Tariff Act of 1930 Corresponding to Sec- 28, Judiciary and Judicial Procedure, by Act June 25, Tion 571, See Section 1651(C) of This Title; Section 572, See 1948, Ch

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§§ 571 to 573 TITLE 19—CUSTOMS DUTIES Page 54

PART 6—GENERAL PROVISIONS at the rate of 6 per centum a year, from the time when said bonds became due. §§ 571 to 573. Repealed. June 17, 1930, ch. 497, title IV, § 651(a)(1), 46 Stat. 762, eff. June 18, (R.S. § 963.) 1930 CODIFICATION Sections, act Sept. 21, 1922, ch. 356, title III, §§ 320, 321, R.S. § 963 derived from act Mar. 2, 1799, ch. 22, § 65, 1 title IV, § 641, 42 Stat. 947, 989, related to provisions as Stat. 676. to effect of repeals, Treaty with Cuba and certain laws Section was formerly classified to section 787 of Title unaffected. 28 prior to the general revision and enactment of Title Provisions of Tariff Act of 1930 corresponding to sec- 28, Judiciary and Judicial Procedure, by act June 25, tion 571, see section 1651(c) of this title; section 572, see 1948, ch. 646, § 1, 62 Stat. 869. section 1316 of this title; section 573, none. § 574. Exemption from taking other oaths CHAPTER 4—TARIFF ACT OF 1930 Nothing contained in title 34 of the Revised SUBTITLE I—HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES Statutes shall be construed to exempt the masters or owners of vessels from making and sub- Sec. scribing any oaths required by any laws of the 1202. Harmonized Tariff Schedule. United States not immediately relating to the SUBTITLE II—SPECIAL PROVISIONS collection of the duties on the importation of merchandise into the United States. PART I—MISCELLANEOUS 1301 to 1303. Repealed or Omitted. (R.S. § 3094.) 1304. Marking of imported articles and containers. REFERENCES IN TEXT 1305. Immoral articles; importation prohibited. 1306. Repealed. Title 34 of the Revised Statutes, referred to in text, 1307. Convict-made goods; importation prohibited. was in the original ‘‘this Title’’, meaning title 34 of the 1308. Prohibition on importation of dog and cat fur Revised Statutes, consisting of R.S. §§ 2517 to 3129. For products. complete classification of R.S. §§ 2517 to 3129 to the 1309. Supplies for certain vessels and aircraft. Code, see Tables. 1310. Free importation of merchandise recovered CODIFICATION from sunken and abandoned vessels. 1311. Bonded manufacturing warehouses. R.S. § 3094 derived from act Mar. 2, 1799, ch. 22, § 110, 1312. Bonded smelting and refining warehouses. 1 Stat. 703. 1313. Drawback and refunds. §§ 575, 576. Repealed. June 17, 1930, ch. 497, title 1313a. Appropriations for refunds, drawbacks, boun- IV, § 651(a)(1), 46 Stat. 762, eff. June 18, 1930 ties, etc. 1314. Repealed. Sections, act Sept. 21, 1922, ch. 356, title IV, §§ 645, 647, 1315. Effective date of rates of duty. 42 Stat. 990, related to effect of partial invalidity and 1316. Omitted. citation of chapter. 1317. Tobacco products; supplies for certain vessels Provisions of Tariff Act of 1930 corresponding to sec- and aircraft. tion 575, see section 1652 of this title. 1318. Emergencies. 1319. Duty on coffee imported into Puerto Rico. § 577. Repealed. Oct. 31, 1951, ch. 655, § 56(d), 65 1319a. Duty on coffee; ratification of duties imposed Stat. 729 by Legislature of Puerto Rico. 1320. Repealed. Section, act Mar. 8, 1902, ch. 140, § 8, 32 Stat. 55, made, 1321. Administrative exemptions. ‘‘except as otherwise provided by law’’, the provisions 1322. International traffic and rescue work; United of subtitle IV of this chapter applicable to all articles States-Mexico Boundary Treaty of 1970. coming into the United States from the ‘‘Philippine Ar- 1323. Conservation of fishery resources. chipelago’’. Prior to this repeal, it had been omitted in view of the independence of the Philippines. PART II—UNITED STATES INTERNATIONAL TRADE COMMISSION SAVINGS PROVISION Subsec. (l) of section 56 of act Oct. 31, 1951, provided 1330. Organization of Commission. that the repeal of this section shall not affect any 1331. General powers. rights or liabilities existing hereunder on the effective 1332. Investigations. date of such repeal [Oct. 31, 1951.]. 1332a. Importation of red cedar shingles. 1333. Testimony and production of papers. § 578. Repealed. June 17, 1930, ch. 497, title IV, 1334. Cooperation with other agencies. § 651(a)(1), 46 Stat. 762, eff. June 18, 1930 1335. Rules and regulations. 1336. Equalization of costs of production. Section, act May 29, 1928, ch. 852, § 708, 45 Stat. 881, re- 1337. Unfair practices in import trade. lated to definition of motor boat. 1337a. Repealed. 1338. Discrimination by foreign countries. § 579. Repealed. Aug. 2, 1956, ch. 887, § 4(a)(32), 70 1339. Trade Remedy Assistance Office. Stat. 948 1340. Omitted. 1341. Interference with functions of Commission. Section, R.S. § 960, provided that in a suit on bond for the recovery of duties the court should grant judgment PART III—PROMOTION OF FOREIGN TRADE unless defendant made an oath that an error was committed in the liquidation of the duties demanded. See 1351. Foreign trade agreements. section 1514 of this title. 1352. Equalization of costs of production. 1352a. Repealed. § 580. Interest in suits on bonds for recovery of 1353. Indebtedness of foreign countries, effect on. duties 1354. Notice of intention to negotiate agreement; opportunity to be heard; President to seek Upon all bonds, on which suits are brought for information and advice. the recovery of duties, interest shall be allowed, 1355 to 1356j. Repealed or Omitted. Page 55 TITLE 19—CUSTOMS DUTIES

Sec. Sec. 1356k. Importation of coffee under International 1484a. Articles returned from space not to be con- Coffee Agreement, 1983; Presidential powers strued as importation. and duties. 1484b. Deferral of duty on large yachts imported for 1356l. ‘‘Coffee’’ defined. sale at United States boat shows. 1356m to 1359. Repealed. 1485. Declaration. 1360. Investigation before trade negotiations. 1486. Administration of oaths. 1361. Action by President; reports to Congress. 1487. Value in entry; amendment. 1362 to 1365. Repealed. 1488, 1489. Repealed. 1366. General Agreement on Tariff and Trade unaf- 1490. General orders. fected. 1491. Unclaimed merchandise; disposition of for- 1367. Repealed. feited distilled spirits, wines and malt liquor. SUBTITLE III—ADMINISTRATIVE PROVISIONS 1492. Destruction of abandoned or forfeited mer- PART I—DEFINITIONS AND NATIONAL CUSTOMS chandise. AUTOMATION PROGRAM 1493. Proceeds of sale. 1494. Expense of weighing and measuring. SUBPART A—DEFINITIONS 1495. Partnership bond. 1401. Miscellaneous. 1496. Examination of baggage. 1401a. Value. 1496a. Clearance restrictions of individuals return- 1402. Repealed. ing from abroad; special circumstances; ‘‘baggage and effects’’ defined. SUBPART B—NATIONAL CUSTOMS AUTOMATION PROGRAM 1497. Penalties for failure to declare. 1498. Entry under regulations. 1411. National Customs Automation Program. 1499. Examination of merchandise. 1412. Program goals. 1500. Appraisement, classification, and liquidation 1413. Implementation and evaluation of Program. procedure. 1414. Remote location filing. 1501. Voluntary reliquidations by Customs Service. PART II—REPORT, ENTRY, AND UNLADING OF VESSELS 1502. Regulations for appraisement and classifica- AND VEHICLES tion. 1503. Dutiable value. 1431. Manifests. 1503a. Repealed. 1431a. Documentation of waterborne cargo. 1504. Limitation on liquidation. 1432, 1432a. Repealed. 1505. Payment of duties and fees. 1433. Report of arrival of vessels, vehicles, and air- 1506. Allowance for abandonment and damage. craft. 1507. Tare and draft. 1434. Entry; vessels. 1508. Recordkeeping. 1435 to 1435b. Repealed or Transferred. 1509. Examination of books and witnesses. 1436. Penalties for violations of arrival, reporting, 1510. Judicial enforcement. entry, and clearance requirements. 1511. Repealed. 1437. Repealed. 1512. Deposit of duty receipts. 1438. Unlawful return of foreign vessel’s papers. 1513. Customs officer’s immunity. 1439, 1440. Repealed. 1514. Protest against decisions of Customs Service. 1441. Exceptions to vessel entry and clearance re- 1515. Review of protests. quirements. 1516. Petitions by domestic interested parties. 1442. Residue cargo. 1516a. Judicial review in countervailing duty and 1443 to 1445. Repealed. antidumping duty proceedings. 1446. Supplies and stores retained on board. 1517 to 1519. Repealed. 1447. Place of entry and unlading. 1520. Refunds and errors. 1448. Unlading. 1521, 1522. Repealed or Omitted. 1449. Unlading at port of entry. 1523. Examination of accounts. 1450. Unlading on Sundays, holidays, or during 1524. Deposit of reimbursable charges. overtime hours. 1525. Repealed. 1451. Extra compensation. 1526. Merchandise bearing American trade-mark. 1451a. Repealed. 1527. Importation of wild mammals and birds in 1452. Lading on Sundays, holidays, or at night. violation of foreign law. 1453. Lading and unlading of merchandise or bag- 1528. Taxes not to be construed as duties. gage; penalties. 1529. Collection of fees on behalf of other agencies. 1454. Unlading of passengers; penalty. 1455. Boarding and discharging inspectors. PART IV—TRANSPORTATION IN BOND AND WAREHOUSING 1456. Compensation and expenses of inspectors be- OF MERCHANDISE tween ports; reimbursement. 1551. Designation as carrier of bonded merchan- 1457. Time for unlading. dise. 1458. Bulk cargo, time for unlading. 1551a. Bonded cartmen or lightermen. 1459. Reporting requirements for individuals. 1552. Entry for immediate transportation. 1460. Repealed. 1553. Entry for transportation and exportation; lot- 1461. Inspection of merchandise and baggage. tery material from Canada. 1462. Forfeiture. 1553–1. Report on in-bond cargo. 1463. Sealed vessels and vehicles. 1553a. Recordkeeping for merchandise transported 1464. Penalties in connection with sealed vessels by pipeline. and vehicles. 1554. Transportation through contiguous countries. 1465. Repealed. 1555. Bonded warehouses. 1466. Equipment and repairs of vessels. 1556. Bonded warehouses; regulations for establish- 1467. Special inspection, examination, and search. ing. 1557. Entry for warehouse. PART III—ASCERTAINMENT, COLLECTION, AND RECOVERY 1558. No remission or refund after release of mer- OF DUTIES chandise. 1481. Invoice; contents. 1559. Warehouse goods deemed abandoned after 5 1482, 1483. Repealed. years. 1484. Entry of merchandise. 1560. Leasing of warehouses. TITLE 19—CUSTOMS DUTIES Page 56

Sec. Sec. 1561. Public stores. 1642. Omitted. 1562. Manipulation in warehouse. 1643. Application of customs reorganization act. 1563. Allowance for loss, abandonment of ware- 1644. Application of section 1644a(b)(1) of this title house goods. and section 1518(d) of title 33. 1564. Liens. 1644a. Ports of entry. 1565. Cartage. 1645. Transportation and interment of remains of deceased employees in foreign countries; PART V—ENFORCEMENT PROVISIONS travel or shipping expenses incurred on for- 1581. Boarding vessels. eign ships. 1582. Search of persons and baggage; regulations. 1646. Repealed. 1583. Examination of outbound mail. 1646a. Supervision by customs officers. 1584. Falsity or lack of manifest; penalties. 1646b. Random customs inspections for stolen auto- 1585. Repealed. mobiles being exported. 1586. Unlawful unlading or transshipment. 1646c. Export reporting requirement. 1587. Examination of hovering vessels. 1647. Repealed. 1588. Transportation between American ports via 1648. Uncertified checks, United States notes, and foreign ports. national bank notes receivable for customs 1589. Repealed. duties. 1589a. Enforcement authority of customs officers. 1649. Change in designation of customs attache´s. 1590. Aviation smuggling. 1650. Transferred. 1591. Repealed. 1651. Repeals. 1592. Penalties for fraud, gross negligence, and neg- 1652. Separability. ligence. 1653. Effective date of chapter. 1592a. Special provisions regarding certain viola- 1653a. Transferred. tions. 1654. Short title. 1593. Repealed. 1593a. Penalties for false drawback claims. SUBTITLE IV—COUNTERVAILING AND 1594. Seizure of conveyances. ANTIDUMPING DUTIES 1595. Searches and seizures. PART I—IMPOSITION OF COUNTERVAILING DUTIES 1595a. Forfeitures and other penalties. 1596 to 1598. Repealed. 1671. Countervailing duties imposed. 1599. Officers not to be interested in vessels or 1671a. Procedures for initiating a countervailing cargo. duty investigation. 1600. Application of the customs laws to other sei- 1671b. Preliminary determinations. zures by customs officers. 1671c. Termination or suspension of investigation. 1601, 1601a. Repealed. 1671d. Final determinations. 1602. Seizure; report to customs officer. 1671e. Assessment of duty. 1603. Seizure; warrants and reports. 1671f. Treatment of difference between deposit of 1604. Seizure; prosecution. estimated countervailing duty and final as- 1605. Seizure; custody; storage. sessed duty under countervailing duty or- 1606. Seizure; appraisement. ders. 1607. Seizure; value $500,000 or less, prohibited arti- 1671g. Effect of derogation of Export-Import Bank cles, transporting conveyances. financing. 1608. Seizure; claims; judicial condemnation. 1671h. Conditional payment of countervailing du- 1609. Seizure; summary forfeiture and sale. ties. 1610. Seizure; judicial forfeiture proceedings. PART II—IMPOSITION OF ANTIDUMPING DUTIES 1611. Seizure; sale unlawful. 1612. Seizure; summary sale. 1673. Imposition of antidumping duties. 1613. Disposition of proceeds of forfeited property. 1673a. Procedures for initiating an antidumping 1613a. Repealed. duty investigation. 1613b. Customs Forfeiture Fund. 1673b. Preliminary determinations. 1614. Release of seized property. 1673c. Termination or suspension of investigation. 1615. Burden of proof in forfeiture proceedings. 1673d. Final determinations. 1616. Repealed. 1673e. Assessment of duty. 1616a. Disposition of forfeited property. 1673f. Treatment of difference between deposit of 1617. Compromise of Government claims by Sec- estimated antidumping duty and final as- retary of the Treasury. sessed duty under antidumping duty order. 1618. Remission or mitigation of penalties. 1673g. Conditional payment of antidumping duty. 1619. Award of compensation to informers. 1673h. Establishment of product categories for short 1620. Acceptance of money by United States offi- life cycle merchandise. cers. 1673i. Repealed. 1621. Limitation of actions. 1622. Foreign landing certificates. PART III—REVIEWS; OTHER ACTIONS REGARDING 1623. Bonds and other security. AGREEMENTS 1624. General regulations. SUBPART A—REVIEW OF AMOUNT OF DUTY AND AGREE- 1625. Interpretive rulings and decisions; public in- MENTS OTHER THAN QUANTITATIVE RESTRICTION formation. AGREEMENTS 1626. Steel products trade enforcement. 1627. Repealed. 1675. Administrative review of determinations. 1627a. Unlawful importation or exportation of cer- 1675a. Special rules for section 1675(b) and 1675(c) retain vehicles; inspections. views. 1628. Exchange of information. 1675b. Special rules for injury investigations for cer- 1629. Inspections and preclearance in foreign coun- tain section 1303 or section 1671(c) counter- tries. vailing duty orders and investigations. 1630. Authority to settle claims. 1675c. Repealed. 1631. Use of private collection agencies. SUBPART B—CONSULTATIONS AND DETERMINATIONS PART VI—MISCELLANEOUS PROVISIONS REGARDING QUANTITATIVE RESTRICTION AGREEMENTS 1641. Customs brokers. 1676. Required consultations. Page 57 TITLE 19—CUSTOMS DUTIES § 1301

Sec. new title I entitled ‘Title I—Harmonized Tariff Sched- 1676a. Required determinations. ule of the United States’ (hereinafter in this subtitle [subtitle B, §§ 1201 to 1217, of title I, see Tables for clas- PART IV—GENERAL PROVISIONS sification] referred to as the ‘Harmonized Tariff Sched- 1677. Definitions; special rules. ule’) which— 1677–1. Upstream subsidies. ‘‘(1) consists of— 1677–2. Calculation of countervailable subsidies on ‘‘(A) the General Notes; certain processed agricultural products. ‘‘(B) the General Rules of Interpretation; 1677a. Export price and constructed export price. ‘‘(C) the Additional U.S. Rules of Interpretation; 1677b. Normal value. ‘‘(D) sections I to XXII, inclusive (encompassing 1677b–1. Currency conversion. chapters 1 to 99, and including all section and chap- 1677c. Hearings. ter notes, article provisions, and tariff and other 1677d. Countervailable subsidy practices discovered treatment accorded thereto); and during a proceeding. ‘‘(E) the Chemical Appendix to the Harmonized 1677e. Determinations on basis of facts available. Tariff Schedule; all conforming to the nomenclature of the Conven- 1677f. Access to information. tion and as set forth in Publication No. 2030 of the 1677f–1. Sampling and averaging; determination of Commission entitled ‘Harmonized Tariff Schedule of weighted average dumping margin and the United States Annotated for Statistical Report- countervailable subsidy rate. ing Purposes’ and Supplement No. 1 thereto; but 1677g. Interest on certain overpayments and under- ‘‘(2) does not include the statistical annotations, payments. notes, annexes, suffixes, check digits, units of quan- 1677h. Drawback treatment. tity, and other matters formulated under section 1677i. Downstream product monitoring. 484(e) of the Tariff Act of 1930 (19 U.S.C. 1484(e)), nor 1677j. Prevention of circumvention of antidumping the table of contents, footnotes, index, and other and countervailing duty orders. matters inserted for ease of reference, that are in- 1677k. Third-country dumping. cluded in such Publication No. 2030 or Supplement 1677l. Antidumping and countervailing duty collec- No. 1. thereto.’’ tions. [For effective date of Harmonized Tariff Schedule as 1677m. Conduct of investigations and administrative Jan. 1, 1989, see section 1217(b) of Pub. L. 100–418, set reviews. out as an Effective Date note under section 3001 of this 1677n. Antidumping petitions by third countries. title.] SUBTITLE V—REQUIREMENTS APPLICABLE TO TARIFF CLASSIFICATION ACT OF 1962; ADOPTION OF RE- IMPORTS OF CERTAIN CIGARETTES AND VISED TARIFF SCHEDULES; ADMINISTRATIVE AND SAV- SMOKELESS TOBACCO PRODUCTS INGS PROVISIONS 1681. Definitions. Titles I and II of Pub. L. 87–456, May 24, 1962, 76 Stat. 1681a. Requirements for entry of certain cigarettes 72–75, as amended by Pub. L. 87–794, title II, § 257(g), and smokeless tobacco products. Oct. 11, 1962, 76 Stat. 882; Pub. L. 100–418, title I, 1681b. Enforcement. § 1213(b), Aug. 23, 1988, 102 Stat. 1155, provided for adop- SUBTITLE VI—SOFTWOOD LUMBER tion of Revised Tariff Schedules of the United States and administrative and saving provisions. 1683. Definitions. 1683a. Establishment of softwood lumber importer § 1202. Harmonized Tariff Schedule declaration program. 1683b. Scope of softwood lumber importer declara- PUBLICATION OF HARMONIZED TARIFF SCHEDULE tion program. The Harmonized Tariff Schedule of the United States 1683c. Export charge determination and publication. is not published in the Code. A current version of the 1683d. Reconciliation. Harmonized Tariff Schedule is maintained and pub- 1683e. Verification. lished periodically by the United States International 1683f. Penalties. Trade Commission and is available at http:// 1683g. Reports. www.usitc.gov/tata/hts and for sale by the Superintend- ent of Documents, U.S. Government Printing Office, SUBTITLE I—HARMONIZED TARIFF Washington, D.C. 20402. SCHEDULE OF THE UNITED STATES REFERENCE TO TARIFF SCHEDULES TO BE TREATED AS CODIFICATION REFERENCE TO HARMONIZED TARIFF SCHEDULE Titles I and II of act June 17, 1930, ch. 497, 46 Stat. 590, Reference in any law to ‘‘Tariff Schedules of the 672, which comprised the dutiable and free lists for arti- United States’’, ‘‘the Tariff Schedules’’, ‘‘such Sched- cles imported into the United States, were formerly ules’’, and any other general reference to the old Sched- classified to sections 1001 and 1201 of this title, and ules to be treated as reference to Harmonized Tariff were stricken by Pub. L. 87–456, title I, § 101(a), May 24, Schedule, see section 3012 of this title. 1962, 76 Stat. 72. The Revised Tariff Schedules, which were classified to section 1202 of this title, were strick- SUBTITLE II—SPECIAL PROVISIONS en by Pub. L. 100–418, title I, § 1204(a), Aug. 23, 1988, 102 Stat. 1148, and were replaced by the Harmonized Tariff PART I—MISCELLANEOUS Schedule of the United States. See Publication of Har- monized Tariff Schedule note set out under section 1202 § 1301. Repealed. Apr. 30, 1946, ch. 244, title V, of this title. § 511(1), 60 Stat. 158

