Collapse to view only § 1305. Immoral articles; importation prohibited
- § 1301. Repealed.
- § 1301a. Repealed.
- § 1302. Omitted
- § 1303. Repealed.
- § 1304. Marking of imported articles and containers
- § 1304a. Technical assistance to U.S. Customs and Border Protection
- § 1305. Immoral articles; importation prohibited
- § 1306. Repealed.
- § 1307. Convict-made goods; importation prohibited
- § 1308. Prohibition on importation of dog and cat fur products
- § 1309. Supplies for certain vessels and aircraft
- § 1310. Free importation of merchandise recovered from sunken and abandoned vessels
- § 1311. Bonded manufacturing warehouses
- § 1312. Bonded smelting and refining warehouses
- § 1313. Drawback and refunds
- § 1313a. Appropriations for refunds, drawbacks, bounties, etc.
- § 1314. Repealed.
- § 1315. Effective date of rates of duty
- § 1316. Omitted
- § 1317. Tobacco products; supplies for certain vessels and aircraft
- § 1318. Emergencies
- § 1319. Duty on coffee imported into Puerto Rico
- § 1319a. Duty on coffee; ratification of duties imposed by Legislature of Puerto Rico
- § 1320. Repealed.
- § 1321. Administrative exemptions
- § 1322. International traffic and rescue work; United States-Mexico Boundary Treaty of 1970
- § 1323. Conservation of fishery resources
§ 1301. Repealed. Apr. 30, 1946, ch. 244, title V, § 511(1), 60 Stat. 158
§ 1301a. Repealed. Pub. L. 87–456, title III, § 301(a), May 24, 1962, 76 Stat. 75
§ 1302. Omitted
§ 1303. Repealed. Pub. L. 103–465, title II, § 261(a), Dec. 8, 1994, 108 Stat. 4908
§ 1304. Marking of imported articles and containers
(a) Marking of articlesExcept 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 sections 1351, 1352, 1353, 1354 of this title, as extended; or
(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
(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
(e) Marking of certain castings
(f) Marking of certain coffee and tea products
(g) Marking of spices
(h) Marking of certain silk productsThe marking requirements of subsections (a) and (b) shall not apply either to—
(1) articles provided for in subspan 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 span 5007 of the Harmonized Tariff Schedule of the United States as in effect on January 1, 1997.
(i) Additional duties for failure to mark
(j) Delivery withheld until marked
(k) Treatment of goods of a USMCA countryIn applying this section to an article that qualifies as a good of a USMCA country (as defined in section 4502 of this title)—
(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 subspan 6904.10, span 8541, or span 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) PenaltiesAny 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, 46 Stat. 687; June 25, 1938, ch. 679, § 3, 52 Stat. 1077; Aug. 8, 1953, ch. 397, § 4(c), 67 Stat. 509; Pub. L. 98–573, title II, § 207, Oct. 30, 1984, 98 Stat. 2976; Pub. L. 99–514, title XVIII, § 1888(1), Oct. 22, 1986, 100 Stat. 2924; Pub. L. 100–418, title I, § 1907(a)(1), Aug. 23, 1988, 102 Stat. 1314; Pub. L. 103–182, title II, § 207(a), Dec. 8, 1993, 107 Stat. 2096; Pub. L. 104–295, § 14(a), (b), Oct. 11, 1996, 110 Stat. 3521, 3522; Pub. L. 106–36, title II, § 2423(a), (b), June 25, 1999, 113 Stat. 180; Pub. L. 114–125, title IX, § 917(a), Feb. 24, 2016, 130 Stat. 279; Pub. L. 116–113, title II, § 209(a), Jan. 29, 2020, 134 Stat. 52.)
§ 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.
(Pub. L. 113–79, title XII, § 12309(a), Feb. 7, 2014, 128 Stat. 991.)
§ 1305. Immoral articles; importation prohibited
(a) Prohibition of importation
(b)1
1 So in original. Two subsecs. (b) and (c) have been enacted. Second subsecs. (b) and (c) probably should be designated (e) and (f), respectively.
