgated by the Secretary, for accrediting private laboratories within the United States which may be used to perform tests (that would otherwise be performed by Customs Service laboratories) to establish the characteristics, quantities, or composition of imported merchandise. Such regulations—
(A) shall establish the conditions required for the laboratories to receive and maintain accreditation for purposes of this subsection;
(B) shall establish the conditions regarding the suspension and revocation of accreditation, which may include the imposition of a monetary penalty not to exceed $100,000 and such penalty is in addition to the recovery, from a gauger or laboratory accredited under paragraph (1), of any loss of revenue that may have occurred, but the Customs Service—
(i) may seek to recover lost revenue only in cases where the gauger or laboratory intentionally falsified the analysis or gauging report in collusion with the importer; and
(ii) shall neither assess penalties nor seek to recover lost revenue because of a good faith difference of professional opinion; and
(C) may provide for the imposition of a reasonable charge for accreditation and periodic reaccreditation.
The collection of any charge for accreditation and reaccreditation under this section is not prohibited by
(2) Appeal of adverse accreditation decisions
A laboratory applying for accreditation, or that is accredited, under this section may contest any decision or order of the Customs Service denying, suspending, or revoking accreditation, or imposing a monetary penalty, by commencing an action in accordance with
(3) Testing by accredited laboratories
When requested by an importer of record of merchandise, the Customs Service shall authorize the release to the importer of a representative sample of the merchandise for testing, at the expense of the importer, by a laboratory accredited under paragraph (1). The testing results from a laboratory accredited under paragraph (1) that are submitted by an importer of record with respect to merchandise in an entry shall, in the absence of testing results obtained from a Customs Service laboratory, be accepted by the Customs Service if the importer of record certifies that the sample tested was taken from the merchandise in the entry. Nothing in this subsection shall be construed to limit in any way or preclude the authority of the Customs Service to test or analyze any sample or merchandise independently.
(4) Availability of testing procedure, methodologies, and information
Testing procedures and methodologies used by the Customs Service, and information resulting from any testing conducted by the Customs Service, shall be made available as follows:
(A) Testing procedures and methodologies shall be made available upon request to any person unless the procedures or methodologies are—
(i) proprietary to the holder of a copyright or patent related to such procedures or methodologies, or
(ii) developed by the Customs Service for enforcement purposes.
(B) Information resulting from testing shall be made available upon request to the importer of record and any agent thereof unless the information reveals information which is—
(i) proprietary to the holder of a copyright or patent; or
(ii) developed by the Customs Service for enforcement purposes.
(5) Miscellaneous provisions
For purposes of this subsection—
(A) any reference to a private laboratory includes a reference to a private gauger; and
(B) accreditation of private laboratories extends only to the performance of functions by such laboratories that are within the scope of those responsibilities for determinations of the elements relating to admissibility, quantity, composition, or characteristics of imported merchandise that are vested in, or delegated to, the Customs Service.
(c) Detentions
Except in the case of merchandise with respect to which the determination of admissibility is vested in an agency other than the Customs Service, the following apply:
(1) In general
Within the 5-day period (excluding weekends and holidays) following the date on which merchandise is presented for customs examination, the Customs Service shall decide whether to release or detain the merchandise. Merchandise which is not released within such 5-day period shall be considered to be detained merchandise.
(2) Notice of detention
The Customs Service shall issue a notice to the importer or other party having an interest in detained merchandise no later than 5 days, excluding weekends and holidays, after the decision to detain the merchandise is made. The notice shall advise the importer or other interested party of—
(A) the initiation of the detention;
(B) the specific reason for the detention;
(C) the anticipated length of the detention;
(D) the nature of the tests or inquiries to be conducted; and
(E) the nature of any information which, if supplied to the Customs Service, may accelerate the disposition of the detention.
(3) Testing results
Upon request by the importer or other party having an interest in detained merchandise, the Customs Service shall provide the party with copies of the results of any testing conducted by the Customs Service on the merchandise and a description of the testing procedures and methodologies (unless such procedures or methodologies are proprietary to the holder of a copyright or patent or were developed by the Customs Service for enforcement purposes). The results and test description shall be in sufficient detail to permit the duplication and analysis of the testing and the results.
(4) Seizure and forfeiture
If otherwise provided by law, detained merchandise may be seized and forfeited.
(5) Effect of failure to make determination
(A) The failure by the Customs Service to make a final determination with respect to the admissibility of detained merchandise within 30 days after the merchandise has been presented for customs examination, or such longer period if specifically authorized by law, shall be treated as a decision of the Customs Service to exclude the merchandise for purposes of
(B) For purposes of
(C) Notwithstanding
(June 17, 1930, ch. 497, title IV, §499,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §499,
A prior provision prohibiting delivery of merchandise liable to be inspected or appraised, until it had been inspected or appraised, or until the packages sent to be inspected or appraised, should be found correctly invoiced, and be so reported, with a further provision as to the taking of bonds conditioned for delivery of the merchandise, and the forfeiture of such bonds, was contained in R.S. §2899.
Provisions substantially similar to those in this section concerning the number of packages to be examined (not including the provision for designation of a less number by the Secretary of the Treasury) and concerning packages found to contain articles not specified in the invoice, with a further provision for remission of the forfeiture, were contained in R.S. §2901.
A prior provision, concerning deficiencies somewhat similar to that in this section, was contained in R.S. §2921.
A special provision concerning the number of packages to be examined and appraised at the port of New York was contained in R.S. §2939.
A provision concerning returns by weighers, gaugers, and measurers, was contained in R.S. §2890.
All of the foregoing sections of the Revised Statutes were repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1993—
1970—
1938—Act June 25, 1938, amended section generally and among other changes inserted provision relating to invalidity of appraisements made after effective date of Customs Administrative Act of 1938.
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1938 Amendment
Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as a note under
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
Functions of all other officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935,
Existing Laboratories
§1500. Appraisement, classification, and liquidation procedure
The Customs Service shall, under rules and regulations prescribed by the Secretary—
(a) fix the final appraisement of merchandise by ascertaining or estimating the value thereof, under
(b) fix the final classification and rate of duty applicable to such merchandise;
(c) fix the final amount of duty to be paid on such merchandise and determine any increased or additional duties, taxes, and fees due or any excess of duties, taxes, and fees deposited;
(d) liquidate the entry and reconciliation, if any, of such merchandise; and
(e) give or transmit, pursuant to an electronic data interchange system, notice of such liquidation to the importer, his consignee, or agent in such form and manner as the Secretary shall by regulation prescribe.
