Part I—Miscellaneous
§1301. Repealed. Apr. 30, 1946, ch. 244, title V, §511(1), 60 Stat. 158
Section, act June 17, 1930, ch. 497, title III, §301,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective May 1, 1946, see section 512 of act Apr. 30, 1946, set out as an Effective Date note under
§1301a. Repealed. Pub. L. 87–456, title III, §301(a), May 24, 1962, 76 Stat. 75
Section, act June 17, 1930, ch. 497, title III, §301, as added Sept. 1, 1954, ch. 1213, title IV, §401,
§1302. Omitted
Editorial Notes
Codification
Section, acts June 17, 1930, ch. 497, title III, §302,
§1303. Repealed. Pub. L. 103–465, title II, §261(a), Dec. 8, 1994, 108 Stat. 4908
Section, acts June 17, 1930, ch. 497, title III, §303,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Savings Provision
"(b)
"(1)
"(A) which have been issued pursuant to an investigation conducted under section 303 of the Tariff Act of 1930 [
"(B) which are in effect on the effective date of this title [Jan. 1, 1995, see Effective Date of 1994 Amendment note set out under
shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the administering authority, the International Trade Commission, or a court of competent jurisdiction, or by operation of law. Except as provided in paragraph (3), such orders or determinations shall be subject to review under section 751 of the Tariff Act of 1930 [
"(2)
"(3)
"(c)
References to Former Section 1303
References to section 1303 in
§1304. Marking of imported articles and containers
(a) Marking of articles
Except as hereinafter provided, every article of foreign origin (or its container, as provided in subsection (b) hereof) imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. The Secretary of the Treasury may by regulations—
(1) Determine the character of words and phrases or abbreviations thereof which shall be acceptable as indicating the country of origin and prescribe any reasonable method of marking, whether by printing, stenciling, stamping, branding, labeling, or by any other reasonable method, and a conspicuous place on the article (or container) where the marking shall appear;
(2) Require the addition of any other words or symbols which may be appropriate to prevent deception or mistake as to the origin of the article or as to the origin of any other article with which such imported article is usually combined subsequent to importation but before delivery to an ultimate purchaser; and
(3) Authorize the exception of any article from the requirements of marking if—
(A) Such article is incapable of being marked;
(B) Such article cannot be marked prior to shipment to the United States without injury;
(C) Such article cannot be marked prior to shipment to the United States, except at an expense economically prohibitive of its importation;
(D) The marking of a container of such article will reasonably indicate the origin of such article;
(E) Such article is a crude substance;
(F) Such article is imported for use by the importer and not intended for sale in its imported or any other form;
(G) Such article is to be processed in the United States by the importer or for his account otherwise than for the purpose of concealing the origin of such article and in such manner that any mark contemplated by this section would necessarily be obliterated, destroyed, or permanently concealed;
(H) An ultimate purchaser, by reason of the character of such article or by reason of the circumstances of its importation, must necessarily know the country of origin of such article even though it is not marked to indicate its origin;
(I) Such article was produced more than twenty years prior to its importation into the United States;
(J) Such article is of a class or kind with respect to which the Secretary of the Treasury has given notice by publication in the weekly Treasury Decisions within two years after July 1, 1937, that articles of such class or kind were imported in substantial quantities during the five-year period immediately preceding January 1, 1937, and were not required during such period to be marked to indicate their origin: Provided, That this subdivision shall not apply after September 1, 1938, to sawed lumber and timbers, telephone, trolley, electric-light, and telegraph poles of wood, and bundles of shingles; but the President is authorized to suspend the effectiveness of this proviso if he finds such action required to carry out any trade agreement entered into under the authority of
(K) Such article cannot be marked after importation except at any expense which is economically prohibitive, and the failure to mark the article before importation was not due to any purpose of the importer, producer, seller, or shipper to avoid compliance with this section.
(b) Marking of containers
Whenever an article is excepted under subdivision (3) of subsection (a) of this section from the requirements of marking, the immediate container, if any, of such article, or such other container or containers of such article as may be prescribed by the Secretary of the Treasury, shall be marked in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of such article, subject to all provisions of this section, including the same exceptions as are applicable to articles under subdivision (3) of subsection (a). If articles are excepted from marking requirements under clause (F), (G), or (H) of subdivision (3) of subsection (a) of this section, their usual containers shall not be subject to the marking requirements of this section. Usual containers in use as such at the time of importation shall in no case be required to be marked to show the country of their own origin.
(c) Marking of certain pipe and fittings
(1) Except as provided in paragraph (2), no exception may be made under subsection (a)(3) with respect to pipes of iron, steel, or stainless steel, to pipe fittings of steel, stainless steel, chrome-moly steel, or cast and malleable iron each of which shall be marked with the English name of the country of origin by means of die stamping, cast-in-mold lettering, etching, engraving, or continuous paint stenciling.
(2) If, because of the nature of an article, it is technically or commercially infeasible to mark it by one of the five methods specified in paragraph (1), the article may be marked by an equally permanent method of marking or, in the case of small diameter pipe, tube, and fittings, by tagging the containers or bundles.
(d) Marking of compressed gas cylinders
No exception may be made under subsection (a)(3) with respect to compressed gas cylinders designed to be used for the transport and storage of compressed gases whether or not certified prior to exportation to have been made in accordance with the safety requirements of sections 178.36 through 178.68 of title 49, Code of Federal Regulations, each of which shall be marked with the English name of the country of origin by means of die stamping, molding, etching, raised lettering, or an equally permanent method of marking.
(e) Marking of certain castings
No exception may be made under subsection (a)(3) with respect to inlet frames, tree and trench grates, lampposts, lamppost bases, cast utility poles, bollards, hydrants, utility boxes, manhole rings or frames, covers, and assemblies thereof each of which shall be marked on the top surface with the English name of the country of origin by means of die stamping, cast-in-mold lettering, etching, engraving, or an equally permanent method of marking in a location such that it will remain visible after installation.
(f) Marking of certain coffee and tea products
The marking requirements of subsections (a) and (b) shall not apply to articles described in subheadings 0901.21, 0901.22, 0902.10, 0902.20, 0902.30, 0902.40, 2101.10, and 2101.20 of the Harmonized Tariff Schedule of the United States, as in effect on January 1, 1995.
(g) Marking of spices
The marking requirements of subsections (a) and (b) shall not apply to articles provided for under subheadings 0904.11, 0904.12, 0904.20, 0905.00, 0906.10, 0906.20, 0907.00, 0908.10, 0908.20, 0908.30, 0909.10, 0909.20, 0909.30, 0909.40, 0909.50, 0910.10, 0910.20, 0910.30, 0910.40, 0910.50, 0910.91, 0910.99, 1106.20, 1207.40, 1207.50, 1207.91, 1404.90, and 3302.10, and items classifiable in categories 0712.90.60, 0712.90.8080, 1209.91.2000, 1211.90.2000, 1211.90.8040, 1211.90.8050, 1211.90.8090, 2006.00.3000, 2918.13.2000, 3203.00.8000, 3301.90.1010, 3301.90.1020, and 3301.90.1050 of the Harmonized Tariff Schedule of the United States, as in effect on January 1, 1995.
(h) Marking of certain silk products
The marking requirements of subsections (a) and (b) shall not apply either to—
(1) articles provided for in subheading 6214.10.10 of the Harmonized Tariff Schedule of the United States, as in effect on January 1, 1997; or
(2) articles provided for in heading 5007 of the Harmonized Tariff Schedule of the United States as in effect on January 1, 1997.
(i) Additional duties for failure to mark
If at the time of importation any article (or its container, as provided in subsection (b) hereof) is not marked in accordance with the requirements of this section, and if such article is not exported or destroyed or the article (or its container, as provided in subsection (b) hereof) marked after importation in accordance with the requirements of this section (such exportation, destruction, or marking to be accomplished under customs supervision prior to the liquidation of the entry covering the article, and to be allowed whether or not the article has remained in continuous customs custody), there shall be levied, collected, and paid upon such article a duty of 10 per centum ad valorem, which shall be deemed to have accrued at the time of importation, shall not be construed to be penal, and shall not be remitted wholly or in part nor shall payment thereof be avoidable for any cause. Such duty shall be levied, collected, and paid in addition to any other duty imposed by law and whether or not the article is exempt from the payment of ordinary customs duties. The compensation and expenses of customs officers and employees assigned to supervise the exportation, destruction, or marking to exempt articles from the application of the duty provided for in this subsection shall be reimbursed to the Government by the importer.
(j) Delivery withheld until marked
No imported article held in customs custody for inspection, examination, or appraisement shall be delivered until such article and every other article of the importation (or their containers), whether or not released from customs custody, shall have been marked in accordance with the requirements of this section or until the amount of duty estimated to be payable under subsection (i) of this section has been deposited. Nothing in this section shall be construed as excepting any article (or its container) from the particular requirements of marking provided for in any other provision of law.
(k) Treatment of goods of a USMCA country
In applying this section to an article that qualifies as a good of a USMCA country (as defined in
(1) the exemption under subsection (a)(3)(H) shall be applied by substituting "reasonably know" for "necessarily know";
(2) the Secretary shall exempt the good from the requirements for marking under subsection (a) if the good—
(A) is an original work of art; or
(B) is provided for under subheading 6904.10, heading 8541, or heading 8542 of the Harmonized Tariff Schedule of the United States; and
(3) subsection (b) does not apply to the usual container of any good described in subsection (a)(3)(E) or (I) or paragraph (2)(A) or (B) of this subsection.
(l) Penalties
Any person who, with intent to conceal the information given thereby or contained therein, defaces, destroys, removes, alters, covers, obscures, or obliterates any mark required under the provisions of this chapter shall—
(1) upon conviction for the first violation of this subsection, be fined not more than $100,000, or imprisoned for not more than 1 year, or both; and
(2) upon conviction for the second or any subsequent violation of this subsection, be fined not more than $250,000, or imprisoned for not more than 1 year, or both.
(June 17, 1930, ch. 497, title III, §304,
Editorial Notes
References in Text
The Harmonized Tariff Schedule of the United States, referred to in subsecs. (f) to (h) and (k)(2)(B), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
Prior Provisions
Provisions dealing with the subject matter of this section and former
Amendments
2020—Subsec. (k).
2016—Subsec. (e).
1999—Subsecs. (h), (i).
Subsec. (j).
Subsecs. (k), (l).
1996—Subsecs. (f) to (h).
Subsec. (i).
Subsecs. (j), (k).
1993—Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (e).
Subsecs. (h), (i).
1988—Subsec. (h).
1986—Subsec. (c).
1984—Subsecs. (c) to (h).
1953—Subsec. (a)(3)(K). Act Aug. 8, 1953, added cl. (K).
1938—Act June 25, 1938, amended section generally.
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
"(1)
"(A) take effect on the date on which the USMCA enters into force [July 1, 2020]; and
"(B) apply with respect to a good entered for consumption, or withdrawn from warehouse for consumption, on or after that date.
"(2)
"(A) the amendments made by this section shall not apply with respect to the good; and
"(B) the provisions of law amended by this section, as such provisions were in effect on the day before that date, shall continue to apply on and after that date with respect to the good."
[For definition of "USMCA" as used in section 209(d) of
Effective Date of 2016 Amendment
Effective Date of 1999 Amendment
Effective Date of 1996 Amendment
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1988 Amendment
"(A) The amendment made by paragraph (1) [amending this section] applies with respect to acts committed on or after the date of the enactment of this Act [Aug. 23, 1988].
"(B) The conviction of a person under section 304(h) of the Tariff Act of 1930 [
Effective Date of 1984 Amendment
"(a) For purposes of this section, the term '15th day' means the 15th day after the date of the enactment of this Act [Oct. 30, 1984].
"(b) Except as provided in subsections (c), (d), and (e), the amendments made by this title [enacting
"(c)(1) The amendment made by section 204 [amending
"(2) The amendments made by section 207 [amending this section] shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day; except for such of those articles that, on or before the 15th day, had been taken on board for transit to the customs territory of the United States.
"(3)(A) The amendment made by section 208 [amending
"(B) Upon request therefor filed with the customs officer concerned on or before the 90th day after the date of the enactment of this Act [Oct. 30, 1984], any entry in connection with the arrival of a vessel used primarily for transporting passengers or property—
"(i) made before the 15th day but not liquidated as of January 1, 1983, or
"(ii) made before the 15th day but which is the subject of an action in a court of competent jurisdiction on September 19, 1983, and
"(iii) with respect to which there would have been no duty if the amendment made by section 208 applied to such entry,
shall, notwithstanding the provisions of section 514 of the Tariff Act of 1930 (
"(4) The amendments made by section 209 [enacting
"(5)(A) The amendment made by section 210(a) [amending
"(B) The amendment made by section 210(b) [amending
"(d)(1) The amendments made by section 212 [amending
"(A) Section 641(c)(1)(B) and section 641(c)(2) of the Tariff Act of 1930, as added by such section [
"(B) The amendments made to the Tariff Act of 1930 by subsection (c) of section 212 [no subsec. (c) of section 212 was enacted] shall take effect on such date of enactment [Oct. 30, 1984].
"(2) A license in effect on the date of enactment of this Act [Oct. 30, 1984] under section 641 of the Tariff Act of 1930 (as in effect before such date of enactment) shall continue in force as a license to transact customs business as a customs broker, subject to all the provisions of section 212 and such licenses shall be accepted as permits for the district or districts covered by that license.
"(3) Any proceeding for revocation or suspension of a license instituted under section 641 of the Tariff Act of 1930 before the date of the enactment of this Act [Oct. 30, 1984] shall continue and be governed by the law in effect at the time the proceeding was instituted.
"(4) If any provision of section 212 or its application to any person or circumstances is held invalid, it shall not affect the validity of the remaining provisions or their application to any other person or circumstances.