Enforcement proceduresUpon 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
(d) Stay of forfeiture proceedings
(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
2 So in original. Probably should not be capitalized.
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
(June 17, 1930, ch. 497, title III, § 305, 46 Stat. 688; June 25, 1948, ch. 645, § 21, 62 Stat. 862; June 25, 1948, ch. 646, § 1, 62 Stat. 869; Pub. L. 91–271, title III, § 301(a), June 2, 1970, 84 Stat. 287; Pub. L. 91–662, § 1, Jan. 8, 1971, 84 Stat. 1973; Pub. L. 96–417, title VI, § 601(2), Oct. 10, 1980, 94 Stat. 1744; Pub. L. 100–418, title I, § 1901(a), Aug. 23, 1988, 102 Stat. 1312; Pub. L. 100–449, title II, § 206, Sept. 28, 1988, 102 Stat. 1864; Pub. L. 100–690, title VII, § 7522(e)[d], Nov. 18, 1988, 102 Stat. 4500.)
§ 1306. Repealed. Pub. L. 107–171, title X, § 10418(a)(5), May 13, 2002, 116 Stat. 507
§ 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, 46 Stat. 689; Pub. L. 106–200, title IV, § 411(a), May 18, 2000, 114 Stat. 298; Pub. L. 114–125, title IX, § 910(a)(1), Feb. 24, 2016, 130 Stat. 239.)
§ 1308. Prohibition on importation of dog and cat fur products
(a) Definitions
In this section:
(1) Cat fur
(2) Interstate commerce
(3) Customs laws
(4) Designated authority
(5) Dog fur
(6) Dog or cat fur product
(7) Person
(8) 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
(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
(C) Factors in assessing penalties
(D) Notice
(2) Forfeiture
(3) Enforcement
(4) Regulations
(5) Reward
(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
(d) Publication of names of certain violators
(June 17, 1930, ch. 497, title III, § 308, as added Pub. L. 106–476, title I, § 1443(a), Nov. 9, 2000, 114 Stat. 2164; amended Pub. L. 113–188, title X, § 1001(a), Nov. 26, 2014, 128 Stat. 2022.)
§ 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
(c) Articles removed in, or returned to, the United States
(d) Reciprocal privileges
(June 17, 1930, ch. 497, title III, § 309, 46 Stat. 690; June 25, 1938, ch. 679, § 5(a), 52 Stat. 1080; July 22, 1941, ch. 314, § 3, 55 Stat. 602; Aug. 8, 1953, ch. 397, § 11(a), 67 Stat. 514; Pub. L. 86–606, § 5(a), July 7, 1960, 74 Stat. 361; Pub. L. 101–382, title III, § 484A(b), Aug. 20, 1990, 104 Stat. 708.)
§ 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, 46 Stat. 691.)
§ 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, 18 Stat. 24, in said bonded warehouses may be withdrawn for domestic consumption on the payment of duty equal to the duty which would be assessed and collected by law if such waste or by-products were imported from a foreign country: Provided, That all waste material may be destroyed under Government supervision. All labor performed and services rendered under these provisions shall be under the supervision of a duly designated officer of the customs and at the expense of the manufacturer.
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
1 See References in Text note below.
as defined in section 4534(a) of this title, may be withdrawn from warehouse for exportation to a country,1 as defined in section 4502 of this title, 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 upon the presentation, before such 61st day, of satisfactory evidence of the amount of any customs duties paid to the country 1 on the article, the customs duty may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of—(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, 46 Stat. 691; June 26, 1936, ch. 830, title IV, § 404, 49 Stat. 1960; Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 Stat. 287; Pub. L. 96–39, title VIII, § 856(b), July 26, 1979, 93 Stat. 295; Pub. L. 97–446, title II, § 202, Jan. 12, 1983, 96 Stat. 2350; Pub. L. 100–449, title II, § 204(c)(1), Sept. 28, 1988, 102 Stat. 1862; Pub. L. 103–182, title II, § 203(b)(1), Dec. 8, 1993, 107 Stat. 2088; Pub. L. 108–77, title II, § 203(b)(1), Sept. 3, 2003, 117 Stat. 925; Pub. L. 116–113, title V, § 501(e)(1), Jan. 29, 2020, 134 Stat. 68; Pub. L. 116–260, div. O, title VI, § 601(c)(2)(A)(i), Dec. 27, 2020, 134 Stat. 2150.)