(June 17, 1930, ch. 497, title IV, §500,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §500,
Provisions dealing with the subject matter of subdivision (a) of this section were contained in act Oct. 3, 1913, ch. 16, §III, K,
R.S. §§2609, 2610, relative to merchant appraisers, were superseded by the provisions relating to appraisers and appraisements in the Customs Administrative Act of June 10, 1890, ch. 407,
R.S. §2902 prescribed the mode of appraisal of merchandise, prior to repeal by the Customs Administrative Act of June 10, 1890, ch. 407, §29,
R.S. §2911 required appraisers to adopt the value of the best article in a package containing articles wholly or in part of wool or cotton of similar kind but different quality, charged at an average price, and R.S. §2912 related to appraisal of wool of different qualities when imported in the same bale, bag, or package, and of bales of different qualities when embraced in the same invoice, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, §642,
R.S. §2945 imposed a penalty on any merchant chosen by the collector to make any appraisement required under any act respecting imports and tonnage, who should, after due notice, decline or neglect to assess at such appraisement. This section was repealed by the Customs Administrative Act of June 10, 1890, ch. 407, §29,
R.S. §2946 related to the ascertainment of value at ports where there were no appraisers, prior to repeal by section 642 of the act of Sept. 21, 1922, ch. 356.
A prior provision similar to subdivision (b) was contained in act Oct. 3, 1913, ch. 16, §III, M,
An earlier provision on the subject was contained in R.S. §2929, prior to repeal by Customs Administrative Act of June 10, 1890, ch. 407, §29,
Somewhat similar to subdivision (d), R.S. §2943 provided that one of the assistant appraisers at the port of New York should be detailed for the supervision of examination of merchandise damaged on the voyage of importation, and to make examinations and appraisals and to report, etc. It was repealed, with R.S. §2927, which provided for appraisal of such goods, and other sections, by the Customs Administrative Act of June 10, 1890, ch. 407, §29,
Amendments
1993—
Subd. (a).
Subd. (b).
Subd. (c).
Subds. (d) and (e).
"(d) liquidate the entry of such merchandise; and
"(e) give notice of such liquidation to the importer, his consignee, or agent in such form and manner as the Secretary shall prescribe in such regulations."
1979—Subd. (a).
1970—
1956—Subd. (f). Act Aug. 2, 1956, struck out "take the oath," before "perform all the duties" in second sentence, and struck out comma after "perform all duties".
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1970 Amendment
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
Functions of all officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935,
§1501. Voluntary reliquidations by U.S. Customs and Border Protection
A liquidation made in accordance with
(June 17, 1930, ch. 497, title IV, §501,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §501,
Prior provisions for appeals to reappraisement and for a further appeal to be assigned to a board of general appraisers, with further provisions as to the fee to be paid, the proceedings on appeal, and the conclusiveness of decisions, were contained in act Oct. 3, 1913, ch. 16, §III, M,
The provisions of section III, M, of the 1913 act, were substituted for provisions of the same nature made by the Customs Administrative Act of June 10, 1890, ch. 407, §13,
Provisions similar to some extent to those in section 13 of the Customs Administrative Act of 1890 were contained in R.S. §§2929, 2930, prior to repeal by section 29 of that Act.
R.S. §2950 provided that the certificate of the appraiser should be deemed to be the appraisement. It was superseded by the provisions relating to appraisers made by the Customs Administrative Act of June 10, 1890, ch. 407, §13, amended by the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, §28, and the Underwood Tariff Act of Oct. 3, 1913, ch. 16, §III, M,
Amendments
2016—
2004—
1993—
1970—
1953—Subsec. (a). Act. Aug. 8, 1953, inserted cl. (3) and "including all determinations entering into the same," in second sentence, and struck out third sentence which provided that "No such appeal filed by the consignee or his agent shall be deemed valid, unless he has complied with all the provisions of this chapter relating to the entry and appraisement of such merchandise".
1948—Subsec. (a). Act June 25, 1948, struck out fourth sentence and substituted new fourth sentence, and repealed the fifth, sixth, seventh, and eighth sentences dealing with review by Customs Court of Reappraisements of this material. See
Subsecs. (b) and (c), relating to practice and procedure in Customs Court, were repealed by Act June 25, 1948. See
1938—Act June 25, 1938, designated paragraphs as subsecs. (a) and (b) and added subsec. (c).
Effective Date of 2004 Amendment
Amendment by
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1953 Amendment; Savings Provision
Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
Effective Date of 1948 Amendment
Act June 25, 1948, ch. 646, §38,
Effective Date of 1938 Amendment
Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specially provided, see section 37 of act June 25, 1938, set out as a note under
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
Functions of all officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935,
§1502. Regulations for appraisement and classification
(a) Powers of Secretary of the Treasury
The Secretary of the Treasury shall establish and promulgate such rules and regulations not inconsistent with the law (including regulations establishing procedures for the issuance of binding rulings prior to the entry of the merchandise concerned), and may disseminate such information as may be necessary to secure a just, impartial, and uniform appraisement of imported merchandise and the classification and assessment of duties thereon at the various ports of entry. The Secretary may direct any customs officer to go from one port of entry to another for the purpose of appraising or classifying or assisting in appraising or classifying merchandise imported at any port, and may direct any customs officer at any port to review entries of merchandise filed at any other port.
(b) Duties of customs officers
It shall be the duty of all officers of the customs to execute and carry into effect all instructions of the Secretary of the Treasury relative to the execution of the revenue laws; and in case any difficulty arises as to the true construction or meaning of any part of the revenue laws, the decision of the Secretary shall be binding upon all officers of the customs.
(June 17, 1930, ch. 497, title IV, §502,
Amendment of Section
For termination of amendment by section 501(c) of
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §502,
A prior provision, authorizing the Secretary of the Treasury to direct appraisers for any collection district, to attend in any other collection district, was contained in R.S. §2947. Prior provisions requiring the Secretary to establish rules and regulations to secure a just, faithful, and impartial appraisal, just and proper entries, and to report such rules and regulations to the next session of Congress, were contained in R.S. §2949. Both of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
Provisions similar to those in subsec. (b) of this section, except that reversal or modification was permitted in concurrence with a judicial decision of a circuit or district court, instead of a final decision of the Board of General Appraisers, were contained in act Mar. 3, 1875, ch. 136, §2,
Provisions almost identical with those in subsec. (c) of this section were contained in R.S. §2652, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1993—Subsec. (a).
Subsec. (b).
Subsec. (c).
1988—Subsec. (b).
1980—Subsec. (b).
1970—Subsec. (a).
Effective Date of 1993 Amendment
Amendment by section 412(a) of
Amendment by section 640 of
Effective and Termination Dates of 1988 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1970 Amendment
For effective date of amendment by
Transfer of Functions
Functions of Secretary of the Treasury under subsec. (a) of this section, insofar as subsec. (a) of this section provides authority to issue regulations and disseminate information and insofar as Secretary of the Treasury had responsibility under
Functions of Secretary of the Treasury under subsec. (b) of this section, with respect to functions transferred to Secretary of Commerce in
Functions of all officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935,
§1503. Dutiable value
Except as provided in section 1520(c) 1 of this title (relating to reliquidations on the basis of authorized corrections of errors) or
(June 17, 1930, ch. 497, title IV, §503,
References in Text
Prior Provisions
Provisions somewhat similar to those in subsecs. (a) and (b) were contained in act Sept. 21, 1922, ch. 356, title IV, §503,
A provision for assessment of duty on merchandise of different values when invoiced at an average price, was contained in R.S. §2910, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1980—
1970—
1953—Subsec. (a). Act Aug. 8, 1953, struck out "and in subdivision (b) of this section" after reference to
Subsecs. (b), (c). Act Aug. 8, 1953, redesignated subsec. (c) as (b). Former subsec. (b), which related to entries pending reappraisement, was repealed by act Aug. 8, 1953.