CHANGE OF NAME Section, act June 17, 1930, ch. 497, title III, § 301, 46 Stat. 685, related to duties and taxes on Philippine arti- United States Tariff Commission renamed United cles coming to the United States and United States ar- States International Trade Commission by Pub. L. ticles imported into the Philippine Islands. Subject 93–618, title I, § 171, Jan. 3, 1975, 88 Stat. 2009, which is matter is covered by Philippine Trade Act of 1946 (see classified to section 2231 of this title. Short Title note set out under section 1354 of Title 22, Foreign Relations and Intercourse). ENACTMENT OF HARMONIZED TARIFF SCHEDULE EFFECTIVE DATE OF REPEAL Pub. L. 100–418, title I, § 1204(a), Aug. 23, 1988, 102 Stat. 1148, provided that: ‘‘The Tariff Act of 1930 [this chap- Repeal effective May 1, 1946, see section 512 of act ter] is amended by striking out title I and inserting a Apr. 30, 1946, set out as an Effective Date note under § 1301a TITLE 19—CUSTOMS DUTIES Page 58 section 1354 of Title 22, Foreign Relations and Inter- ance with law by the administering authority, a course. court of competent jurisdiction, or by operation of law. Nothing in this section shall be deemed to pro- § 1301a. Repealed. Pub. L. 87–456, title III, hibit the discontinuance or modification of any such § 301(a), May 24, 1962, 76 Stat. 75 proceeding under the same terms and conditions and to the same extent that such proceeding could have Section, act June 17, 1930, ch. 497, title III, § 301, as been discontinued or modified if this section had not added Sept. 1, 1954, ch. 1213, title IV, § 401, 68 Stat. 1139, been enacted. related to rates of duty upon articles coming into the ‘‘(3) SUITS NOT AFFECTED.—The provisions of sub- United States from its insular possessions. section (a) shall not affect the review pursuant to section 516A of the Tariff Act of 1930 [19 U.S.C. 1516a] § 1302. Omitted of a countervailing duty order issued pursuant to an investigation conducted under section 303 of such Act CODIFICATION [19 U.S.C. 1303] or a review of a countervailing duty Section, acts June 17, 1930, ch. 497, title III, § 302, 46 order issued under section 751 of such Act [19 U.S.C. Stat. 686; May 17, 1932, ch. 190, 47 Stat. 158, was incor- 1675], if such review is pending or the time for filing porated as section 3361(b) of the Internal Revenue Code such review has not expired on the effective date of of 1939. See section 7653 of Title 26, Internal Revenue this title. Code. ‘‘(c) DEFINITION OF ADMINISTERING AUTHORITY.—For purposes of this section, the term ‘administering au- § 1303. Repealed. Pub. L. 103–465, title II, § 261(a), thority’ has the meaning given such term by section Dec. 8, 1994, 108 Stat. 4908 771(1) of the Tariff Act of 1930 [19 U.S.C. 1677(1)].’’ Section, acts June 17, 1930, ch. 497, title III, § 303, 46 REFERENCES TO FORMER SECTION 1303 Stat. 687; Jan. 3, 1975, Pub. L. 93–618, title III, § 331(a), Section 261(d)(1)(C) of Pub. L. 103–365 provided that: 88 Stat. 2049; Apr. 3, 1979, Pub. L. 96–6, § 1, 93 Stat. 10; ‘‘Any reference to section 303 [19 U.S.C. 1303] in any July 26, 1979, Pub. L. 96–39, title I, §§ 103, 105(a), 93 Stat. other Federal law, Executive order, rule, or regulation 190, 193, provided for the levy of countervailing duties. shall be treated as a reference to section 303 of the Tar- iff Act of 1930 as in effect on the day before the effec- FFECTIVE DATE OF REPEAL E tive date of title II of this Act [Jan. 1, 1995, see Effec- Section 261(a) of title II of Pub. L. 103–465 provided tive Date of 1994 Amendment note set out under section that this section is repealed ‘‘effective on the effective 1671 of this title].’’ date of this title [Jan. 1, 1995, see Effective Date of 1994 References to section 1303 in chapter 4 of this title de- Amendment note set out under section 1671 of this fined to mean section 1303 as in effect on the day before title]’’. Jan. 1, 1995, see section 1677(26) of this title.

SAVINGS PROVISION § 1304. Marking of imported articles and contain- Section 261(b), (c) of title II of Pub. L. 103–465 pro- ers vided that: (a) Marking of articles ‘‘(b) SAVINGS PROVISIONS.— ‘‘(1) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All Except as hereinafter provided, every article orders, determinations, and other administrative ac- of foreign origin (or its container, as provided in tions— subsection (b) hereof) imported into the United ‘‘(A) which have been issued pursuant to an inves- States shall be marked in a conspicuous place as tigation conducted under section 303 of the Tariff legibly, indelibly, and permanently as the na- Act of 1930 [19 U.S.C. 1303], and ture of the article (or container) will permit in ‘‘(B) which are in effect on the effective date of such manner as to indicate to an ultimate pur- this title [Jan. 1, 1995, see Effective Date of 1994 Amendment note set out under section 1671 of this chaser in the United States the English name of title], or were final before such date and are to be- the country of origin of the article. The Sec- come effective on or after such date, retary of the Treasury may by regulations— shall continue in effect according to their terms until (1) Determine the character of words and modified, terminated, superseded, set aside, or re- phrases or abbreviations thereof which shall voked in accordance with law by the administering be acceptable as indicating the country of ori- authority, the International Trade Commission, or a gin and prescribe any reasonable method of court of competent jurisdiction, or by operation of marking, whether by printing, stenciling, law. Except as provided in paragraph (3), such orders or determinations shall be subject to review under stamping, branding, labeling, or by any other section 751 of the Tariff Act of 1930 [19 U.S.C. 1675] reasonable method, and a conspicuous place on and, to the extent applicable, investigation under sec- the article (or container) where the marking tion 753 of such Act [19 U.S.C. 1675b] (as added by this shall appear; title). (2) Require the addition of any other words ‘‘(2) PROCEEDINGS NOT AFFECTED.—The provisions of or symbols which may be appropriate to pre- subsection (a) shall not affect any proceedings, in- vent deception or mistake as to the origin of cluding notices of proposed rulemaking, pending be- the article or as to the origin of any other ar- fore the administering authority or the International Trade Commission on the effective date of this title ticle with which such imported article is usu- with respect to such section 303 [19 U.S.C. 1303]. Or- ally combined subsequent to importation but ders shall be issued in such proceedings, appeals shall before delivery to an ultimate purchaser; and be taken therefrom, and payments shall be made pur- (3) Authorize the exception of any article suant to such orders, in accordance with such section from the requirements of marking if— 303 as in effect on the day before the effective date of (A) Such article is incapable of being this title and, except as provided in paragraph (3), marked; shall be subject to review under section 751 of the (B) Such article cannot be marked prior to Tariff Act of 1930 [19 U.S.C. 1675] and, to the extent applicable, investigation under section 753 of such shipment to the United States without in- Act [19 U.S.C. 1675b]. Orders issued in any such pro- jury; ceedings shall continue in effect until modified, ter- (C) Such article cannot be marked prior to minated, superseded, set aside, or revoked in accord- shipment to the United States, except at an Page 59 TITLE 19—CUSTOMS DUTIES § 1304

expense economically prohibitive of its im- section. Usual containers in use as such at the portation; time of importation shall in no case be required (D) The marking of a container of such ar- to be marked to show the country of their own ticle will reasonably indicate the origin of origin. such article; (c) Marking of certain pipe and fittings (E) Such article is a crude substance; (1) Except as provided in paragraph (2), no ex- (F) Such article is imported for use by the ception may be made under subsection (a)(3) of importer and not intended for sale in its im- this section with respect to pipes of iron, steel, ported or any other form; or stainless steel, to pipe fittings of steel, stain- (G) Such article is to be processed in the less steel, chrome-moly steel, or cast and malle- United States by the importer or for his ac- able iron each of which shall be marked with the count otherwise than for the purpose of con- English name of the country of origin by means cealing the origin of such article and in such of die stamping, cast-in-mold lettering, etching, manner that any mark contemplated by this engraving, or continuous paint stenciling. section would necessarily be obliterated, de- (2) If, because of the nature of an article, it is stroyed, or permanently concealed; technically or commercially infeasible to mark (H) An ultimate purchaser, by reason of it by one of the five methods specified in para- the character of such article or by reason of graph (1), the article may be marked by an the circumstances of its importation, must equally permanent method of marking or, in the necessarily know the country of origin of case of small diameter pipe, tube, and fittings, such article even though it is not marked to by tagging the containers or bundles. indicate its origin; (d) Marking of compressed gas cylinders (I) Such article was produced more than No exception may be made under subsection twenty years prior to its importation into (a)(3) of this section with respect to compressed the United States; gas cylinders designed to be used for the trans- (J) Such article is of a class or kind with port and storage of compressed gases whether or respect to which the Secretary of the Treas- not certified prior to exportation to have been ury has given notice by publication in the made in accordance with the safety require- weekly Treasury Decisions within two years ments of sections 178.36 through 178.68 of title 49, after July 1, 1937, that articles of such class Code of Federal Regulations, each of which shall or kind were imported in substantial quan- be marked with the English name of the country tities during the five-year period imme- of origin by means of die stamping, molding, diately preceding January 1, 1937, and were etching, raised lettering, or an equally perma- not required during such period to be nent method of marking. marked to indicate their origin: Provided, (e) Marking of certain manhole rings or frames, That this subdivision shall not apply after covers, and assemblies thereof September 1, 1938, to sawed lumber and tim- bers, telephone, trolley, electric-light, and No exception may be made under subsection telegraph poles of wood, and bundles of shin- (a)(3) of this section with respect to manhole gles; but the President is authorized to sus- rings or frames, covers, and assemblies thereof pend the effectiveness of this proviso if he each of which shall be marked on the top surface finds such action required to carry out any with the English name of the country of origin trade agreement entered into under the au- by means of die stamping, cast-in-mold letter- thority of sections 1351, 1352, 1353, 1354 of this ing, etching, engraving, or an equally perma- title, as extended; or nent method of marking. (K) Such article cannot be marked after (f) Marking of certain coffee and tea products importation except at any expense which is The marking requirements of subsections (a) economically prohibitive, and the failure to and (b) of this section shall not apply to articles mark the article before importation was not described in subheadings 0901.21, 0901.22, 0902.10, due to any purpose of the importer, pro- 0902.20, 0902.30, 0902.40, 2101.10, and 2101.20 of the ducer, seller, or shipper to avoid compliance Harmonized Tariff Schedule of the United with this section. States, as in effect on January 1, 1995. (b) Marking of containers (g) Marking of spices Whenever an article is excepted under subdivi- The marking requirements of subsections (a) sion (3) of subsection (a) of this section from the and (b) of this section shall not apply to articles requirements of marking, the immediate con- provided for under subheadings 0904.11, 0904.12, tainer, if any, of such article, or such other con- 0904.20, 0905.00, 0906.10, 0906.20, 0907.00, 0908.10, tainer or containers of such article as may be 0908.20, 0908.30, 0909.10, 0909.20, 0909.30, 0909.40, prescribed by the Secretary of the Treasury, 0909.50, 0910.10, 0910.20, 0910.30, 0910.40, 0910.50, shall be marked in such manner as to indicate 0910.91, 0910.99, 1106.20, 1207.40, 1207.50, 1207.91, to an ultimate purchaser in the United States 1404.90, and 3302.10, and items classifiable in cat- the English name of the country of origin of egories 0712.90.60, 0712.90.8080, 1209.91.2000, such article, subject to all provisions of this sec- 1211.90.2000, 1211.90.8040, 1211.90.8050, 1211.90.8090, tion, including the same exceptions as are appli- 2006.00.3000, 2918.13.2000, 3203.00.8000, 3301.90.1010, cable to articles under subdivision (3) of sub- 3301.90.1020, and 3301.90.1050 of the Harmonized section (a) of this section. If articles are ex- Tariff Schedule of the United States, as in effect cepted from marking requirements under clause on January 1, 1995. (F), (G), or (H) of subdivision (3) of subsection (a) (h) Marking of certain silk products of this section, their usual containers shall not The marking requirements of subsections (a) be subject to the marking requirements of this and (b) of this section shall not apply either to— § 1304 TITLE 19—CUSTOMS DUTIES Page 60

(1) articles provided for in subheading Harmonized Tariff Schedule of the United 6214.10.10 of the Harmonized Tariff Schedule of States; and the United States, as in effect on January 1, (C) subsection (b) of this section does not 1997; or apply to the usual container of any good de- (2) articles provided for in heading 5007 of scribed in subsection (a)(3)(E) or (I) of this the Harmonized Tariff Schedule of the United section or subparagraph (B)(i) or (ii) of this States as in effect on January 1, 1997. paragraph. (i) Additional duties for failure to mark (2) Petition rights of NAFTA exporters and If at the time of importation any article (or producers regarding marking determina- its container, as provided in subsection (b) of tions this section) is not marked in accordance with the requirements of this section, and if such ar- (A) Definitions ticle is not exported or destroyed or the article For purposes of this paragraph: (or its container, as provided in subsection (b) of (i) The term ‘‘adverse marking decision’’ this section) marked after importation in ac- means a determination by the Customs cordance with the requirements of this section Service which an exporter or producer of (such exportation, destruction, or marking to be merchandise believes to be contrary to accomplished under customs supervision prior Annex 311 of the North American Free to the liquidation of the entry covering the arti- Trade Agreement. cle, and to be allowed whether or not the article (ii) A person may not be treated as the has remained in continuous customs custody), exporter or producer of merchandise re- there shall be levied, collected, and paid upon garding which an adverse marking deci- such article a duty of 10 per centum ad valorem, sion was made unless such person— which shall be deemed to have accrued at the (I) if claiming to be the exporter, is lo- time of importation, shall not be construed to cated in a NAFTA country and is re- be penal, and shall not be remitted wholly or in quired to maintain records in that coun- part nor shall payment thereof be avoidable for try regarding exportations to NAFTA any cause. Such duty shall be levied, collected, countries; or and paid in addition to any other duty imposed (II) if claiming to be the producer, by law and whether or not the article is exempt grows, mines, harvests, fishes, traps, from the payment of ordinary customs duties. hunts, manufactures, processes, or as- The compensation and expenses of customs offi- sembles such merchandise in a NAFTA cers and employees assigned to supervise the ex- country. portation, destruction, or marking to exempt (B) Intervention or petition regarding ad- articles from the application of the duty pro- verse marking decisions vided for in this subsection shall be reimbursed If the Customs Service makes an adverse to the Government by the importer. marking decision regarding any merchan- (j) Delivery withheld until marked dise, the Customs Service shall, upon writ- No imported article held in customs custody ten request by the exporter or producer of for inspection, examination, or appraisement the merchandise, provide to the exporter or shall be delivered until such article and every producer a statement of the basis for the de- other article of the importation (or their con- cision. If the exporter or producer believes tainers), whether or not released from customs that the decision is not correct, it may in- custody, shall have been marked in accordance tervene in any protest proceeding initiated with the requirements of this section or until by the importer of the merchandise. If the the amount of duty estimated to be payable importer does not file a protest with regard under subsection (i) of this section has been de- to the decision, the exporter or producer posited. Nothing in this section shall be con- may file a petition with the Customs Service strued as excepting any article (or its container) setting forth— from the particular requirements of marking (i) a description of the merchandise; and provided for in any other provision of law. (ii) the basis for its claim that the mer- (k) Treatment of goods of NAFTA country chandise should be marked as a good of a (1) Application of section NAFTA country. In applying this section to an article that (C) Effect of determination regarding deci- qualifies as a good of a NAFTA country (as de- sion fined in section 3301(4) of this title) under the If, after receipt and consideration of a pe- regulations issued by the Secretary to imple- tition filed by an exporter or producer under ment Annex 311 of the North American Free subparagraph (B), the Customs Service de- Trade Agreement— termines that the adverse marking deci- (A) the exemption under subsection sion— (a)(3)(H) of this section shall be applied by (i) is not correct, the Customs Service substituting ‘‘reasonably know’’ for ‘‘nec- shall notify the petitioner of the deter- essarily know’’; mination and all merchandise entered, or (B) the Secretary shall exempt the good withdrawn from warehouse for consump- from the requirements for marking under tion, more than 30 days after the date that subsection (a) of this section if the good— notice of the determination under this (i) is an original work of art, or clause is published in the weekly Custom (ii) is provided for under subheading Bulletin shall be marked in conformity 6904.10, heading 8541, or heading 8542 of the with the determination; or Page 61 TITLE 19—CUSTOMS DUTIES § 1304