"(e) The amendments made by section 213 [enacting
Effective Date of 1953 Amendments, Enactments, and Repeals
Act Aug. 8, 1953, ch. 397, §1,
The exception "except as otherwise specifically provided for" apparently refers to the amendments made to the provisions preceding subd. (1) of
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
Savings Provision
Act Aug. 8, 1953, ch. 397, §23,
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
Marking Requirements for Articles Qualifying as Goods of NAFTA Country
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1801–1899A] of
Executive Documents
Transfer of Functions
Functions of 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,
§1304a. Technical assistance to U.S. Customs and Border Protection
The Secretary of Agriculture shall make available to U.S. Customs and Border Protection technical assistance related to the identification of produce represented as grown in the United States when it is not in fact grown in the United States.
(
Editorial Notes
Codification
Section was enacted as part of the Agricultural Act of 2014, and not as part of the Tariff Act of 1930 which comprises this chapter.
§1305. Immoral articles; importation prohibited
(a) Prohibition of importation
All persons are prohibited from importing into the United States from any foreign country any book, pamphlet, paper, writing, advertisement, circular, print, picture, or drawing containing any matter advocating or urging treason or insurrection against the United States, or forcible resistance to any law of the United States, or containing any threat to take the life of or inflict bodily harm upon any person in the United States, or any obscene book, pamphlet, paper, writing, advertisement, circular, print, picture, drawing, or other representation, figure, or image on or of paper or other material, or any cast, instrument, or other article which is obscene or immoral, or any drug or medicine or any article whatever for causing unlawful abortion, or any lottery ticket, or any printed paper that may be used as a lottery ticket, or any advertisement of any lottery. No such articles whether imported separately or contained in packages with other goods entitled to entry, shall be admitted to entry; and all such articles and, unless it appears to the satisfaction of the appropriate customs officer that the obscene or other prohibited articles contained in the package were inclosed therein without the knowledge or consent of the importer, owner, agent, or consignee, the entire contents of the package in which such articles are contained, shall be subject to seizure and forfeiture as hereinafter provided: Provided, That the drugs hereinbefore mentioned, when imported in bulk and not put up for any of the purposes hereinbefore specified, are excepted from the operation of this subdivision: Provided further, That the Secretary of the Treasury may, in his discretion, admit the so-called classics or books of recognized and established literary or scientific merit, but may, in his discretion, admit such classics or books only when imported for noncommercial purposes: Provided further, That effective January 1, 1993, this section shall not apply to any lottery ticket, printed paper that may be used as a lottery ticket, or advertisement of any lottery, that is printed in Canada for use in connection with a lottery conducted in the United States.
(b) 1 Enforcement procedures
Upon the appearance of any such book or matter at any customs office, the same shall be seized and held by the appropriate customs officer to await the judgment of the district court as hereinafter provided; and no protest shall be taken to the United States Court of International Trade from the decision of such customs officer. Upon the seizure of such book or matter, such customs officer shall transmit information thereof to the United States attorney of the district in which is situated either—
(1) the office at which such seizure took place; or
(2) the place to which such book or matter is addressed;
and the United States attorney shall institute proceedings in the district court for the forfeiture, confiscation, and destruction of the book or matter seized. Upon the adjudication that such book or matter thus seized is of the character the entry of which is by this section prohibited, it shall be ordered destroyed and shall be destroyed. Upon adjudication that such book or matter thus seized is not of the character the entry of which is by this section prohibited, it shall not be excluded from entry under the provisions of this section.
In any such proceeding any party in interest may upon demand have the facts at issue determined by a jury and any party may have an appeal or the right of review as in the case of ordinary actions or suits.
(c) 1 Institution of forfeiture proceedings
Notwithstanding the provisions of subsections (a) and (b), whenever a customs officer discovers any obscene material after such material has been imported or brought into the United States, or attempted to be imported or brought into the United States, he may refer the matter to the United States attorney for the institution of forfeiture proceedings under this section. Such proceedings shall begin no more than 30 days after the time the material is seized; except that no seizure or forfeiture shall be invalidated for delay if the claimant is responsible for extending the action beyond the allowable time limits or if proceedings are postponed pending the consideration of constitutional issues.
(d) Stay of forfeiture proceedings
Upon motion of the United States, a court shall stay such civil forfeiture proceedings commenced under this section pending the completion of any related criminal matter.
(b) 1 Coordination of forfeiture proceedings with criminal proceedings
(1) Notwithstanding subsection (a), whenever the Customs Service is of the opinion that criminal prosecution would be appropriate or that further criminal investigation is warranted in connection with allegedly obscene material seized at the time of entry, the appropriate customs officer shall immediately transmit information concerning such seizure to the United States Attorney 2 of the district of the addressee's residence. No notice to the addressee or consignee concerning the seizure is required at the time of such transmittal.
(2) Upon receipt of such information, such United States attorney shall promptly determine whether in such attorney's opinion the referral of the matter for forfeiture under this section would materially affect the Government's ability to conduct a criminal investigation with respect to such seizure.
(3) If the United States attorney is of the opinion that no prejudice to such investigation will result from such referral, such attorney shall immediately so notify the Customs Service in writing. The appropriate customs officer shall immediately notify in writing the addressee or consignee of the seizure and shall transmit information concerning such seizure to the United States Attorney 2 of the district in which is situated the office at which such seizure has taken place. The actions described in paragraphs (1) through (3) of this subsection shall take place within sufficient time to allow for the filing of a forfeiture complaint within 14 days of the seizure unless the United States Attorney 2 of the district of the addressee's residence certifies in writing and includes specific, articulable facts demonstrating that the determination required in paragraph (2) of this subsection could not be made in sufficient time to comply with this deadline. In such cases, the actions described in paragraphs (1) through (3) of this subsection shall take place within sufficient time to allow for the filing of a forfeiture complaint within 21 days of seizure.
(4) If the United States attorney for the district of the addressee's residence concludes that material prejudice to such investigation will result from such referral, such United States attorney shall place on file, within 14 days of the date of seizure, a dated certification stating that it is the United States attorney's judgment that referral of the matter for forfeiture under this section would materially affect the Government's ability to conduct a criminal investigation with respect to the seizure. The certification shall set forth specific, articulable facts demonstrating that withholding referral for forfeiture is necessary.
(5)(A) As soon as the circumstances change so that withholding of referral for forfeiture is no longer necessary for purposes of the criminal investigation, the United States attorney shall immediately so notify the Customs Service in writing and shall furnish a copy of the certification described in paragraph (4) above to the Customs Service.
(B) In any matter referred to a United States attorney for possible criminal prosecution wherein subparagraph (5)(A) does not apply, the United States attorney shall immediately notify the Customs Service in writing concerning the disposition of the matter, whether by institution of a prosecution or a letter of declination, and shall also furnish a copy of the certification described in paragraph (4) of this subsection to the Customs Service.
(C) Upon receipt of the notification described in subparagraph (A) or (B) of this paragraph, the appropriate customs officer shall immediately notify the addressee or consignee of the seizure and shall transmit information concerning the seizure, including a copy of the certification described in paragraph (4) above and a copy of the notification described in subparagraph (A) or (B) of this paragraph, to the United States attorney of the district in which is situated the office at which such seizure has taken place, who shall institute forfeiture proceedings in accordance with subsection (a) hereof within 14 days of the date of the notification described in subparagraph (A) or (B) above. A copy of the certification described in paragraph (4) above and a copy of the notification described in subparagraph (A) or (B) of this paragraph shall be affixed to the complaint for forfeiture.
(c) 1 Stay on motion
Upon motion of the United States, a court, for good cause shown, shall stay civil forfeiture proceedings commenced under this section pending the completion of any related criminal matter whether in the same or in a different district.
(June 17, 1930, ch. 497, title III, §305,
Amendment of Section
For termination of amendment by section 501(c) of
Editorial Notes
Prior Provisions
Provisions in substantially the same language as those in this section were made by act Oct. 3, 1913, ch. 16, §IV, subsections 1, 2, and 3,
Amendments
1988—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
1980—Subsec. (a).
1971—Subsec. (a).
1970—Subsec. (a).
1948—Subsec. (b). Act June 25, 1948, eff. Sept. 1, 1948, repealed subsec. (b) which related to penalties against government officers. See
Statutory Notes and Related Subsidiaries
Change of Name
Act June 25, 1948, eff. Sept. 1, 1948, substituted "United States attorney" for "district attorney". See
Effective and Termination Dates of 1988 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1971 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
Executive Documents
Transfer of Functions
Functions of 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,
Importation of RU–486
Memorandum of President of the United States, Jan. 22, 1993, 58 F.R. 7459, provided:
Memorandum for the Secretary of Health and Human Services
In Import Alert 66–47, the Food and Drug Administration ("FDA") excluded the drug Mifepristine—commonly known as RU–486—from the list of drugs that individuals can import into the United States for their "personal use," although the drugs have not yet been approved for distribution by the FDA. (See FDA Regulatory Procedures Manual,
I am informed that in excluding RU–486 from the personal use importation exemption, the FDA appears to have based its decision on factors other than an assessment of the possible health and safety risks of the drug. Accordingly, I hereby direct that you promptly instruct the FDA to determine whether there is sufficient evidence to warrant exclusion of RU–486 from the list of drugs that qualify for the personal use importation exemption. Furthermore, if the FDA concludes that RU–486 meets the criteria for the personal use importation exemption, I direct that you immediately take steps to rescind Import Alert 66–47.
In addition, I direct that you promptly assess initiatives by which the Department of Health and Human Services can promote the testing, licensing, and manufacturing in the United States of RU–486 or other antiprogestins.
You are hereby authorized and directed to publish this memorandum in the Federal Register.
William J. Clinton.
2 So in original. Probably should not be capitalized.
§1306. Repealed. Pub. L. 107–171, title X, §10418(a)(5), May 13, 2002, 116 Stat. 507
Section, June 17, 1930, ch. 497, title III, §306,
§1307. Convict-made goods; importation prohibited
All goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at any of the ports of the United States, and the importation thereof is hereby prohibited, and the Secretary of the Treasury is authorized and directed to prescribe such regulations as may be necessary for the enforcement of this provision.
"Forced labor", as herein used, shall mean all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily. For purposes of this section, the term "forced labor or/and indentured labor" includes forced or indentured child labor.
(June 17, 1930, ch. 497, title III, §307,
Editorial Notes
Prior Provisions
Provisions in the same language as the provisions in this section were made by act Oct. 3, 1913, ch. 16, §IV, I,
Amendments
2016—
2000—
Statutory Notes and Related Subsidiaries
Effective Date of 2016 Amendment
Effective Date of 2000 Amendment
Prohibition on Use of Funds To Prevent Enforcement of Ban on Importation of Convict-Made Goods
Prohibition on Use of Funds To Allow Importation of Forced or Indentured Child Labor
"(1) the importation into the United States of any good, ware, article, or merchandise mined, produced, or manufactured by forced or indentured child labor, as determined under section 307 of the Tariff Act of 1930 (
"(2) the release into the United States of any good, ware, article, or merchandise on which there is in effect a detention order under such section 307 on the basis that the good, ware, article, or merchandise may have been mined, produced, or manufactured by forced or indentured child labor."
Reporting Requirement on Forced Labor Products Destined for United States Market
Sense of Congress Requesting President To Instruct Secretary of the Treasury To Enforce Section 1307 Without Delay
§1308. Prohibition on importation of dog and cat fur products
(a) Definitions
In this section:
(1) Cat fur
The term "cat fur" means the pelt or skin of any animal of the species Felis catus.
(2) Interstate commerce
The term "interstate commerce" means the transportation for sale, trade, or use between any State, territory, or possession of the United States, or the District of Columbia, and any place outside thereof.
(3) Customs laws
The term "customs laws of the United States" means any other law or regulation enforced or administered by the United States Customs Service.
(4) Designated authority
The term "designated authority" means the Secretary of the Treasury, with respect to the prohibitions under subsection (b)(1)(A), and the President (or the President's designee), with respect to the prohibitions under subsection (b)(1)(B).
(5) Dog fur
The term "dog fur" means the pelt or skin of any animal of the species Canis familiaris.
(6) Dog or cat fur product
The term "dog or cat fur product" means any item of merchandise which consists, or is composed in whole or in part, of any dog fur, cat fur, or both.
(7) Person
The term "person" includes any individual, partnership, corporation, association, organization, business trust, government entity, or other entity subject to the jurisdiction of the United States.
(8) United States
The term "United States" means the customs territory of the United States, as defined in general note 2 of the Harmonized Tariff Schedule of the United States.
(b) Prohibitions
(1) In general
It shall be unlawful for any person to—
(A) import into, or export from, the United States any dog or cat fur product; or
(B) introduce into interstate commerce, manufacture for introduction into interstate commerce, sell, trade, or advertise in interstate commerce, offer to sell, or transport or distribute in interstate commerce in the United States, any dog or cat fur product.
(2) Exception
This subsection shall not apply to the importation, exportation, or transportation, for noncommercial purposes, of a personal pet that is deceased, including a pet preserved through taxidermy.
(c) Penalties and enforcement
(1) Civil penalties
(A) In general
Any person who violates any provision of this section or any regulation issued under this section may, in addition to any other civil or criminal penalty that may be imposed under title 18 or any other provision of law, be assessed a civil penalty by the designated authority of not more than—
(i) $10,000 for each separate knowing and intentional violation;
(ii) $5,000 for each separate grossly negligent violation; or
(iii) $3,000 for each separate negligent violation.
(B) Debarment
The designated authority may prohibit a person from importing, exporting, transporting, distributing, manufacturing, or selling any fur product in the United States, if the designated authority finds that the person has engaged in a pattern or practice of actions that has resulted in a final administrative determination with respect to the assessment of civil penalties for knowing and intentional or grossly negligent violations of any provision of this section or any regulation issued under this section.