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1953 Amendment; Savings Provision
Amendment by act Aug. 8, 1953, effective on and after the thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
1 See References in Text note below.
§1503a. Repealed. Aug. 8, 1953, ch. 397, §18(e), 67 Stat. 518
Section, act July 12, 1932, ch. 473,
Effective Date of Repeal; Savings Provision
Repeal effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under
§1504. Limitation on liquidation
(a) Liquidation
(1) Entries for consumption
Unless an entry of merchandise for consumption is extended under subsection (b) of this section or suspended as required by statute or court order, except as provided in
(A) the date of entry of such merchandise,
(B) the date of the final withdrawal of all such merchandise covered by a warehouse entry,
(C) the date of withdrawal from warehouse of such merchandise for consumption if, pursuant to regulations issued under
(D) if a reconciliation is filed, or should have been filed, the date of the filing under
(E) 1 if a reconfigured entry is filed under an import activity summary statement, the date the import activity summary statement is filed or should have been filed, whichever is earlier;
shall be deemed liquidated at the rate of duty, value, quantity, and amount of duties asserted by the importer of record. Notwithstanding
(2) Entries or claims for drawback
(A) In general
Except as provided in subparagraph (B) or (C), unless an entry or claim for drawback is extended under subsection (b) or suspended as required by statute or court order, an entry or claim for drawback not liquidated within 1 year from the date of entry or claim shall be deemed liquidated at the drawback amount asserted by the claimant or claim. Notwithstanding
(B) Unliquidated imports
An entry or claim for drawback whose designated or identified import entries have not been liquidated and become final within the 1-year period described in subparagraph (A), or within the 1-year period described in subparagraph (C), shall be deemed liquidated upon the deposit of estimated duties on the unliquidated imported merchandise, and upon the filing with the Customs Service of a written request for the liquidation of the drawback entry or claim. Such a request must include a waiver of any right to payment or refund under other provisions of law. The Secretary of the Treasury shall prescribe any necessary regulations for the purpose of administering this subparagraph.
(C) Exception
An entry or claim for drawback filed before December 3, 2004, the liquidation of which is not final as of December 3, 2004, shall be deemed liquidated on the date that is 1 year after December 3, 2004, at the drawback amount asserted by the claimant at the time of the entry or claim.
(3) Payments or refunds
Payment or refund of duties owed pursuant to paragraph (1) or (2) shall be made to the importer of record or drawback claimant, as the case may be, not later than 90 days after liquidation.
(b) Extension
The Secretary of the Treasury may extend the period in which to liquidate an entry if—
(1) the information needed for the proper appraisement or classification of the imported or withdrawn merchandise, or for determining the correct drawback amount, or for ensuring compliance with applicable law, is not available to the Customs Service; or
(2) the importer of record or drawback claimant, as the case may be, requests such extension and shows good cause therefor.
The Secretary shall give notice of an extension under this subsection to the importer of record or drawback claimant, as the case may be, and the surety of such importer of record or drawback claimant. Notice shall be in such form and manner (which may include electronic transmittal) as the Secretary shall by regulation prescribe. Any entry the liquidation of which is extended under this subsection shall be treated as having been liquidated at the rate of duty, value, quantity, and amount of duty asserted by the importer of record, or the drawback amount asserted by the drawback claimant, at the expiration of 4 years from the applicable date specified in subsection (a).
(c) Notice of suspension
If the liquidation of any entry is suspended, the Secretary shall by regulation require that notice of the suspension be provided, in such manner as the Secretary considers appropriate, to the importer of record or drawback claimant, as the case may be, and to any authorized agent and surety of such importer of record or drawback claimant.
(d) Removal of suspension
Except as provided in
(June 17, 1930, ch. 497, title IV, §504, as added
Prior Provisions
A prior section 1504, act June 17, 1930, ch. 497, title IV, §504,
Amendments
2004—
Subsec. (a).
"(1) the date of entry of such merchandise;
"(2) the date of the final withdrawal of all such merchandise covered by a warehouse entry;
"(3) the date of withdrawal from warehouse of such merchandise for consumption where, pursuant to regulations issued under
"(4) if a reconciliation is filed, or should have been filed, the date of the filing under
shall be deemed liquidated at the rate of duty, value, quantity, and amount of duties asserted at the time of entry by the importer of record. Notwithstanding
Subsec. (b).
"(1) the information needed for the proper appraisement or classification of the merchandise, or for insuring compliance with applicable law, is not available to the Customs Service; or
"(2) the importer of record requests such extension and shows good cause therefor.
The Secretary shall give notice of an extension under this subsection to the importer of record and the surety of such importer of record. Notice shall be in such form and manner (which may include electronic transmittal) as the Secretary shall by regulation prescribe. Any entry the liquidation of which is extended under this subsection shall be treated as having been liquidated at the rate of duty, value, quantity, and amount of duty asserted at the time of entry by the importer of record at the expiration of 4 years from the applicable date specified in subsection (a) of this section."
Subsec. (c).
Subsec. (d).
1996—Subsec. (d).
1994—Subsec. (a).
Subsec. (d).
1993—Subsec. (a).
Subsec. (a)(4).
Subsec. (b).
"(1) information needed for the proper appraisement or classification of the merchandise is not available to the appropriate customs officer;
"(2) liquidation is suspended as required by statute or court order; or
"(3) the importer of record requests such extension and shows good cause therefor."
Subsec. (c).
Subsec. (d).
1984—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Effective Date of 2004 Amendment
"(A) any entry of merchandise for consumption or entry or claim for drawback filed on and after such date of enactment; and
"(B) any entry or claim for drawback filed before such date of enactment if the liquidation of the entry or claim is not final on such date of enactment."
Amendment by section 2102 of
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date
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
1 See 2004 Amendment notes below.
§1505. Payment of duties and fees
(a) Deposit of estimated duties and fees
Unless the entry is subject to a periodic payment referred to in this subsection or the merchandise is entered for warehouse or transportation, or under bond, the importer of record shall deposit with the Customs Service at the time of entry, or at such later time as the Secretary may prescribe by regulation (but not later than 12 working days after entry or release) the amount of duties and fees estimated to be payable on such merchandise. As soon as a periodic payment module of the Automated Commercial Environment is developed, but no later than October 1, 2004, the Secretary shall promulgate regulations, after testing the module, permitting a participating importer of record to deposit estimated duties and fees for entries of merchandise, other than merchandise entered for warehouse, transportation, or under bond, no later than the 15 working days following the month in which the merchandise is entered or released, whichever comes first.