(ii) is correct, the Customs Service shall Subsecs. (j), (k). Pub. L. 104–295, § 14(a)(1), redesig- notify the petitioner that the petition is nated subsecs. (h) and (i) as (j) and (k), respectively. denied. 1993—Subsec. (c)(1). Pub. L. 103–182, § 207(a)(1), substituted ‘‘engraving, or continuous paint stenciling’’ (D) Judicial review for ‘‘or engraving’’. For purposes of judicial review, the denial Subsec. (c)(2). Pub. L. 103–182, § 207(a)(2), substituted of a petition under subparagraph (C)(ii) shall ‘‘five methods’’ for ‘‘four methods’’ and struck out be treated as if it were a denial of a petition ‘‘such as paint stenciling’’ after ‘‘method of marking’’. Subsec. (e). Pub. L. 103–182, § 207(a)(3), substituted of an interested party under section 1516 of ‘‘engraving, or an equally permanent method of mark- this title regarding an issue arising under ing’’ for ‘‘or engraving’’. any of the preceding provisions of this sec- Subsecs. (h), (i). Pub. L. 103–182, § 207(a)(4), (5), added tion. subsec. (h) and redesignated former subsec. (h) as (i). (l) Penalties 1988—Subsec. (h). Pub. L. 100–418 amended subsec. (h) generally. Prior to amendment, subsec. (h) read as fol- Any person who, with intent to conceal the in- lows: ‘‘If any person shall, with intent to conceal the formation given thereby or contained therein, information given thereby or contained therein, deface, defaces, destroys, removes, alters, covers, ob- destroy, remove, alter, cover, obscure, or obliterate any scures, or obliterates any mark required under mark required under the provisions of this chapter, he the provisions of this chapter shall— shall, upon conviction, be fined not more than $5,000 or (1) upon conviction for the first violation of imprisoned not more than one year, or both.’’ this subsection, be fined not more than 1986—Subsec. (c). Pub. L. 99–514 substituted ‘‘(1) Ex- cept as provided in paragraph (2), no’’ for ‘‘No’’ and $100,000, or imprisoned for not more than 1 added par. (2). year, or both; and 1984—Subsecs. (c) to (h). Pub. L. 98–573 added subsecs. (2) upon conviction for the second or any (c) to (e), redesignated former subsecs. (c) to (e) as (f) subsequent violation of this subsection, be to (h), respectively, and in subsec. (g), as redesignated, fined not more than $250,000, or imprisoned for substituted ‘‘subsection (f) of this section’’ for ‘‘sub- not more than 1 year, or both. section (c) of this section’’. 1953—Subsec. (a)(3)(K). Act Aug. 8, 1953, added cl. (K). (June 17, 1930, ch. 497, title III, § 304, 46 Stat. 687; 1938—Act June 25, 1938, amended section generally. June 25, 1938, ch. 679, § 3, 52 Stat. 1077; Aug. 8, EFFECTIVE DATE OF 1999 AMENDMENT 1953, ch. 397, § 4(c), 67 Stat. 509; Pub. L. 98–573, title II, § 207, Oct. 30, 1984, 98 Stat. 2976; Pub. L. Pub. L. 106–36, title II, § 2423(c), June 25, 1999, 113 Stat. 99–514, title XVIII, § 1888(1), Oct. 22, 1986, 100 180, provided that: ‘‘The amendments made by this sec- Stat. 2924; Pub. L. 100–418, title I, § 1907(a)(1), tion [amending this section] apply to goods entered, or withdrawn from warehouse for consumption, on or Aug. 23, 1988, 102 Stat. 1314; Pub. L. 103–182, title after the date of the enactment of this Act [June 25, II, § 207(a), Dec. 8, 1993, 107 Stat. 2096; Pub. L. 1999].’’ 104–295, § 14(a), (b), Oct. 11, 1996, 110 Stat. 3521, 3522; Pub. L. 106–36, title II, § 2423(a), (b), June 25, EFFECTIVE DATE OF 1996 AMENDMENT 1999, 113 Stat. 180.) Section 14(c) of Pub. L. 104–295 provided that: ‘‘The amendments made by this section [amending this sec- REFERENCES IN TEXT tion] apply to goods entered, or withdrawn from ware- The Harmonized Tariff Schedule of the United States, house for consumption, on or after the date of the en- referred to in subsecs. (f) to (h) and (k)(1)(B)(ii), is not actment of this Act [Oct. 11, 1996].’’ set out in the Code. See Publication of Harmonized EFFECTIVE DATE OF 1993 AMENDMENT Tariff Schedule note set out under section 1202 of this title. Amendment by Pub. L. 103–182 effective on the date the North American Free Trade Agreement enters into PRIOR PROVISIONS force with respect to the United States [Jan. 1, 1994], Provisions dealing with the subject matter of this see section 213(b) of Pub. L. 103–182, set out as an Effec- section and former section 133 of this title were con- tive Date note under section 3331 of this title. tained in act Oct. 3, 1913, ch. 16, § IV, F, subsecs. 1 and EFFECTIVE DATE OF 1988 AMENDMENT 2, 38 Stat. 194, superseding similar provisions of previous tariff acts. Those subsections were superseded by Section 1907(a)(2) of Pub. L. 100–418 provided that: act Sept. 21, 1922, ch. 356, title III, § 304(a), 42 Stat. 947, ‘‘(A) The amendment made by paragraph (1) [amend- and repealed by § 321 of that act. Section 304(a) of the ing this section] applies with respect to acts committed act of 1922 was superseded by section 304 of act June 17, on or after the date of the enactment of this Act [Aug. 1930, comprising this section, and repealed by section 23, 1988]. 651(a)(1) of the 1930 act. ‘‘(B) The conviction of a person under section 304(h) of the Tariff Act of 1930 [19 U.S.C. 1304(h)] for an act AMENDMENTS committed before the date of the enactment of this Act 1999—Subsecs. (h), (i). Pub. L. 106–36, § 2423(a), added shall be disregarded for purposes of applying paragraph subsec. (h) and redesignated former subsec. (h) as (i). (2) of such subsection (as added by the amendment Former subsec. (i) redesignated (j). made by paragraph (1) of this subsection[)].’’ Subsec. (j). Pub. L. 106–36, § 2423(a)(1), (b), redesig- EFFECTIVE DATE OF 1984 AMENDMENT nated subsec. (i) as (j) and substituted ‘‘subsection (i)’’ for ‘‘subsection (h)’’. Former subsec. (j) redesignated Section 214 of title II of Pub. L. 98–573 provided that: (k). ‘‘(a) For purposes of this section, the term ‘15th day’ Subsecs. (k), (l). Pub. L. 106–36, § 2423(a)(1), redesig- means the 15th day after the date of the enactment of nated subsecs. (j) and (k) as (k) and (l), respectively. this Act [Oct. 30, 1984]. 1996—Subsecs. (f) to (h). Pub. L. 104–295, § 14(a), added ‘‘(b) Except as provided in subsections (c), (d), and (e), subsecs. (f) and (g) and redesignated former subsec. (f) the amendments made by this title [enacting sections as (h). Former subsecs. (g) and (h) redesignated (i) and 58b, 1339, and 1627a of this title, amending sections 81c, (j), respectively. 81o, 1313, 1330, 1431, 1498, 1555, 2192, 2251, 2253, and 2703 of Subsec. (i). Pub. L. 104–295, § 14(a)(1), (b), redesignated this title, section 925 of Title 18, Crimes and Criminal subsec. (g) as (i) and substituted ‘‘subsection (h) of this Procedure, and section 162 of Title 26, Internal Revenue section’’ for ‘‘subsection (f) of this section’’. Code, and enacting provisions set out as notes under § 1304 TITLE 19—CUSTOMS DUTIES Page 62 sections 2, 81c, 81o, and 1339 of this title, and section 162 sections 1602, 1605, 1606, 1607, 1608, 1609, 1610, 1611, 1612, of Title 26] shall take effect on the 15th day. 1613, 1614, 1615, 1618, and 1619 of this title and repealing ‘‘(c)(1) The amendment made by section 204 [amend- section 7607 of Title 26, Internal Revenue Code] shall ing section 1441 of this title] shall apply with respect to take effect October 15, 1984.’’ vessels returning from the British Virgin Islands on or after the 15th day. EFFECTIVE DATE OF 1953 AMENDMENTS, ENACTMENTS, ‘‘(2) The amendments made by section 207 [amending AND REPEALS this section] shall apply with respect to articles en- Section 1 of act Aug. 8, 1953, provided that such act tered, or withdrawn from warehouse for consumption, [see Short Title of 1953 Amendment note set out under on or after the 15th day; except for such of those arti- section 1654 of this title] is effective, except as other- cles that, on or before the 15th day, had been taken on wise specifically provided for, on and after the thirtieth board for transit to the customs territory of the United day following the date of its enactment [Aug. 8, 1953]. States. The exception ‘‘except as otherwise specifically pro- ‘‘(3)(A) The amendment made by section 208 [amend- vided for’’ apparently refers to the amendments made ing section 1466 of this title] shall apply with respect to to the provisions preceding subd. (1) of section 1308 of entries made in connection with arrivals of vessels on this title, and to section 1557(b) of this title, for which or after the 15th day. separate effective dates were provided as explained in ‘‘(B) Upon request therefor filed with the customs of- notes under such sections. ficer concerned on or before the 90th day after the date of the enactment of this Act [Oct. 30, 1984], any entry EFFECTIVE DATE OF 1938 AMENDMENT in connection with the arrival of a vessel used pri- Amendment by act June 25, 1938, effective on thirti- marily for transporting passengers or property— eth day following June 25, 1938, except as otherwise spe- ‘‘(i) made before the 15th day but not liquidated as cifically provided, see section 37 of act June 25, 1938, set of January 1, 1983, or out as a note under section 1401 of this title. ‘‘(ii) made before the 15th day but which is the subject of an action in a court of competent jurisdiction SAVINGS PROVISION on September 19, 1983, and Section 23 of act Aug. 8, 1953, provided: ‘‘Except as ‘‘(iii) with respect to which there would have been may be otherwise provided for in this Act [see Short no duty if the amendment made by section 208 ap- Title of 1953 Amendment note set out under section 1654 plied to such entry, of this title], the repeal of existing law or modifica- shall, notwithstanding the provisions of section 514 of tions thereof embraced in this Act shall not affect any the Tariff Act of 1930 (19 U.S.C. 1514) or any other provi- act done, or any right accruing or accrued, or any suit sion of law, be liquidated or reliquidated as though or proceeding had or commenced in any civil or crimi- such entry had been made on the 15th day. nal case prior to such repeal or modification, but all li- ‘‘(4) The amendments made by section 209 [enacting abilities under such laws shall continue, except as section 1484a of this title and amending section 1202 of otherwise specifically provided in this Act, and may be this title] shall apply with respect to articles launched enforced in the same manner as if such repeal or modi- into space from the customs territory of the United fication had not been made.’’ States on or after January 1, 1985. ‘‘(5)(A) The amendment made by section 210(a) TRANSFER OF FUNCTIONS [amending section 1505 of this title] shall take effect on the 30th day after the date of the enactment of this Act For transfer of functions, personnel, assets, and li- [Oct. 30, 1984]. abilities of the United States Customs Service of the ‘‘(B) The amendment made by section 210(b) [amend- Department of the Treasury, including functions of the ing section 1520 of this title] shall apply with respect to Secretary of the Treasury relating thereto, to the Sec- determinations made or ordered on or after the date of retary of Homeland Security, and for treatment of re- the enactment of this Act [Oct. 30, 1984]. lated references, see sections 203(1), 551(d), 552(d), and ‘‘(d)(1) The amendments made by section 212 [amend- 557 of Title 6, Domestic Security, and the Department ing sections 1520, 1564, and 1641 of this title and sections of Homeland Security Reorganization Plan of Novem- 1581, 1582, 2631, 2636, 2640, and 2643 of Title 28, Judiciary ber 25, 2002, as modified, set out as a note under section and Judicial Procedure] shall take effect upon the close 542 of Title 6. of the 180th day following the date of the enactment of Functions of all other officers of Department of the this Act [Oct. 30, 1984] with the following exceptions: Treasury and functions of all agencies and employees of ‘‘(A) Section 641(c)(1)(B) and section 641(c)(2) of the such Department transferred, with certain exceptions, Tariff Act of 1930, as added by such section [19 U.S.C. to Secretary of the Treasury, with power vested in him 1641(c)(1)(B), (2)], shall take effect three years after to authorize their performance or performance of any the date of the enactment of this Act [Oct. 30, 1984]. of his functions, by any of such officers, agencies, and ‘‘(B) The amendments made to the Tariff Act of 1930 employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July by subsection (c) of section 212 [no subsec. (c) of sec- 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the tion 212 was enacted] shall take effect on such date of Appendix to Title 5, Government Organization and Em- enactment [Oct. 30, 1984]. ployees. Customs officers and employees, referred to in ‘‘(2) A license in effect on the date of enactment of text, were under Department of the Treasury. this Act [Oct. 30, 1984] under section 641 of the Tariff MARKING REQUIREMENTS FOR ARTICLES QUALIFYING AS Act of 1930 (as in effect before such date of enactment) GOODS OF NAFTA COUNTRY shall continue in force as a license to transact customs business as a customs broker, subject to all the provi- Section 207(b) of Pub. L. 103–182 provided that: ‘‘Arti- sions of section 212 and such licenses shall be accepted cles that qualify as goods of a NAFTA country under as permits for the district or districts covered by that regulations issued by the Secretary in accordance with license. Annex 311 of the Agreement [North American Free ‘‘(3) Any proceeding for revocation or suspension of a Trade Agreement] are exempt from the marking re- license instituted under section 641 of the Tariff Act of quirements promulgated by the Secretary of the Treas- 1930 before the date of the enactment of this Act [Oct. ury under section 1907(c) of the Omnibus Trade and 30, 1984] shall continue and be governed by the law in Competitiveness Act of 1988 (Public Law 100–418 [102 effect at the time the proceeding was instituted. Stat. 1315]), but are subject to the requirements of sec- ‘‘(4) If any provision of section 212 or its application tion 304 of the Tariff Act of 1930 (19 U.S.C. 1304).’’ to any person or circumstances is held invalid, it shall PLAN AMENDMENTS NOT REQUIRED UNTIL not affect the validity of the remaining provisions or JANUARY 1, 1989 their application to any other person or circumstances. ‘‘(e) The amendments made by section 213 [enacting For provisions directing that if any amendments sections 1589a, 1613b, and 1616a of this title, amending made by subtitle A or subtitle C of title XI [§§ 1101–1147 Page 63 TITLE 19—CUSTOMS DUTIES § 1305 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. (1) the office at which such seizure took 99–514 require an amendment to any plan, such plan place; or amendment shall not be required to be made before the (2) the place to which such book or matter is first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a addressed; note under section 401 of Title 26, Internal Revenue and the United States attorney shall institute Code. proceedings in the district court for the forfeit- § 1305. Immoral articles; importation prohibited ure, confiscation, and destruction of the book or matter seized. Upon the adjudication that such (a) Prohibition of importation book or matter thus seized is of the character All persons are prohibited from importing into the entry of which is by this section prohibited, the United States from any foreign country any it shall be ordered destroyed and shall be de- book, pamphlet, paper, writing, advertisement, stroyed. Upon adjudication that such book or circular, print, picture, or drawing containing matter thus seized is not of the character the any matter advocating or urging treason or in- entry of which is by this section prohibited, it surrection against the United States, or forcible shall not be excluded from entry under the pro- resistance to any law of the United States, or visions of this section. containing any threat to take the life of or in- In any such proceeding any party in interest flict bodily harm upon any person in the United may upon demand have the facts at issue deter- States, or any obscene book, pamphlet, paper, mined by a jury and any party may have an ap- writing, advertisement, circular, print, picture, peal or the right of review as in the case of ordi- drawing, or other representation, figure, or nary actions or suits. image on or of paper or other material, or any cast, instrument, or other article which is ob- (c) 1 Institution of forfeiture proceedings scene or immoral, or any drug or medicine or Notwithstanding the provisions of subsections any article whatever for causing unlawful abor- (a) and (b) of this section, whenever a customs tion, or any lottery ticket, or any printed paper officer discovers any obscene material after such that may be used as a lottery ticket, or any ad- material has been imported or brought into the vertisement of any lottery. No such articles United States, or attempted to be imported or whether imported separately or contained in brought into the United States, he may refer the packages with other goods entitled to entry, matter to the United States attorney for the in- shall be admitted to entry; and all such articles stitution of forfeiture proceedings under this and, unless it appears to the satisfaction of the section. Such proceedings shall begin no more appropriate customs officer that the obscene or than 30 days after the time the material is other prohibited articles contained in the pack- seized; except that no seizure or forfeiture shall age were inclosed therein without the knowl- be invalidated for delay if the claimant is re- edge or consent of the importer, owner, agent, or sponsible for extending the action beyond the al- consignee, the entire contents of the package in lowable time limits or if proceedings are post- which such articles are contained, shall be sub- poned pending the consideration of constitu- ject to seizure and forfeiture as hereinafter pro- tional issues. vided: Provided, That the drugs hereinbefore mentioned, when imported in bulk and not put (d) Stay of forfeiture proceedings up for any of the purposes hereinbefore speci- Upon motion of the United States, a court fied, are excepted from the operation of this sub- shall stay such civil forfeiture proceedings com- division: Provided further, That the Secretary of menced under this section pending the comple- the Treasury may, in his discretion, admit the tion of any related criminal matter. so-called classics or books of recognized and es- (b) 1 Coordination of forfeiture proceedings with tablished literary or scientific merit, but may, criminal proceedings in his discretion, admit such classics or books only when imported for noncommercial pur- (1) Notwithstanding subsection (a) of this sec- poses: Provided further, That effective January 1, tion, whenever the Customs Service is of the 1993, this section shall not apply to any lottery opinion that criminal prosecution would be ap- ticket, printed paper that may be used as a lot- propriate or that further criminal investigation tery ticket, or advertisement of any lottery, is warranted in connection with allegedly ob- that is printed in Canada for use in connection scene material seized at the time of entry, the with a lottery conducted in the United States. appropriate customs officer shall immediately (b) 1 Enforcement procedures transmit information concerning such seizure to the United States Attorney 2 of the district of Upon the appearance of any such book or mat- the addressee’s residence. No notice to the ad- ter at any customs office, the same shall be dressee or consignee concerning the seizure is seized and held by the appropriate customs offi- required at the time of such transmittal. cer to await the judgment of the district court (2) Upon receipt of such information, such as hereinafter provided; and no protest shall be United States attorney shall promptly deter- taken to the United States Court of Inter- national Trade from the decision of such cus- mine whether in such attorney’s opinion the re- toms officer. Upon the seizure of such book or ferral of the matter for forfeiture under this sec- matter, such customs officer shall transmit in- tion would materially affect the Government’s formation thereof to the United States attorney ability to conduct a criminal investigation with of the district in which is situated either— respect to such seizure. (3) If the United States attorney is of the opinion that no prejudice to such investigation will 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. 2 So in original. Probably should not be capitalized. § 1305 TITLE 19—CUSTOMS DUTIES Page 64 result from such referral, such attorney shall copy of the notification described in subpara- immediately so notify the Customs Service in graph (A) or (B) of this paragraph shall be af- writing. The appropriate customs officer shall fixed to the complaint for forfeiture. immediately notify in writing the addressee or (c) 3 Stay on motion consignee of the seizure and shall transmit in- Upon motion of the United States, a court, for formation concerning such seizure to the United good cause shown, shall stay civil forfeiture pro- States Attorney 2 of the district in which is situ- ceedings commenced under this section pending ated the office at which such seizure has taken the completion of any related criminal matter place. The actions described in paragraphs (1) whether in the same or in a different district. through (3) of this subsection shall take place within sufficient time to allow for the filing of (June 17, 1930, ch. 497, title III, § 305, 46 Stat. 688; a forfeiture complaint within 14 days of the sei- June 25, 1948, ch. 645, § 21, 62 Stat. 862; June 25, zure unless the United States Attorney 2 of the 1948, ch. 646, § 1, 62 Stat. 869; Pub. L. 91–271, title district of the addressee’s residence certifies in III, § 301(a), June 2, 1970, 84 Stat. 287; Pub. L. writing and includes specific, articulable facts 91–662, § 1, Jan. 8, 1971, 84 Stat. 1973; Pub. L. demonstrating that the determination required 96–417, title VI, § 601(2), Oct. 10, 1980, 94 Stat. 1744; in paragraph (2) of this subsection could not be Pub. L. 100–418, title I, § 1901(a), Aug. 23, 1988, 102 made in sufficient time to comply with this Stat. 1312; Pub. L. 100–449, title II, § 206, Sept. 28, deadline. In such cases, the actions described in 1988, 102 Stat. 1864; Pub. L. 100–690, title VII, paragraphs (1) through (3) of this subsection § 7522(e)[d], Nov. 18, 1988, 102 Stat. 4500.) shall take place within sufficient time to allow PRIOR PROVISIONS for the filing of a forfeiture complaint within 21 Provisions in substantially the same language as days of seizure. those in this section were made by act Oct. 3, 1913, ch. (4) If the United States attorney for the dis- 16, § IV, subsections 1, 2, and 3, 38 Stat. 194, superseding trict of the addressee’s residence concludes that similar provisions of previous tariff acts. Those sub- material prejudice to such investigation will re- sections were superseded by act Sept. 21, 1922, ch. 356, sult from such referral, such United States at- title III, § 305, 42 Stat. 937, and repealed by section 321 torney shall place on file, within 14 days of the of that act. Section 305 of act Sept. 21, 1922, was super- date of seizure, a dated certification stating seded by section 305 of act June 17, 1930, comprising this that it is the United States attorney’s judgment section, and repealed by section 651(a)(1) of the 1930 act. that referral of the matter for forfeiture under AMENDMENTS this section would materially affect the Govern- 1988—Subsec. (a). Pub. L. 100–449 inserted proviso at ment’s ability to conduct a criminal investiga- end of first par. directing that, ‘‘effective January 1, tion with respect to the seizure. The certifi- 1993, this section shall not apply to any lottery ticket, cation shall set forth specific, articulable facts printed paper that may be used as a lottery ticket, or demonstrating that withholding referral for for- advertisement of any lottery, that is printed in Canada feiture is necessary. for use in connection with a lottery conducted in the (5)(A) As soon as the circumstances change so United States’’. Pub. L. 100–418, § 1901(a)(1), designated second par. of that withholding of referral for forfeiture is no subsec. (a) as subsec. (b) ‘‘Enforcement procedures’’. longer necessary for purposes of the criminal in- Subsec. (b). Pub. L. 100–690, § 7522(e), added subsec. (b) vestigation, the United States attorney shall relating to coordination of forfeiture proceedings with immediately so notify the Customs Service in criminal proceedings. writing and shall furnish a copy of the certifi- Pub. L. 100–418, § 1901(a)(1), (2), designated second par. cation described in paragraph (4) above to the of subsec. (a) as subsec. (b) ‘‘Enforcement procedures’’ Customs Service. and amended second sentence generally. Prior to (B) In any matter referred to a United States amendment, second sentence read as follows: ‘‘Upon the seizure of such book or matter such customs officer attorney for possible criminal prosecution shall transmit information thereof to the United States wherein subparagraph (5)(A) does not apply, the attorney of the district in which is situated the office United States attorney shall immediately notify at which such seizure has taken place, who shall insti- the Customs Service in writing concerning the tute proceedings in the district court for the forfeiture, disposition of the matter, whether by institu- confiscation, and destruction of the book or matter tion of a prosecution or a letter of declination, seized.’’ and shall also furnish a copy of the certification Subsec. (c). Pub. L. 100–690, § 7522(e), added subsec. (c) relating to stay on motion. described in paragraph (4) of this subsection to Pub. L. 100–418, § 1901(a)(3), added subsec. (c) relating the Customs Service. to institution of forfeiture proceedings. (C) Upon receipt of the notification described Subsec. (d). Pub. L. 100–418 added subsec. (d) relating in subparagraph (A) or (B) of this paragraph, the to stay of forfeiture proceedings. appropriate customs officer shall immediately 1980—Subsec. (a). Pub. L. 96–417, in second undesig- notify the addressee or consignee of the seizure nated par., redesignated the United States Customs Court as the United States Court of International and shall transmit information concerning the Trade. seizure, including a copy of the certification de- 1971—Subsec. (a). Pub. L. 91–662 struck out ‘‘for the scribed in paragraph (4) above and a copy of the prevention of conception or’’ before ‘‘for causing unlaw- notification described in subparagraph (A) or (B) ful abortion’’. of this paragraph, to the United States attorney 1970—Subsec. (a). Pub. L. 91–271 substituted ref- of the district in which is situated the office at erences to the appropriate customs officer for references to the collector wherever appearing. which such seizure has taken place, who shall 1948—Subsec. (b). Act June 25, 1948, eff. Sept. 1, 1948, institute forfeiture proceedings in accordance repealed subsec. (b) which related to penalties against with subsection (a) hereof within 14 days of the date of the notification described in subpara- 3 So in original. Two subsecs. (b) and (c) have been enacted. graph (A) or (B) above. A copy of the certifi- Second subsecs. (b) and (c) probably should be designated (e) and cation described in paragraph (4) above and a (f), respectively. Page 65 TITLE 19—CUSTOMS DUTIES § 1307 government officers. See section 552 of Title 18, Crimes I am informed that in excluding RU–486 from the per- and Criminal Procedure. sonal use importation exemption, the FDA appears to have based its decision on factors other than an assess- CHANGE OF NAME ment of the possible health and safety risks of the Act June 25, 1948, eff. Sept. 1, 1948, substituted drug. Accordingly, I hereby direct that you promptly ‘‘United States attorney’’ for ‘‘district attorney’’. See instruct the FDA to determine whether there is suffi- section 541 of Title 28, Judiciary and Judicial Proce- cient evidence to warrant exclusion of RU–486 from the dure, and Historical and Revision Notes thereunder. list of drugs that qualify for the personal use importation exemption. Furthermore, if the FDA concludes EFFECTIVE AND TERMINATION DATES OF 1988 that RU–486 meets the criteria for the personal use im- AMENDMENTS portation exemption, I direct that you immediately Amendment by Pub. L. 100–449 effective on date the take steps to rescind Import Alert 66–47. United States-Canada Free-Trade Agreement enters In addition, I direct that you promptly assess initia- into force (Jan. 1, 1989), and to cease to have effect on tives by which the Department of Health and Human date Agreement ceases to be in force, see section 501(a), Services can promote the testing, licensing, and manu- (c) of Pub. L. 100–449, set out in a note under section facturing in the United States of RU–486 or other 2112 of this title. antiprogestins. Section 1901(b) of Pub. L. 100–418 provided that: ‘‘The You are hereby authorized and directed to publish amendments made by subsection (a) [amending this this memorandum in the Federal Register. section] apply with respect to articles entered, or with- WILLIAM J. CLINTON. drawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act § 1306. Repealed. Pub. L. 107–171, title X, [Aug. 23, 1988].’’ § 10418(a)(5), May 13, 2002, 116 Stat. 507 EFFECTIVE DATE OF 1980 AMENDMENT Section, June 17, 1930, ch. 497, title III, § 306, 46 Stat. Amendment by Pub. L. 96–417 effective Nov. 1, 1980, 689; Pub. L. 85–867, Sept. 2, 1958, 72 Stat. 1685; Pub. L. and applicable with respect to civil actions pending on 90–201, § 18, Dec. 15, 1967, 81 Stat. 600; Pub. L. 100–449, or commenced on or after such date, see section 701(a) title III, § 301(f)(5), Sept. 28, 1988, 102 Stat. 1869; Pub. L. of Pub. L. 96–417, set out as a note under section 251 of 103–182, title III, § 361(d)(1), Dec. 8, 1993, 107 Stat. 2123; Title 28, Judiciary and Judicial Procedure. Pub. L. 103–465, title IV, § 431(g), Dec. 8, 1994, 108 Stat. 4969, prohibited the importation of cattle, sheep, swine, EFFECTIVE DATE OF 1971 AMENDMENT and meats in certain cases. Amendment by Pub. L. 91–662 effective Jan. 9, 1971, see section 7 of Pub. L. 91–662, set out as a note under § 1307. Convict-made goods; importation prohib- section 552 of Title 18, Crimes and Criminal Procedure. ited EFFECTIVE DATE OF 1970 AMENDMENT All goods, wares, articles, and merchandise For effective date of amendment by Pub. L. 91–271, mined, produced, or manufactured wholly or in see section 203 of Pub. L. 91–271, set out as a note under part in any foreign country by convict labor or/ section 1500 of this title. and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at TRANSFER OF FUNCTIONS any of the ports of the United States, and the For transfer of functions, personnel, assets, and li- importation thereof is hereby prohibited, and abilities of the United States Customs Service of the the Secretary of the Treasury is authorized and Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- directed to prescribe such regulations as may be retary of Homeland Security, and for treatment of re- necessary for the enforcement of this provision. lated references, see sections 203(1), 551(d), 552(d), and The provisions of this section relating to goods, 557 of Title 6, Domestic Security, and the Department wares, articles, and merchandise mined, proof Homeland Security Reorganization Plan of Novem- duced, or manufactured by forced labor or/and ber 25, 2002, as modified, set out as a note under section indentured labor, shall take effect on January 1, 542 of Title 6. 1932; but in no case shall such provisions be ap- Functions of all other officers of Department of the plicable to goods, wares, articles, or merchan- Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, dise so mined, produced, or manufactured which to Secretary of the Treasury, with power vested in him are not mined, produced, or manufactured in to authorize their performance or performance of any such quantities in the United States as to meet of his functions, by any of such officers, agencies, and the consumptive demands of the United States. employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July ‘‘Forced labor’’, as herein used, shall mean all 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the work or service which is exacted from any per- Appendix to Title 5, Government Organization and Em- son under the menace of any penalty for its non- ployees. Customs officers, referred to in text, were performance and for which the worker does not under Department of the Treasury. offer himself voluntarily. For purposes of this IMPORTATION OF RU–486 section, the term ‘‘forced labor or/and inden- Memorandum of President of the United States, Jan. tured labor’’ includes forced or indentured child 22, 1993, 58 F.R. 7459, provided: labor. Memorandum for the Secretary of Health and Human (June 17, 1930, ch. 497, title III, § 307, 46 Stat. 689; Services In Import Alert 66–47, the Food and Drug Administra- Pub. L. 106–200, title IV, § 411(a), May 18, 2000, 114 tion (‘‘FDA’’) excluded the drug Mifepristine—com- Stat. 298.) monly known as RU–486—from the list of drugs that in- PRIOR PROVISIONS dividuals can import into the United States for their ‘‘personal use,’’ although the drugs have not yet been Provisions in the same language as the provisions in approved for distribution by the FDA. (See FDA Regu- this section were made by act Oct. 3, 1913, ch. 16, § IV, latory Procedures Manual, Chapter 9–71.) Import Alert I, 38 Stat. 195, superseding similar provisions of pre- 66–47 effectively bans the importation into this Nation vious tariff acts. That subdivision was superseded by of a drug that is used in other nations as a nonsurgical act Sept. 21, 1922, ch. 356, title III, § 307, 42 Stat. 937, and means of abortion. repealed by section 321 of that act. Section 307 of act § 1308 TITLE 19—CUSTOMS DUTIES Page 66