(C) Factors in assessing penalties
In determining the amount of civil penalties under this paragraph, the designated authority shall take into account the degree of culpability, any history of prior violations under this section, ability to pay, the seriousness of the violation, and such other matters as fairness may require.
(D) Notice
No penalty may be assessed under this paragraph against a person unless the person is given notice and opportunity for a hearing with respect to such violation in accordance with
(2) Forfeiture
Any dog or cat fur product manufactured, taken, possessed, sold, purchased, offered for sale or purchase, transported, delivered, received, carried, shipped, imported, or exported contrary to the provisions of this section or any regulation issued under this section shall be subject to forfeiture to the United States.
(3) Enforcement
The Secretary of the Treasury shall enforce the provisions of this section with respect to the prohibitions under subsection (b)(1)(A), and the President shall enforce the provisions of this section with respect to the prohibitions under subsection (b)(1)(B).
(4) Regulations
Not later than 270 days after November 9, 2000, the designated authorities shall, after notice and opportunity for comment, issue regulations to carry out the provisions of this section. The regulations of the Secretary of the Treasury shall provide for a process by which testing laboratories, whether domestic or foreign, can qualify for certification by the United States Customs Service by demonstrating the reliability of the procedures used for determining the type of fur contained in articles intended for sale or consumption in interstate commerce. Use of a laboratory certified by the United States Customs Service to determine the nature of fur contained in an item to which subsection (b) applies is not required to avoid liability under this section but may, in a case in which a person can establish that the goods imported were tested by such a laboratory and that the item was not found to be a dog or cat fur product, prove dispositive in determining whether that person exercised reasonable care for purposes of paragraph (6).
(5) Reward
The designated authority shall pay a reward of not less than $500 to any person who furnishes information that establishes or leads to a civil penalty assessment, debarment, or forfeiture of property for any violation of this section or any regulation issued under this section.
(6) Affirmative defense
Any person accused of a violation under this section has a defense to any proceeding brought under this section on account of such violation if that person establishes by a preponderance of the evidence that the person exercised reasonable care—
(A) in determining the nature of the products alleged to have resulted in such violation; and
(B) in ensuring that the products were accompanied by documentation, packaging, and labeling that were accurate as to the nature of the products.
(7) Coordination with other laws
Nothing in this section shall be construed as superseding or limiting in any manner the functions and responsibilities of the Secretary of the Treasury under the customs laws of the United States.
(d) Publication of names of certain violators
The designated authorities shall, at least once each year, publish in the Federal Register a list of the names of any producer, manufacturer, supplier, seller, importer, or exporter, whether or not located within the customs territory of the United States or subject to the jurisdiction of the United States, against whom a final administrative determination with respect to the assessment of a civil penalty for a knowing and intentional or a grossly negligent violation has been made under this section.
(June 17, 1930, ch. 497, title III, §308, as added
Editorial Notes
References in Text
The Harmonized Tariff Schedule of the United States, referred to in subsec. (a)(8), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
Prior Provisions
A prior section 1308, acts June 17, 1930, ch. 497, title III, §308,
Amendments
2014—Subsec. (e).
Statutory Notes and Related Subsidiaries
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
Findings and Purposes
"(a)
"(1) An estimated 2,000,000 dogs and cats are slaughtered and sold annually as part of the international fur trade. Internationally, dog and cat fur is used in a wide variety of products, including fur coats and jackets, fur trimmed garments, hats, gloves, decorative accessories, stuffed animals, and other toys.
"(2) The United States represents one of the largest markets for the sale of fur and fur products in the world. Market demand for fur products in the United States has led to the introduction of dog and cat fur products into United States commerce, frequently based on deceptive or fraudulent labeling of the products to disguise the true nature of the fur and mislead United States wholesalers, retailers, and consumers.
"(3) Dog and cat fur, when dyed, is not easily distinguishable to persons who are not experts from other furs such as fox, rabbit, coyote, wolf, and mink, and synthetic materials made to resemble real fur. Dog and cat fur is generally less expensive than other types of fur and may be used as a substitute for more expensive types of furs, which provides an incentive to engage in unfair or fraudulent trade practices in the importation, exportation, distribution, or sale of fur products, including deceptive labeling and other practices designed to disguise the true contents or origin of the product.
"(4) Forensic texts have documented that dog and cat fur products are being imported into the United States subject to deceptive labels or other practices designed to conceal the use of dog or cat fur in the production of wearing apparel, toys, and other products.
"(5) Publicly available evidence reflects ongoing significant use of dogs and cats bred expressly for their fur by foreign fur producers for manufacture into wearing apparel, toys, and other products that have been introduced into United States commerce. The evidence indicates that foreign fur producers also rely on the use of stray dogs and cats and stolen pets for the manufacture of fur products destined for the world and United States markets.
"(6) The methods of housing, transporting, and slaughtering dogs and cats for fur production are generally unregulated and inhumane.
"(7) The trade of dog and cat fur products is ethically and aesthetically abhorrent to United States citizens. Consumers in the United States have a right to know if products offered for sale contain dog or cat fur and to ensure that they are not unwitting participants in this gruesome trade.
"(8) Persons who engage in the sale of dog or cat fur products, including the fraudulent trade practices identified above, gain an unfair competitive advantage over persons who engage in legitimate trade in apparel, toys, and other products, and derive an unfair benefit from consumers who buy their products.
"(9) The imposition of a ban on the sale, manufacture, offer for sale, transportation, and distribution of dog and cat fur products, regardless of their source, is consistent with the international obligations of the United States because it applies equally to domestic and foreign producers and avoids any discrimination among foreign sources of competing products. Such a ban is also consistent with provisions of international agreements to which the United States is a party that expressly allow for measures designed to protect the health and welfare of animals and to enjoin the use of deceptive trade practices in international or domestic commerce.
"(b)
"(1) prohibit imports, exports, sale, manufacture, offer for sale, transportation, and distribution in the United States of dog and cat fur products, in order to ensure that United States market demand does not provide an incentive to slaughter dogs or cats for their fur;
"(2) require accurate labeling of fur species so that consumers in the United States can make informed choices and ensure that they are not unwitting contributors to this gruesome trade; and
"(3) ensure that the customs laws of the United States are not undermined by illicit international traffic in dog and cat fur products."
§1309. Supplies for certain vessels and aircraft
(a) Exemption from customs duties and internal-revenue tax
Articles of foreign or domestic origin may be withdrawn, under such regulations as the Secretary of the Treasury may prescribe, from any customs bonded warehouse, from continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone free of duty and internal-revenue tax, or from any internal-revenue bonded warehouse, from any brewery, or from any winery premises or bonded premises for the storage of wine, free of internal-revenue tax—
(1) for supplies (not including equipment) of (A) vessels or aircraft operated by the United States, (B) vessels of the United States employed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions, or between Hawaii and any other part of the United States, or between Alaska and any other part of the United States, or (C) aircraft registered in the United States and actually engaged in foreign trade or trade between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States; or
(2) for supplies (including equipment) or repair of (A) vessels of war of any foreign nation, or (B) foreign vessels employed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States, where such trade by foreign vessels is permitted; or
(3) for supplies (including equipment), ground equipment, maintenance, or repair of aircraft registered in any foreign country and actually engaged in foreign trade or trade between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States, where trade by foreign aircraft is permitted. With respect to articles for ground equipment, the exemption hereunder shall apply only to duties and to taxes imposed upon or by reason of importation.
The provisions for free withdrawals made by this subsection shall not apply to petroleum products for vessels or aircraft in voyages or flights exclusively between Hawaii or Alaska and any airport or Pacific coast seaport of the United States.
(b) Drawback
Articles withdrawn from bonded warehouses, bonded manufacturing warehouses, continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone, imported articles, and articles of domestic manufacture or production, laden as supplies upon any such vessel or aircraft of the United States or laden as supplies (including equipment) upon, or used in the maintenance or repair of, any such foreign vessel or aircraft, shall be considered to be exported within the meaning of the drawback provisions of this chapter.
(c) Articles removed in, or returned to, the United States
Any article exempted from duty or tax, or in respect of which drawback has been allowed, under this section or
(d) Reciprocal privileges
The privileges granted by this section and
(June 17, 1930, ch. 497, title III, §309,
Editorial Notes
Prior Provisions
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, §IV, K,
Amendments
1990—Subsec. (b).
1960—Subsec. (a).
1953—Subsec. (a). Act Aug. 8, 1953, extended the exemption from payment of duty and internal revenue tax theretofore available to supplies for certain vessels and aircraft withdrawn from bonded warehouses, bonded manufacturing warehouses, or continuous customs custody elsewhere to supplies withdrawn from foreign trade zones; accorded free entry for equipment withdrawn for foreign vessels; and enlarged the classes of vessels and aircraft theretofore covered to include all vessels and aircraft operated by the United States.
Subsec. (b). Act Aug. 8, 1953, made technical changes to conform with the changes made by such act in subsec. (a), including insertion of "or from a foreign-trade zone,".
1941—Subsec. (a). Act July 22, 1941, inserted "or from any internal-revenue bonded warehouse, from any brewery, or from any winery premises or bonded premises for the storage of wine, free of internal-revenue tax" after "internal-revenue tax".
1938—Act June 25, 1938, amended section generally, adding subsecs. (c) and (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
"(1) claims filed or liquidated on or after January 1, 1988, and
"(2) claims that are unliquidated, under protest, or in litigation on the date of enactment of this Act [Aug. 20, 1990]."
Effective Date of 1960 Amendment
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
§1310. Free importation of merchandise recovered from sunken and abandoned vessels
Whenever any vessel laden with merchandise, in whole or in part subject to duty, has been sunk in any river, harbor, bay, or waters subject to the jurisdiction of the United States, and within its limits, for the period of two years and is abandoned by the owner thereof, any person who may raise such vessel shall be permitted to bring any merchandise recovered therefrom into the port nearest to the place where such vessel was so raised free from the payment of any duty thereupon, but under such regulations as the Secretary of the Treasury may prescribe.
(June 17, 1930, ch. 497, title III, §310,
Editorial Notes
Prior Provisions
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, §IV, L,
§1311. Bonded manufacturing warehouses
All articles manufactured in whole or in part of imported materials, or of materials subject to internal-revenue tax, and intended for exportation without being charged with duty, and without having an internal-revenue stamp affixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, in order to be so manufactured and exported, be made and manufactured in bonded warehouses similar to those known and designated in Treasury Regulations as bonded warehouses, class six: Provided, That the manufacturer of such articles shall first give satisfactory bonds for the faithful observance of all the provisions of law and of such regulations as shall be prescribed by the Secretary of the Treasury: Provided further, That the manufacture of distilled spirits from grain, starch, molasses, or sugar, including all dilutions or mixtures of them or either of them, shall not be permitted in such manufacturing warehouses.
Whenever goods manufactured in any bonded warehouse established under the provisions of the preceding paragraph shall be exported directly therefrom or shall be duly laden for transportation and immediate exportation under the supervision of the proper officer who shall be duly designated for that purpose, such goods shall be exempt from duty and from the requirements relating to revenue stamps.
No flour, manufactured in a bonded manufacturing warehouse from wheat imported after ninety days after June 17, 1930, shall be withdrawn from such warehouse for exportation without payment of a duty on such imported wheat equal to any reduction in duty which by treaty will apply in respect of such flour in the country to which it is to be exported.
Any materials used in the manufacture of such goods, and any packages, coverings, vessels, brands, and labels used in putting up the same may, under the regulations of the Secretary of the Treasury, be conveyed without the payment of revenue tax or duty into any bonded manufacturing warehouse, and imported goods may, under the aforesaid regulations, be transferred without the exaction of duty from any bonded warehouse into any bonded manufacturing warehouse; but this privilege shall not be held to apply to implements, machinery, or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the prosecution of the business carried on therein.
Articles or materials received into such bonded manufacturing warehouse or articles manufactured therefrom may be withdrawn or removed therefrom for direct shipment and exportation or for transportation and immediate exportation in bond to foreign countries or to the Philippine Islands under the supervision of the officer duly designated therefor by the appropriate customs officer of the port, who shall certify to such shipment and exportation, or ladening for transportation, as the case may be, describing the articles by their mark or otherwise, the quantity, the date of exportation, and the name of the vessel: Provided, That the by-products incident to the processes of manufacture, including waste derived from cleaning rice in bonded warehouses under the Act of March 24, 1874, ch. 65,
A careful account shall be kept by the appropriate customs officer of all merchandise delivered by him to any bonded manufacturing warehouse, and a sworn monthly return, verified by the customs officers in charge, shall be made by the manufacturer containing a detailed statement of all imported merchandise used by him in the manufacture of exported articles.
Before commencing business the proprietor of any manufacturing warehouse shall file with the Secretary of the Treasury a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and the names and quantities of the ingredients to be used therein.
Articles manufactured under these provisions may be withdrawn under such regulations as the Secretary of the Treasury may prescribe for transportation and delivery into any bonded warehouse for the sole purpose of export therefrom: Provided, That cigars manufactured in whole of tobacco imported from any one country, made and manufactured in such bonded manufacturing warehouses, may be withdrawn for home consumption upon the payment of the duties on such tobacco in its condition as imported under such regulations as the Secretary of the Treasury may prescribe, and the payment of the internal-revenue tax accruing on such cigars in their condition as withdrawn, and the boxes or packages containing such cigars shall be stamped to indicate their character, origin of tobacco from which made, and place of manufacture.
The provisions of section 3433 of the Revised Statutes shall, so far as may be practicable, apply to any bonded manufacturing warehouse established under this chapter and to the merchandise conveyed therein.