(b) Collection or refund of duties, fees, and interest due upon liquidation or reliquidation
The Customs Service shall collect any increased or additional duties and fees due, together with interest thereon, or refund any excess moneys deposited, together with interest thereon, as determined on a liquidation or reliquidation. Duties, fees, and interest determined to be due upon liquidation or reliquidation are due 30 days after issuance of the bill for such payment. Refunds of excess moneys deposited, together with interest thereon, shall be paid within 30 days of liquidation or reliquidation.
(c) Interest
Interest assessed due to an underpayment of duties, fees, or interest shall accrue, at a rate determined by the Secretary, from the date the importer of record is required to deposit estimated duties, fees, and interest to the date of liquidation or reliquidation of the applicable entry or reconciliation. Interest on excess moneys deposited shall accrue, at a rate determined by the Secretary, from the date the importer of record deposits estimated duties, fees, and interest or, in a case in which a claim is made under
(d) Delinquency
If duties, fees, and interest determined to be due or refunded are not paid in full within the 30-day period specified in subsection (b), any unpaid balance shall be considered delinquent and bear interest by 30-day periods, at a rate determined by the Secretary, from the date of liquidation or reliquidation until the full balance is paid. No interest shall accrue during the 30-day period in which payment is actually made.
(June 17, 1930, ch. 497, title IV, §505,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §504,
A prior provision that the collector or person acting as such should ascertain, fix, and liquidate the rate and amount of duties, and the dutiable costs and charges, was contained in act Oct. 3, 1913, ch. 16, §III, M,
Amendments
2004—Subsec. (a).
2002—Subsec. (a).
2000—Subsec. (c).
1999—Subsec. (c).
1996—Subsec. (c).
1993—
1984—Subsec. (c).
1983—Subsec. (a).
1978—Subsec. (a).
1970—
Effective Date of 2002 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1999 Amendment
Amendment by
Effective Date of 1996 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1970 Amendment
For effective date of amendment by
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
§1506. Allowance for abandonment and damage
Allowance shall be made in the estimation and liquidation of duties under regulations prescribed by the Secretary of the Treasury in the following cases:
(1) Abandonment within thirty days
Where the importer abandons to the United States, within thirty days after entry in the case of merchandise released without an examination, or within thirty days after the release in the case of merchandise sent to the Customs Service for examination, any imported merchandise representing 5 per centum or more of the total value of all the merchandise of the same class or kind entered in the invoice or entry in which the item appears, and delivers, within the applicable thirty-day period, the portion so abandoned to such place as the Customs Service directs unless the Customs Service is satisfied that the merchandise is so far destroyed as to be nondeliverable;
(2) Perishable merchandise, condemned
Where fruit or other perishable merchandise has been condemned at the port of entry, within ten days after landing, by the health officers or other legally constituted authorities, and the consignee, within five days after such condemnation, files, electronically or otherwise, with the Customs Service notice thereof, an invoiced description and the location thereof, and the name of the vessel or vehicle in which imported.
(June 17, 1930, ch. 497, title IV, §506,
Prior Provisions
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, §III, X,
R.S. §2927 provided for the appraisal of articles damaged during the voyage, and for the allowances for such damages in estimating duties, prior to repeal by the Customs Administrative Act of June 10, 1890, ch. 407, §29,
R.S. §2928, providing for appraisement of merchandise taken from any wreck and of damages sustained during the course of the voyage, was superseded by the provisions of the Customs Administrative Act of June 10, 1890, ch. 407, §23,
Amendments
1993—Par. (1).
Par. (2).
1970—Par. (1).
Par. (2).
Effective Date of 1970 Amendment
For effective date of amendment by
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
§1507. Tare and draft
(a) In general
The Secretary of the Treasury is authorized to prescribe and issue regulations for the ascertainment of tare upon imported merchandise, including the establishment of reasonable and just schedule tares therefor, but (except as otherwise provided in this section) there shall not be any allowance for draft or for impurities, other than excessive moisture and impurities not usually found in or upon such or similar merchandise.
(b) Crude oil and petroleum products
In ascertaining tare on imports of crude oil, and on imports of petroleum products, allowance shall be made for all detectable moisture and impurities present in, or upon, the imported crude oil or petroleum products.
(June 17, 1930, ch. 497, title IV, §507,
Prior Provisions
Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §506,
A prior provision relative to the allowance of tare, prohibiting any allowance for draught, was contained in R.S. §2898, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, §642,
Amendments
1988—
Effective Date of 1988 Amendment
§1508. Recordkeeping
(a) Requirements
Any—
(1) owner, importer, consignee, importer of record, entry filer, or other party who—
(A) imports merchandise into the customs territory of the United States, files a drawback claim, or transports or stores merchandise carried or held under bond, or
(B) knowingly causes the importation or transportation or storage of merchandise carried or held under bond into or from the customs territory of the United States;
(2) agent of any party described in paragraph (1); or
(3) person whose activities require the filing of a declaration or entry, or both;
shall make, keep, and render for examination and inspection records (which for purposes of this section include, but are not limited to, statements, declarations, documents and electronically generated or machine readable data) which—
(A) pertain to any such activity, or to the information contained in the records required by this chapter in connection with any such activity; and
(B) are normally kept in the ordinary course of business.
(b) Exports and imports relating to USMCA countries
(1) Definitions
In this subsection:
(A) USMCA; USMCA country
The terms "USMCA" and "USMCA country" have the meanings given those terms in
(B) USMCA certification of origin
The term "USMCA certification of origin" means the certification established under article 5.2.1 of the USMCA that a good qualifies as an originating good under the USMCA.
(2) Exports to USMCA countries
Any person who completes a USMCA certification of origin or provides a written representation for a good exported from the United States to a USMCA country shall make, keep, and, pursuant to rules and regulations prescribed by the Secretary of the Treasury, render for examination and inspection, all records and supporting documents related to the origin of the good (including the certification or copies thereof), including records related to—
(A) the purchase, cost, value, and shipping of, and payment for, the good;
(B) the purchase, cost, value, and shipping of, and payment for, all materials, including indirect materials, used in the production of the good; and
(C) the production of the good in the form in which it was exported or the production of the material in the form in which it was sold.
(3) Exports under the Canadian Agreement
Any person who exports, or who knowingly causes to be exported, any merchandise to Canada during such time as the United States-Canada Free-Trade Agreement is in force with respect to, and the United States applies that Agreement to, Canada shall make, keep, and render for examination and inspection such records (including certifications of origin or copies thereof) which pertain to the exportations.