Sept. 21, 1922, was superseded by section 307 of act June forced labor conditions in former Soviet Union and re- 17, 1930, comprising this section, and repealed by sec- quest of President to instruct Secretary of the Treas- tion 651(a)(1) of the 1930 act. ury to enforce this section without delay, prior to repeal by Pub. L. 103–199, title II, § 204(a), Dec. 17, 1993, 107 AMENDMENTS Stat. 2322. 2000—Pub. L. 106–200 inserted at end ‘‘For purposes of this section, the term ‘forced labor or/and indentured § 1308. Prohibition on importation of dog and cat labor’ includes forced or indentured child labor.’’ fur products EFFECTIVE DATE OF 2000 AMENDMENT (a) Definitions Pub. L. 106–200, title IV, § 411(b), May 18, 2000, 114 Stat. In this section: 298, provided that: ‘‘The amendment made by this section [amending this section] shall take effect on the (1) Cat fur date of the enactment of this Act [May 18, 2000].’’ The term ‘‘cat fur’’ means the pelt or skin of PROHIBITION ON USE OF FUNDS TO PREVENT ENFORCE- any animal of the species Felis catus. MENT OF BAN ON IMPORTATION OF CONVICT-MADE (2) Interstate commerce GOODS The term ‘‘interstate commerce’’ means the Pub. L. 108–90, title V, § 514, Oct. 1, 2003, 117 Stat. 1154, transportation for sale, trade, or use between provided that: ‘‘For fiscal year 2004 and thereafter, any State, territory, or possession of the none of the funds appropriated or otherwise made avail- United States, or the District of Columbia, able to the Department of Homeland Security shall be available for any activity or for paying the salary of and any place outside thereof. any Government employee where funding an activity or (3) Customs laws paying a salary to a Government employee would result in a determination, regulation, or policy that The term ‘‘customs laws of the United would prohibit the enforcement of section 307 of the States’’ means any other law or regulation en- Tariff Act of 1930 (19 U.S.C. 1307).’’ forced or administered by the United States Customs Service. PROHIBITION ON USE OF FUNDS TO ALLOW IMPORTATION OF FORCED OR INDENTURED CHILD LABOR (4) Designated authority Pub. L. 108–90, title V, § 515, Oct. 1, 2003, 117 Stat. 1154, The term ‘‘designated authority’’ means the provided that: ‘‘For fiscal year 2004 and thereafter, Secretary of the Treasury, with respect to the none of the funds appropriated or otherwise made avail- prohibitions under subsection (b)(1)(A) of this able to the Department of Homeland Security may be section, and the President (or the President’s used to allow— designee), with respect to the prohibitions ‘‘(1) the importation into the United States of any under subsection (b)(1)(B) of this section. good, ware, article, or merchandise mined, produced, or manufactured by forced or indentured child labor, (5) Dog fur as determined under section 307 of the Tariff Act of The term ‘‘dog fur’’ means the pelt or skin of 1930 (19 U.S.C. 1307); or any animal of the species Canis familiaris. ‘‘(2) the release into the United States of any good, ware, article, or merchandise on which there is in ef- (6) Dog or cat fur product fect a detention order under such section 307 on the The term ‘‘dog or cat fur product’’ means basis that the good, ware, article, or merchandise may have been mined, produced, or manufactured by any item of merchandise which consists, or is forced or indentured child labor.’’ composed in whole or in part, of any dog fur, cat fur, or both. REPORTING REQUIREMENT ON FORCED LABOR PRODUCTS DESTINED FOR UNITED STATES MARKET (7) Person Pub. L. 105–261, div. C, title XXXVII, § 3702, Oct. 17, The term ‘‘person’’ includes any individual, 1998, 112 Stat. 2275, provided that: partnership, corporation, association, organi- ‘‘(a) REPORT TO CONGRESS.—Not later than 1 year zation, business trust, government entity, or after the date of the enactment of this Act [Oct. 17, other entity subject to the jurisdiction of the 1998], the Commissioner of Customs shall prepare and United States. transmit to the Congress a report on products made with forced labor that are destined for the United (8) United States States market. The term ‘‘United States’’ means the cus- ‘‘(b) CONTENTS OF REPORT.—The report under sub- toms territory of the United States, as defined section (a) shall include information concerning the in general note 2 of the Harmonized Tariff following: ‘‘(1) The extent of the use of forced labor in manu- Schedule of the United States. facturing products destined for the United States (b) Prohibitions market. (1) In general ‘‘(2) The volume of products made with forced labor, destined for the United States market, that is in vio- It shall be unlawful for any person to— lation of section 307 of the Tariff Act of 1930 [19 U.S.C. (A) import into, or export from, the United 1307] or section 1761 of title 18, United States Code, States any dog or cat fur product; or and is seized by the United States Customs Service. (B) introduce into interstate commerce, ‘‘(3) The progress of the United States Customs manufacture for introduction into interstate Service in identifying and interdicting products made with forced labor that are destined for the United commerce, sell, trade, or advertise in inter- States market.’’ state commerce, offer to sell, or transport or distribute in interstate commerce in the SENSE OF CONGRESS REQUESTING PRESIDENT TO IN- United States, any dog or cat fur product. STRUCT SECRETARY OF THE TREASURY TO ENFORCE SECTION 1307 WITHOUT DELAY (2) Exception Pub. L. 100–418, title I, § 1906, Aug. 23, 1988, 102 Stat. This subsection shall not apply to the impor- 1313, related to Congressional findings of deplorable tation, exportation, or transportation, for Page 67 TITLE 19—CUSTOMS DUTIES § 1308

noncommercial purposes, of a personal pet lations to carry out the provisions of this sec- that is deceased, including a pet preserved tion. The regulations of the Secretary of the through taxidermy. Treasury shall provide for a process by which (c) Penalties and enforcement testing laboratories, whether domestic or foreign, can qualify for certification by the (1) Civil penalties United States Customs Service by demonstrat- (A) In general ing the reliability of the procedures used for Any person who violates any provision of determining the type of fur contained in arti- this section or any regulation issued under cles intended for sale or consumption in inter- this section may, in addition to any other state commerce. Use of a laboratory certified civil or criminal penalty that may be im- by the United States Customs Service to de- posed under title 18 or any other provision of termine the nature of fur contained in an item law, be assessed a civil penalty by the des- to which subsection (b) of this section applies ignated authority of not more than— is not required to avoid liability under this (i) $10,000 for each separate knowing and section but may, in a case in which a person intentional violation; can establish that the goods imported were (ii) $5,000 for each separate grossly neg- tested by such a laboratory and that the item ligent violation; or was not found to be a dog or cat fur product, (iii) $3,000 for each separate negligent prove dispositive in determining whether that violation. person exercised reasonable care for purposes of paragraph (6). (B) Debarment (5) Reward The designated authority may prohibit a The designated authority shall pay a reward person from importing, exporting, transport- of not less than $500 to any person who fur- ing, distributing, manufacturing, or selling nishes information that establishes or leads to any fur product in the United States, if the a civil penalty assessment, debarment, or for- designated authority finds that the person feiture of property for any violation of this has engaged in a pattern or practice of ac- section or any regulation issued under this tions that has resulted in a final administra- section. tive determination with respect to the assessment of civil penalties for knowing and (6) Affirmative defense intentional or grossly negligent violations of Any person accused of a violation under this any provision of this section or any regula- section has a defense to any proceeding tion issued under this section. brought under this section on account of such violation if that person establishes by a pre- (C) Factors in assessing penalties ponderance of the evidence that the person ex- In determining the amount of civil pen- ercised reasonable care— alties under this paragraph, the designated (A) in determining the nature of the prod- authority shall take into account the degree ucts alleged to have resulted in such viola- of culpability, any history of prior violation; and tions under this section, ability to pay, the (B) in ensuring that the products were ac- seriousness of the violation, and such other companied by documentation, packaging, matters as fairness may require. and labeling that were accurate as to the na- (D) Notice ture of the products. (7) Coordination with other laws No penalty may be assessed under this paragraph against a person unless the person Nothing in this section shall be construed as is given notice and opportunity for a hearing superseding or limiting in any manner the with respect to such violation in accordance functions and responsibilities of the Secretary with section 554 of title 5. of the Treasury under the customs laws of the United States. (2) Forfeiture (d) Publication of names of certain violators Any dog or cat fur product manufactured, The designated authorities shall, at least once taken, possessed, sold, purchased, offered for each year, publish in the Federal Register a list sale or purchase, transported, delivered, re- of the names of any producer, manufacturer, ceived, carried, shipped, imported, or exported supplier, seller, importer, or exporter, whether contrary to the provisions of this section or or not located within the customs territory of any regulation issued under this section shall the United States or subject to the jurisdiction be subject to forfeiture to the United States. of the United States, against whom a final ad- (3) Enforcement ministrative determination with respect to the The Secretary of the Treasury shall enforce assessment of a civil penalty for a knowing and the provisions of this section with respect to intentional or a grossly negligent violation has the prohibitions under subsection (b)(1)(A) of been made under this section. this section, and the President shall enforce (e) Reports the provisions of this section with respect to In order to enable Congress to engage in ac- the prohibitions under subsection (b)(1)(B) of tive, continuing oversight of this section, the this section. designated authorities shall provide the follow- (4) Regulations ing: Not later than 270 days after November 9, (1) Plan for enforcement 2000, the designated authorities shall, after no- Within 3 months after November 9, 2000, the tice and opportunity for comment, issue regu- designated authorities shall submit to Con- § 1308 TITLE 19—CUSTOMS DUTIES Page 68

gress a plan for the enforcement of the provi- fur trade. Internationally, dog and cat fur is used in sions of this section, including training and a wide variety of products, including fur coats and procedures to ensure that United States Gov- jackets, fur trimmed garments, hats, gloves, decorative accessories, stuffed animals, and other toys. ernment personnel are equipped with state-of- ‘‘(2) The United States represents one of the largest the-art technologies to identify potential dog markets for the sale of fur and fur products in the or cat fur products and to determine the true world. Market demand for fur products in the United content of such products. States has led to the introduction of dog and cat fur (2) Report on enforcement efforts products into United States commerce, frequently based on deceptive or fraudulent labeling of the prod- Not later than 1 year after November 9, 2000, ucts to disguise the true nature of the fur and mis- and on an annual basis thereafter, the des- lead United States wholesalers, retailers, and con- ignated authorities shall submit a report to sumers. Congress on the efforts of the United States ‘‘(3) Dog and cat fur, when dyed, is not easily distin- Government to enforce the provisions of this guishable to persons who are not experts from other section and the adequacy of the resources to furs such as fox, rabbit, coyote, wolf, and mink, and synthetic materials made to resemble real fur. Dog do so. The report shall include an analysis of and cat fur is generally less expensive than other the training of United States Government per- types of fur and may be used as a substitute for more sonnel to identify dog and cat fur products ef- expensive types of furs, which provides an incentive fectively and to take appropriate action to en- to engage in unfair or fraudulent trade practices in force this section. The report shall include the the importation, exportation, distribution, or sale of findings of the designated authorities as to fur products, including deceptive labeling and other whether any government has engaged in a pat- practices designed to disguise the true contents or origin of the product. tern or practice of support for trade in prod- ‘‘(4) Forensic texts have documented that dog and ucts the importation of which are prohibited cat fur products are being imported into the United under this section. States subject to deceptive labels or other practices (June 17, 1930, ch. 497, title III, § 308, as added designed to conceal the use of dog or cat fur in the production of wearing apparel, toys, and other prod- Pub. L. 106–476, title I, § 1443(a), Nov. 9, 2000, 114 ucts. Stat. 2164.) ‘‘(5) Publicly available evidence reflects ongoing significant use of dogs and cats bred expressly for REFERENCES IN TEXT their fur by foreign fur producers for manufacture The Harmonized Tariff Schedule of the United States, into wearing apparel, toys, and other products that referred to in subsec. (a)(8), is not set out in the Code. have been introduced into United States commerce. See Publication of Harmonized Tariff Schedule note set The evidence indicates that foreign fur producers also out under section 1202 of this title. rely on the use of stray dogs and cats and stolen pets for the manufacture of fur products destined for the PRIOR PROVISIONS world and United States markets. A prior section 1308, acts June 17, 1930, ch. 497, title ‘‘(6) The methods of housing, transporting, and III, § 308, 46 Stat. 690; June 25, 1938, ch. 679, § 4, 52 Stat. slaughtering dogs and cats for fur production are gen- 1079; Aug. 8, 1953, ch. 397, § 10(a)(1), (b) to (f), 67 Stat. 512; erally unregulated and inhumane. Aug. 28, 1954, ch. 1045, § 1, 68 Stat. 914; Aug. 28, 1957, Pub. ‘‘(7) The trade of dog and cat fur products is ethi- L. 85–211, § 3, 71 Stat. 487; Apr. 16, 1958, Pub. L. 85–379, cally and aesthetically abhorrent to United States 72 Stat. 88; May 16, 1958, Pub. L. 85–414, § 1, 72 Stat. 118, citizens. Consumers in the United States have a right prescribed articles for temporary free importation to know if products offered for sale contain dog or cat under bond for exportation, prior to repeal by Pub. L. fur and to ensure that they are not unwitting partici- 87–456, title III, § 301(a), title V, § 501(a), May 24, 1962, 76 pants in this gruesome trade. Stat. 75, 78, effective with respect to articles entered, ‘‘(8) Persons who engage in the sale of dog or cat fur or withdrawn from warehouse, for consumption on or products, including the fraudulent trade practices after Aug. 31, 1963. identified above, gain an unfair competitive advantage over persons who engage in legitimate trade in EFFECTIVE DATE apparel, toys, and other products, and derive an unfair benefit from consumers who buy their products. Pub. L. 106–476, title I, § 1443(c), Nov. 9, 2000, 114 Stat. ‘‘(9) The imposition of a ban on the sale, manufac- 2167, provided that: ‘‘The amendments made by this ture, offer for sale, transportation, and distribution section [enacting this section and amending section 69 of dog and cat fur products, regardless of their of Title 15, Commerce and Trade] shall take effect on source, is consistent with the international obliga- the date of the enactment of this Act [Nov. 9, 2000].’’ tions of the United States because it applies equally TRANSFER OF FUNCTIONS to domestic and foreign producers and avoids any discrimination among foreign sources of competing For transfer of functions, personnel, assets, and li- products. Such a ban is also consistent with provi- abilities of the United States Customs Service of the sions of international agreements to which the Department of the Treasury, including functions of the United States is a party that expressly allow for Secretary of the Treasury relating thereto, to the Sec- measures designed to protect the health and welfare retary of Homeland Security, and for treatment of re- of animals and to enjoin the use of deceptive trade lated references, see sections 203(1), 551(d), 552(d), and practices in international or domestic commerce. 557 of Title 6, Domestic Security, and the Department ‘‘(b) PURPOSES.—The purposes of this chapter [chap- of Homeland Security Reorganization Plan of Novem- ter 3 (§§ 1441–1443) of subtitle B of title I of Pub. L. ber 25, 2002, as modified, set out as a note under section 106–476, see Short Title of 2000 Amendment note set out 542 of Title 6. under section 1654 of this title] are to— ‘‘(1) prohibit imports, exports, sale, manufacture, FINDINGS AND PURPOSES offer for sale, transportation, and distribution in the Pub. L. 106–476, title I, § 1442, Nov. 9, 2000, 114 Stat. United States of dog and cat fur products, in order to 2163, provided that: ensure that United States market demand does not ‘‘(a) FINDINGS.—Congress makes the following find- provide an incentive to slaughter dogs or cats for ings: their fur; ‘‘(1) An estimated 2,000,000 dogs and cats are slaugh- ‘‘(2) require accurate labeling of fur species so that tered and sold annually as part of the international consumers in the United States can make informed Page 69 TITLE 19—CUSTOMS DUTIES § 1309