§ 1312. Bonded smelting and refining warehouses
(a) Bond; charges against bond
(b) Cancellation of charges against bondThe 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 section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, the duties on the materials shall be paid, and the charges against the bond canceled, before the 61st day after the date of exportation; but upon the presentation, before such 61st day, of satisfactory evidence of the amount of any customs duties paid to the USMCA country on the product, the duties on the materials may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of—
(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 section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, the duties on the materials shall be paid, and the charges against the bond canceled, before the 61st day after the date of exportation; but upon the presentation, before such 61st day, of satisfactory evidence of the amount of any customs duties paid to the USMCA country on the product, the duties on the materials may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of—
(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
(d) Credit for exportation of product other than refined metalUpon 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 section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, charges against the bond shall be paid before the 61st day after the date of exportation; but upon the presentation, before such 61st day, of satisfactory evidence of the amount of any customs duties paid to the USMCA country on the product, the bond shall be credited (subject to section 4534(e) of this title) in an amount not to exceed the lesser of—
(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.
(e) General bond for two or more warehouses
(f) DefinitionsFor purposes of this section—
(1) the term “metal-bearing materials” means metal-bearing ores and other metal-bearing materials provided for in chapter 26 of the Harmonized Tariff Schedule of the United States, metal waste and scrap and unwrought metal to be smelted or refined provided for in chapters 71 through 83 of the Harmonized Tariff Schedule of the United States, and metal compounds to be processed for the recovery of their metal span;
(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 span 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 chapter 26 of the Harmonized Tariff Schedule of the United States, and
(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 chapter 26 of the Harmonized Tariff Schedule of the United States.
(g) Supervision and cost of labor under this section
(June 17, 1930, ch. 497, title III, § 312, 46 Stat. 692; Pub. L. 87–456, title III, § 301(b), May 24, 1962, 76 Stat. 75; Pub. L. 100–418, title I, § 1214(h)(1), Aug. 23, 1988, 102 Stat. 1157; Pub. L. 100–449, title II, § 204(c)(2), Sept. 28, 1988, 102 Stat. 1862; Pub. L. 103–182, title II, § 203(b)(2), Dec. 8, 1993, 107 Stat. 2088; Pub. L. 108–77, title II, § 203(b)(2), Sept. 3, 2003, 117 Stat. 925; Pub. L. 116–113, title V, § 501(e)(2), Jan. 29, 2020, 134 Stat. 68; Pub. L. 116–260, div. O, title VI, § 601(c)(2)(A)(ii), Dec. 27, 2020, 134 Stat. 2150.)
§ 1313. Drawback and refunds
(a) Articles made from imported merchandise
(b) Substitution for drawback purposes
(1) In general
(2) Requirements relating to transfer of merchandise
(A) Manufacturers and producers
(B) Exporters and destroyers
(C) Evidence of transfer
(3) Submission of bill of materials or formula
(A) In general
(B) Bill of materials and formula defined
(4) Special rule for sought chemical elements
(A) In generalFor purposes of paragraph (1), a sought chemical element may be—
(i) considered imported merchandise, or merchandise classifiable under the same 8-digit HTS subspan 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 subspan number, and apportioned quantitatively, as appropriate.
(B) Sought chemical element defined
(c) Merchandise not conforming to sample or specifications
(1) Conditions for drawbackUpon 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
(3) Evidence of transfers
(d) Flavoring extracts; medicinal or toilet preparations; bottled distilled spirits and wines
(e) Imported salt for curing fish
(f) Exportation of meats cured with imported salt
(g) Materials for construction and equipment of vessels built for foreigners
(h) Jet aircraft engines
(i) Proof of exportationA 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 subspan 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 subspan 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 subspan 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 section 4534(a) of this title, shall not constitute an exportation for purposes of paragraph (2).
(ii) In this subparagraph, the terms “USMCA” and “USMCA country” have the meanings given those terms in section 4502 of this title.