Distilled spirits and wines which are rectified in bonded manufacturing warehouses, class six, and distilled spirits which are reduced in proof and bottled in such warehouses, shall be deemed to have been manufactured within the meaning of this section, and may be withdrawn as hereinbefore provided, and likewise for shipment in bond to Puerto Rico, subject to the provisions of this section, and under such regulations as the Secretary of the Treasury may prescribe, there to be withdrawn for consumption or be rewarehoused and subsequently withdrawn for consumption: Provided, That upon withdrawal in Puerto Rico for consumption, the duties imposed by the customs laws of the United States shall be collected on all imported merchandise (in its condition as imported) and imported containers used in the manufacture and putting up of such spirits and wines in such warehouses.
No article manufactured in a bonded warehouse from materials that are goods subject to drawback,1 as defined in
(1) the total amount of customs duties paid or owed on the materials on importation into the United States, or
(2) the total amount of customs duties paid on the article to the country.1
If Canada ceases to be a country 1 and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, no article manufactured in a bonded warehouse, except to the extent that such article is made from an article that is a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, may be withdrawn from such warehouse for exportation to Canada during the period such Agreement is in operation without payment of a duty on such imported merchandise in its condition, and at the rate of duty in effect, at the time of importation.
No article manufactured in a bonded warehouse from materials that are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, may be withdrawn from warehouse for exportation to Chile without assessment of a duty on the materials in their condition and quantity, and at their weight, at the time of importation into the United States. The duty shall be paid before the 61st day after the date of exportation, except that the duty may be waived or reduced by—
(1) 100 percent during the 8-year period beginning on January 1, 2004;
(2) 75 percent during the 1-year period beginning on January 1, 2012;
(3) 50 percent during the 1-year period beginning on January 1, 2013; and
(4) 25 percent during the 1-year period beginning on January 1, 2014.
(June 17, 1930, ch. 497, title III, §311,
Amendment of Section
For termination of amendment by section 107(c) of
For termination of amendment by section 501(c) of
Editorial Notes
References in Text
Act March 24, 1874, referred to in text, which provided that "importers' bonded warehouses, to be used for the storage and cleansing of imported rice intended for exportation to foreign countries, may be established at any port of entry in the United States, under such rules and regulations as the Secretary of the Treasury may prescribe", was repealed by act Sept. 21, 1922, ch. 356, title IV, §643,
R.S. §3433, referred to in text, was amended by act Feb. 27, 1877, ch. 69,
The terms "drawback" and "country", referred to in text, are not defined in
Section 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in text, is section 204 of
Section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in text, is section 203(a) of
Prior Provisions
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, §IV, M,
Section IV, M, of the act of 1913 superseded previous similar provisions of the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, §23,
Amendments
2020—
2003—
1993—
1988—
1983—
1979—
1970—
1936—Act June 26, 1936, inserted par. at end relating to distilled spirits and wine.
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Amendment by
Effective and Termination Dates of 2003 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective and Termination Dates of 1988 Amendment
Amendment by
Effective Date of 1979 Amendment
Effective Date of 1970 Amendment
For effective date of amendment by
Withdrawal of Distilled Spirits to Manufacturing Bonded Warehouses; Transfers to Warehouses Pending Exportation
Executive Documents
Transfer of Functions
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,
1 See References in Text note below.
§1312. Bonded smelting and refining warehouses
(a) Bond; charges against bond
Any plant engaged in smelting or refining, or both, of metal-bearing materials as defined in this section may, upon the giving of satisfactory bond, be designated a bonded smelting or refining warehouse. Metal-bearing materials may be entered into a bonded smelting or refining warehouse without the payment of duties thereon and there smelted or refined, or both, together with metal-bearing materials of domestic or foreign origin. Upon arrival of imported metal-bearing materials at the warehouse they shall be sampled according to commercial methods and assayed, both under customs supervision. The bond shall be charged with a sum equal in amount to the duties which would be payable on such metal-bearing materials in their condition as imported if entered for consumption, and the bond charge shall be adjusted to reflect changes in the applicable rate of duty occurring while the imported materials are still covered by the bond.
(b) Cancellation of charges against bond
The several charges against such bond may be canceled in whole or in part—
(1) upon the exportation from the bonded warehouses which treated the metal-bearing materials, or from any other bonded smelting or refining warehouse, of a quantity of the same kind of metal contained in any product of smelting or refining of metal-bearing materials equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c); except that—
(A) in the case of a withdrawal for exportation of such a product to a USMCA country, as defined in
(i) the total amount of customs duties owed on the materials on importation into the United States, or
(ii) the total amount of customs duties paid to the USMCA country on the product, and
(B) in the case of a withdrawal for exportation of such a product to Chile, if any of the imported metal-bearing materials are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, the duties on the materials shall be paid, and the charges against the bond canceled, before the 61st day after the date of exportation, except that the duties may be waived or reduced by—
(i) 100 percent during the 8-year period beginning on January 1, 2004,
(ii) 75 percent during the 1-year period beginning on January 1, 2012,
(iii) 50 percent during the 1-year period beginning on January 1, 2013, and
(iv) 25 percent during the 1-year period beginning on January 1, 2014, or
(2) upon payment of duties on the dutiable quantity of metal contained in the imported metal-bearing materials, or
(3) upon the transfer of the bond charges to another bonded smelting or refining warehouse by physical shipment of a quantity of the same kind of metal contained in any product of smelting or refining of metal-bearing materials equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c), or
(4) upon the transfer of the bond charges to a bonded customs warehouse other than a bonded smelting or refining warehouse by physical shipment of a quantity of the same kind of metal contained in any product of smelting or refining equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c), and upon withdrawal from such other warehouse for exportation or domestic consumption the provisions of this section shall apply; except that—
(A) in the case of a withdrawal for exportation of such a product to a USMCA country, as defined in
(i) the total amount of customs duties owed on the materials on importation into the United States, or
(ii) the total amount of customs duties paid to the USMCA country on the product, and
(B) in the case of a withdrawal for exportation of such a product to Chile, if any of the imported metal-bearing materials are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, the duties on the materials shall be paid, and the charges against the bond canceled, before the 61st day after the date of exportation, except that the duties may be waived or reduced by—
(i) 100 percent during the 8-year period beginning on January 1, 2004,
(ii) 75 percent during the 1-year period beginning on January 1, 2012,
(iii) 50 percent during the 1-year period beginning on January 1, 2013, and
(iv) 25 percent during the 1-year period beginning on January 1, 2014, or
(5) upon the transfer to another bonded smelting or refining warehouse without physical shipment of metal of bond charges representing a quantity of dutiable metal contained in imported metal-bearing materials less wastage provided for in subsection (c) of the plant of initial treatment of such materials provided there is on hand at the warehouse to which the transfer is made sufficient like metal in any form to satisfy the transferred bond charges.
If Canada ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, no charges against such bond may be canceled in whole or part upon an exportation to Canada under paragraph (1) or (4) during the period such Agreement is in operation except to the extent that the metal-bearing materials were of Canadian origin as determined in accordance with section 202 of the United States-Canada Free-Trade Agreement Implementation Act of 1988.
(c) Allowance on bond for wastage of metals
For purposes of paragraphs (1), (3), (4), and (5) of subsection (b), due allowances shall be made for wastage of metals other than copper, lead, and zinc, as ascertained from time to time by the Secretary of the Treasury.
(d) Credit for exportation of product other than refined metal
Upon the exportation of a product of smelting or refining other than refined metal the bond shall be credited with a quantity of metal equivalent to the quantity of metal contained in the product exported less the proportionate part of the deductions allowed for losses in determination of the bond charge being cancelled that would not ordinarily be sustained in production of the specific product exported as ascertained from time to time by the Secretary of the Treasury; except that—
(1) in the case of a withdrawal for exportation to a USMCA country, as defined in
(A) the total amount of customs duties paid or owed on the materials on importation into the United States, or
(B) the total amount of customs duties paid to the USMCA country on the product; and
(2) in the case of a withdrawal for exportation to Chile, if any of the imported metal-bearing materials are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, charges against the bond shall be paid before the 61st day after the date of exportation, and the bond shall be credited in an amount equal to—
(A) 100 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 8-year period beginning on January 1, 2004,
(B) 75 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 1-year period beginning on January 1, 2012,
(C) 50 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 1-year period beginning on January 1, 2013, and
(D) 25 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 1-year period beginning on January 1, 2014.
If Canada ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, no bond shall be credited under this subsection with respect to an exportation of a product to Canada during the period such Agreement is in operation except to the extent that the product is a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988.
(e) General bond for two or more warehouses
Two or more smelting or refining warehouses may be included under one general bond and the quantities of each kind of metal subject to duty on hand at all of such warehouses may be aggregated to satisfy the bond obligation.
(f) Definitions
For purposes of this section—
(1) the term "metal-bearing materials" means metal-bearing ores and other metal-bearing materials provided for in
(2) the term "smelting or refining" embraces only pyrometallurgical, hydrometallurgical, electrometallurgical, chemical, or other processes—
(A) for the treatment of metal-bearing materials to reduce the metal content thereof to a metallic state in the course of recovering it in forms which if imported would be classifiable in chapters 71 through 83 of the Harmonized Tariff Schedule of the United States as unwrought metal, or in the form of oxides or other compounds which are obtained directly from the treatment of materials provided for in
(B) for the treatment of unwrought metal or metal waste and scrap to remove impurities or undesired components; and
(3) the term "product of smelting or refining" means metals or metal-bearing materials resulting directly from smelting or refining processes, but does not include metal-bearing ores of
(g) Supervision and cost of labor under this section
Labor performed and services rendered pursuant to this section shall be under the supervision of an officer of the customs, to be appointed by the Secretary of the Treasury and at the expense of the manufacturer. 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 III, §312,
Amendment of Section
For termination of amendment by section 107(c) of
For termination of amendment by section 501(c) of
Editorial Notes
References in Text
Sections 202 and 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in subsecs. (b) and (d), are sections 202 and 204 of
Section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in subsecs. (b)(1)(B), (4)(B) and (d)(2), is section 203(a) of
The Harmonized Tariff Schedule of the United States, referred to in subsec. (f), 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 Oct. 3, 1913, ch. 16, §IV, N, subsection 1,
Provisions more or less similar were contained in the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, §24,
Previous provisions for sampling lead ores were contained in act Mar. 2, 1895, ch. 189, §1,
Amendments
2020—Subsec. (b).
Subsec. (b)(1)(A), (4)(A).
Subsec. (d).
Subsec. (d)(1).
2003—Subsec. (b)(1).
"(A) the total amount of customs duties owed on the materials on importation into the United States, or
"(B) the total amount of customs duties paid to the NAFTA country on the product, or".
See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (b)(4).
"(A) the total amount of customs duties owed on the materials on importation into the United States, or
"(B) the total amount of customs duties paid to the NAFTA country on the product, or".
See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (d).
"(1) the total amount of customs duties paid or owed on the materials on importation into the United States, or
"(2) the total amount of customs duties paid to the NAFTA country on the product."
See Effective and Termination Dates of 2003 Amendment note below.
1993—Subsec. (b).
Subsec. (b)(1).
Subsec. (b)(4).
Subsec. (d).
1988—Subsec. (b)(1), (4).
Subsec. (d).
Subsec. (f)(1).
Subsec. (f)(2)(A).
Subsec. (f)(3).
1962—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Amendment by
Effective and Termination Dates of 2003 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective and Termination Dates of 1988 Amendment
Amendment by
Amendment by
Effective Date of 1962 Amendment
Amendment by
§1313. Drawback and refunds
(a) Articles made from imported merchandise
Upon the exportation or destruction under customs supervision of articles manufactured or produced in the United States with the use of imported merchandise, provided that those articles have not been used prior to such exportation or destruction, an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l) shall be refunded as drawback, except that duties shall not be so refunded upon the exportation or destruction of flour or by-products produced from imported wheat. Where two or more products result from the manipulation of imported merchandise, the drawback shall be distributed to the several products in accordance with their relative values at the time of separation.
(b) Substitution for drawback purposes
(1) In general
If imported duty-paid merchandise or merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise is used in the manufacture or production of articles within a period not to exceed 5 years from the date of importation of such imported merchandise, there shall be allowed upon the exportation, or destruction under customs supervision, of any such articles, notwithstanding the fact that none of the imported merchandise may actually have been used in the manufacture or production of the exported or destroyed articles, an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l), but only if those articles have not been used prior to such exportation or destruction.
(2) Requirements relating to transfer of merchandise
(A) Manufacturers and producers
Drawback shall be allowed under paragraph (1) with respect to an article manufactured or produced using imported merchandise or other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise only if the manufacturer or producer of the article received such imported merchandise or such other merchandise, directly or indirectly, from the importer.
(B) Exporters and destroyers
Drawback shall be allowed under paragraph (1) with respect to a manufactured or produced article that is exported or destroyed only if the exporter or destroyer received that article, directly or indirectly, from the manufacturer or producer.
(C) Evidence of transfer
Transfers of merchandise under subparagraph (A) and transfers of articles under subparagraph (B) may be evidenced by business records kept in the normal course of business and no additional certificates of transfer or manufacture shall be required.
(3) Submission of bill of materials or formula
(A) In general
Drawback shall be allowed under paragraph (1) with respect to an article manufactured or produced using imported merchandise or other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise only if the person making the drawback claim submits with the claim a bill of materials or formula identifying the merchandise and article by the 8-digit HTS subheading number and the quantity of the merchandise.
(B) Bill of materials and formula defined
In this paragraph, the terms "bill of materials" and "formula" mean records kept in the normal course of business that identify each component incorporated into a manufactured or produced article or that identify the quantity of each element, material, chemical, mixture, or other substance incorporated into a manufactured article.
(4) Special rule for sought chemical elements
(A) In general
For purposes of paragraph (1), a sought chemical element may be—
(i) considered imported merchandise, or merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise, used in the manufacture or production of an article as described in paragraph (1); and
(ii) substituted for source material containing that sought chemical element, without regard to whether the sought chemical element and the source material are classifiable under the same 8-digit HTS subheading number, and apportioned quantitatively, as appropriate.