choices and ensure that they are not unwitting con- warehouse, or from a foreign-trade zone, im- tributors to this gruesome trade; and ported articles, and articles of domestic manu- ‘‘(3) ensure that the customs laws of the United facture or production, laden as supplies upon States are not undermined by illicit international any such vessel or aircraft of the United States traffic in dog and cat fur products.’’ or laden as supplies (including equipment) upon, § 1309. Supplies for certain vessels and aircraft or used in the maintenance or repair of, any (a) Exemption from customs duties and internal- such foreign vessel or aircraft, shall be consid- revenue tax ered to be exported within the meaning of the drawback provisions of this chapter. Articles of foreign or domestic origin may be withdrawn, under such regulations as the Sec- (c) Articles removed in, or returned to, the retary of the Treasury may prescribe, from any United States customs bonded warehouse, from continuous Any article exempted from duty or tax, or in customs custody elsewhere than in a bonded respect of which drawback has been allowed, warehouse, or from a foreign-trade zone free of under this section or section 1317 of this title duty and internal-revenue tax, or from any in- and thereafter removed in the United States ternal-revenue bonded warehouse, from any from any vessel or aircraft, or otherwise re- brewery, or from any winery premises or bonded turned to the United States, shall be treated as premises for the storage of wine, free of inter- an importation from a foreign country. nal-revenue tax— (d) Reciprocal privileges (1) for supplies (not including equipment) of The privileges granted by this section and sec- (A) vessels or aircraft operated by the United tion 1317 of this title in respect of aircraft reg- States, (B) vessels of the United States em- istered in a foreign country shall be allowed ployed in the fisheries or in the whaling busi- only if the Secretary of the Treasury shall have ness, or actually engaged in foreign trade or been advised by the Secretary of Commerce that trade between the Atlantic and Pacific ports he has found that such foreign country allows, of the United States or between the United or will allow, substantially reciprocal privileges States and any of its possessions, or between in respect of aircraft registered in the United Hawaii and any other part of the United States. If the Secretary of Commerce shall ad- States, or between Alaska and any other part vise the Secretary of the Treasury that he has of the United States, or (C) aircraft registered found that a foreign country has discontinued, in the United States and actually engaged in or will discontinue, the allowance of such privi- foreign trade or trade between the United leges, the privileges granted by this section and States and any of its possessions, or between such section 1317 shall not apply thereafter in Hawaii and any other part of the United respect of aircraft registered in that foreign States or between Alaska and any other part country. of the United States; or (2) for supplies (including equipment) or re- (June 17, 1930, ch. 497, title III, § 309, 46 Stat. 690; pair of (A) vessels of war of any foreign nation, June 25, 1938, ch. 679, § 5(a), 52 Stat. 1080; July 22, or (B) foreign vessels employed in the fisheries 1941, ch. 314, § 3, 55 Stat. 602; Aug. 8, 1953, ch. 397, or in the whaling business, or actually en- § 11(a), 67 Stat. 514; Pub. L. 86–606, § 5(a), July 7, gaged in foreign trade or trade between the 1960, 74 Stat. 361; Pub. L. 101–382, title III, United States and any of its possessions, or be- § 484A(b), Aug. 20, 1990, 104 Stat. 708.) tween Hawaii and any other part of the United PRIOR PROVISIONS States or between Alaska and any other part of the United States, where such trade by for- Provisions similar to those in this section were con- eign vessels is permitted; or tained in act Oct. 3, 1913, ch. 16, § IV, K, 38 Stat. 197, (3) for supplies (including equipment), which superseded a like provision made by an amend- ground equipment, maintenance, or repair of ment of R.S. § 2982, by the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 21, 36 Stat. 88. Section IV, K, of the aircraft registered in any foreign country and act of 1913, and R.S. § 2982 were superseded by act Sept. actually engaged in foreign trade or trade be- 21, 1922, ch. 356, title III, § 309, 42 Stat. 938, and respec- tween the United States and any of its posses- tively repealed by sections 321 and 642 thereof. Section sions, or between Hawaii and any other part of 309 of the act of 1922 was superseded by section 309 of the United States or between Alaska and any act June 17, 1930, comprising this section, and repealed other part of the United States, where trade by section 651(a)(1) of the 1930 act. by foreign aircraft is permitted. With respect AMENDMENTS to articles for ground equipment, the exemption hereunder shall apply only to duties and 1990—Subsec. (b). Pub. L. 101–382 inserted ‘‘imported articles,’’ after ‘‘foreign-trade zone,’’. to taxes imposed upon or by reason of impor- 1960—Subsec. (a). Pub. L. 86–606 inserted ‘‘, or be- tation. tween Hawaii and any other part of the United States The provisions for free withdrawals made by or between Alaska and any other part of the United this subsection shall not apply to petroleum States’’ after ‘‘possessions’’ wherever appearing, and made the provisions for free withdrawals inapplicable products for vessels or aircraft in voyages or to petroleum products for vessels or aircraft in voyages flights exclusively between Hawaii or Alaska or flights between Hawaii or Alaska and any airport or and any airport or Pacific coast seaport of the Pacific coast seaport of the United States. United States. 1953—Subsec. (a). Act Aug. 8, 1953, extended the ex- (b) Drawback emption from payment of duty and internal revenue tax theretofore available to supplies for certain vessels Articles withdrawn from bonded warehouses, and aircraft withdrawn from bonded warehouses, bond- bonded manufacturing warehouses, continuous ed manufacturing warehouses, or continuous customs customs custody elsewhere than in a bonded custody elsewhere to supplies withdrawn from foreign § 1310 TITLE 19—CUSTOMS DUTIES Page 70 trade zones; accorded free entry for equipment with- internal-revenue tax, and intended for expor- drawn for foreign vessels; and enlarged the classes of tation without being charged with duty, and vessels and aircraft theretofore covered to include all without having an internal-revenue stamp af- vessels and aircraft operated by the United States. Subsec. (b). Act Aug. 8, 1953, made technical changes fixed thereto, shall, under such regulations as to conform with the changes made by such act in sub- the Secretary of the Treasury may prescribe, in sec. (a), including insertion of ‘‘or from a foreign-trade order to be so manufactured and exported, be zone,’’. made and manufactured in bonded warehouses 1941—Subsec. (a). Act July 22, 1941, inserted ‘‘or from similar to those known and designated in Treas- any internal-revenue bonded warehouse, from any ury Regulations as bonded warehouses, class six: brewery, or from any winery premises or bonded prem- Provided, That the manufacturer of such articles ises for the storage of wine, free of internal-revenue shall first give satisfactory bonds for the faith- tax’’ after ‘‘internal-revenue tax’’. 1938—Act June 25, 1938, amended section generally, ful observance of all the provisions of law and of adding subsecs. (c) and (d). such regulations as shall be prescribed by the Secretary of the Treasury: Provided further, That EFFECTIVE DATE OF 1990 AMENDMENT the manufacture of distilled spirits from grain, Section 484A(c) of Pub. L. 101–382 provided that: ‘‘Not- starch, molasses, or sugar, including all dilu- withstanding section 514 of the Tariff Act of 1930 (19 tions or mixtures of them or either of them, U.S.C. 1514) or any other provision of law, the amend- shall not be permitted in such manufacturing ments made by this section [amending this section and section 1313 of this title] shall apply to— warehouses. ‘‘(1) claims filed or liquidated on or after January Whenever goods manufactured in any bonded 1, 1988, and warehouse established under the provisions of ‘‘(2) claims that are unliquidated, under protest, or the preceding paragraph shall be exported di- in litigation on the date of enactment of this Act rectly therefrom or shall be duly laden for [Aug. 20, 1990].’’ transportation and immediate exportation EFFECTIVE DATE OF 1960 AMENDMENT under the supervision of the proper officer who Section 5(b) of Pub. L. 86–606 provided that: ‘‘The shall be duly designated for that purpose, such amendment made by this section [amending this sec- goods shall be exempt from duty and from the tion] shall apply only with respect to articles with- requirements relating to revenue stamps. drawn as provided in section 309(a) of the Tariff Act of No flour, manufactured in a bonded manufac- 1930, as amended [subsec. (a) of this section], on or after turing warehouse from wheat imported after the date of the enactment of this Act [July 7, 1960].’’ ninety days after June 17, 1930, shall be with- EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS drawn from such warehouse for exportation PROVISION without payment of a duty on such imported Amendment by act Aug. 8, 1953, effective on and after wheat equal to any reduction in duty which by thirtieth day following Aug. 8, 1953, and savings provi- treaty will apply in respect of such flour in the sion, see notes set out under section 1304 of this title. country to which it is to be exported. Any materials used in the manufacture of such EFFECTIVE DATE OF 1938 AMENDMENT goods, and any packages, coverings, vessels, Amendment by act June 25, 1938, effective on thirti- brands, and labels used in putting up the same eth day following June 25, 1938, except as otherwise spe- may, under the regulations of the Secretary of cifically provided, see section 37 of act June 25, 1938, set the Treasury, be conveyed without the payment out as a note under section 1401 of this title. of revenue tax or duty into any bonded manufac- § 1310. Free importation of merchandise recov- turing warehouse, and imported goods may, ered from sunken and abandoned vessels under the aforesaid regulations, be transferred without the exaction of duty from any bonded Whenever any vessel laden with merchandise, warehouse into any bonded manufacturing ware- in whole or in part subject to duty, has been house; but this privilege shall not be held to sunk in any river, harbor, bay, or waters subject apply to implements, machinery, or apparatus to the jurisdiction of the United States, and to be used in the construction or repair of any within its limits, for the period of two years and bonded manufacturing warehouse or for the is abandoned by the owner thereof, any person prosecution of the business carried on therein. who may raise such vessel shall be permitted to Articles or materials received into such bond- bring any merchandise recovered therefrom into ed manufacturing warehouse or articles manu- the port nearest to the place where such vessel factured therefrom may be withdrawn or re- was so raised free from the payment of any duty moved therefrom for direct shipment and expor- thereupon, but under such regulations as the tation or for transportation and immediate ex- Secretary of the Treasury may prescribe. portation in bond to foreign countries or to the (June 17, 1930, ch. 497, title III, § 310, 46 Stat. 691.) Philippine Islands under the supervision of the officer duly designated therefor by the appro- PRIOR PROVISIONS priate customs officer of the port, who shall cer- Provisions similar to those in this section were con- tify to such shipment and exportation, or lad- tained in act Oct. 3, 1913, ch. 16, § IV, L, 38 Stat. 197, su- ening for transportation, as the case may be, de- perseding similar provisions of previous tariff acts. That section was superseded by act Sept. 21, 1922, ch. scribing the articles by their mark or otherwise, 356, title III, § 310, 42 Stat. 938, and repealed by section the quantity, the date of exportation, and the 321 of that act. Section 310 of act Sept. 21, 1922, was su- name of the vessel: Provided, That the by-prod- perseded by section 310 of act June 17, 1930, and re- ucts incident to the processes of manufacture, pealed by section 651(a)(1) of the 1930 act. including waste derived from cleaning rice in bonded warehouses under the Act of March 24, § 1311. Bonded manufacturing warehouses 1874, ch. 65, 18 Stat. 24, in said bonded ware- All articles manufactured in whole or in part houses may be withdrawn for domestic con- of imported materials, or of materials subject to sumption on the payment of duty equal to the Page 71 TITLE 19—CUSTOMS DUTIES § 1311 duty which would be assessed and collected by for exportation to a NAFTA country, as defined law if such waste or by-products were imported in section 3301(4) of this title, without assess- from a foreign country: Provided, That all waste ment of a duty on the materials in their condi- material may be destroyed under Government tion and quantity, and at their weight, at the supervision. All labor performed and services time of importation into the United States. The rendered under these provisions shall be under duty shall be paid before the 61st day after the the supervision of a duly designated officer of date of exportation, except that upon the pres- the customs and at the expense of the manufac- entation, before such 61st day, of satisfactory turer. evidence of the amount of any customs duties A careful account shall be kept by the appro- paid to the NAFTA country on the article, the priate customs officer of all merchandise deliv- customs duty may be waived or reduced (subject ered by him to any bonded manufacturing ware- to section 1508(b)(2)(B) of this title) in an house, and a sworn monthly return, verified by amount that does not exceed the lesser of— the customs officers in charge, shall be made by (1) the total amount of customs duties paid the manufacturer containing a detailed state- or owed on the materials on importation into ment of all imported merchandise used by him the United States, or in the manufacture of exported articles. (2) the total amount of customs duties paid Before commencing business the proprietor of on the article to the NAFTA country. any manufacturing warehouse shall file with the If Canada ceases to be a NAFTA country and the Secretary of the Treasury a list of all the arti- suspension of the operation of the United cles intended to be manufactured in such ware- States-Canada Free-Trade Agreement thereafter house, and state the formula of manufacture and terminates, no article manufactured in a bonded the names and quantities of the ingredients to warehouse, except to the extent that such arti- be used therein. cle is made from an article that is a drawback Articles manufactured under these provisions eligible good under section 204(a) of the United may be withdrawn under such regulations as the States-Canada Free-Trade Agreement Imple- Secretary of the Treasury may prescribe for mentation Act of 1988, may be withdrawn from transportation and delivery into any bonded such warehouse for exportation to Canada dur- warehouse for the sole purpose of export there- ing the period such Agreement is in operation from: Provided, That cigars manufactured in without payment of a duty on such imported whole of tobacco imported from any one coun- merchandise in its condition, and at the rate of try, made and manufactured in such bonded duty in effect, at the time of importation. manufacturing warehouses, may be withdrawn No article manufactured in a bonded ware- for home consumption upon the payment of the house from materials that are goods subject to duties on such tobacco in its condition as im- Chile FTA drawback, as defined in section 203(a) ported under such regulations as the Secretary of the United States-Chile Free Trade Agree- of the Treasury may prescribe, and the payment ment Implementation Act, may be withdrawn of the internal-revenue tax accruing on such ci- from warehouse for exportation to Chile without gars in their condition as withdrawn, and the assessment of a duty on the materials in their boxes or packages containing such cigars shall condition and quantity, and at their weight, at be stamped to indicate their character, origin of the time of importation into the United States. tobacco from which made, and place of manufac- The duty shall be paid before the 61st day after ture. the date of exportation, except that the duty The provisions of section 3433 of the Revised may be waived or reduced by— Statutes shall, so far as may be practicable, (1) 100 percent during the 8-year period be- apply to any bonded manufacturing warehouse ginning on January 1, 2004; established under this chapter and to the mer- (2) 75 percent during the 1-year period begin- chandise conveyed therein. ning on January 1, 2012; Distilled spirits and wines which are rectified (3) 50 percent during the 1-year period begin- in bonded manufacturing warehouses, class six, ning on January 1, 2013; and and distilled spirits which are reduced in proof (4) 25 percent during the 1-year period begin- and bottled in such warehouses, shall be deemed ning on January 1, 2014. to have been manufactured within the meaning of this section, and may be withdrawn as herein- (June 17, 1930, ch. 497, title III, § 311, 46 Stat. 691; before provided, and likewise for shipment in June 26, 1936, ch. 830, title IV, § 404, 49 Stat. 1960; bond to Puerto Rico, subject to the provisions of Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 this section, and under such regulations as the Stat. 287; Pub. L. 96–39, title VIII, § 856(b), July Secretary of the Treasury may prescribe, there 26, 1979, 93 Stat. 295; Pub. L. 97–446, title II, § 202, to be withdrawn for consumption or be reware- Jan. 12, 1983, 96 Stat. 2350; Pub. L. 100–449, title housed and subsequently withdrawn for con- II, § 204(c)(1), Sept. 28, 1988, 102 Stat. 1862; Pub. L. sumption: Provided, That upon withdrawal in 103–182, title II, § 203(b)(1), Dec. 8, 1993, 107 Stat. Puerto Rico for consumption, the duties im- 2088; Pub. L. 108–77, title II, § 203(b)(1), Sept. 3, posed by the customs laws of the United States 2003, 117 Stat. 925.) shall be collected on all imported merchandise AMENDMENT OF SECTION (in its condition as imported) and imported con- For termination of amendment by section tainers used in the manufacture and putting up 107(c) of Pub. L. 108–77, see Effective and Ter- of such spirits and wines in such warehouses. mination Dates of 2003 Amendment note below. No article manufactured in a bonded warehouse from materials that are goods subject to REFERENCES IN TEXT NAFTA drawback, as defined in section 3333(a) Act March 24, 1874, referred to in text, which provided of this title, may be withdrawn from warehouse that ‘‘importers’ bonded warehouses, to be used for the § 1312 TITLE 19—CUSTOMS DUTIES Page 72 storage and cleansing of imported rice intended for ex- 1936—Act June 26, 1936, inserted par. at end relating portation to foreign countries, may be established at to distilled spirits and wine. any port of entry in the United States, under such rules and regulations as the Secretary of the Treasury may EFFECTIVE AND TERMINATION DATES OF 2003 prescribe’’, was repealed by act Sept. 21, 1922, ch. 356, AMENDMENT title IV, § 643, 42 Stat. 989. Amendment by Pub. L. 108–77 effective on the date R.S. § 3433, referred to in text, was amended by act the United States-Chile Free Trade Agreement enters Feb. 27, 1877, ch. 69, 19 Stat. 248. The provisions of R.S. into force (Jan. 1, 2004), and to cease to be effective on § 3433 as they existed prior to the amendment by act the date the Agreement ceases to be in force, see sec- Feb. 27, 1877, were reenacted as section 10 of act Oct. 1, tion 107(a), (c) of Pub. L. 108–77, set out in a note under 1890, ch. 1244, 26 Stat. 614. Section 55 of said act Oct. 1, section 3805 of this title. 1890, repealed all laws and parts of laws inconsistent therewith. The provisions of said section 10 of act Oct. EFFECTIVE DATE OF 1993 AMENDMENT 1, 1890, were incorporated into the Internal Revenue Amendment by Pub. L. 103–182 applicable (1) with re- Code of 1939, as subsections (a), (b), (c), and (d)(1) of sec- spect to exports from the United States to Canada on tion 3177. See section 5521 of Title 26, Internal Revenue Jan. 1, 1996, if Canada is a NAFTA country on that date Code. and after such date for so long as Canada continues to Section 204 of the United States-Canada Free-Trade be a NAFTA country and (2) with respect to exports Agreement Implementation Act of 1988, referred to in from the United States to Mexico on Jan. 1, 2001, if text, is section 204 of Pub. L. 100–449, which is set out Mexico is a NAFTA country on that date and after such in a note under section 2112 of this title. date for so long as Mexico continues to be a NAFTA Section 203(a) of the United States-Chile Free Trade country, see section 213(c) of Pub. L. 103–182, set out as Agreement Implementation Act, referred to in text, is an Effective Date note under section 3331 of this title. section 203(a) of Pub. L. 108–77, which is set out in a note under section 3805 of this title. EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT PRIOR PROVISIONS Provisions similar to those in this section were con- Amendment by Pub. L. 100–449 effective on date the tained in act Oct. 3, 1913, ch. 16, § IV, M, 38 Stat. 197, United States-Canada Free-Trade Agreement enters which was superseded by act Sept. 21, 1922, ch. 356, title into force (Jan. 1, 1989), and to cease to have effect on III, § 311, 42 Stat. 938, and repealed by section 321 there- date Agreement ceases to be in force, see section 501(a), of. Section 311 of the 1922 act was superseded by section (c) of Pub. L. 100–449, set out in a note under section 311 of act June 17, 1930, comprising this section, and re- 2112 of this title. pealed by section 651(a)(1) of the 1930 act. EFFECTIVE DATE OF 1979 AMENDMENT Section IV, M, of the act of 1913 superseded previous similar provisions of the Payne-Aldrich Tariff Act of Section 856(b) of Pub. L. 96–39 provided that: ‘‘Effec- Aug. 5, 1909, ch. 6, § 23, 36 Stat. 88, which superseded tive January 1, 1980, the second proviso to the last those of the Dingley Tariff Act of July 24, 1897, ch. 11, paragraph of section 311 of the Tariff Act of 1930 [this § 15, 30 Stat. 207. Similar provisions were contained in section] is hereby repealed.’’ the Wilson Tariff Act of Aug. 27, 1894, ch. 349, § 9, 28 EFFECTIVE DATE OF 1970 AMENDMENT Stat. 548. For effective date of amendment by Pub. L. 91–271, AMENDMENTS see section 203 of Pub. L. 91–271, set out as a note under 2003—Pub. L. 108–77, §§ 107(c), 203(b)(1), temporarily section 1500 of this title. added par. at end relating to goods subject to Chile FTA drawback. See Effective and Termination Dates of TRANSFER OF FUNCTIONS 2003 Amendment note below. Functions of all other officers of Department of the 1993—Pub. L. 103–182 amended last par. generally. Treasury and functions of all agencies and employees of Prior to amendment, last par. read as follows: ‘‘No arti- such Department transferred, with certain exceptions, cle manufactured in a bonded warehouse, except to the to Secretary of the Treasury, with power vested in him extent that such article is made from an article that is to authorize their performance or performance of any a drawback eligible good under section 204(a) of the of his functions, by any of such officers, agencies, and United States-Canada Free-Trade Agreement Imple- employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July mentation Act of 1988, may be withdrawn from such 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the warehouse for exportation to Canada on or after Janu- Appendix to Title 5, Government Organization and Em- ary 1, 1994, or such later date as may be proclaimed by ployees. Customs officers, referred to in text, are under the President under section 204(b)(2)(B) of such Act of Department of the Treasury. 1988, without payment of a duty on such imported merchandise in its condition, and at the rate of duty in ef- WITHDRAWAL OF DISTILLED SPIRITS TO MANUFACTURING fect, at the time of importation.’’ BONDED WAREHOUSES; TRANSFERS TO WAREHOUSES 1988—Pub. L. 100–449 added par. at end relating to ar- PENDING EXPORTATION ticles withdrawn for exportation to Canada on and Pub. L. 96–39, title VIII, § 856(a), July 26, 1979, 93 Stat. after Jan. 1, 1994, and to drawback-eligible goods under 295, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 the United States-Canada Free-Trade Agreement Im- Stat. 2095, provided that: ‘‘In the case of articles de- plementation Act of 1988. scribed in section 5522(a) of the Internal Revenue Code 1983—Pub. L. 97–446 struck out ‘‘at an exterior port’’ of 1986 [formerly I.R.C. 1954, 26 U.S.C. 5522(a)] (as in ef- after ‘‘bonded warehouse’’ and ‘‘immediate’’ after ‘‘sole fect before its repeal by section 807(a)(50) of the Dis- purpose of’’ in eighth par. 1979—Pub. L. 96–39, in par. relating to distilled spirits tilled Spirits Tax Revision Act of 1979 [section 807(50) of and wine, struck out provision that no internal revenue Pub. L. 96–39]) the first sentence of the eighth para- tax be imposed on distilled spirits and wines rectified graph of section 311 of the Tariff Act of 1930 (19 U.S.C. in class six warehouses if such distilled spirits and 1311) shall be applied as if such first sentence did not wines are exported or shipped in accordance with the include the phrase ‘at an exterior port’.’’ provisions of this section, and that no person rectifying distilled spirits or wines in such warehouses be subject § 1312. Bonded smelting and refining warehouses by reason of such rectification to the payment of spe- (a) Bond; charges against bond cial tax as rectifier. 1970—Pub. L. 91–271 substituted references to the ap- Any plant engaged in smelting or refining, or propriate customs officer for references to the collector both, of metal-bearing materials as defined in wherever appearing. this section may, upon the giving of satisfactory Page 73 TITLE 19—CUSTOMS DUTIES § 1312 bond, be designated a bonded smelting or refin- (iv) 25 percent during the 1-year period ing warehouse. Metal-bearing materials may be beginning on January 1, 2014, or entered into a bonded smelting or refining ware- (2) upon payment of duties on the dutiable house without the payment of duties thereon quantity of metal contained in the imported and there smelted or refined, or both, together metal-bearing materials, or with metal-bearing materials of domestic or for- (3) upon the transfer of the bond charges to eign origin. Upon arrival of imported metal- another bonded smelting or refining ware- bearing materials at the warehouse they shall house by physical shipment of a quantity of be sampled according to commercial methods the same kind of metal contained in any prod- and assayed, both under customs supervision. uct of smelting or refining of metal-bearing The bond shall be charged with a sum equal in materials equal to the dutiable quantity con- amount to the duties which would be payable on tained in the imported metal-bearing mate- such metal-bearing materials in their condition rials less wastage provided for in subsection as imported if entered for consumption, and the (c) of this section, or bond charge shall be adjusted to reflect changes (4) upon the transfer of the bond charges to in the applicable rate of duty occurring while a bonded customs warehouse other than a the imported materials are still covered by the bonded smelting or refining warehouse by bond. physical shipment of a quantity of the same (b) Cancellation of charges against bond kind of metal contained in any product of The several charges against such bond may be smelting or refining equal to the dutiable canceled in whole or in part— quantity contained in the imported metal- (1) upon the exportation from the bonded bearing materials less wastage provided for in warehouses which treated the metal-bearing subsection (c) of this section, and upon with- materials, or from any other bonded smelting drawal from such other warehouse for expor- or refining warehouse, of a quantity of the tation or domestic consumption the provisions same kind of metal contained in any product of this section shall apply; except that— of smelting or refining of metal-bearing mate- (A) in the case of a withdrawal for expor- rials equal to the dutiable quantity contained tation of such a product to a NAFTA coun- in the imported metal-bearing materials less try, as defined in section 3301(4) of this title, wastage provided for in subsection (c) of this if any of the imported metal-bearing mate- section; except that— rials are goods subject to NAFTA drawback, (A) in the case of a withdrawal for expor- as defined in section 3333(a) of this title, the tation of such a product to a NAFTA coun- duties on the materials shall be paid, and try, as defined in section 3301(4) of this title, the charges against the bond canceled, be- if any of the imported metal-bearing mate- fore the 61st day after the date of expor- rials are goods subject to NAFTA drawback, tation; but upon the presentation, before as defined in section 3333(a) of this title, the such 61st day, of satisfactory evidence of the duties on the materials shall be paid, and amount of any customs duties paid to the the charges against the bond canceled, be- NAFTA country on the product, the duties fore the 61st day after the date of expor- on the materials may be waived or reduced tation; but upon the presentation, before (subject to section 1508(b)(2)(B) of this title) such 61st day, of satisfactory evidence of the in an amount that does not exceed the lesser amount of any customs duties paid to the of— NAFTA country on the product, the duties (i) the total amount of customs duties on the materials may be waived or reduced owed on the materials on importation into (subject to section 1508(b)(2)(B) of this title) the United States, or in an amount that does not exceed the lesser (ii) the total amount of customs duties of— paid to the NAFTA country on the prod- (i) the total amount of customs duties uct, and owed on the materials on importation into the United States, or (B) in the case of a withdrawal for expor- (ii) the total amount of customs duties tation of such a product to Chile, if any of paid to the NAFTA country on the prod- the imported metal-bearing materials are uct, and goods subject to Chile FTA drawback, as defined in section 203(a) of the United States- (B) in the case of a withdrawal for expor- Chile Free Trade Agreement Implementa- tation of such a product to Chile, if any of the imported metal-bearing materials are tion Act, the duties on the materials shall be goods subject to Chile FTA drawback, as de- paid, and the charges against the bond can- fined in section 203(a) of the United States- celed, before the 61st day after the date of Chile Free Trade Agreement Implementa- exportation, except that the duties may be tion Act, the duties on the materials shall be waived or reduced by— (i) 100 percent during the 8-year period paid, and the charges against the bond can- beginning on January 1, 2004, celed, before the 61st day after the date of (ii) 75 percent during the 1-year period exportation, except that the duties may be beginning on January 1, 2012, waived or reduced by— (iii) 50 percent during the 1-year period (i) 100 percent during the 8-year period beginning on January 1, 2013, and beginning on January 1, 2004, (iv) 25 percent during the 1-year period (ii) 75 percent during the 1-year period beginning on January 1, 2014, or beginning on January 1, 2012, (iii) 50 percent during the 1-year period (5) upon the transfer to another bonded beginning on January 1, 2013, and smelting or refining warehouse without phys- § 1312 TITLE 19—CUSTOMS DUTIES Page 74