(4) Imports into the United States
(A) In general
Any importer who claims preferential tariff treatment under the USMCA for a good imported into the United States from a USMCA country shall make, keep, and, pursuant to rules and regulations prescribed by the Secretary of the Treasury of the Secretary of Labor, render for examination and inspection—
(i) records and supporting documentation related to the importation;
(ii) all records and supporting documents related to the origin of the good (including the certification or copies thereof), if the importer completed the certification; and
(iii) records and supporting documents necessary to demonstrate that the good did not, while in transit to the United States, undergo further production or any other operation other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the United States.
(B) Vehicle producer
Any vehicle producer whose good is the subject of a claim for preferential tariff treatment under the USMCA shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury and Secretary of Labor, render for examination and inspection records and supporting documents related to the labor value content and steel and aluminum purchasing requirements for the qualification of its vehicles for preferential treatment.
(5) Retention period
(A) Exports to USMCA countries
A person covered by paragraph (2) who completes a USMCA certification of origin or provides a written representation for a good exported from the United States to a USMCA country shall keep the records required by such paragraph relating to that certification of origin for a period of at least 5 years after the date on which the certification is completed.
(B) Exports under Canadian Agreement
The records required by paragraph (3) shall be kept for such periods of time as the Secretary shall prescribe, except that—
(i) no period of time for the retention of the records may exceed 5 years from the date of entry, filing of a reconciliation, or exportation, as appropriate; and
(ii) records for any drawback claim shall be kept until the third anniversary of the date of liquidation of the claim.
(C) Imports into the United States
(i) In general
An importer covered by paragraph (4)(A) shall keep the records and supporting documents required by such paragraph for a period of at least 5 years after the date of importation of the good.
(ii) Vehicle producer
A vehicle producer covered by paragraph (4)(B) shall keep the records and supporting documents required by paragraph (4)(B) for a period of at least 5 years after the date of filing the certifications required under paragraphs (1) and (2) of
(c) Repealed. Pub. L. 116–113, title II, §206(a)(2), Jan. 29, 2020, 134 Stat. 48
(d) Limitation
For the purposes of this section and
(1) the terms and conditions of the importation are controlled by the person placing the order; or
(2) technical data, molds, equipment, other production assistance, material, components, or parts are furnished by the person placing the order with knowledge that they will be used in the manufacture or production of the imported merchandise.
(e) Subsection (b) penalties
(1) Relating to USMCA exports
Any person who fails to retain records required by paragraph (2) of subsection (b) or the regulations issued to implement that paragraph shall be liable for—
(A) a civil penalty not to exceed $10,000; or
(B) the general recordkeeping penalty that applies under the customs laws;
whichever penalty is higher.
(2) Relating to Canadian agreement exports
Any person who fails to retain the records required by paragraph (3) of subsection (b) or the regulations issued to implement that paragraph shall be liable for a civil penalty not to exceed $10,000.
(f) Certificates of Origin for goods exported under the United States-Chile Free Trade Agreement
(1) Definitions
In this subsection:
(A) Records and supporting documents
The term "records and supporting documents" means, with respect to an exported good under paragraph (2), records and documents related to the origin of the good, including—
(i) the purchase, cost, and value of, and payment for, the good;
(ii) if applicable, the purchase, cost, and value of, and payment for, all materials, including recovered goods, used in the production of the good; and
(iii) if applicable, the production of the good in the form in which it was exported.
(B) Chile FTA Certificate of Origin
The term "Chile FTA Certificate of Origin" means the certification, established under article 4.13 of the United States-Chile Free Trade Agreement, that a good qualifies as an originating good under such Agreement.
(2) Exports to Chile
Any person who completes and issues a Chile FTA Certificate of Origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the Certificate or copies thereof).
(3) Retention period
Records and supporting documents shall be kept by the person who issued a Chile FTA Certificate of Origin for at least 5 years after the date on which the certificate was issued.
(g) Certifications of origin for goods exported under the Dominican Republic-Central America-United States Free Trade Agreement
(1) Definitions
In this subsection:
(A) Records and supporting documents
The term "records and supporting documents" means, with respect to an exported good under paragraph (2), records and documents related to the origin of the good, including—
(i) the purchase, cost, and value of, and payment for, the good;
(ii) the purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and
(iii) the production of the good in the form in which it was exported.
(B) CAFTA–DR certification of origin
The term "CAFTA–DR certification of origin" means the certification established under article 4.16 of the Dominican Republic-Central America-United States Free Trade Agreement that a good qualifies as an originating good under such Agreement.
(2) Exports to CAFTA–DR countries
Any person who completes and issues a CAFTA–DR certification of origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the certification or copies thereof).
(3) Retention period
Records and supporting documents shall be kept by the person who issued a CAFTA–DR certification of origin for at least 5 years after the date on which the certification was issued.
(h) Certifications of origin for goods exported under the United States-Peru Trade Promotion Agreement
(1) Definitions
In this subsection:
(A) Records and supporting documents
The term "records and supporting documents" means, with respect to an exported good under paragraph (2), records and documents related to the origin of the good, including—
(i) the purchase, cost, and value of, and payment for, the good;
(ii) the purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and
(iii) the production of the good in the form in which it was exported.
(B) PTPA certification of origin
The term "PTPA certification of origin" means the certification established under article 4.15 of the United States-Peru Trade Promotion Agreement that a good qualifies as an originating good under such Agreement.
(2) Exports to Peru
Any person who completes and issues a PTPA certification of origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the certification or copies thereof).
(3) Retention period
The person who issues a PTPA certification of origin shall keep the records and supporting documents relating to that certification of origin for a period of at least 5 years after the date on which the certification is issued.
(i) Certifications of origin for goods exported under the United States–Korea Free Trade Agreement
(1) Definitions
In this subsection:
(A) Records and supporting documents
The term "records and supporting documents" means, with respect to an exported good under paragraph (2), records and documents related to the origin of the good, including—
(i) the purchase, cost, and value of, and payment for, the good;
(ii) the purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and
(iii) the production of the good in the form in which it was exported.
(B) KFTA certification of origin
The term "KFTA certification of origin" means the certification established under article 6.15 of the United States–Korea Free Trade Agreement that a good qualifies as an originating good under such Agreement.
(2) Exports to Korea
Any person who completes and issues a KFTA certification of origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the certification or copies thereof).
(3) Retention period
The person who issues a KFTA certification of origin shall keep the records and supporting documents relating to that certification of origin for a period of at least 5 years after the date on which the certification is issued.
(j) Certifications of origin for goods exported under the United States–Colombia Trade Promotion Agreement
(1) Definitions
In this subsection:
(A) Records and supporting documents
The term "records and supporting documents" means, with respect to an exported good under paragraph (2), records and documents related to the origin of the good, including—
(i) the purchase, cost, and value of, and payment for, the good;
(ii) the purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and
(iii) the production of the good in the form in which it was exported.