(B) Sought chemical element defined
In this paragraph, the term "sought chemical element" means an element listed in the Periodic Table of Elements that is imported into the United States or a chemical compound consisting of those elements, either separately in elemental form or contained in source material.
(c) Merchandise not conforming to sample or specifications
(1) Conditions for drawback
Upon the exportation or destruction under the supervision of the Customs Service of articles or merchandise—
(A) upon which the duties have been paid,
(B) which has been entered or withdrawn for consumption,
(C) which is—
(i) not conforming to sample or specifications, shipped without the consent of the consignee, or determined to be defective as of the time of importation, or
(ii) ultimately sold at retail by the importer, or the person who received the merchandise from the importer, and for any reason returned to and accepted by the importer, or the person who received the merchandise from the importer, and
(D) which, within 5 years after the date of importation or withdrawal, as applicable, has been exported or destroyed under the supervision of U.S. Customs and Border Protection,
an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l) shall be refunded as drawback.
(2) Designation of import entries
For purposes of paragraph (1)(C)(ii), drawback may be claimed by designating an entry of merchandise that was imported within 1 year before the date of exportation or destruction of the merchandise described in paragraph (1)(A) and (B) under the supervision of U.S. Customs and Border Protection. The merchandise designated for drawback must be identified in the import documentation with the same eight-digit classification number and specific product identifier (such as part number, SKU, or product code) as the returned merchandise.
(3) Evidence of transfers
Transfers of merchandise under paragraph (1) may be evidenced by business records kept in the normal course of business and no additional certificates of transfer shall be required.
(d) Flavoring extracts; medicinal or toilet preparations; bottled distilled spirits and wines
Upon the exportation of flavoring extracts, medicinal or toilet preparations (including perfumery) manufactured or produced in the United States in part from domestic alcohol on which an internal-revenue tax has been paid, there shall be allowed a drawback equal in amount to the tax found to have been paid on the alcohol so used.
Upon the exportation of bottled distilled spirits and wines manufactured or produced in the United States on which an internal-revenue tax has been paid or determined, there shall be allowed, under regulations to be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, a drawback equal in amount to the tax found to have been paid or determined on such bottled distilled spirits and wines. In the case of distilled spirits, the preceding sentence shall not apply unless the claim for drawback is filed by the bottler or packager of the spirits and unless such spirits have been stamped or restamped, and marked, especially for export, under regulations prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury.
(e) Imported salt for curing fish
Imported salt in bond may be used in curing fish taken by vessels licensed to engage in the fisheries, and in curing fish on the shores of the navigable waters of the United States, whether such fish are taken by licensed or unlicensed vessels, and upon proof that the salt has been used for either of such purposes, the duties on the same shall be remitted.
(f) Exportation of meats cured with imported salt
Upon the exportation of meats, whether packed or smoked, which have been cured in the United States with imported salt, there shall be refunded, upon satisfactory proof that such meats have been cured with imported salt, the duties paid on the salt so used in curing such exported meats, in amounts not less than $100.
(g) Materials for construction and equipment of vessels built for foreigners
The provisions of this section shall apply to materials imported and used in the construction and equipment of vessels built for foreign account and ownership, or for the government of any foreign country, notwithstanding that such vessels may not within the strict meaning of the term be articles exported.
(h) Jet aircraft engines
Upon the exportation of jet aircraft engines manufactured or produced abroad that have been overhauled, repaired, rebuilt, or reconditioned in the United States with the use of imported merchandise, including parts, there shall be refunded, upon satisfactory proof that such imported merchandise has been so used, the duties which have been paid thereon, in amounts not less than $100.
(i) Proof of exportation
A person claiming drawback under this section based on the exportation of an article shall provide proof of the exportation of the article. Such proof of exportation—
(1) shall establish fully the date and fact of exportation and the identity of the exporter; and
(2) may be established through the use of records kept in the normal course of business or through an electronic export system of the United States Government, as determined by the Commissioner of U.S. Customs and Border Protection.
(j) Unused merchandise drawback
(1) If imported merchandise, on which was paid any duty, tax, or fee imposed under Federal law upon entry or importation—
(A) is, before the close of the 5-year period beginning on the date of importation and before the drawback claim is filed—
(i) exported, or
(ii) destroyed under customs supervision; and
(B) is not used within the United States before such exportation or destruction;
then upon such exportation or destruction an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l) shall be refunded as drawback. The exporter (or destroyer) has the right to claim drawback under this paragraph, but may endorse such right to the importer or any intermediate party.
(2) Subject to paragraphs (4), (5), and (6), if there is, with respect to imported merchandise on which was paid any duty, tax, or fee imposed under Federal law upon entry or importation, any other merchandise (whether imported or domestic), that—
(A) is classifiable under the same 8-digit HTS subheading number as such imported merchandise;
(B) is, before the close of the 5-year period beginning on the date of importation of the imported merchandise and before the drawback claim is filed, either exported or destroyed under customs supervision; and
(C) before such exportation or destruction—
(i) is not used within the United States, and
(ii) is in the possession of, including ownership while in bailment, in leased facilities, in transit to, or in any other manner under the operational control of, the party claiming drawback under this paragraph, if that party—
(I) is the importer of the imported merchandise, or
(II) received the imported merchandise, other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise, or any combination of such imported merchandise and such other merchandise, directly or indirectly from the person who imported and paid any duties, taxes, and fees imposed under Federal law upon importation or entry and due on the imported merchandise (and any such transferred merchandise, regardless of its origin, will be treated as the imported merchandise and any retained merchandise will be treated as domestic merchandise);
then, notwithstanding any other provision of law, upon the exportation or destruction of such other merchandise an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l) shall be refunded as drawback. Notwithstanding subparagraph (A), drawback shall be allowed under this paragraph with respect to wine if the imported wine and the exported wine are of the same color and the price variation between the imported wine and the exported wine does not exceed 50 percent. Transfers of merchandise may be evidenced by business records kept in the normal course of business and no additional certificates of transfer shall be required.
(3) The performing of any operation or combination of operations (including, but not limited to, testing, cleaning, repacking, inspecting, sorting, refurbishing, freezing, blending, repairing, reworking, cutting, slitting, adjusting, replacing components, relabeling, disassembling, and unpacking), not amounting to manufacture or production for drawback purposes under the preceding provisions of this section on—
(A) the imported merchandise itself in cases to which paragraph (1) applies, or
(B) merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise in cases to which paragraph (2) applies,
shall not be treated as a use of that merchandise for purposes of applying paragraph (1)(B) or (2)(C).
(4)(A)(i) Effective upon the entry into force of the USMCA, the exportation to a USMCA country of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (8) of
(ii) In this subparagraph, the terms "USMCA" and "USMCA country" have the meanings given those terms in
(B) Beginning on January 1, 2015, the exportation to Chile of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (5) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, shall not constitute an exportation for purposes of paragraph (2). The preceding sentence shall not be construed to permit the substitution of unused drawback under paragraph (2) of this subsection with respect to merchandise described in paragraph (2) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act.
(5)(A) For purposes of paragraph (2) and except as provided in subparagraph (B), merchandise may not be substituted for imported merchandise for drawback purposes based on the 8-digit HTS subheading number if the article description for the 8-digit HTS subheading number under which the imported merchandise is classified begins with the term "other".
(B) In cases described in subparagraph (A), merchandise may be substituted for imported merchandise for drawback purposes if—
(i) the other merchandise and such imported merchandise are classifiable under the same 10-digit HTS statistical reporting number; and
(ii) the article description for that 10-digit HTS statistical reporting number does not begin with the term "other".
(6)(A) For purposes of paragraph (2), a drawback claimant may use the first 8 digits of the 10-digit Schedule B number for merchandise or an article to determine if the merchandise or article is classifiable under the same 8-digit HTS subheading number as the imported merchandise, without regard to whether the Schedule B number corresponds to more than one 8-digit HTS subheading number.
(B) In this paragraph, the term "Schedule B" means the Department of Commerce Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States.
(k) Liability for drawback claims
(1) In general
Any person making a claim for drawback under this section shall be liable for the full amount of the drawback claimed.
(2) Liability of importers
An importer shall be liable for any drawback claim made by another person with respect to merchandise imported by the importer in an amount equal to the lesser of—
(A) the amount of duties, taxes, and fees that the person claimed with respect to the imported merchandise; or
(B) the amount of duties, taxes, and fees that the importer authorized the other person to claim with respect to the imported merchandise.
(3) Joint and several liability
Persons described in paragraphs (1) and (2) shall be jointly and severally liable for the amount described in paragraph (2).
(l) Regulations
(1) In general
Allowance of the privileges provided for in this section shall be subject to compliance with such rules and regulations as the Secretary of the Treasury shall prescribe.
(2) Calculation of drawback
(A) In general
Not later than the date that is 2 years after February 24, 2016, the Secretary shall prescribe regulations for determining the calculation of amounts refunded as drawback under this section.
(B) Claims with respect to unused merchandise
The regulations required by subparagraph (A) for determining the calculation of amounts refunded as drawback under this section shall provide for a refund of equal to 99 percent of the duties, taxes, and fees paid on the imported merchandise, which were imposed under Federal law upon entry or importation of the imported merchandise, and may require the claim to be based upon the average per unit duties, taxes, and fees as reported on the entry summary line item or, if not reported on the entry summary line item, as otherwise allocated by U.S. Customs and Border Protection, except that where there is substitution of the merchandise, then—
(i) in the case of an article that is exported, the amount of the refund shall be equal to 99 percent of the lesser of—
(I) the amount of duties, taxes, and fees paid with respect to the imported merchandise; or
(II) the amount of duties, taxes, and fees that would apply to the exported article if the exported article were imported; and
(ii) in the case of an article that is destroyed, the amount of the refund shall be an amount that is—
(I) equal to 99 percent of the lesser of—
(aa) the amount of duties, taxes, and fees paid with respect to the imported merchandise; and
(bb) the amount of duties, taxes, and fees that would apply to the destroyed article if the destroyed article were imported; and
(II) reduced by the value of materials recovered during destruction as provided in subsection (x).
(C) Claims with respect to manufactured articles into which imported or substitute merchandise is incorporated
The regulations required by subparagraph (A) for determining the calculation of amounts refunded as drawback under this section shall provide for a refund of equal to 99 percent of the duties, taxes, and fees paid on the imported merchandise incorporated into an article that is exported or destroyed, which were imposed under Federal law upon entry or importation of the imported merchandise incorporated into an article that is exported or destroyed, and may require the claim to be based upon the average per unit duties, taxes, and fees as reported on the entry summary line item, or if not reported on the entry summary line item, as otherwise allocated by U.S. Customs and Border Protection, except that where there is substitution of the imported merchandise, then—
(i) in the case of an article that is exported, the amount of the refund shall be equal to 99 percent of the lesser of—
(I) the amount of duties, taxes, and fees paid with respect to the imported merchandise; or
(II) the amount of duties, taxes, and fees that would apply to the substituted merchandise if the substituted merchandise were imported; and
(ii) in the case of an article that is destroyed, the amount of the refund shall be an amount that is—
(I) equal to 99 percent of the lesser of—
(aa) the amount of duties, taxes, and fees paid with respect to the imported merchandise; and
(bb) the amount of duties, taxes, and fees that would apply to the substituted merchandise if the substituted merchandise were imported; and
(II) reduced by the value of materials recovered during destruction as provided in subsection (x).
(D) Exceptions
The calculations set forth in subparagraphs (B) and (C) shall not apply to claims for wine based on subsection (j)(2) and claims based on subsection (p) and instead—
(i) for any drawback claim for wine based on subsection (j)(2), the amount of the refund shall be equal to 99 percent of the duties, taxes, and fees paid with respect to the imported merchandise, without regard to the limitations in subparagraphs (B)(i) and (B)(ii); and
(ii) for any drawback claim based on subsection (p), the amount of the refund shall be subject to the limitations set out in paragraph (4) of that subsection and without regard to subparagraph (B)(i), (B)(ii), (C)(i), or (C)(ii).
(3) Status reports on regulations
Not later than the date that is one year after February 24, 2016, and annually thereafter until the regulations required by paragraph (2) are final, the Secretary shall submit to Congress a report on the status of those regulations.
(m) Source of payment
Any drawback of duties that may be authorized under the provisions of this chapter shall be paid from the customs receipts of Puerto Rico, if the duties were originally paid into the Treasury of Puerto Rico.
(n) Refunds, waivers, or reductions under certain free trade agreements
(1) For purposes of this subsection and subsection (o)—
(A) the term "USMCA country" has the meaning given that term in
(B) the term "good subject to USMCA drawback" has the meaning given that term in
(C) a refund, waiver, or reduction of duty under paragraph (2) of this subsection or paragraph (1) of subsection (o) is subject to
(D) the term "good subject to Chile FTA drawback" has the meaning given that term in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act.
(2) For purposes of subsections (a), (b), (f), (h), (p), and (q), if an article that is exported to a USMCA country is a good subject to USMCA drawback, no customs duties on the good may be refunded, waived, or reduced in an amount that exceeds the lesser of—
(A) the total amount of customs duties paid or owed on the good on importation into the United States, or
(B) the total amount of customs duties paid on the good to the USMCA country.
(3) If Canada ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, then for purposes of subsections (a), (b), (f), (h), (j)(2), and (q), the shipment to Canada during the period such Agreement is in operation of an article made from or substituted for, as appropriate, a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Implementation Act of 1988 does not constitute an exportation.
(4)(A) For purposes of subsections (a), (b), (f), (h), (j)(2), (p), and (q), if an article that is exported to Chile is a good subject to Chile FTA drawback, no customs duties on the good may be refunded, waived, or reduced, except as provided in subparagraph (B).