ical shipment of metal of bond charges rep- (A) 100 percent of the total amount of cus- resenting a quantity of dutiable metal con- toms duties paid or owed on the materials on tained in imported metal-bearing materials importation into the United States during less wastage provided for in subsection (c) of the 8-year period beginning on January 1, this section of the plant of initial treatment of 2004, such materials provided there is on hand at (B) 75 percent of the total amount of cus- the warehouse to which the transfer is made toms duties paid or owed on the materials on sufficient like metal in any form to satisfy the importation into the United States during transferred bond charges. the 1-year period beginning on January 1, If Canada ceases to be a NAFTA country and the 2012, (C) 50 percent of the total amount of cus- suspension of the operation of the United toms duties paid or owed on the materials on States-Canada Free-Trade Agreement thereafter importation into the United States during terminates, no charges against such bond may the 1-year period beginning on January 1, be canceled in whole or part upon an expor- 2013, and tation to Canada under paragraph (1) or (4) dur- (D) 25 percent of the total amount of cus- ing the period such Agreement is in operation toms duties paid or owed on the materials on except to the extent that the metal-bearing ma- importation into the United States during terials were of Canadian origin as determined in the 1-year period beginning on January 1, accordance with section 202 of the United 2014. States-Canada Free-Trade Agreement Imple- mentation Act of 1988. If Canada ceases to be a NAFTA country and the (c) Allowance on bond for wastage of metals suspension of the operation of the United States-Canada Free-Trade Agreement thereafter For purposes of paragraphs (1), (3), (4), and (5) terminates, no bond shall be credited under this of subsection (b) of this section, due allowances subsection with respect to an exportation of a shall be made for wastage of metals other than product to Canada during the period such Agree- copper, lead, and zinc, as ascertained from time ment is in operation except to the extent that to time by the Secretary of the Treasury. the product is a drawback eligible good under (d) Credit for exportation of product other than section 204(a) of the United States-Canada Free- refined metal Trade Agreement Implementation Act of 1988. Upon the exportation of a product of smelting (e) General bond for two or more warehouses or refining other than refined metal the bond Two or more smelting or refining warehouses shall be credited with a quantity of metal equiv- may be included under one general bond and the alent to the quantity of metal contained in the quantities of each kind of metal subject to duty product exported less the proportionate part of on hand at all of such warehouses may be aggre- the deductions allowed for losses in determina- gated to satisfy the bond obligation. tion of the bond charge being cancelled that would not ordinarily be sustained in production (f) Definitions of the specific product exported as ascertained For purposes of this section— from time to time by the Secretary of the Treas- (1) the term ‘‘metal-bearing materials’’ ury; except that— means metal-bearing ores and other metal- (1) in the case of a withdrawal for expor- bearing materials provided for in chapter 26 of tation to a NAFTA country, as defined in sec- the Harmonized Tariff Schedule of the United tion 3301(4) of this title, if any of the imported States, metal waste and scrap and unwrought metal-bearing materials are goods subject to metal to be smelted or refined provided for in NAFTA drawback, as defined in section 3333(a) chapters 71 through 83 of the Harmonized Tar- of this title, charges against the bond shall be iff Schedule of the United States, and metal paid before the 61st day after the date of ex- compounds to be processed for the recovery of portation; but upon the presentation, before their metal content; such 61st day, of satisfactory evidence of the (2) the term ‘‘smelting or refining’’ embraces amount of any customs duties paid to the only pyrometallurgical, hydrometallurgical, NAFTA country on the product, the bond shall electrometallurgical, chemical, or other proc- be credited (subject to section 1508(b)(2)(B) of esses— this title) in an amount not to exceed the less- (A) for the treatment of metal-bearing ma- er of— terials to reduce the metal content thereof (A) the total amount of customs duties to a metallic state in the course of recover- paid or owed on the materials on importa- ing it in forms which if imported would be tion into the United States, or classifiable in chapters 71 through 83 of the (B) the total amount of customs duties Harmonized Tariff Schedule of the United paid to the NAFTA country on the product; States as unwrought metal, or in the form of and oxides or other compounds which are ob- (2) in the case of a withdrawal for expor- tained directly from the treatment of mate- tation to Chile, if any of the imported metal- rials provided for in chapter 26 of the Har- bearing materials are goods subject to Chile monized Tariff Schedule of the United FTA drawback, as defined in section 203(a) of States, and the United States-Chile Free Trade Agreement (B) for the treatment of unwrought metal Implementation Act, charges against the bond or metal waste and scrap to remove impuri- shall be paid before the 61st day after the date ties or undesired components; and of exportation, and the bond shall be credited (3) the term ‘‘product of smelting or refin- in an amount equal to— ing’’ means metals or metal-bearing materials Page 75 TITLE 19—CUSTOMS DUTIES § 1312

resulting directly from smelting or refining isfactory evidence of the amount of any customs duties processes, but does not include metal-bearing paid to the NAFTA country on the product, the duties ores of chapter 26 of the Harmonized Tariff on the materials may be waived or reduced (subject to Schedule of the United States. section 1508(b)(2)(B) of this title) in an amount that does not exceed the lesser of— (g) Supervision and cost of labor under this sec- ‘‘(A) the total amount of customs duties owed on tion the materials on importation into the United States, or Labor performed and services rendered pursu- ‘‘(B) the total amount of customs duties paid to the ant to this section shall be under the super- NAFTA country on the product, or’’. vision of an officer of the customs, to be ap- See Effective and Termination Dates of 2003 Amend- pointed by the Secretary of the Treasury and at ment note below. the expense of the manufacturer. The Secretary Subsec. (b)(4). Pub. L. 108–77, §§ 107(c), 203(b)(2)(B), of the Treasury is authorized to make such rules temporarily substituted ‘‘except that—’’ and subpars. and regulations as may be necessary to carry (A) and (B) for ‘‘except that in the case of a withdrawal out the provisions of this section. for exportation of such a product to a NAFTA country, as defined in section 3301(4) of this title, if any of the (June 17, 1930, ch. 497, title III, § 312, 46 Stat. 692; imported metal-bearing materials are goods subject to Pub. L. 87–456, title III, § 301(b), May 24, 1962, 76 NAFTA drawback, as defined in section 3333(a) of this Stat. 75; Pub. L. 100–418, title I, § 1214(h)(1), Aug. title, the duties on the materials shall be paid, and the 23, 1988, 102 Stat. 1157; Pub. L. 100–449, title II, charges against the bond canceled, before the 61st day after the date of exportation; but upon the presen- § 204(c)(2), Sept. 28, 1988, 102 Stat. 1862; Pub. L. tation, before such 61st day, of satisfactory evidence of 103–182, title II, § 203(b)(2), Dec. 8, 1993, 107 Stat. the amount of any customs duties paid to the NAFTA 2088; Pub. L. 108–77, title II, § 203(b)(2), Sept. 3, country on the product, the duties on the materials 2003, 117 Stat. 925.) may be waived or reduced (subject to section 1508(b)(2)(B) of this title) in an amount that does not AMENDMENT OF SECTION exceed the lesser of— For termination of amendment by section ‘‘(A) the total amount of customs duties owed on 107(c) of Pub. L. 108–77, see Effective and Ter- the materials on importation into the United States, mination Dates of 2003 Amendment note below. or ‘‘(B) the total amount of customs duties paid to the REFERENCES IN TEXT NAFTA country on the product, or’’. See Effective and Termination Dates of 2003 Amend- Sections 202 and 204 of the United States-Canada ment note below. Free-Trade Agreement Implementation Act of 1988, re- Subsec. (d). Pub. L. 108–77, §§ 107(c), 203(b)(2)(C), tem- ferred to in subsecs. (b) and (d), are sections 202 and 204 porarily substituted ‘‘except that—’’ and pars. (1) and of Pub. L. 100–449, which are set out in a note under sec- (2) for ‘‘except that in the case of a withdrawal for ex- tion 2112 of this title. portation to a NAFTA country, as defined in section Section 203(a) of the United States-Chile Free Trade 3301(4) of this title, if any of the imported metal-bear- Agreement Implementation Act, referred to in subsecs. ing materials are goods subject to NAFTA drawback, as (b)(1)(B), (4)(B) and (d)(2), is section 203(a) of Pub. L. defined in section 3333(a) of this title, charges against 108–77, which is set out in a note under section 3805 of the bond shall be paid before the 61st day after the date this title. of exportation; but upon the presentation, before such The Harmonized Tariff Schedule of the United States, 61st day, of satisfactory evidence of the amount of any referred to in subsec. (f), is not set out in the Code. See customs duties paid to the NAFTA country on the Publication of Harmonized Tariff Schedule note set out product, the bond shall be credited (subject to section under section 1202 of this title. 1508(b)(2)(B) of this title) in an amount not to exceed PRIOR PROVISIONS the lesser of— ‘‘(1) the total amount of customs duties paid or Provisions similar to those in this section were con- owed on the materials on importation into the United tained in act Oct. 3, 1913, ch. 16, § IV, N, subsection 1, States, or 38 Stat. 198, which was superseded by act Sept. 21, 1922, ‘‘(2) the total amount of customs duties paid to the ch. 356, title III, § 312, 42 Stat. 940, and repealed by sec- NAFTA country on the product.’’ tion 321 thereof. Section 312 of the act of 1922 was super- See Effective and Termination Dates of 2003 Amend- seded by section 312 of act June 17, 1930, and repealed ment note below. by section 651(a)(1) of the 1930 act. 1993—Subsec. (b). Pub. L. 103–182, § 203(b)(2)(B), in- Provisions more or less similar were contained in the serted concluding provisions following par. (5). Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 24, 36 Subsec. (b)(1). Pub. L. 103–182, § 203(b)(2)(A), struck Stat. 89, the Dingley Tariff Act of July 24, 1897, ch. 11, out ‘‘(other than exportation to Canada on or after Jan- § 29, 30 Stat. 210, the McKinley Tariff Act of Oct. 1, 1890, uary 1, 1994, or such later date as may be proclaimed by ch. 1244, § 24, 26 Stat. 617, and the Wilson Tariff Act of the President under section 204(b)(2)(B) of the United Aug. 27, 1894, ch. 349, § 21, 28 Stat. 551. States-Canada Free-Trade Agreement Implementation Previous provisions for sampling lead ores were con- Act of 1988, except to the extent that the metal-bearing tained in act Mar. 2, 1895, ch. 189, § 1, 28 Stat. 933, prior materials were of Canadian origin as determined in ac- to repeal by act Sept. 21, 1922, ch. 356, title III, § 321, 42 cordance with section 202 of such Act of 1988)’’ after Stat. 947. ‘‘upon the exportation’’ and inserted provisions excepting goods withdrawn for exportation to a NAFTA coun- AMENDMENTS try. 2003—Subsec. (b)(1). Pub. L. 108–77, §§ 107(c), Subsec. (b)(4). Pub. L. 103–182, § 203(b)(2)(A), struck 203(b)(2)(A), temporarily substituted ‘‘except that—’’ out ‘‘(other than exportation to Canada on or after Jan- and subpars. (A) and (B) for ‘‘except that in the case of uary 1, 1994, or such later date as may be proclaimed by a withdrawal for exportation of such a product to a the President under section 204(b)(2)(B) of the United NAFTA country, as defined in section 3301(4) of this States-Canada Free-Trade Agreement Implementation title, if any of the imported metal-bearing materials Act of 1988, except to the extent that the metal-bearing are goods subject to NAFTA drawback, as defined in materials were of Canadian origin as determined in ac- section 3333(a) of this title, the duties on the materials cordance with section 202 of such Act of 1988)’’ after shall be paid, and the charges against the bond can- ‘‘warehouse for exportation’’ and inserted provisions celed, before the 61st day after the date of exportation; excepting goods withdrawn for exportation to a NAFTA but upon the presentation, before such 61st day, of sat- country. § 1313 TITLE 19—CUSTOMS DUTIES Page 76

Subsec. (d). Pub. L. 103–182, § 203(b)(2)(C), struck out country, see section 213(c) of Pub. L. 103–182, set out as ‘‘(other than exportation to Canada on or after January an Effective Date note under section 3331 of this title. 1, 1994, or such later date as may be proclaimed by the EFFECTIVE AND TERMINATION DATES OF 1988 President under section 204(b)(2)(B) of the United AMENDMENTS States-Canada Free-Trade Agreement Implementation Act of 1988, except to the extent that the product is a Amendment by Pub. L. 100–449 effective on date the drawback eligible good under section 204(a) of such Act United States-Canada Free-Trade Agreement enters of 1988)’’ after ‘‘Upon the exportation’’ and inserted be- into force (Jan. 1, 1989), and to cease to have effect on fore concluding period provisions excepting goods with- date Agreement ceases to be in force, see section 501(a), drawn for exportation to a NAFTA country, including (c) of Pub. L. 100–449, set out in a note under section pars. (1) and (2), as well as sentence relating to condi- 2112 of this title. tions arising should Canada cease to be a NAFTA coun- Amendment by Pub. L. 100–418 effective Jan. 1, 1989, try. and applicable with respect to articles entered on or 1988—Subsec. (b)(1), (4). Pub. L. 100–449, § 204(c)(2)(A), after such date, see section 1217(b)(1) of Pub. L. 100–418, inserted ‘‘(other than exportation to Canada on or after set out as an Effective Date note under section 3001 of January 1, 1994, or such later date as may be pro- this title. claimed by the President under section 204(b)(2)(B) of EFFECTIVE DATE OF 1962 AMENDMENT the United States-Canada Free-Trade Agreement Im- Amendment by Pub. L. 87–456 effective with respect plementation Act of 1988, except to the extent that the to articles entered, or withdrawn from warehouse, for metal-bearing materials were of Canadian origin as de- consumption on or after Aug. 31, 1963, see section 501(a) termined in accordance with section 202 of such Act of of Pub. L. 87–456. 1988)’’ after ‘‘exportation’’. Subsec. (d). Pub. L. 100–449, § 204(c)(2)(B), inserted § 1313. Drawback and refunds ‘‘(other than exportation to Canada on or after January 1, 1994, or such later date as may be proclaimed by the (a) Articles made from imported merchandise President under section 204(b)(2)(B) of the United Upon the exportation or destruction under States-Canada Free-Trade Agreement Implementation customs supervision of articles manufactured or Act of 1988, except to the extent that the product is a produced in the United States with the use of drawback eligible good under section 204(a) of such Act imported merchandise, provided that those arti- of 1988)’’ after ‘‘exportation’’. Subsec. (f)(1). Pub. L. 100–418, § 1214(h)(1)(A), sub- cles have not been used prior to such expor- stituted ‘‘chapter 26 of the Harmonized Tariff Schedule tation or destruction, the full amount of the du- of the United States’’ for ‘‘schedule 6, part 1, of the ties paid upon the merchandise so used shall be Tariff Schedules of the United States’’ and ‘‘chapters 71 refunded as drawback, less 1 per centum of such through 83 of the Harmonized Tariff Schedule of the duties, except that such duties shall not be so United States’’ for ‘‘schedule 6, part 2, of such sched- refunded upon the exportation or destruction of ules’’ and struck out the quotation marks surrounding flour or by-products produced from imported ‘‘metal waste and scrap’’ and ‘‘unwrought metal’’. wheat. Where two or more products result from Subsec. (f)(2)(A). Pub. L. 100–418, § 1214(h)(1)(B), sub- the manipulation of imported merchandise, the stituted ‘‘chapters 71 through 83 of the Harmonized drawback shall be distributed to the several Tariff Schedule of the United States’’ for ‘‘part 2 of schedule 6’’ and ‘‘chapter 26 of the Harmonized Tariff products in accordance with their relative val- Schedule of the United States’’ for ‘‘part 1 of schedule ues at the time of separation. 6’’ and struck out single quotation marks surrounding (b) Substitution for drawback purposes ‘‘unwrought metal’’. If imported duty-paid merchandise and any Subsec. (f)(3). Pub. L. 100–418, § 1214(h)(1)(C), sub- other merchandise (whether imported or domes- stituted ‘‘of chapter 26 of the Harmonized Tariff Sched- ule of the United States’’ for ‘‘as defined in part 1 of tic) of the same kind and quality are used in the schedule 6’’. manufacture or production of articles within a 1962—Pub. L. 87–456 amended section generally, and period not to exceed three years from the re- among other changes, substituted ‘‘metal-bearing min- ceipt of such imported merchandise by the man- erals’’ for ‘‘ores or crude metals’’, authorized adjust- ufacturer or producer of such articles, there ment of the bond charge to reflect changes in the appli- shall be allowed upon the exportation, or de- cable rate of duty occurring while the imported mate- struction under customs supervision, of any rials are still covered by the bond, permitted two or such articles, notwithstanding the fact that more warehouses to be included under one general none of the imported merchandise may actually bond, prohibited allowances for wastage of copper, lead, and zinc, and defined ‘‘metal-bearing materials’’, have been used in the manufacture or produc- ‘‘smelting or refining’’, and ‘‘product of smelting or re- tion of the exported or destroyed articles, an fining’’. amount of drawback equal to that which would have been allowable had the merchandise used EFFECTIVE AND TERMINATION DATES OF 2003 therein been imported, but only if those articles AMENDMENT have not been used prior to such exportation or Amendment by Pub. L. 108–77 effective on the date destruction; but the total amount of drawback the United States-Chile Free Trade Agreement enters allowed upon the exportation or destruction into force (Jan. 1, 2004), and to cease to be effective on under customs supervision of such articles, to- the date the Agreement ceases to be in force, see sec- gether with the total amount of drawback al- tion 107(a), (c) of Pub. L. 108–77, set out in a note under lowed in respect of such imported merchandise section 3805 of this title. under any other provision of law, shall not ex- EFFECTIVE DATE OF 1993 AMENDMENT ceed 99 per centum of the duty paid on such im- Amendment by Pub. L. 103–182 applicable (1) with reported merchandise. spect to exports from the United States to Canada on (c) Merchandise not conforming to sample or Jan. 1, 1996, if Canada is a NAFTA country on that date specifications and after such date for so long as Canada continues to (1) Conditions for drawback be a NAFTA country and (2) with respect to exports from the United States to Mexico on Jan. 1, 2001, if Upon the exportation or destruction under Mexico is a NAFTA country on that date and after such the supervision of the Customs Service of arti- date for so long as Mexico continues to be a NAFTA cles or merchandise— Page 77 TITLE 19—CUSTOMS DUTIES § 1313