(B) CTPA certification of origin
The term "CTPA certification of origin" means the certification established under article 4.15 of the United States–Colombia Trade Promotion Agreement that a good qualifies as an originating good under such Agreement.
(2) Exports to Colombia
Any person who completes and issues a CTPA certification of origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the certification or copies thereof).
(3) Retention period
The person who issues a CTPA certification of origin shall keep the records and supporting documents relating to that certification of origin for a period of at least 5 years after the date on which the certification is issued.
(k) Certifications of origin for goods exported under the United States–Panama Trade Promotion Agreement
(1) Definitions
In this subsection:
(A) Records and supporting documents
The term "records and supporting documents" means, with respect to an exported good under paragraph (2), records and documents related to the origin of the good, including—
(i) the purchase, cost, and value of, and payment for, the good;
(ii) the purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; and
(iii) the production of the good in the form in which it was exported.
(B) Panama TPA certification of origin
The term "Panama TPA certification of origin" means the certification established under article 4.15 of the United States–Panama Trade Promotion Agreement that a good qualifies as an originating good under such Agreement.
(2) Exports to Panama
Any person who completes and issues a Panama TPA certification of origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the certification or copies thereof).
(3) Retention period
The person who issues a Panama TPA certification of origin shall keep the records and supporting documents relating to that certification of origin for a period of at least 5 years after the date on which the certification is issued.
(l) Penalties
Any person who fails to retain records and supporting documents required by subsection (f), (g), (h), (i), (j), or (k) or the regulations issued to implement any such subsection shall be liable for the greater of—
(1) a civil penalty not to exceed $10,000; or
(2) the general record keeping penalty that applies under the customs laws of the United States.
(June 17, 1930, ch. 497, title IV, §508, as added
Amendment of Section
For termination of amendment by section 107(c) of
For termination of amendment by section 107(c) of
For termination of amendment by section 107(c) of
For termination of amendment by section 107(c) of
For termination of amendment by section 107(d) of
For termination of amendment by section 107(c) of
For termination of amendment by section 501(c) of
Prior Provisions
A prior section 1508, acts June 17, 1930, ch. 497, title IV, §508,
Amendments
2020—Subsec. (b).
Subsec. (c).
Subsec. (e)(1).
2016—Subsec. (c)(3).
2011—Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec. (l).
2007—Subsec. (h).
Subsec. (i).
2005—Subsec. (g).
Subsec. (h).
2003—Subsec. (b).
Subsec. (b)(2)(B)(i)(I).
Subsecs. (f), (g).
1996—Subsec. (c)(1).
1993—Subsec. (a).
"(1) pertain to any such importation, or to the information contained in the documents required by this chapter in connection with the entry of merchandise; and
"(2) are normally kept in the ordinary course of business."
Subsec. (b).
Subsec. (c).
Subsec. (e).
1988—Subsecs. (b) to (e).
Effective Date of 2020 Amendment
"(1)
"(2)
"(A)
"(B)
"(3)
"(A)
"(i) the amendments made by subsection (a) to paragraphs (2) and (5)(A) of section 508(b) of the Tariff Act of 1930 (
"(ii) section 508 of such Act, as in effect on the day before that date, shall continue to apply on and after that date with respect to the good.
"(B)
[For definition of "USMCA" as used in section 206(b) of
Effective Date of 2016 Amendment
Amendment by
Effective and Termination Dates of 2011 Amendment
Amendment by
Amendment by
Amendment by
Effective and Termination Dates of 2007 Amendment
Amendment by
Effective and Termination Dates of 2005 Amendment
Amendment by
Effective and Termination Dates of 2003 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by section 205(a) of
Effective and Termination Dates of 1988 Amendment
Amendment by
Construction of 1993 Amendment
Amendment by section 205(a) of
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
§1509. Examination of books and witnesses
(a) Authority
In any investigation or inquiry conducted for the purpose of ascertaining the correctness of any entry, for determining the liability of any person for duty, fees and taxes due or duties, fees and taxes which may be due the United States, for determining liability for fines and penalties, or for insuring compliance with the laws of the United States administered by the United States Customs Service, the Secretary (but no delegate of the Secretary below the rank of district director or special agent in charge) may—
(1) examine, or cause to be examined, upon reasonable notice, any record (which for purposes of this section, includes, but is not limited to, any statement, declaration, document, or electronically generated or machine readable data) described in the notice with reasonable specificity, which may be relevant to such investigation or inquiry, except that—
(A) if such record is required by law or regulation for the entry of the merchandise (whether or not the Customs Service required its presentation at the time of entry) it shall be provided to the Customs Service within a reasonable time after demand for its production is made, taking into consideration the number, type, and age of the item demanded; and
(B) if a person of whom demand is made under subparagraph (A) fails to comply with the demand, the person may be subject to penalty under subsection (g);
(2) summon, upon reasonable notice—
(A) the person who—
(i) imported, or knowingly caused to be imported, merchandise into the customs territory of the United States, or a vehicle producer whose good is subject to a claim of preferential tariff treatment under the USMCA (as defined in
(ii) exported merchandise, or knowingly caused merchandise to be exported, to a USMCA country (as defined in
(iii) transported or stored merchandise that was or is carried or held under customs bond, or knowingly caused such transportation or storage, or
(iv) filed a declaration, entry, or drawback claim with the Customs Service;
(B) any officer, employee, or agent of any person described in subparagraph (A);
(C) any person having possession, custody or care of records relating to the importation or other activity described in subparagraph (A); or
(D) any other person he may deem proper;
to appear before the appropriate customs officer at the time and place within the customs territory of the United States specified in the summons (except that no witness may be required to appear at any place more than one hundred miles distant from the place where he was served with the summons), to produce records, as defined in subsection (d)(1)(A), and to give such testimony, under oath, as may be relevant to such investigation or inquiry; and
(3) take, or cause to be taken, such testimony of the person concerned, under oath, as may be relevant to such investigation or inquiry.
(b) Regulatory audit procedures
(1) In conducting a regulatory audit under this section (which does not include a quantity verification for a customs bonded warehouse or general purpose foreign trade zone), the Customs Service auditor shall provide the person being audited, in advance of the audit, with a reasonable estimate of the time to be required for the audit. If in the course of an audit it becomes apparent that additional time will be required, the Customs Service auditor shall immediately provide a further estimate of such additional time.
(2) Before commencing an audit, the Customs Service auditor shall inform the party to be audited of his right to an entry conference at which time the purpose will be explained and an estimated termination date set. Upon completion of on-site audit activities, the Customs Service auditor shall schedule a closing conference to explain the preliminary results of the audit.
(3) Except as provided in paragraph (5), if the estimated or actual termination date for an audit passes without the Customs Service auditor providing a closing conference to explain the results of the audit, the person being audited may petition in writing for such a conference to the officer designated pursuant to regulations, who, upon receipt of such a request, shall provide for such a conference to be held within 15 days after the date of receipt.