(B) The customs duties referred to in subparagraph (A) may be refunded, waived, or reduced by—
(i) 100 percent during the 8-year period beginning on January 1, 2004;
(ii) 75 percent during the 1-year period beginning on January 1, 2012;
(iii) 50 percent during the 1-year period beginning on January 1, 2013; and
(iv) 25 percent during the 1-year period beginning on January 1, 2014.
(o) Special rules for certain vessels and imported materials
(1) For purposes of subsection (g), if—
(A) a vessel is built for the account and ownership of a resident of a USMCA country or the government of a USMCA country, and
(B) imported materials that are used in the construction and equipment of the vessel are goods subject to USMCA drawback,
the amount of customs duties refunded, waived, or reduced on such materials may not exceed the lesser of the total amount of customs duties paid or owed on the materials on importation into the United States or the total amount of customs duties paid on the vessel to the USMCA country.
(2) If Canada ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, then for purposes of subsection (g), vessels built for Canadian account and ownership, or for the Government of Canada, may not be considered to be built for any foreign account and ownership, or for the government of any foreign country, except to the extent that the materials in such vessels are drawback eligible goods under section 204(a) of the United States-Canada Free-Trade Implementation Act of 1988.
(3) For purposes of subsection (g), if—
(A) a vessel is built for the account and ownership of a resident of Chile or the Government of Chile, and
(B) imported materials that are used in the construction and equipment of the vessel are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act,
no customs duties on such materials may be refunded, waived, or reduced, except as provided in paragraph (4).
(4) The customs duties referred to in paragraph (3) may be refunded, waived or reduced by—
(A) 100 percent during the 8-year period beginning on January 1, 2004;
(B) 75 percent during the 1-year period beginning on January 1, 2012;
(C) 50 percent during the 1-year period beginning on January 1, 2013; and
(D) 25 percent during the 1-year period beginning on January 1, 2014.
(p) Substitution of finished petroleum derivatives
(1) In general
Notwithstanding any other provision of this section, if—
(A) an article (hereafter referred to in this subsection as the "exported article") of the same kind and quality as a qualified article is exported;
(B) the requirements set forth in paragraph (2) are met; and
(C) a drawback claim is filed regarding the exported article;
drawback shall be allowed as described in paragraph (4).
(2) Requirements
The requirements referred to in paragraph (1) are as follows:
(A) The exporter of the exported article—
(i) manufactured or produced a qualified article in a quantity equal to or greater than the quantity of the exported article,
(ii) purchased or exchanged, directly or indirectly, a qualified article from a manufacturer or producer described in subsection (a) or (b) in a quantity equal to or greater than the quantity of the exported article,
(iii) imported a qualified article in a quantity equal to or greater than the quantity of the exported article, or
(iv) purchased or exchanged, directly or indirectly, a qualified article from an importer in a quantity equal to or greater than the quantity of the exported article.
(B) In the case of the requirement described in subparagraph (A)(ii), the manufacturer or producer produced the qualified article in a quantity equal to or greater than the quantity of the exported article.
(C) In the case of the requirement of subparagraph (A)(i) or (A)(ii), the exported article is exported during the period that the qualified article described in subparagraph (A)(i) or (A)(ii) (whichever is applicable) is manufactured or produced, or within 180 days after the close of such period.
(D) In the case of the requirement of subparagraph (A)(i) or (A)(ii), the specific petroleum refinery or production facility which made the qualified article concerned is identified.
(E) In the case of the requirement of subparagraph (A)(iii) or (A)(iv), the exported article is exported within 180 days after the date of entry of an imported qualified article described in subparagraph (A)(iii) or (A)(iv) (whichever is applicable).
(F) Except as otherwise specifically provided in this subsection, the drawback claimant complies with all requirements of this section, including providing certificates which establish the drawback eligibility of articles for which drawback is claimed.
(G) The manufacturer, producer, importer, transferor, exporter, and drawback claimant of the qualified article and the exported article maintain all records required by regulation.
(3) "Qualified article" defined, etc.
For purposes of this subsection—
(A) The term "qualified article" means an article—
(i) described in—
(I) headings 2707, 2708, 2709.00, 2710, 2711, 2712, 2713, 2714, 2715, 2901, and 2902, and subheadings 2903.21.00, 2909.19.14, 2917.36, 2917.39.04, 2917.39.15, 2926.10.00, 3811.21.00, and 3811.90.00 of the HTS, or
(II) headings 3901 through 3914 of such Schedule (as such headings apply to the primary forms provided under Note 6 to
(ii) which is—
(I) manufactured or produced as described in subsection (a) or (b) from crude petroleum or a petroleum derivative,
(II) imported duty-paid, or
(III) an article of the same kind and quality as described in subparagraph (B), or any combination thereof, that is transferred in a quantity not greater than the quantity of articles purchased or exchanged.
The transferred merchandise described in subclause (III), regardless of its origin shall be the qualified article for purposes of this section. The party transferring the merchandise shall maintain records kept in the normal course of business to demonstrate the transfer.
(B) An article, including an imported, manufactured, substituted, or exported article, is of the same kind and quality as the qualified article for which it is substituted under this subsection if it is a product that is commercially interchangeable with or referred to under the same eight-digit classification of the HTS as the qualified article. If an article is referred to under the same eight-digit classification of the HTS as the qualified article on January 1, 2000, then whether or not the article has been reclassified under another eight-digit classification after January 1, 2000, the article shall be deemed to be an article that is referred to under the same eight-digit classification of such Schedule as the qualified article for purposes of the preceding sentence.
(C) The term "drawback claimant" means the exporter of the exported article or the refiner, producer, or importer of either the qualified article or the exported article. Any person eligible to file a drawback claim under this subparagraph may designate another person to file such claim.
(4) Limitation on drawback
The amount of drawback payable under this subsection shall not exceed the amount of drawback that would be attributable to the article—
(A) manufactured or produced under subsection (a) or (b) by the manufacturer or producer described in clause (i) or (ii) of paragraph (2)(A), or
(B) imported under clause (iii) or (iv) of paragraph (2)(A) had the claim qualified for drawback under subsection (j).
(5) Special rules for ethyl alcohol
For purposes of this subsection, any duty paid under subheading 9901.00.50 of the HTS on imports of ethyl alcohol or a mixture of ethyl alcohol may not be refunded if the exported article upon which a drawback claim is based does not contain ethyl alcohol or a mixture of ethyl alcohol.
(q) Packaging material
(1) Packaging material under subsections (c) and (j)
Packaging material, whether imported and duty paid, and claimed for drawback under either subsection (c) or (j)(1), or imported and duty paid, or substituted, and claimed for drawback under subsection (j)(2), shall be eligible for drawback, upon exportation, in an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l).
(2) Packaging material under subsections (a) and (b)
Packaging material that is manufactured or produced under subsection (a) or (b) shall be eligible for drawback, upon exportation, in an amount calculated pursuant to regulations prescribed by the Secretary of the Treasury under subsection (l).
(3) Contents
Packaging material described in paragraphs (1) and (2) shall be eligible for drawback whether or not it contains articles or merchandise, and whether or not any articles or merchandise it contains are eligible for drawback.
(4) Employing packaging material for its intended purpose prior to exportation
The use of any packaging material for its intended purpose prior to exportation shall not be treated as a use of such material prior to exportation for purposes of applying subsection (a), (b), or (c), or paragraph (1)(B) or (2)(C)(i) of subsection (j).
(r) Filing drawback claims
(1) A drawback entry shall be filed or applied for, as applicable, not later than 5 years after the date on which merchandise on which drawback is claimed was imported. Claims not completed within the 5-year period shall be considered abandoned. No extension will be granted unless it is established that U.S. Customs and Border Protection was responsible for the untimely filing.
(2) A drawback entry for refund filed pursuant to any subsection of this section shall be deemed filed pursuant to any other subsection of this section should it be determined that drawback is not allowable under the entry as originally filed but is allowable under such other subsection.
(3)(A) U.S. Customs and Border Protection may, notwithstanding the limitation set forth in paragraph (1), extend the time for filing a drawback claim for a period not to exceed 18 months, if—
(i) the claimant establishes to the satisfaction of U.S. Customs and Border Protection that the claimant was unable to file the drawback claim because of an event declared by the President to be a major disaster on or after January 1, 1994; and
(ii) the claimant files a request for such extension with U.S. Customs and Border Protection—
(I) within 1 year from the last day of the 5-year period referred to in paragraph (1), or
(II) within 1 year after October 11, 1996,
whichever is later.
(B) If an extension is granted with respect to a request filed under this paragraph, the period of time for retaining records set forth in
(C) For purposes of this paragraph, the term "major disaster" has the meaning given that term in
(4) All drawback claims filed on and after the date that is 2 years after February 24, 2016, shall be filed electronically.
(s) Designation of merchandise by successor
(1) For purposes of subsection (b), a drawback successor may designate imported merchandise used by the predecessor before the date of succession as the basis for drawback on articles manufactured by the drawback successor after the date of succession.
(2) For purposes of subsection (j)(2), a drawback successor may designate—
(A) imported merchandise which the predecessor, before the date of succession, imported; or
(B) subject to paragraphs (5) and (6) of subsection (j), imported merchandise, other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise, or any combination of such imported merchandise and such other merchandise, that the predecessor received, before the date of succession, from the person who imported and paid any duties, taxes, and fees due on the imported merchandise;
as the basis for drawback on merchandise possessed by the drawback successor after the date of succession.
(3) For purposes of this subsection, the term "drawback successor" means an entity to which another entity (in this subsection referred to as the "predecessor") has transferred by written agreement, merger, or corporate resolution—
(A) all or substantially all of the rights, privileges, immunities, powers, duties, and liabilities of the predecessor; or
(B) the assets and other business interests of a division, plant, or other business unit of such predecessor, but only if in such transfer the value of the transferred realty, personalty, and intangibles (other than drawback rights, inchoate or otherwise) exceeds the value of all transferred drawback rights, inchoate or otherwise.
(4) No drawback shall be paid under this subsection until either the predecessor or the drawback successor (who shall also certify that it has the predecessor's records) certifies that the transferred merchandise was not and will not be claimed by the predecessor.
(t) Repealed. Pub. L. 114–125, title IX, §906(l), Feb. 24, 2016, 130 Stat. 233
(u) Eligibility of entered or withdrawn merchandise
Imported merchandise that has not been regularly entered or withdrawn for consumption shall not satisfy any requirement for use, exportation, or destruction under this section.
(v) Multiple drawback claims
Merchandise that is exported or destroyed to satisfy any claim for drawback shall not be the basis of any other claim for drawback; except that appropriate credit and deductions for claims covering components or ingredients of such merchandise shall be made in computing drawback payments.
(w) Limited applicability for certain agricultural products
(1) In general
No drawback shall be available with respect to an agricultural product subject to the over-quota rate of duty established under a tariff-rate quota, except pursuant to subsection (j)(1).
(2) Application to tobacco
Notwithstanding paragraph (1), drawback shall also be available pursuant to subsection (a) with respect to any tobacco subject to the over-quota rate of duty established under a tariff-rate quota.
(x) Drawbacks for recovered materials
For purposes of subsections (a), (b), (c), and (j), the term "destruction" includes a process by which materials are recovered from imported merchandise or from an article manufactured from imported merchandise. In determining the amount of duties to be refunded as drawback to a claimant under this subsection, the value of recovered materials (including the value of any tax benefit or royalty payment) that accrues to the drawback claimant shall be deducted from the value of the imported merchandise that is destroyed, or from the value of the merchandise used, or designated as used, in the manufacture of the article.
(y) Articles shipped to the United States insular possessions
Articles described in subsection (j)(1) shall be eligible for drawback under this section if duty was paid on the merchandise upon importation into the United States and the person claiming the drawback demonstrates that the merchandise has entered the customs territory of the United States Virgin Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Guam, Canton Island, Enderbury Island, Johnston Island, or Palmyra Island.
(z) Definitions
In this section:
(1) Directly
The term "directly" means a transfer of merchandise or an article from one person to another person without any intermediate transfer.
(2) HTS
The term "HTS" means the Harmonized Tariff Schedule of the United States.
(3) Indirectly
The term "indirectly" means a transfer of merchandise or an article from one person to another person with one or more intermediate transfers.
(June 17, 1930, ch. 497, title III, §313,
Amendment of Section
For termination of amendment by section 107(c) of
For termination of amendment by section 501(c) of
Editorial Notes
References in Text
Section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in subsecs. (j)(4)(B), (n)(1)(D), and (o)(3)(B), is section 203(a) of
Section 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in subsecs. (n)(3) and (o)(2), is section 204 of
The Harmonized Tariff Schedule of the United States or HTS, referred to in subsecs. (p)(3)(A)(i), (B), (5) and (z)(2), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
Codification
Prior Provisions
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, §IV, O,
Earlier provisions relating to this subject were made by the Tariff Acts of Oct. 1, 1890, ch. 1244, §25,
The provisions of section IV, O, of the act of 1913, similar to subdivision (g) of this section concerning materials used in the construction and equipment of vessels built for foreign account, superseded a similar provision of act June 26, 1884, ch. 121, §17,
The provisions of subsec. (e) of this section concerning imported salt used in curing fish superseded somewhat similar provisions in R.S. §3022, which was repealed by act Sept. 21, 1922, ch. 356, title IV, §642,
Section 642 of the act of Sept. 21, 1922, also repealed sections 3015 to 3026, inclusive, 3028 to 3047, inclusive, and 3049 to 3057, inclusive of the Revised Statutes, which were concerned with the subject of drawback.
R.S. §3048, which was not repealed, read as follows: "So much money as may be necessary for the payment of debentures or drawbacks and allowances which may be authorized and payable, is hereby appropriated for that purpose out of any money in the Treasury, to be expended under the direction of the Secretary of that Department, according to the laws authorizing debentures or drawbacks and allowances. The collectors of the customs shall be the disbursing agents to pay such debentures, drawbacks, and allowances. All debenture certificates issued according to law shall be received in payment of duties at the customhouse where the same have been issued, the laws regulating drawbacks having been complied with."