(A) upon which the duties have been paid, tions prescribed by the Commissioner of Inter- (B) which has been entered or withdrawn nal Revenue, with the approval of the Secretary for consumption, of the Treasury. (C) which is— (e) Imported salt for curing fish (i) not conforming to sample or speci- Imported salt in bond may be used in curing fications, shipped without the consent of fish taken by vessels licensed to engage in the the consignee, or determined to be defec- fisheries, and in curing fish on the shores of the tive as of the time of importation, or navigable waters of the United States, whether (ii) ultimately sold at retail by the im- such fish are taken by licensed or unlicensed porter, or the person who received the vessels, and upon proof that the salt has been merchandise from the importer under a used for either of such purposes, the duties on certificate of delivery, and for any reason the same shall be remitted. returned to and accepted by the importer, or the person who received the merchan- (f) Exportation of meats cured with imported dise from the importer under a certificate salt of delivery, and Upon the exportation of meats, whether packed or smoked, which have been cured in the (D) which, within 3 years after the date of United States with imported salt, there shall be importation or withdrawal, as applicable, refunded, upon satisfactory proof that such has been exported or destroyed under the su- meats have been cured with imported salt, the pervision of the Customs Service, duties paid on the salt so used in curing such ex- the full amount of the duties paid upon such ported meats, in amounts not less than $100. merchandise, less 1 percent, shall be refunded (g) Materials for construction and equipment of as drawback. vessels built for foreigners (2) Designation of import entries The provisions of this section shall apply to For purposes of paragraph (1)(C)(ii), draw- materials imported and used in the construction back may be claimed by designating an entry and equipment of vessels built for foreign ac- of merchandise that was imported within 1 count and ownership, or for the government of year before the date of exportation or destruc- any foreign country, notwithstanding that such tion of the merchandise described in para- vessels may not within the strict meaning of the graph (1)(A) and (B) under the supervision of term be articles exported. the Customs Service. The merchandise des- (h) Jet aircraft engines ignated for drawback must be identified in the Upon the exportation of jet aircraft engines import documentation with the same eight- manufactured or produced abroad that have digit classification number and specific prod- been overhauled, repaired, rebuilt, or recondi- uct identifier (such as part number, SKU, or tioned in the United States with the use of im- product code) as the returned merchandise. ported merchandise, including parts, there shall (3) When drawback certificates not required be refunded, upon satisfactory proof that such For purposes of this subsection, drawback imported merchandise has been so used, the du- certificates are not required if the drawback ties which have been paid thereon, in amounts claimant and the importer are the same party, not less than $100. or if the drawback claimant is a drawback suc- (i) Time limitation on exportation cessor to the importer as defined in subsection Unless otherwise provided for in this section, (s)(3) of this section. no drawback shall be allowed under the provi- (d) Flavoring extracts; medicinal or toilet prep- sions of this section unless the completed article arations; bottled distilled spirits and wines is exported, or destroyed under the supervision Upon the exportation of flavoring extracts, of the Customs Service, within five years after medicinal or toilet preparations (including per- importation of the imported merchandise. fumery) manufactured or produced in the United (j) Unused merchandise drawback States in part from domestic alcohol on which (1) If imported merchandise, on which was paid an internal-revenue tax has been paid, there any duty, tax, or fee imposed under Federal law shall be allowed a drawback equal in amount to upon entry or importation— the tax found to have been paid on the alcohol (A) is, before the close of the 3-year period so used. beginning on the date of importation— Upon the exportation of bottled distilled spir- (i) exported, or its and wines manufactured or produced in the (ii) destroyed under customs supervision; United States on which an internal-revenue tax and has been paid or determined, there shall be allowed, under regulations to be prescribed by the (B) is not used within the United States be- Commissioner of Internal Revenue, with the ap- fore such exportation or destruction; proval of the Secretary of the Treasury, a draw- then upon such exportation or destruction 99 back equal in amount to the tax found to have percent of the amount of each duty, tax, or fee been paid or determined on such bottled dis- so paid shall be refunded as drawback. The ex- tilled spirits and wines. In the case of distilled porter (or destroyer) has the right to claim spirits, the preceding sentence shall not apply drawback under this paragraph, but may en- unless the claim for drawback is filed by the dorse such right to the importer or any inter- bottler or packager of the spirits and unless mediate party. such spirits have been stamped or restamped, (2) Subject to paragraph (4), if there is, with and marked, especially for export, under regula- respect to imported merchandise on which was § 1313 TITLE 19—CUSTOMS DUTIES Page 78 paid any duty, tax, or fee imposed under Federal substituted for imported merchandise, other law upon entry or importation, any other mer- than merchandise described in paragraphs (1) chandise (whether imported or domestic), that— through (8) of section 203(a) of that Act [19 (A) is commercially interchangeable with U.S.C. 3333(a)], shall not constitute an expor- such imported merchandise; tation for purposes of paragraph (2). (B) is, before the close of the 3-year period (B) Beginning on January 1, 2015, the expor- beginning on the date of importation of the tation to Chile of merchandise that is fungible imported merchandise, either exported or de- with and substituted for imported merchandise, stroyed under customs supervision; and other than merchandise described in paragraphs (C) before such exportation or destruction— (1) through (5) of section 203(a) of the United (i) is not used within the United States, States-Chile Free Trade Agreement Implemen- and tation Act, shall not constitute an exportation (ii) is in the possession of, including own- for purposes of paragraph (2). The preceding sen- ership while in bailment, in leased facilities, tence shall not be construed to permit the sub- in transit to, or in any other manner under stitution of unused drawback under paragraph the operational control of, the party claim- (2) of this subsection with respect to merchan- ing drawback under this paragraph, if that dise described in paragraph (2) of section 203(a) party— of the United States-Chile Free Trade Agree- (I) is the importer of the imported mer- ment Implementation Act. chandise, or (k) Use of domestic merchandise acquired in ex- (II) received from the person who im- change for imported merchandise of same ported and paid any duty due on the im- kind and quality ported merchandise a certificate of delivery transferring to the party the imported (1) For purposes of subsections (a) and (b) of merchandise, commercially interchange- this section, the use of any domestic merchan- able merchandise, or any combination of dise acquired in exchange for imported merchan- imported and commercially interchange- dise of the same kind and quality shall be treat- able merchandise (and any such trans- ed as the use of such imported merchandise if no ferred merchandise, regardless of its ori- certificate of delivery is issued with respect to gin, will be treated as the imported mer- such imported merchandise. chandise and any retained merchandise (2) For purposes of subsections (a) and (b) of will be treated as domestic merchandise); this section, the use of any domestic merchandise acquired in exchange for a drawback prod- then, notwithstanding any other provision of uct of the same kind and quality shall be treat- law, upon the exportation or destruction of such ed as the use of such drawback product if no cer- other merchandise the amount of each such tificate of delivery or certificate of manufacture duty, tax, and fee paid regarding the imported and delivery pertaining to such drawback prod- merchandise shall be refunded as drawback uct is issued, other than that which documents under this subsection, but in no case may the the product’s manufacture and delivery. As used total drawback on the imported merchandise, in this paragraph, the term ‘‘drawback product’’ whether available under this paragraph or any means any domestically produced product, man- other provision of law or any combination there- ufactured with imported merchandise or any of, exceed 99 percent of that duty, tax, or fee. other merchandise (whether imported or domes- For purposes of subparagraph (A) of this para- tic) of the same kind and quality, that is subject graph, wine of the same color having a price var- to drawback. iation not to exceed 50 percent between the imported wine and the exported wine shall be (l) Regulations deemed to be commercially interchangeable. Allowance of the privileges provided for in this (3) The performing of any operation or combi- section shall be subject to compliance with such nation of operations (including, but not limited rules and regulations as the Secretary of the to, testing, cleaning, repacking, inspecting, Treasury shall prescribe, which may include, sorting, refurbishing, freezing, blending, repair- but need not be limited to, the authority for the ing, reworking, cutting, slitting, adjusting, re- electronic submission of drawback entries and placing components, relabeling, disassembling, the designation of the person to whom any re- and unpacking), not amounting to manufacture fund or payment of drawback shall be made. or production for drawback purposes under the (m) Source of payment preceding provisions of this section on— (A) the imported merchandise itself in cases Any drawback of duties that may be author- to which paragraph (1) applies, or ized under the provisions of this chapter shall be (B) the commercially interchangeable mer- paid from the customs receipts of Puerto Rico, chandise in cases to which paragraph (2) ap- if the duties were originally paid into the Treas- plies, ury of Puerto Rico. shall not be treated as a use of that merchandise (n) Refunds, waivers, or reductions under cer- for purposes of applying paragraph (1)(B) or tain free trade agreements (2)(C). (1) For purposes of this subsection and sub- (4)(A) Effective upon the entry into force of section (o) of this section— the North American Free Trade Agreement, the (A) the term ‘‘NAFTA Act’’ means the North exportation to a NAFTA country, as defined in American Free Trade Agreement Implementa- section 2(4) of the North American Free Trade tion Act [19 U.S.C. 3301 et seq.]; Agreement Implementation Act [19 U.S.C. (B) the terms ‘‘NAFTA country’’ and ‘‘good 3301(4)], of merchandise that is fungible with and subject to NAFTA drawback’’ have the same Page 79 TITLE 19—CUSTOMS DUTIES § 1313

respective meanings that are given such terms (2) If Canada ceases to be a NAFTA country in sections 2(4) and 203(a) of the NAFTA Act and the suspension of the operation of the [19 U.S.C. 3301(4), 3333(a)]; United States-Canada Free-Trade Agreement (C) a refund, waiver, or reduction of duty thereafter terminates, then for purposes of sub- under paragraph (2) of this subsection or para- section (g) of this section, vessels built for Cana- graph (1) of subsection (o) of this section is dian account and ownership, or for the Govern- subject to section 1508(b)(2)(B) of this title; ment of Canada, may not be considered to be and built for any foreign account and ownership, or (D) the term ‘‘good subject to Chile FTA for the government of any foreign country, ex- drawback’’ has the meaning given that term in cept to the extent that the materials in such section 203(a) of the United States-Chile Free vessels are drawback eligible goods under sec- Trade Agreement Implementation Act. tion 204(a) of the United States-Canada Free- (2) For purposes of subsections (a), (b), (f), (h), Trade Implementation Act of 1988. (p), and (q) of this section, if an article that is (3) For purposes of subsection (g) of this sec- exported to a NAFTA country is a good subject tion, if— (A) a vessel is built for the account and own- to NAFTA drawback, no customs duties on the ership of a resident of Chile or the Govern- good may be refunded, waived, or reduced in an ment of Chile, and amount that exceeds the lesser of— (B) imported materials that are used in the (A) the total amount of customs duties paid construction and equipment of the vessel are or owed on the good on importation into the goods subject to Chile FTA drawback, as de- United States, or (B) the total amount of customs duties paid fined in section 203(a) of the United States- on the good to the NAFTA country. Chile Free Trade Agreement Implementation Act, (3) If Canada ceases to be a NAFTA country no customs duties on such materials may be re- and the suspension of the operation of the funded, waived, or reduced, except as provided in United States-Canada Free-Trade Agreement paragraph (4). thereafter terminates, then for purposes of sub- (4) The customs duties referred to in para- sections (a), (b), (f), (h), (j)(2), and (q) of this sec- graph (3) may be refunded, waived or reduced tion, the shipment to Canada during the period by— such Agreement is in operation of an article (A) 100 percent during the 8-year period be- made from or substituted for, as appropriate, a ginning on January 1, 2004; drawback eligible good under section 204(a) of (B) 75 percent during the 1-year period begin- the United States-Canada Free-Trade Implemen- ning on January 1, 2012; tation Act of 1988 does not constitute an expor- (C) 50 percent during the 1-year period begin- tation. ning on January 1, 2013; and (4)(A) For purposes of subsections (a), (b), (f), (D) 25 percent during the 1-year period be- (h), (j)(2), (p), and (q) of this section, if an article ginning on January 1, 2014. that is exported to Chile is a good subject to Chile FTA drawback, no customs duties on the (p) Substitution of finished petroleum deriva- good may be refunded, waived, or reduced, ex- tives cept as provided in subparagraph (B). (1) In general (B) The customs duties referred to in subpara- Notwithstanding any other provision of this graph (A) may be refunded, waived, or reduced section, if— by— (A) an article (hereafter referred to in this (i) 100 percent during the 8-year period be- subsection as the ‘‘exported article’’) of the ginning on January 1, 2004; same kind and quality as a qualified article (ii) 75 percent during the 1-year period begin- is exported; ning on January 1, 2012; (B) the requirements set forth in para- (iii) 50 percent during the 1-year period be- graph (2) are met; and ginning on January 1, 2013; and (C) a drawback claim is filed regarding the (iv) 25 percent during the 1-year period be- exported article; ginning on January 1, 2014. drawback shall be allowed as described in o ( ) Special rules for certain vessels and imported paragraph (4). materials (2) Requirements (1) For purposes of subsection (g) of this sec- The requirements referred to in paragraph tion, if— (1) are as follows: (A) a vessel is built for the account and own- (A) The exporter of the exported article— ership of a resident of a NAFTA country or the (i) manufactured or produced a qualified government of a NAFTA country, and article in a quantity equal to or greater (B) imported materials that are used in the than the quantity of the exported article, construction and equipment of the vessel are (ii) purchased or exchanged, directly or goods subject to NAFTA drawback, indirectly, a qualified article from a manu- the amount of customs duties refunded, waived, facturer or producer described in sub- or reduced on such materials may not exceed section (a) or (b) of this section in a quan- the lesser of the total amount of customs duties tity equal to or greater than the quantity paid or owed on the materials on importation of the exported article, into the United States or the total amount of (iii) imported a qualified article in a customs duties paid on the vessel to the NAFTA quantity equal to or greater than the country. quantity of the exported article, or § 1313 TITLE 19—CUSTOMS DUTIES Page 80

(iv) purchased or exchanged, directly or designated on the certificate of delivery or indirectly, a qualified article from an im- certificate of manufacture and delivery porter in a quantity equal to or greater shall be the qualified article for purposes than the quantity of the exported article. of this section. A party who issues a cer- (B) In the case of the requirement de- tificate of delivery, or certificate of manu- scribed in subparagraph (A)(ii), the manufac- facture and delivery, shall also certify to turer or producer produced the qualified ar- the Commissioner of Customs that it has ticle in a quantity equal to or greater than not, and will not, issue such certificates the quantity of the exported article. for a quantity greater than the amount el- (C) In the case of the requirement of sub- igible for drawback and that appropriate paragraph (A)(i) or (A)(ii), the exported arti- records will be maintained to demonstrate cle is exported during the period that the that fact. qualified article described in subparagraph (B) An article, including an imported, (A)(i) or (A)(ii) (whichever is applicable) is manufactured, substituted, or exported arti- manufactured or produced, or within 180 cle, is of the same kind and quality as the days after the close of such period. qualified article for which it is substituted (D) In the case of the requirement of sub- under this subsection if it is a product that paragraph (A)(i) or (A)(ii), the specific petro- is commercially interchangeable with or re- leum refinery or production facility which ferred to under the same eight-digit classi- made the qualified article concerned is iden- fication of the Harmonized Tariff Schedule tified. of the United States as the qualified article. (E) In the case of the requirement of sub- If an article is referred to under the same paragraph (A)(iii) or (A)(iv), the exported ar- eight-digit classification of the Harmonized ticle is exported within 180 days after the Tariff Schedule of the United States as the date of entry of an imported qualified article qualified article on January 1, 2000, then described in subparagraph (A)(iii) or (A)(iv) whether or not the article has been reclassi- (whichever is applicable). fied under another eight-digit classification (F) Except as otherwise specifically pro- after January 1, 2000, the article shall be vided in this subsection, the drawback deemed to be an article that is referred to claimant complies with all requirements of under the same eight-digit classification of this section, including providing certificates such Schedule as the qualified article for which establish the drawback eligibility of purposes of the preceding sentence. articles for which drawback is claimed. (C) The term ‘‘drawback claimant’’ means (G) The manufacturer, producer, importer, the exporter of the exported article or the transferor, exporter, and drawback claimant refiner, producer, or importer of either the of the qualified article and the exported arti- qualified article or the exported article. Any cle maintain all records required by regula- person eligible to file a drawback claim tion. under this subparagraph may designate an- (3) ‘‘Qualified article’’ defined, etc. other person to file such claim. For purposes of this subsection— (4) Limitation on drawback (A) The term ‘‘qualified article’’ means an article— The amount of drawback payable under this (i) described in— subsection shall not exceed the amount of (I) headings 2707, 2708, 2709.00, 2710, 2711, drawback that would be attributable to the ar- 2712, 2713, 2714, 2715, 2901, and 2902, and ticle— subheadings 2903.21.00, 2909.19.14, 2917.36, (A) manufactured or produced under sub- 2917.39.04, 2917.39.15, 2926.10.00, 3811.21.00, section (a) or (b) of this section by the man- and 3811.90.00 of the Harmonized Tariff ufacturer or producer described in clause (i) Schedule of the United States, or or (ii) of paragraph (2)(A), or (II) headings 3901 through 3914 of such (B) imported under clause (iii) or (iv) of Schedule (as such headings apply to the paragraph (2)(A) had the claim qualified for primary forms provided under Note 6 to drawback under subsection (j) of this sec- chapter 39 of the Harmonized Tariff tion. Schedule of the United States), and (5) Special rules for ethyl alcohol (ii) which is— For purposes of this subsection, any duty (I) manufactured or produced as de- paid under subheading 9901.00.50 of the Har- scribed in subsection (a) or (b) of this monized Tariff Schedule of the United States section from crude petroleum or a petro- on imports of ethyl alcohol or a mixture of leum derivative, ethyl alcohol may not be refunded if the ex- (II) imported duty-paid, or ported article upon which a drawback claim is (III) an article of the same kind and based does not contain ethyl alcohol or a mix- quality as described in subparagraph (B), ture of ethyl alcohol. or any combination thereof, that is transferred, as so certified in a certifi- (q) Packaging material cate of delivery or certificate of manu- (1) Packaging material under subsections (c) facture and delivery in a quantity not and (j) greater than the quantity of articles pur- Packaging material, whether imported and chased or exchanged. duty paid, and claimed for drawback under ei- The transferred merchandise described in ther subsection (c) or (j)(1) of this section, or subclause (III), regardless of its origin, so imported and duty paid, or substituted, and Page 81 TITLE 19—CUSTOMS DUTIES § 1313