(4) Except as provided in paragraph (5), the Customs Service auditor shall complete the formal written audit report within 90 days following the closing conference unless the officer designated pursuant to regulations provides written notice to the person being audited of the reason for any delay and the anticipated completion date. After application of any exemption contained in
(5) Paragraphs (3) and (4) shall not apply after the Customs Service commences a formal investigation with respect to the issue involved.
(6)(A) If during the course of any audit concluded under this subsection, the Customs Service identifies overpayments of duties or fees or over-declarations of quantities or values that are within the time period and scope of the audit that the Customs Service has defined, then in calculating the loss of revenue or monetary penalties under
(B) Nothing in this paragraph shall be construed to authorize a refund not otherwise authorized under
(c) Service of summons
A summons issued pursuant to this section may be served by any person designated in the summons to serve it. Service upon a natural person may be made by personal delivery of the summons to him. Service may be made upon a domestic or foreign corporation or upon a partnership or other unincorporated association which is subject to suit under a common name, by delivering the summons to an officer, or managing or general agent, or to any other agent authorized by appointment or by law to receive service of process. The certificate of service signed by the person serving the summons is prima facie evidence of the facts it states on the hearing of an application for the enforcement of the summons. When the summons requires the production of records, such records shall be described in the summons with reasonable specificity.
(d) Special procedures for third-party summonses
(1) For purposes of this subsection—
(A) The term "records" includes those—
(i) required to be kept under
(ii) regarding which there is probable cause to believe that they pertain to merchandise the importation of which into the United States is prohibited.
(B) The term "summons" means any summons issued under subsection (a) of this section which requires the production of records or the giving of testimony relating to records. Such term does not mean any summons issued to aid in the collection of the liability of any person against whom an assessment has been made or judgment rendered.
(C) The term "third-party recordkeeper" means—
(i) any customhouse broker, unless such customhouse broker is the importer of record on an entry;
(ii) any attorney; and
(iii) any accountant.
(2) If—
(A) any summons is served on any person who is a third-party recordkeeper; and
(B) the summons requires the production of, or the giving of testimony relating to, any portion of records made or kept of the transactions described in
then notice of such summons shall be given to any persons so identified within a reasonable time before the day fixed in the summons as the day upon which such records are to be examined or testimony given. Such notice shall be accompanied by a copy of the summons which has been served and shall contain directions for staying compliance with the summons under paragraph (5)(B) of this subsection.
(3) Any notice required under paragraph (2) of this subsection shall be sufficient if such notice is served in the manner provided in subsection (b) of this section upon the person entitled to notice, or is mailed by certified or registered mail to the last known address of such person.
(4) Paragraph (2) of this subsection shall not apply to any summons—
(A) served on the person with respect to whose liability for duties, fees, or taxes the summons is issued, or any officer or employee of such person; or
(B) to determine whether or not records of the transactions described in
(5) Notwithstanding any other law or rule of law, any person who is entitled to notice of a summons under paragraph (2) of this subsection shall have the right—
(A) to intervene in any proceeding with respect to the enforcement of such summons under
(B) to stay compliance with the summons if, not later than the day before the day fixed in the summons as the day upon which the records are to be examined or testimony given—
(i) notice in writing is given to the person summoned not to comply with the summons; and
(ii) a copy of such notice not to comply with the summons is mailed by registered or certified mail to such person and to such office as the Secretary may direct in the notice referred to in paragraph (2) of this subsection.
(6) No examination of any records required to be produced under a summons as to which notice is required under paragraph (2) of this subsection may be made—
(A) before the expiration of the period allowed for the notice not to comply under paragraph (5)(B) of this subsection, or
(B) if the requirements of such paragraph (5)(B) have been met, except in accordance with an order issued by a court of competent jurisdiction authorizing examination of such records or with the consent of the person staying compliance.
(7) The provisions of paragraphs (2) and (5) of this subsection shall not apply with respect to any summons if, upon petition by the Secretary, the court determines, on the basis of the facts and circumstances alleged, that there is reasonable cause to believe the giving of notice may lead to attempts to conceal, destroy, or alter records relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying, or production of records.
(e) List of records and information
The Customs Service shall identify and publish a list of the records or entry information that is required to be maintained and produced under subsection (a)(1)(A).
(f) Recordkeeping compliance program
(1) In general
After consultation with the importing community, the Customs Service shall by regulation establish a recordkeeping compliance program which the parties listed in
(2) Certification
A recordkeeper may be certified as a participant in the recordkeeping compliance program after meeting the general recordkeeping requirements established under the program or after negotiating an alternative program suited to the needs of the recordkeeper and the Customs Service. Certification requirements shall take into account the size and nature of the importing business and the volume of imports. In order to be certified, the recordkeeper must be able to demonstrate that it—
(A) understands the legal requirements for recordkeeping, including the nature of the records required to be maintained and produced and the time periods involved;
(B) has in place procedures to explain the recordkeeping requirements to those employees who are involved in the preparation, maintenance, and production of required records;
(C) has in place procedures regarding the preparation and maintenance of required records, and the production of such records to the Customs Service;
(D) has designated a dependable individual or individuals to be responsible for recordkeeping compliance under the program and whose duties include maintaining familiarity with the recordkeeping requirements of the Customs Service;
(E) has a record maintenance procedure approved by the Customs Service for original records, or, if approved by the Customs Service, for alternative records or recordkeeping formats other than the original records; and
(F) has procedures for notifying the Customs Service of occurrences of variances to, and violations of, the requirements of the recordkeeping compliance program or the negotiated alternative programs, and for taking corrective action when notified by the Customs Service of violations or problems regarding such program.
(g) Penalties
(1) "Information" defined
For purposes of this subsection, the term "information" means any record, statement, declaration, document, or electronically stored or transmitted information or data referred to in subsection (a)(1)(A).
(2) Effects of failure to comply with demand
Except as provided in paragraph (4), if a person fails to comply with a lawful demand for information under subsection (a)(1)(A) the following provisions apply:
(A) If the failure to comply is a result of the willful failure of the person to maintain, store, or retrieve the demanded information, such person shall be subject to a penalty, for each release of merchandise, not to exceed $100,000, or an amount equal to 75 percent of the appraised value of the merchandise, whichever amount is less.
(B) If the failure to comply is a result of the negligence of the person in maintaining, storing, or retrieving the demanded information, such person shall be subject to a penalty, for each release of merchandise, not to exceed $10,000, or an amount equal to 40 percent of the appraised value of the merchandise, whichever amount is less.
(C) In addition to any penalty imposed under subparagraph (A) or (B) regarding demanded information, if such information related to the eligibility of merchandise for a column 1 special rate of duty under title I, the entry of such merchandise—
(i) if unliquidated, shall be liquidated at the applicable column 1 general rate of duty; or
(ii) if liquidated within the 2-year period preceding the date of the demand, shall be reliquidated, notwithstanding the time limitation in
except that any liquidation or reliquidation under clause (i) or (ii) shall be at the applicable column 2 rate of duty if the Customs Service demonstrates that the merchandise should be dutiable at such rate.