Permanent appropriations to pay debentures and other charges arising from duties, drawbacks, bounties, and allowances were also contained in R.S. §3689, incorporated in section 711 of former Title 31, Money and Finance, prior to repeal effective July 1, 1935, by act June 26, 1934, ch. 756, §§1, 2,
Amendments
2020—Subsec. (j)(4)(A).
Subsec. (n)(1)(A), (B).
"(A) the term 'NAFTA Act' means the North American Free Trade Agreement Implementation Act;
"(B) the terms 'NAFTA country' and 'good subject to NAFTA drawback' have the same respective meanings that are given such terms in sections 2(4) and 203(a) of the NAFTA Act;".
Subsec. (n)(1)(C).
Subsec. (n)(2), (3).
Subsec. (o).
Subsec. (r)(3)(B).
2016—Subsec. (a).
Subsec. (b).
Subsec. (b)(1).
Subsec. (c)(1).
Subsec. (c)(1)(C)(ii).
Subsec. (c)(1)(D).
Subsec. (c)(2).
Subsec. (c)(3).
Subsec. (i).
Subsec. (j)(1).
Subsec. (j)(1)(A).
Subsec. (j)(2).
Subsec. (j)(2)(A).
Subsec. (j)(2)(B).
Subsec. (j)(2)(C)(ii)(II).
Subsec. (j)(3)(B).
Subsec. (j)(5), (6).
Subsec. (k).
"(1) For purposes of subsections (a) and (b), the use of any domestic merchandise acquired in exchange for imported merchandise of the same kind and quality shall be treated as the use of such imported merchandise if no certificate of delivery is issued with respect to such imported merchandise.
"(2) For purposes of subsections (a) and (b), the use of any domestic merchandise acquired in exchange for a drawback product of the same kind and quality shall be treated as the use of such drawback product if no certificate of delivery or certificate of manufacture and delivery pertaining to such drawback product is issued, other than that which documents the product's manufacture and delivery. As used in this paragraph, the term 'drawback product' means any domestically produced product, manufactured with imported merchandise or any other merchandise (whether imported or domestic) of the same kind and quality, that is subject to drawback."
Subsec. (l).
Subsec. (p).
Subsec. (p)(3)(A).
Subsec. (p)(3)(A)(ii)(III).
Subsec. (q)(1).
Subsec. (q)(2).
Subsec. (q)(3).
Subsec. (r)(1).
Subsec. (r)(3)(A).
Subsec. (r)(3)(A)(ii)(I).
Subsec. (r)(3)(B).
Subsec. (r)(4).
Subsec. (s)(2)(B).
Subsec. (s)(4).
"(A) the transferred merchandise was not and will not be claimed by the predecessor, and
"(B) the predecessor did not and will not issue any certificate to any other person that would enable that person to claim drawback."
Subsec. (t).
Subsec. (x).
Subsec. (z).
2008—Subsec. (j)(2).
Subsec. (p)(5).
2004—Subsec. (c).
"(1) not conforming to sample or specifications, shipped without the consent of the consignee, or determined to be defective as of the time of importation;
"(2) upon which the duties have been paid;
"(3) which has been entered or withdrawn for consumption; and
"(4) which, within 3 years after release from the custody of the Customs Service, has been returned to the custody of the Customs Service for exportation or destruction under the supervision of the Customs Service;
the full amount of the duties paid upon such merchandise, less 1 percent, shall be refunded as drawback."
Subsec. (i).
Subsec. (j)(1).
Subsec. (j)(2).
Subsec. (k).
Subsec. (n)(1)(B).
Subsec. (q).
Subsec. (y).
2003—Subsec. (j)(4).
Subsec. (n).
Subsec. (n)(1).
Subsec. (n)(4).
Subsec. (o).
Subsec. (o)(3), (4).
2000—Subsec. (p)(3)(A)(i)(I).
Subsec. (p)(3)(B).
Subsec. (x).
1999—Subsec. (p)(1).
Subsec. (p)(2)(A)(i) to (iii).
Subsec. (p)(2)(A)(iv).
Subsec. (p)(2)(G).
Subsec. (p)(3)(A)(i)(I).
Subsec. (p)(3)(A)(i)(II).
Subsec. (p)(3)(A)(ii).
Subsec. (p)(3)(B).
Subsec. (p)(3)(C).
Subsec. (p)(4)(B).
Subsec. (q).
1996—Subsec. (j)(2).
Subsec. (r)(3).
Subsec. (s)(2)(B).
Subsec. (t).
1994—Subsec. (w).
1993—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (j).
Subsec. (l).
Subsecs. (n), (o).
Subsec. (p).
Subsecs. (q) to (v).
1990—Subsec. (n).
Subsec. (o).
Subsec. (p).
1988—Subsecs. (n), (o).
1986—Subsec. (j)(2), (3).
Subsec. (j)(4).
1984—Subsec. (j)(2) to (4).
Subsecs. (k) to (m).
1980—Subsecs. (j) to (l).
1971—Subsecs. (h) to (k).
1968—Subsec. (d).
1958—Subsec. (b).
1956—Subsec. (b). Act Aug. 6, 1956, inserted "or printing papers, coated or uncoated," after "linseed oil," wherever appearing.
1953—Subsec. (b). Act Aug. 8, 1953, §12(a), extended from one year to three years the period during which substitution for drawback purposes may be made.
Subsec. (c). Act Aug. 8, 1953, §12(b), extended the period during which the merchandise can be returned to customs custody for exportation from thirty days to ninety days or such longer period as the Secretary of the Treasury may allow; and provided for the refunding of duties in cases where the merchandise upon which the duties have been paid was sent to the consignee without his consent.
Subsec. (h). Act Aug. 8, 1953, §12(c), substituted reference to "this section" for "this section or of
Subsec. (i). Act Aug. 8, 1953, §12(c), broadened the authority of the Secretary of the Treasury to make such regulations for the administration of the drawback provisions as may be necessary.
1951—Subsec. (b). Act Aug. 8, 1951, extended the provisions of such subsection to flaxseed and linseed, and flaxseed and linseed oil, and omitted "(or shipment to the Philippine Islands)" before "of any such articles".
1936—Subsec. (d). Act June 26, 1936, inserted second par.
Statutory Notes and Related Subsidiaries
Change of Name
"Puerto Rico" substituted in subsec. (j) (now (m)) for "Porto Rico" pursuant to act May 17, 1932, which is classified to
Effective Date of 2020 Amendment
Amendment by
Amendment by
Effective Date of 2016 Amendment
"(1)
"(A) take effect on the date of the enactment of this Act [Feb. 24, 2016]; and
"(B) except as provided in paragraph (3), apply to drawback claims filed on or after the date that is 2 years after such date of enactment.
"(2)
"(A) the date on which the Automated Commercial Environment will be ready to process drawback claims; and
"(B) the date on which the Automated Export System will be ready to accept proof of exportation under subsection (i) of section 313 of the Tariff Act of 1930 [
"(3)
"(A) section 313 of the Tariff Act of 1930 [
"(B) section 313 of the Tariff Act of 1930, as in effect on the day before the date of the enactment of this Act."
[For definition of "Automated Commercial Environment" as used in section 906(q) of
Effective Date of 2008 Amendment
Amendment of this section and repeal of
"(1) imports of ethyl alcohol or a mixture of ethyl alcohol entered for consumption, or withdrawn from warehouse for consumption, on or after October 1, 2008; and
"(2) imports of ethyl alcohol or a mixture of ethyl alcohol entered for consumption, or withdrawn from warehouse for consumption, before October 1, 2008, if a duty drawback claim is filed with respect to such imports on or after October 1, 2010."
[
[
Effective Date of 2004 Amendment
"(A) any drawback entry filed on and after such date of enactment; and
"(B) any drawback entry filed before such date of enactment if the liquidation of the entry is not final on such date of enactment."
Effective and Termination Dates of 2003 Amendment
Amendment by
Effective Date of 2000 Amendment
"(A) any drawback claim filed on or after such date of enactment; and
"(B) any drawback entry filed before such date of enactment if the liquidation of the entry is not final on such date of enactment."
Amendment by title I of
Effective Date of 1999 Amendment
Effective Date of 1994 Amendment
[Proc. No. 6821, Sept. 12, 1995, 60 F.R. 47663, effective Sept. 13, 1995, established tariff-rate quotas on certain tobacco.]
Effective Date of 1993 Amendment
Amendment by section 203(b)(3) of
Amendment by section 203(c) of
Effective Date of 1990 Amendment
Amendment by section 484A(a) of
Effective and Termination Dates of 1988 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendment
Effective Date of 1971 Amendment
Effective Date of 1968 Amendment
For effective date of amendment by
Effective Date of 1958 Amendment
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
Construction of 1993 Amendment
Amendment by section 203(c) 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
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1801–1899A] of
Executive Documents
Transfer of Functions
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,
§1313a. Appropriations for refunds, drawbacks, bounties, etc.
There are appropriated such amounts as hereafter may be necessary for refund or payment of custom collections or receipts, and payment of debentures or drawbacks, bounties, and allowances, as authorized by law.
(June 30, 1949, ch. 286, title I,
Editorial Notes
Codification
Section was not enacted as part of the Tariff Act of 1930 which comprises this chapter.
§1314. Repealed. June 25, 1938, ch. 679, §35, 52 Stat. 1092 , eff. July 25, 1938
Section, act June 17, 1930, ch. 497, title III, §314,
§1315. Effective date of rates of duty
(a) Articles entered or withdrawn from warehouse for consumption
Except as otherwise specially provided for, the rate or rates of duty imposed by or pursuant to this chapter or any other law on any article entered for consumption or withdrawn from warehouse for consumption shall be the rate or rates in effect when the documents comprising the entry for consumption or withdrawal from warehouse for consumption and any estimated or liquidated duties then required to be paid have been deposited with the Customs Service by written, electronic or such other means as the Secretary by regulation shall prescribe, except that—
(1) any article released under an informal mail entry shall be subject to duty at the rate or rates in effect when the preparation of the entry is completed;
(2) any article which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation under
(3) any article for which duties may, under
(b) Articles removed from intended place of release
Any article which has been entered for consumption but which, before release from custody of the Customs Service, is removed from the port or other place of intended release because of inaccessibility, overcarriage, strike, act of God, or unforeseen contingency, shall be subject to duty at the rate or rates in effect when the entry for consumption and any required duties were deposited in accordance with subsection (a) of this section, but only if the article is returned to such port or place within ninety days after the date of removal and the identity of the article as that covered by the entry is established in accordance with regulations prescribed by the Secretary of the Treasury.
(c) Quantity of merchandise at time of importation
Insofar as duties are based upon the quantity of any merchandise, such duties shall, except as provided in
(d) Effective date of administrative rulings resulting in higher rates
No administrative ruling resulting in the imposition of a higher rate of duty or charge than the Secretary of the Treasury shall find to have been applicable to imported merchandise under an established and uniform practice shall be effective with respect to articles entered for consumption or withdrawn from warehouse for consumption prior to the expiration of thirty days after the date of publication in the Federal Register of notice of such ruling; but this provision shall not apply with respect to the imposition of antidumping duties, or the imposition of countervailing duties under
(June 17, 1930, ch. 497, title III, §315,
Editorial Notes
References in Text
The Harmonized Tariff Schedule of the United States and the Tariff Schedules of the United States, referred to in subsecs. (c) and (d), are not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
For the effective date of title II of the Uruguay Round Agreements Act [
Amendments
1994—Subsec. (d).
1993—Subsec. (a).
Subsec. (b).
Subsec. (c).
1988—Subsec. (d).
1979—Subsec. (d).
1978—Subsec. (a)(3).
Subsec. (d).
1975—Subsec. (d).
1970—Subsec. (a).
1953—Act Aug. 8, 1953, amended section generally by dividing section into subsections, and by changing the provisions set out as subsecs. (a) and (b) to clarify such provisions with respect to effective dates of rates of duty.
1938—Act June 25, 1938, amended section generally, among which changes it inserted provisions set out as subsecs. (c) and (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1975 Amendment
"(1) The amendments made by this section [amending this section and
"(2) For purposes of applying the provisions of section 303(a)(4) of the Tariff Act of 1930 [
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
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
Executive Documents
Transfer of Functions
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 1950 Reorg. Plan No. 26, §§1, 2, eff. July 31, 1950, 15 F.R. 4935,
§1316. Omitted
Editorial Notes
Codification
Section, act June 17, 1930, ch. 497, title III, §316,
Statutory Notes and Related Subsidiaries
Treaty Between United States and Cuba
The treaty concluded between the United States and the Republic of Cuba on Dec. 11, 1902, referred to in text, was terminated Aug. 21, 1963, pursuant to notice given by the United States on Aug. 21, 1962. See Bevans, Treaties, and Other International Agreements of the United States of America, 1776 to 1949, vol. VI, page 1106.
§1317. Tobacco products; supplies for certain vessels and aircraft
(a) Exportation of tobacco products
The shipment or delivery of manufactured tobacco, snuff, cigars, or cigarettes, for consumption beyond the jurisdiction of the internal-revenue laws of the United States, as defined by
(b) Exportation of supplies for certain vessels and aircraft
The shipment or delivery of any merchandise for use as supplies (including equipment) upon, or in the maintenance or repair of any vessel or aircraft described in subdivision (2) or (3) of
(June 17, 1930, ch. 497, title III, §317,
Editorial Notes
References in Text
Amendments
1953—Subsec. (b). Act Aug. 8, 1953, extended to foreign vessels the exemption from payment of duty and internal revenue tax theretofore available for supplies used in the maintenance or repair of aircraft; and provided an exemption for ground equipment for foreign-flag aircraft from duties and taxes imposed on, by reason of, importation.