(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 subspan number if the article description for the 8-digit HTS subspan 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 subspan number as the imported merchandise, without regard to whether the Schedule B number corresponds to more than one 8-digit HTS subspan 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
(2) Liability of importersAn 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
(l) Regulations
(1) In general
(2) Calculation of drawback
(A) In general
(B) Claims with respect to unused merchandiseThe 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 incorporatedThe 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) ExceptionsThe 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
(m) Source of payment
(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 section 4502 of this title;
(B) the term “good subject to USMCA drawback” has the meaning given that term in section 4534(a) of this title;
(C) a refund, waiver, or reduction of duty under paragraph (2) of this subsection or paragraph (1) of subsection (o) is subject to section 4534(e) of this title; and
(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 generalNotwithstanding 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) RequirementsThe 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 chapter 39 of the HTS), and
(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 drawbackThe 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
(q) Packaging material
(1) Packaging material under subsections (c) and (j)
(2) Packaging material under subsections (a) and (b)
(3) Contents
(4) Employing packaging material for its intended purpose prior to exportation
(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 section 1508(c)(2) of this title shall be extended for an additional 18 months or, in a case to which subparagraph (A)(ii) applies, for a period not to exceed 1 year from the date the claim is filed.
(C) For purposes of this paragraph, the term “major disaster” has the meaning given that term in section 5122(2) of title 42.
(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 subspan 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
(v) Multiple drawback claims
(w) Limited applicability for certain agricultural products
(1) In general
(2) Application to tobacco
(x) Drawbacks for recovered materials
(y) Articles shipped to the United States insular possessions
(z) DefinitionsIn this section:
(1) Directly
(2) HTS
(3) Indirectly
(June 17, 1930, ch. 497, title III, § 313, 46 Stat. 693; May 17, 1932, ch. 190, 47 Stat. 158; June 26, 1936, ch. 830, title IV, §§ 402, 403, 49 Stat. 1960; Aug. 8, 1951, ch. 297, 65 Stat. 175; Aug. 8, 1953, ch. 397, § 12, 67 Stat. 515; Aug. 6, 1956, ch. 1021, § 2, 70 Stat. 1076; Pub. L. 85–673, § 1, Aug. 18, 1958, 72 Stat. 624; Pub. L. 90–630, § 2(b), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 91–692, § 3(a), Jan. 12, 1971, 84 Stat. 2076; Pub. L. 96–609, title II, § 201(a), Dec. 28, 1980, 94 Stat. 3560; Pub. L. 98–573, title II, § 202, Oct. 30, 1984, 98 Stat. 2973; Pub. L. 99–514, title XVIII, § 1888(2), Oct. 22, 1986, 100 Stat. 2924; Pub. L. 100–449, title II, § 204(c)(3), Sept. 28, 1988, 102 Stat. 1862; Pub. L. 101–382, title I, § 134(a)(1), (2), title III, § 484A(a), Aug. 20, 1990, 104 Stat. 649, 707; Pub. L. 103–182, title II, § 203(b)(3), (c), title VI, § 632(a), Dec. 8, 1993, 107 Stat. 2089, 2092, 2192; Pub. L. 103–465, title IV, §§ 404(e)(5)(A), 422(d), Dec. 8, 1994, 108 Stat. 4961, 4965; Pub. L. 104–295, §§ 7, 10, 21(e)(4), Oct. 11, 1996, 110 Stat. 3518, 3519, 3530; Pub. L. 106–36, title II, §§ 2404(a), 2419(a), 2420(a)–(d), June 25, 1999, 113 Stat. 169, 178, 179; Pub. L. 106–476, title I, §§ 1422(a)(1), (b), 1462(a), Nov. 9, 2000, 114 Stat. 2156, 2172; Pub. L. 108–77, title II, § 203(b)(3), Sept. 3, 2003, 117 Stat. 927; Pub. L. 108–429, title I, §§ 1556, 1557(a), 1563(a)–(d), title II, § 2004(d)(6), Dec. 3, 2004, 118 Stat. 2579, 2583–2585, 2592; Pub. L. 110–234, title XV, §§ 15334(a), 15421(a), May 22, 2008, 122 Stat. 1517, 1547; Pub. L. 110–246, § 4(a), title XV, §§ 15334(a), 15421(a), June 18, 2008, 122 Stat. 1664, 2279, 2309; Pub. L. 114–125, title IX, § 906(a)–(n), Feb. 24, 2016, 130 Stat. 226–233; Pub. L. 116–113, title V, § 501(e)(3), Jan. 29, 2020, 134 Stat. 68; Pub. L. 116–260, div. O, title VI, § 601(c)(2)(A)(iii), (d)(2), Dec. 27, 2020, 134 Stat. 2150, 2151.)