(3) Avoidance of penalty
No penalty may be assessed under this subsection if the person can show—
(A) that the loss of the demanded information was the result of an act of God or other natural casualty or disaster beyond the fault of such person or an agent of the person;
(B) on the basis of other evidence satisfactory to the Customs Service, that the demand was substantially complied with; or
(C) the information demanded was presented to and retained by the Customs Service at the time of entry or submitted in response to an earlier demand.
(4) Penalties not exclusive
Any penalty imposed under this subsection shall be in addition to any other penalty provided by law except for—
(A) a penalty imposed under
(B) disciplinary action taken under
(5) Remission or mitigation
A penalty imposed under this section may be remitted or mitigated under
(6) Customs summons
Nothing in this subsection shall limit or preclude the Customs Service from issuing, or seeking the enforcement of, a customs summons.
(7) Alternatives to penalties
(A) In general
When a recordkeeper who—
(i) has been certified as a participant in the recordkeeping compliance program under subsection (f); and
(ii) is generally in compliance with the appropriate procedures and requirements of the program;
does not produce a demanded record or information for a specific release or provide the information by acceptable alternative means, the Customs Service, in the absence of willfulness or repeated violations, shall issue a written notice of the violation to the recordkeeper in lieu of a monetary penalty. Repeated violations by the recordkeeper may result in the issuance of penalties and removal of certification under the program until corrective action, satisfactory to the Customs Service, is taken.
(B) Contents of notice
A notice of violation issued under subparagraph (A) shall—
(i) state that the recordkeeper has violated the recordkeeping requirements;
(ii) indicate the record or information which was demanded; and
(iii) warn the recordkeeper that future failures to produce demanded records or information may result in the imposition of monetary penalties.
(C) Response to notice
Within a reasonable time after receiving written notice under subparagraph (A), the recordkeeper shall notify the Customs Service of the steps it has taken to prevent a recurrence of the violation.
(D) Regulations
The Secretary shall promulgate regulations to implement this paragraph. Such regulations may specify the time periods for compliance with a demand for information and provide guidelines which define repeated violations for purposes of this paragraph. Any penalty issued for a recordkeeping violation shall take into account the degree of compliance compared to the total number of importations, the nature of the demanded records and the recordkeeper's cooperation.
(June 17, 1930, ch. 497, title IV, §509,
References in Text
Title I, referred to in subsec. (g)(2)(C), means title I of act June 17, 1930, ch. 497, as amended, which contains the Harmonized Tariff Schedule of the United States and which is not set out in the Code. See notes preceding
Prior Provisions
Provisions substantially the same, in most respects, as those in this section, were contained in act Oct. 3, 1913, ch. 16, §III, O,
Prior provisions similar to those in this section and
Amendments
2020—Subsec. (a)(2)(A)(i).
Subsec. (a)(2)(A)(ii).
2002—Subsec. (b)(6).
1996—Subsec. (a)(2).
Subsec. (b)(3), (4).
1993—Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(2)(A).
Subsec. (a)(2)(A)(ii).
Subsec. (a)(2)(B), (C).
"(B) any officer, employee, or agent of such person,
"(C) any person having possession, custody, or care of records relating to such importation, or".
Subsec. (a)(2)(D).
Subsecs. (b), (c).
Subsec. (d).
Subsec. (d)(1)(A).
Subsec. (d)(1)(C)(i).
Subsec. (d)(2)(B).
Subsec. (d)(4)(A).
Subsec. (d)(4)(B).
Subsecs. (e) to (g).
1986—Subsec. (a)(2).
Subsec. (c)(1)(A).
1978—
1970—
1948—Act June 25, 1948, struck out "and judges and divisions of the United States Customs Court" after "Collectors and appraisers" in first sentence.
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by section 205(b) of
Effective Date of 1970 Amendment
For effective date of amendment by
Effective Date of 1948 Amendment
Act June 25, 1948, ch. 646, §38,
Construction of 1993 Amendment
Amendment by section 205(b) of
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
§1510. Judicial enforcement
(a) Order of court
If any person summoned under
(b) Sanctions
(1) For so long as any person, after being adjudged guilty of contempt for neglecting or refusing to obey a lawful summons issued under
(A) prohibit that person from importing merchandise into the customs territory of the United States directly or indirectly or for his account, and
(B) instruct the appropriate customs officers to withhold delivery of merchandise imported directly or indirectly by that person or for his account.
(2) If any person remains in contempt for more than one year after the date on which the Secretary issues instructions under paragraph (1)(B) with respect to that person, the appropriate customs officers shall cause all merchandise held in customs custody pursuant to such instructions to be sold at public auction or otherwise disposed of under the customs laws.
(3) The sanctions which may be imposed under paragraphs (1) and (2) are in addition to any punishment which may be imposed by the court for contempt.
(June 17, 1930, ch. 497, title IV, §510,
Prior Provisions
Provisions substantially the same as those in this section were contained in act Oct. 3, 1913, ch. 16, §III, P,
Prior provisions similar to those in this section were contained in R.S. §§2923, 2924, prior to repeal by section 29 of the Customs Administrative Act of June 10, 1890,
Amendments
1993—Subsec. (a).
1978—
1970—
Effective Date of 1970 Amendment
For effective date of amendment by
§1511. Repealed. Pub. L. 95–410, title I, §107, Oct. 3, 1978, 92 Stat. 892
Section, acts June 17, 1930, ch. 497, title IV, §511,
Provisions similar to those in this section were contained in act May 27, 1921, ch. 14, §405,
Earlier provisions for assessment of additional duty for failure or refusal of persons importing merchandise or dealing in imported merchandise to submit their books, records, etc., to inspection, were contained in act Oct. 3, 1913, ch. 16, §III, V,
§1512. Deposit of duty receipts
All moneys paid to any customs officer for unascertained duties or for duties paid under protest against the rate or amount of duties charged shall be deposited to the credit of the Treasurer of the United States and shall not be held by the customs officers to await any ascertainment of duties or the result of any litigation in relation to the rate or amount of duties legally chargeable and collectible in any case where money is so paid.
(June 17, 1930, ch. 497, title IV, §512,
Prior Provisions
Provisions similar to those in this section were contained in R.S. §3010, which was superseded by act Sept. 21, 1922, ch. 356, title IV, §512,
Amendments
1970—
Effective Date of 1970 Amendment
For effective date of amendment by
§1513. Customs officer's immunity
No customs officer shall be liable in any way to any person for or on account of—
(1) any ruling or decision regarding the appraisement or the classification of any imported merchandise or regarding the duties, fees, and taxes charged thereon,
(2) the collection of any dues, charges, duties, fees, and taxes on or on account of any imported merchandise, or
(3) any other matter or thing as to which any person might under this chapter be entitled