1938—Act June 25, 1938, amended section catchline, designated existing provisions as subsec. (a), and added subsec. (b).
Statutory Notes and Related Subsidiaries
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
Repeals
Insofar as subsec. (a) of this section related exclusively to Internal Revenue it was repealed and incorporated as section 2197(b) of the Internal Revenue Code of 1939. See section 4(a) of enacting sections of Internal Revenue Code of 1939. Section 2197(b) of I. R. C. 1939 was replaced by
§1318. Emergencies
(a) Whenever the President shall by proclamation declare an emergency to exist by reason of a state of war, or otherwise, he may authorize the Secretary of the Treasury to extend during the continuance of such emergency the time herein prescribed for the performance of any act, and may authorize the Secretary of the Treasury to permit, under such regulations as the Secretary of the Treasury may prescribe, the importation free of duty of food, clothing, and medical, surgical, and other supplies for use in emergency relief work. The Secretary of the Treasury shall report to the Congress any action taken under the provisions of this section.
(b)(1) Notwithstanding any other provision of law, the Secretary of the Treasury, when necessary to respond to a national emergency declared under the National Emergencies Act (
(A) Eliminate, consolidate, or relocate any office or port of entry of the Customs Service.
(B) Modify hours of service, alter services rendered at any location, or reduce the number of employees at any location.
(C) Take any other action that may be necessary to respond directly to the national emergency or specific threat.
(2) Notwithstanding any other provision of law, the Commissioner of U.S. Customs and Border Protection, when necessary to respond to a specific threat to human life or national interests, is authorized to close temporarily any Customs office or port of entry or take any other lesser action that may be necessary to respond to the specific threat.
(3) The Secretary of the Treasury or the Commissioner of U.S. Customs and Border Protection, as the case may be, shall notify the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate not later than 72 hours after taking any action under paragraph (1) or (2).
(June 17, 1930, ch. 497, title III, §318,
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (b)(1), is
Prior Provisions
Provisions similar to those in subsec. (a) of this section were contained in act Sept. 21, 1922, ch. 356, title IV, §622,
Amendments
2002—
Statutory Notes and Related Subsidiaries
Change of Name
"Commissioner of U.S. Customs and Border Protection" substituted for "Commissioner of Customs" in subsec. (b)(2) and (3) on authority of section 802(d)(2) of
Effective Date of 2002 Amendment
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
Executive Documents
Transfer of Functions
Functions of Secretary of the Treasury under this section with respect to functions transferred to Secretary of Commerce in
Proc. No. 2948. Merchandise in General-Order and Bonded Warehouses
Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 Stat. c41, provided:
[Whereas clauses omitted]
NOW, THEREFORE, I, HARRY S. TRUMAN, President of the United States of America, acting under and by virtue of the authority vested in me by the foregoing provision of section 318 of the Tariff Act of 1930 [this section] do hereby authorize the Secretary of the Treasury, until the termination of the national emergency proclaimed on December 16, 1950, or until it shall be determined by the President and declared by his proclamation that such action is no longer necessary, whichever is earlier:
(1) To extend the one-year period prescribed in section 491, supra, as amended [
(2) To extend the three-year period prescribed in sections 557 and 559, supra, as amended [
(3) To extend further the one-year period prescribed in section 491, supra, as amended [
Provided, however, that in each and every case under numbered paragraphs (1), (2), and (3) above in which the merchandise is charged against an entry bond the Secretary of the Treasury shall require that the principal on such bond, in order to obtain the benefit of any extension which may be granted under the authority of this proclamation, shall furnish to the collector of customs at the port where the bond is on file either the agreement of the sureties on the bond to remain bound under the terms and conditions of the bond to the same extent as if no extension had been granted, or an additional bond with acceptable sureties to cover the period of extension; and that, in each and every case in which the merchandise remains charged against a carrier's bond the Secretary of the Treasury shall require that the principal on such bond shall agree to the extension and shall furnish to the collector of customs at the port where the charge was made the agreement of the sureties on the bond to remain bound under the terms and conditions of the bond to the same extent as if no extension had been granted; and
Provided further, that as a condition to the granting of any extension or further extension of the periods prescribed in sections 491, 557, and 559 of the Tariff Act of 1930, supra, as amended [
Provided further, that the extensions of one year authorized by this proclamation shall not apply to any case in which the period sought to be extended expired prior to December 16, 1950, or in which the merchandise in question has been sold by the Government as abandoned.
This proclamation supersedes Proclamation No. 2599 of November 4, 1943, as amended by Proclamation No. 2712 of December 3, 1946, but it shall not be construed (1) as invalidating any action heretofore taken under the provisions of the said Proclamation No. 2599 or under the provisions of that proclamation as amended by the said Proclamation No. 2712, or (2) as imposing the conditions set forth in the second proviso above upon the granting of extensions for which applications are pending on the date of this proclamation.
Harry S Truman.
Ex. Ord. No. 13916. National Emergency Authority To Temporarily Extend Deadlines for Certain Estimated Payments
Ex. Ord. No. 13916, Apr. 18, 2020, 85 F.R. 22951, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the National Emergencies Act (
(b) The Secretary shall consider taking appropriate action under
(c) The Secretary shall consult with the Secretary of Homeland Security or his designee before exercising, as invoked and made available under this order, any of the authority set forth in
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Donald J. Trump.
§1319. Duty on coffee imported into Puerto Rico
The Legislature of Puerto Rico is empowered to impose tariff duties upon coffee imported into Puerto Rico, including coffee grown in a foreign country coming into Puerto Rico from the United States. Such duties shall be collected and accounted for as now provided by law in the case of duties collected in Puerto Rico.
(June 17, 1930, ch. 497, title III, §319,
Statutory Notes and Related Subsidiaries
Change of Name
"Puerto Rico" substituted in text for "Porto Rico" pursuant to act May 17, 1932, which is classified to
Actions Under Caribbean Basin Economic Recovery Program Not To Affect Puerto Rican Duties on Imported Coffee
§1319a. Duty on coffee; ratification of duties imposed by Legislature of Puerto Rico
The taxes and duties imposed by the Legislature of Puerto Rico by Joint Resolution Numbered 59 approved by the Governor of Puerto Rico May 5, 1930, and by Act Numbered 77 approved by the Governor of Puerto Rico May 5, 1931, as amended by Act Numbered 7 approved by the Governor April 9, 1934, including therein such taxes and duties on coffee brought into Puerto Rico from any State or Territory or district or possession of the United States, or other place subject to the jurisdiction of the United States, are legalized and ratified, and the collection of all such taxes and duties made under or by authority of either of said acts of the Puerto Rican Legislature, including such taxes and duties on coffee brought into Puerto Rico from any State, Territory, district, or possession of the United States, or other place subject to the jurisdiction of the United States, is legalized, ratified, and confirmed as fully to all intents and purposes as if the same had, by prior Act of Congress, been specifically authorized and directed.
(June 18, 1934, ch. 604,
Editorial Notes
Codification
Section was not enacted as part of Tariff Act of 1930 which constitutes this chapter.
Amendments
1935—Act Aug. 20, 1935, amended section generally.
§1320. Repealed. Aug. 8, 1953, ch. 397, §6(b), 67 Stat. 510
Section, act June 17, 1930, ch. 497, title III, §320,
Statutory Notes and Related Subsidiaries
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
§1321. Administrative exemptions
(a) Disregard of minor discrepancies in collection of taxes and duties; admission of articles free of duty or tax; limit on amount of exemption
The Secretary of the Treasury, in order to avoid expense and inconvenience to the Government disproportionate to the amount of revenue that would otherwise be collected, is authorized, under such regulations as he shall prescribe, to—
(1) disregard a difference of an amount specified by the Secretary by regulation, but not less than $20, between the total estimated duties, fees, and taxes deposited, or the total duties, fees, and taxes tentatively assessed, with respect to any entry of merchandise and the total amount of duties, fees, taxes, and interest actually accruing thereon;
(2) admit articles free of duty and of any tax imposed on or by reason of importation, but the aggregate fair retail value in the country of shipment of articles imported by one person on one day and exempted from the payment of duty shall not exceed an amount specified by the Secretary by regulation, but not less than—
(A) $100 in the case of articles sent as bona fide gifts from persons in foreign countries to persons in the United States ($200 in the case of articles sent as bona fide gifts from persons in the Virgin Islands, Guam, and American Samoa), or
(B) $200 in the case of articles accompanying, and for the personal or household use of, persons arriving in the United States who are not entitled to any exemption from duty under subheading 9804.00.30, 9804.00.65, or 9804.00.70 of title I of this Act,1 or
(C) $800 in any other case.
The privilege of this subdivision (2) shall not be granted in any case in which merchandise covered by a single order or contract is forwarded in separate lots to secure the benefit of this subdivision (2); and
(3) waive the collection of duties, fees, taxes, and interest due on entered merchandise when such duties, fees, taxes, or interest are less than $20 or such greater amount as may be specified by the Secretary by regulation.
(b) Reduction or modification of exemption
The Secretary of the Treasury is authorized by regulations to prescribe exceptions to any exemption provided for in subsection (a) whenever he finds that such action is consistent with the purpose of subsection (a) or is necessary for any reason to protect the revenue or to prevent unlawful importations.
(June 17, 1930, ch. 497, title III, §321, as added June 25, 1938, ch. 679, §7,
Editorial Notes
References in Text
Title I of this Act, referred to in subsec. (a)(2)(B), means title I of act June 17, 1930, which contained the Tariff Schedules of the United States and which formerly were set out under
Amendments
2016—Subsec. (a)(2)(C).
1996—Subsec. (a)(1).
Subsec. (a)(2)(B).
Subsec. (a)(3).
1993—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (b).
1988—Subsec. (a)(2)(B).
1983—Subsec. (a)(2)(A).
1978—Subsec. (a)(1).
Subsec. (a)(2).
1975—Subsec. (a)(2)(A).
1965—Subsec. (a)(2).
1961—Subsec. (a).
1953—Act Aug. 8, 1953, (1) divided section into subsections; (2) increased from $1 to $3 the difference between deposited or assessed duties and actual duties which may be disregarded by the collector; (3) permitted free entry of bona fide gifts from persons outside the United States up to $10; (4) allowed persons to bring with them articles up to $10 in value for their personal use; (5) continued to allow free entry up to $1 in other cases; and (6) enabled the Secretary of the Treasury to reduce these amounts if he found such action necessary to protect the revenue.
Statutory Notes and Related Subsidiaries
Effective Date of 2016 Amendment
Effective Date of 1996 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1983 Amendment
Effective Date of 1975 Amendment
Effective Date of 1965 Amendment
Effective Date of 1961 Amendment
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
Section effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as an Effective Date of 1938 Amendment note under
1 See References in Text note below.
§1322. International traffic and rescue work; United States-Mexico Boundary Treaty of 1970
(a) Vehicles and other instruments of international traffic except communications satellites
Vehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, shall be excepted from the application of the customs laws to such extent and subject to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury. The authority delegated to the Secretary by this subsection shall not extend to communications satellites and components and parts thereof.
(b) Rescue and relief equipment; personal property related to use of land under United States-Mexico Boundary Treaty of 1970; forfeit of articles to United States
The Secretary of the Treasury may provide by regulation or instruction for the admission, without entry and without the payment of any duty or tax imposed upon or by reason of importation, of—
(1) aircraft, equipment, supplies, and spare parts for use in searches, rescues, investigations, repairs, and salvage in connection with accidental damage to aircraft;
(2) fire-fighting and rescue and relief equipment and supplies for emergent temporary use in connection with conflagrations;
(3) rescue and relief equipment and supplies for emergent temporary use in connection with floods and other disasters; and
(4) personal property related to the use and enjoyment of a separated tract of land as described in article III of the Treaty To Resolve Pending Boundary Differences and Maintain the Rio Grande and Colorado Rivers as the International Boundary between the United States of America and the United Mexican States signed on November 23, 1970.
Any articles admitted under the authority of this subsection and used otherwise than for a purpose herein expressed, or not exported in such time and manner as may be prescribed in the regulations or instructions herein authorized, shall be forfeited to the United States.
(June 17, 1930, ch. 497, title III, §322, as added Aug. 8, 1953, ch. 397, §14,
Editorial Notes
Amendments
1984—Subsec. (a).
1972—
Subsec. (b)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
"(a) Except as provided in section 126 and in subsections (b) and (c), the amendments made by subtitles B, C, and D [amending this section and
"(b)(1) The amendment made by sections 117 and 124 [amending this section] shall apply with respect to articles entered on or after January 1, 1985.
"(2) The amendments made by section 127 [amending this section] shall apply with respect to articles entered on or after a date to be proclaimed by the President which shall be consonant with the entering into force for the United States of the Customs Convention on Containers, 1972.
"(d) For purposes of this section—
"(1) The term 'entered' means entered, or withdrawn from warehouse for consumption in the customs territory of the United States.
"(2) The term 'entry' includes any withdrawal from warehouse."
Effective Date
Section effective on and after thirtieth day following Aug. 8, 1953, see note set out under
§1323. Conservation of fishery resources
Upon the convocation of a conference on the use or conservation of international fishery resources, the President shall, by all appropriate means at his disposal, seek to persuade countries whose domestic fishing practices or policies affect such resources, to engage in negotiations in good faith relating to the use or conservation of such resources. If, after such efforts by the President and by other countries which have agreed to engage in such negotiations, any other country whose conservation practices or policies affect the interests of the United States and such other countries, has, in the judgment of the President, failed or refused to engage in such negotiations in good faith, the President may, if he is satisfied that such action is likely to be effective in inducing such country to engage in such negotiations in good faith, increase the rate of duty on any fish (in any form) which is the product of such country, for such time as he deems necessary, to a rate not more than 50 percent above the rate existing on July 1, 1934.
(June 17, 1930, ch. 497, title III, §323, as added