§ 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, 63 Stat. 360.)
§ 1314. Repealed. June 25, 1938, ch. 679, § 35, 52 Stat. 1092, eff. July 25, 1938
§ 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 section 1552 of this title, if entered for consumption at the port designated by the consignee, or his agent, in such transportation entry without having been taken into the custody of the appropriate customs officer under section 1490 of this title, shall be subject to the rate or rates in effect when the transportation entry was accepted at the port of original importation; and
(3) any article for which duties may, under section 1505 of this title, be paid at a time later than the time of making entry shall be subject to the rate or rates in effect at the time of entry.
(b) Articles removed from intended place of release
(c) Quantity of merchandise at time of importation
(d) Effective date of administrative rulings resulting in higher rates
(June 17, 1930, ch. 497, title III, § 315, 46 Stat. 695; June 25, 1938, ch. 679, § 6, 52 Stat. 1081; Aug. 8, 1953, ch. 397, § 3(a), 67 Stat. 508; Pub. L. 91–271, title III, § 301(b),
§ 1316. Omitted
§ 1317. Tobacco products; supplies for certain vessels and aircraft
(a) Exportation of tobacco products
(b) Exportation of supplies for certain vessels and aircraft
(June 17, 1930, ch. 497, title III, § 317, 46 Stat. 696; June 25, 1938, ch. 679, § 5(b), 52 Stat. 1081; Aug. 8, 1953, ch. 397, § 11(b), 67 Stat. 514.)
§ 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 (50 U.S.C. 1601 et seq.) or to a specific threat to human life or national interests, is authorized to take the following actions on a temporary basis:
(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, 46 Stat. 696; Pub. L. 107–210, div. A, title III, § 342, Aug. 6, 2002, 116 Stat. 981; Pub. L. 114–125, title VIII, § 802(d)(2), Feb. 24, 2016, 130 Stat. 210.)
§ 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, 46 Stat. 696; May 17, 1932, ch. 190, 47 Stat. 158.)
§ 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, 48 Stat. 1017; Aug. 20, 1935, ch. 578, 49 Stat. 665.)
§ 1320. Repealed. Aug. 8, 1953, ch. 397, § 6(b), 67 Stat. 510
§ 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 exemptionThe 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 subspan 9804.00.30, 9804.00.65, or 9804.00.70 of title I of this Act,1
1 See References in Text note below.
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
(June 17, 1930, ch. 497, title III, § 321, as added June 25, 1938, ch. 679, § 7, 52 Stat. 1081; amended Aug. 8, 1953, ch. 397, § 13, 67 Stat. 515; Pub. L. 87–261, § 2(c), Sept. 21, 1961, 75 Stat. 541; Pub. L. 89–62, § 2, June 30, 1965, 79 Stat. 208; Pub. L. 93–618, title VI, § 610(a), Jan. 3, 1975, 88 Stat. 2075; Pub. L. 95–410, title II, § 205, Oct. 3, 1978, 92 Stat. 900; Pub. L. 97–446, title I, § 115(b), Jan. 12, 1983, 96 Stat. 2335; Pub. L. 100–418, title I, § 1214(h)(2), Aug. 23, 1988, 102 Stat. 1157; Pub. L. 103–182, title VI, § 651, Dec. 8, 1993, 107 Stat. 2209; Pub. L. 104–295, § 3(a)(8), (12), Oct. 11, 1996, 110 Stat. 3516; Pub. L. 114–125, title IX, § 901(c), Feb. 24, 2016, 130 Stat. 223.)
§ 1322. International traffic and rescue work; United States-Mexico Boundary Treaty of 1970
(a) Vehicles and other instruments of international traffic except communications satellites
(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, 67 Stat. 516; amended Pub. L. 92–549, title I, § 107, Oct. 25, 1972, 86 Stat. 1162; Pub. L. 98–573, title I, §§ 124(c), 127(b), Oct. 30, 1984, 98 Stat. 2959.)
§ 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 Pub. L. 87–794, title II, § 257(i), Oct. 11, 1962, 76 Stat. 883.)