claimed for drawback under subsection (j)(2) of of time for retaining records set forth in sub- this section, shall be eligible for drawback, section (t) of this section and section 1508(c)(3) upon exportation, of 99 percent of any duty, of this title shall be extended for an additional tax, or fee imposed under Federal law on such 18 months or, in a case to which subparagraph imported material. (A)(ii) applies, for a period not to exceed 1 year (2) Packaging material under subsections (a) from the date the claim is filed. and (b) (C) For purposes of this paragraph, the term ‘‘major disaster’’ has the meaning given that Packaging material that is manufactured or term in section 5122(2) of title 42. produced under subsection (a) or (b) of this section shall be eligible for drawback, upon ex- (s) Designation of merchandise by successor portation, of 99 percent of any duty, tax, or fee (1) For purposes of subsection (b) of this sec- imposed under Federal law on the imported or tion, a drawback successor may designate im- substituted merchandise used to manufacture ported merchandise used by the predecessor be- or produce such material. fore the date of succession as the basis for draw- (3) Contents back on articles manufactured by the drawback Packaging material described in paragraphs successor after the date of succession. (1) and (2) shall be eligible for drawback (2) For purposes of subsection (j)(2) of this sec- whether or not they contain articles or mer- tion, a drawback successor may designate— chandise, and whether or not any articles or (A) imported merchandise which the prede- merchandise they contain are eligible for cessor, before the date of succession, imported; drawback. or (B) imported merchandise, commercially (4) Employing packaging material for its in- interchangeable merchandise, or any combina- tended purpose prior to exportation tion of imported and commercially inter- The use of any packaging material for its in- changeable merchandise for which the prede- tended purpose prior to exportation shall not cessor received, before the date of succession, be treated as a use of such material prior to from the person who imported and paid any exportation for purposes of applying sub- duty due on the imported merchandise a cer- section (a), (b), or (c) of this section, or para- tificate of delivery transferring to the prede- graph (1)(B) or (2)(C)(i) of subsection (j) of this cessor such merchandise; section. as the basis for drawback on merchandise pos- (r) Filing drawback claims sessed by the drawback successor after the date (1) A drawback entry and all documents nec- of succession. essary to complete a drawback claim, including (3) For purposes of this subsection, the term those issued by the Customs Service, shall be ‘‘drawback successor’’ means an entity to which filed or applied for, as applicable, within 3 years another entity (in this subsection referred to as after the date of exportation or destruction of the ‘‘predecessor’’) has transferred by written the articles on which drawback is claimed, ex- agreement, merger, or corporate resolution— cept that any landing certificate required by (A) all or substantially all of the rights, regulation shall be filed within the time limit privileges, immunities, powers, duties, and li- prescribed in such regulation. Claims not com- abilities of the predecessor; or pleted within the 3-year period shall be consid- (B) the assets and other business interests of ered abandoned. No extension will be granted a division, plant, or other business unit of unless it is established that the Customs Service such predecessor, but only if in such transfer was responsible for the untimely filing. the value of the transferred realty, personalty, (2) A drawback entry for refund filed pursuant and intangibles (other than drawback rights, to any subsection of this section shall be deemed inchoate or otherwise) exceeds the value of all filed pursuant to any other subsection of this transferred drawback rights, inchoate or section should it be determined that drawback otherwise. is not allowable under the entry as originally filed but is allowable under such other sub- (4) No drawback shall be paid under this subsection. section until either the predecessor or the draw- (3)(A) The Customs Service may, notwith- back successor (who shall also certify that it standing the limitation set forth in paragraph has the predecessor’s records) certifies that— (1), extend the time for filing a drawback claim (A) the transferred merchandise was not and for a period not to exceed 18 months, if— will not be claimed by the predecessor, and (i) the claimant establishes to the satisfac- (B) the predecessor did not and will not issue tion of the Customs Service that the claimant any certificate to any other person that would was unable to file the drawback claim because enable that person to claim drawback. of an event declared by the President to be a (t) Drawback certificates major disaster on or after January 1, 1994; and Any person who issues a certificate which (ii) the claimant files a request for such ex- would enable another person to claim drawback tension with the Customs Service— shall be subject to the recordkeeping provisions (I) within 1 year from the last day of the of this chapter, with the retention period begin- 3-year period referred to in paragraph (1), or ning on the date that such certificate is issued. (II) within 1 year after October 11, 1996, (u) Eligibility of entered or withdrawn merchan- whichever is later. dise (B) If an extension is granted with respect to Imported merchandise that has not been regu- a request filed under this paragraph, the periods larly entered or withdrawn for consumption § 1313 TITLE 19—CUSTOMS DUTIES Page 82 shall not satisfy any requirement for use, expor- Dec. 8, 1993, 107 Stat. 2089, 2092, 2192; Pub. L. tation, or destruction under this section. 103–465, title IV, §§ 404(e)(5)(A), 422(d), Dec. 8, (v) Multiple drawback claims 1994, 108 Stat. 4961, 4965; Pub. L. 104–295, §§ 7, 10, 21(e)(4), Oct. 11, 1996, 110 Stat. 3518, 3519, 3530; Merchandise that is exported or destroyed to Pub. L. 106–36, title II, §§ 2404(a), 2419(a), satisfy any claim for drawback shall not be the 2420(a)–(d), June 25, 1999, 113 Stat. 169, 178, 179; basis of any other claim for drawback; except Pub. L. 106–476, title I, §§ 1422(a)(1), (b), 1462(a), that appropriate credit and deductions for Nov. 9, 2000, 114 Stat. 2156, 2172; Pub. L. 108–77, claims covering components or ingredients of title II, § 203(b)(3), Sept. 3, 2003, 117 Stat. 927; such merchandise shall be made in computing Pub. L. 108–429, title I, §§ 1556, 1557(a), 1563(a)–(d), drawback payments. title II, § 2004(d)(6), Dec. 3, 2004, 118 Stat. 2579, (w) Limited applicability for certain agricultural 2583–2585, 2592; Pub. L. 110–234, title XV, products §§ 15334(a), 15421(a), May 22, 2008, 122 Stat. 1517, (1) In general 1547; Pub. L. 110–246, § 4(a), title XV, §§ 15334(a), No drawback shall be available with respect 15421(a), June 18, 2008, 122 Stat. 1664, 2279, 2309.) to an agricultural product subject to the over- AMENDMENT OF SECTION quota rate of duty established under a tariff- For termination of amendment by section rate quota, except pursuant to subsection (j)(1) 107(c) of Pub. L. 108–77, see Effective and Ter- of this section. mination Dates of 2003 Amendment note below. (2) Application to tobacco REFERENCES IN TEXT Notwithstanding paragraph (1), drawback Section 203(a) of the United States-Chile Free Trade shall also be available pursuant to subsection Agreement Implementation Act, referred to in subsecs. (a) of this section with respect to any tobacco (j)(4)(B), (n)(1)(D), and (o)(3)(B), is section 203(a) of Pub. subject to the over-quota rate of duty estab- L. 108–77, which is set out in a note under section 3805 lished under a tariff-rate quota. of this title. The North American Free Trade Agreement Imple- (x) Drawbacks for recovered materials mentation Act, referred to in subsec. (n)(1)(A), is Pub. For purposes of subsections (a), (b), and (c) of L. 103–182, Dec. 8, 1993, 107 Stat. 2057, as amended. For this section, the term ‘‘destruction’’ includes a complete classification of this Act to the Code, see process by which materials are recovered from Short Title note set out under section 3301 of this title and Tables. imported merchandise or from an article manu- Section 204 of the United States-Canada Free-Trade factured from imported merchandise. In deter- Agreement Implementation Act of 1988, referred to in mining the amount of duties to be refunded as subsecs. (n)(3) and (o)(2), is section 204 of Pub. L. drawback to a claimant under this subsection, 100–449, which is set out in a note under section 2112 of the value of recovered materials (including the this title. value of any tax benefit or royalty payment) The Harmonized Tariff Schedule of the United States, that accrues to the drawback claimant shall be referred to in subsec. (p)(3)(A)(i), (B), (5), is not set out in the Code. See Publication of Harmonized Tariff deducted from the value of the imported mer- Schedule note set out under section 1202 of this title. chandise that is destroyed, or from the value of the merchandise used, or designated as used, in CODIFICATION the manufacture of the article. Pub. L. 110–234 and Pub. L. 110–246 made identical (y) Articles shipped to the United States insular amendments to this section. The amendments by Pub. possessions L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. Articles described in subsection (j)(1) of this PRIOR PROVISIONS section shall be eligible for drawback under this section if duty was paid on the merchandise Provisions similar to those in this section were con- upon importation into the United States and the tained in act Oct. 3, 1913, ch. 16, § IV, O, 38 Stat. 200, person claiming the drawback demonstrates which was superseded by act Sept. 21, 1922, ch. 356, title III, § 313, 42 Stat. 940, and repealed by section 321 there- that the merchandise has entered the customs of. Section 313 of the 1922 act was superseded by section territory of the United States Virgin Islands, 313 of act June 17, 1930, comprising this section, and re- American Samoa, Wake Island, Midway Islands, pealed by section 651(a)(1) of the 1930 act. Kingman Reef, Guam, Canton Island, Enderbury Earlier provisions relating to this subject were made Island, Johnston Island, or Palmyra Island. by the Tariff Acts of Oct. 1, 1890, ch. 1244, § 25, 26 Stat. 617; Aug. 27, 1894, ch. 349, § 22, 28 Stat. 551; July 24, 1897, (June 17, 1930, ch. 497, title III, § 313, 46 Stat. 693; ch. 11, § 30, 30 Stat. 211; and Aug. 5, 1909, ch. 6, § 25, 36 May 17, 1932, ch. 190, 47 Stat. 158; June 26, 1936, Stat. 90, which superseded provisions of a similar na- ch. 830, title IV, §§ 402, 403, 49 Stat. 1960; Aug. 8, ture contained in R.S. §§ 3019, 3020, 3026, as amended by 1951, ch. 297, 65 Stat. 175; Aug. 8, 1953, ch. 397, § 12, act Mar. 10, 1880, ch. 37, 21 Stat. 67, and said sections 67 Stat. 515; Aug. 6, 1956, ch. 1021, § 2, 70 Stat. 3019, 3020, and 3026, were also repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. 1076; Pub. L. 85–673, § 1, Aug. 18, 1958, 72 Stat. 624; The provisions of section IV, O, of the act of 1913, Pub. L. 90–630, § 2(b), Oct. 22, 1968, 82 Stat. 1328; similar to subdivision (g) of this section concerning Pub. L. 91–692, § 3(a), Jan. 12, 1971, 84 Stat. 2076; materials used in the construction and equipment of Pub. L. 96–609, title II, § 201(a), Dec. 28, 1980, 94 vessels built for foreign account, superseded a similar Stat. 3560; Pub. L. 98–573, title II, § 202, Oct. 30, provision of act June 26, 1884, ch. 121, § 17, 23 Stat. 57. 1984, 98 Stat. 2973; Pub. L. 99–514, title XVIII, The provisions of subsec. (e) of this section concern- § 1888(2), Oct. 22, 1986, 100 Stat. 2924; Pub. L. ing imported salt used in curing fish superseded somewhat similar provisions in R.S. § 3022, which was re- 100–449, title II, § 204(c)(3), Sept. 28, 1988, 102 Stat. pealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 1862; Pub. L. 101–382, title I, § 134(a)(1), (2), title Stat. 989. III, § 484A(a), Aug. 20, 1990, 104 Stat. 649, 707; Pub. Section 642 of the act of Sept. 21, 1922, also repealed L. 103–182, title II, § 203(b)(3), (c), title VI, § 632(a), sections 3015 to 3026, inclusive, 3028 to 3047, inclusive, Page 83 TITLE 19—CUSTOMS DUTIES § 1313 and 3049 to 3057, inclusive of the Revised Statutes, Subsec. (n). Pub. L. 108–77, §§ 107(c), 203(b)(3)(B)(i), which were concerned with the subject of drawback. temporarily inserted heading. See Effective and Termi- R.S. § 3048, which was not repealed, read as follows: nation Dates of 2003 Amendment note below. ‘‘So much money as may be necessary for the payment Subsec. (n)(1). Pub. L. 108–77, §§ 107(c), 203(b)(3)(B)(ii), of debentures or drawbacks and allowances which may temporarily added subpar. (D). See Effective and Ter- be authorized and payable, is hereby appropriated for mination Dates of 2003 Amendment note below. that purpose out of any money in the Treasury, to be Subsec. (n)(4). Pub. L. 108–77, §§ 107(c), 203(b)(3)(B)(iii), expended under the direction of the Secretary of that temporarily added par. (4). See Effective and Termi- Department, according to the laws authorizing deben- nation Dates of 2003 Amendment note below. tures or drawbacks and allowances. The collectors of Subsec. (o). Pub. L. 108–77, §§ 107(c), 203(b)(3)(C)(i), the customs shall be the disbursing agents to pay such temporarily inserted heading. See Effective and Termi- debentures, drawbacks, and allowances. All debenture nation Dates of 2003 Amendment note below. certificates issued according to law shall be received in Subsec. (o)(3), (4). Pub. L. 108–77, §§ 107(c), payment of duties at the customhouse where the same 203(b)(3)(C)(ii), temporarily added pars. (3) and (4). See have been issued, the laws regulating drawbacks having Effective and Termination Dates of 2003 Amendment been complied with.’’ note below. Permanent appropriations to pay debentures and 2000—Subsec. (p)(3)(A)(i)(I). Pub. L. 106–476, other charges arising from duties, drawbacks, bounties, § 1422(a)(1), inserted ‘‘2709.00,’’ after ‘‘2708,’’ and sub- and allowances were also contained in R.S. § 3689, incor- stituted ‘‘and 2902, and subheadings 2903.21.00, 2909.19.14, porated in section 711 of former Title 31, Money and Fi- 2917.36, 2917.39.04, 2917.39.15, 2926.10.00, 3811.21.00, and nance, prior to repeal effective July 1, 1935, by act June 3811.90.00’’ for ‘‘2902, and 2909.19.14’’. 26, 1934, ch. 756, §§ 1, 2, 48 Stat. 1225. Subsec. (p)(3)(B). Pub. L. 106–476, § 1422(b), inserted at end ‘‘If an article is referred to under the same eight- AMENDMENTS digit classification of the Harmonized Tariff Schedule 2008—Subsec. (j)(2). Pub. L. 110–246, § 15421(a), inserted of the United States as the qualified article on January at end of concluding provisions ‘‘For purposes of sub- 1, 2000, then whether or not the article has been reclas- paragraph (A) of this paragraph, wine of the same color sified under another eight-digit classification after having a price variation not to exceed 50 percent be- January 1, 2000, the article shall be deemed to be an ar- tween the imported wine and the exported wine shall be ticle that is referred to under the same eight-digit clas- deemed to be commercially interchangeable.’’ sification of such Schedule as the qualified article for Subsec. (p)(5). Pub. L. 110–246, § 15334(a), added par. (5). purposes of the preceding sentence.’’ 2004—Subsec. (c). Pub. L. 108–429, § 1563(a), amended Subsec. (x). Pub. L. 106–476, § 1462(a), added subsec. (x). heading and text of subsec. (c) generally. Prior to 1999—Subsec. (p)(1). Pub. L. 106–36, § 2420(a), sub- amendment, text read as follows: ‘‘Upon the expor- stituted concluding provisions for former concluding tation, or destruction under the supervision of the Cus- provisions which read as follows: ‘‘the amount of the toms Service, of merchandise— duties paid on, or attributable to, such qualified article ‘‘(1) not conforming to sample or specifications, shall be refunded as drawback to the drawback claim- shipped without the consent of the consignee, or de- ant’’. termined to be defective as of the time of importa- Subsec. (p)(2)(A)(i) to (iii). Pub. L. 106–36, tion; § 2420(b)(1)(A), substituted ‘‘a qualified article’’ for ‘‘the ‘‘(2) upon which the duties have been paid; qualified article’’. ‘‘(3) which has been entered or withdrawn for con- Subsec. (p)(2)(A)(iv). Pub. L. 106–36, § 2420(b)(1)(B), sumption; and substituted ‘‘a qualified article’’ for ‘‘an imported ‘‘(4) which, within 3 years after release from the qualified article’’. custody of the Customs Service, has been returned to Subsec. (p)(2)(G). Pub. L. 106–36, § 2420(b)(2), inserted the custody of the Customs Service for exportation or ‘‘transferor,’’ after ‘‘importer,’’. destruction under the supervision of the Customs Subsec. (p)(3)(A)(i)(I). Pub. L. 106–36, § 2419(a), sub- Service; stituted ‘‘2902, and 2909.19.14’’ for ‘‘and 2902’’. the full amount of the duties paid upon such merchan- Subsec. (p)(3)(A)(i)(II). Pub. L. 106–36, § 2420(c)(1)(A), dise, less 1 percent, shall be refunded as drawback.’’ substituted ‘‘the primary forms provided under Note 6 Subsec. (i). Pub. L. 108–429, § 1563(b), substituted ‘‘Un- to chapter 39 of the Harmonized Tariff Schedule of the less otherwise provided for in this section, no’’ for United States’’ for ‘‘liquids, pastes, powders, granules, ‘‘No’’ and inserted ‘‘, or destroyed under the super- and flakes’’. vision of the Customs Service,’’ after ‘‘exported’’. Subsec. (p)(3)(A)(ii). Pub. L. 106–36, § 2420(c)(1)(B), Subsec. (j)(1). Pub. L. 108–429, § 1557(a)(1), substituted added subcl. (III) and concluding provisions. ‘‘upon entry or’’ for ‘‘because of its’’ in introductory Subsec. (p)(3)(B). Pub. L. 106–36, § 2420(c)(2), sub- provisions. stituted ‘‘article, including an imported, manufactured, Subsec. (j)(2). Pub. L. 108–429, § 1557(a)(2), in introduc- substituted, or exported article,’’ for ‘‘exported arti- tory provisions, substituted ‘‘upon entry or’’ for ‘‘be- cle’’. cause of its’’ and, in concluding provisions, substituted Subsec. (p)(3)(C). Pub. L. 106–36, § 2420(c)(3), sub- ‘‘then, notwithstanding any other provision of law, stituted ‘‘either the qualified article or the exported upon’’ for ‘‘then upon’’ and ‘‘shall be refunded as draw- article.’’ for ‘‘such article.’’ back under this subsection’’ for ‘‘shall be refunded as Subsec. (p)(4)(B). Pub. L. 106–36, § 2420(d), inserted drawback’’. ‘‘had the claim qualified for drawback under subsection Subsec. (k). Pub. L. 108–429, § 1563(c), designated exist- (j) of this section’’ before period at end. ing provisions as par. (1) and added par. (2). Subsec. (q). Pub. L. 106–36, § 2404(a), designated exist- Subsec. (n)(1)(B). Pub. L. 108–429, § 2004(d)(6), inserted ing provisions as par. (1), inserted heading, realigned semicolon at end. margins, and added par. (2). Subsec. (q). Pub. L. 108–429, § 1563(d), amended heading 1996—Subsec. (j)(2). Pub. L. 104–295, § 21(e)(4)(A), re- and text of subsec. (q) generally. Prior to amendment, aligned margins. text related to drawback eligibility of packaging mate- Subsec. (r)(3). Pub. L. 104–295, § 7, added par. (3). rial for articles or merchandise exported or destroyed Subsec. (s)(2)(B). Pub. L. 104–295, § 10, substituted under subsection (a), (b), (c), or (j) of this section and ‘‘predecessor’’ for ‘‘successor’’ in two places. additional eligibility for packaging material produced Subsec. (t). Pub. L. 104–295, § 21(e)(4)(B), made tech- in the United States. nical amendment to reference in original act which ap- Subsec. (y). Pub. L. 108–429, § 1556, added subsec. (y). pears as reference to this chapter. 2003—Subsec. (j)(4). Pub. L. 108–77, §§ 107(c), 1994—Subsec. (w). Pub. L. 103–465, § 422(d), designated 203(b)(3)(A), temporarily designated existing provisions existing provisions as par. (1), inserted heading, and as subpar. (A) and added subpar. (B). See Effective and added par. (2). Termination Dates of 2003 Amendment note below. Pub. L. 103–465, § 404(e)(5)(A), added subsec. (w). § 1313 TITLE 19—CUSTOMS DUTIES Page 84

1993—Subsec. (a). Pub. L. 103–182, § 632(a)(1), inserted and amended par. (4) relating to the performing of inci- ‘‘or destruction under customs supervision’’ after dental operations generally. Prior to amendment, such ‘‘Upon the exportation’’, ‘‘provided that those articles par. (4) read as follows: ‘‘The performing of incidental have not been used prior to such exportation or de- operations (including, but not limited to, testing, struction,’’ after ‘‘use of imported merchandise,’’, and cleaning, repacking, and inspecting) on the imported ‘‘or destruction’’ after ‘‘refunded upon the expor- merchandise itself, not amounting to manufacture or tation’’, and substituted ‘‘by-products produced from production for drawback purposes under the preceding imported wheat’’ for ‘‘by-products produced from wheat provisions of this section, shall not be treated as a use imported after ninety days after June 17, 1930’’. of that merchandise for purposes of applying paragraph Subsec. (b). Pub. L. 103–182, § 632(a)(2), substituted (1)(B).’’ ‘‘any other merchandise (whether imported or domes- 1984—Subsec. (j)(2) to (4). Pub. L. 98–573, § 202(1), redes- tic)’’ for ‘‘duty-free or domestic merchandise’’, inserted ignated par. (2), relating to the performing of inciden- ‘‘, or destruction under customs supervision,’’ after tal operations, as (4), and inserted after par. (1) new ‘‘there shall be allowed upon the exportation’’, subpars. (3) and (4). stituted ‘‘production of the exported or destroyed arti- Subsecs. (k) to (m). Pub. L. 98–573, § 202(2), (3), added cles’’ for ‘‘production of the exported articles’’, inserted subsec. (k) and redesignated former subsecs. (k) and (l) ‘‘, but only if those articles have not been used prior to as (l) and (m), respectively. such exportation or destruction’’ after ‘‘merchandise 1980—Subsecs. (j) to (l). Pub. L. 96–609, § 201(a), added used therein been imported’’ and ‘‘or destruction under subsec. (j) and redesignated former subsecs. (j) and (k) customs supervision’’ after ‘‘but the total amount of as (k) and (l), respectively. drawback allowed upon the exportation’’. 1971—Subsecs. (h) to (k). Pub. L. 91–692 added subsec. Subsec. (c). Pub. L. 103–182, § 632(a)(3), amended sub- (h) and redesignated former subsecs. (h) to (j) as (i) to sec. (c) generally. Prior to amendment, subsec. (c) read (k), respectively. as follows: ‘‘Upon the exportation of merchandise not 1968—Subsec. (d). Pub. L. 90–630 permitted, under conforming to sample or specifications or shipped with- Treasury regulations, the drawback of tax with regard out the consent of the consignee upon which the duties to distilled spirits exported as ships’ stores where the have been paid and which have been entered or with- stamping, restamping, or marking is done after the drawn for consumption and, within ninety days after spirits have been removed from the original bottling release from customs custody, unless the Secretary au- plant. thorizes in writing a longer time, returned to customs 1958—Subsec. (b). Pub. L. 85–673 substituted ‘‘mer- custody for exportation, the full amount of the duties chandise’’ for ‘‘sugar, or metal, or ore containing paid upon such merchandise shall be refunded as draw- metal, or flaxseed or linseed, or flaxseed or linseed oil, back, less 1 per centum of such duties.’’ or printing papers coated or uncoated,’’ after ‘‘duty- Subsec. (j). Pub. L. 103–182, § 203(c)(1), (2), substituted paid’’ and ‘‘allowable had the’’. ‘‘Subject to paragraph (4), if’’ for ‘‘If’’ in par. (2) and 1956—Subsec. (b). Act Aug. 6, 1956, inserted ‘‘or print- added par. (4). See Construction of 1993 Amendment ing papers, coated or uncoated,’’ after ‘‘linseed oil,’’ note below. wherever appearing. Pub. L. 103–182, § 632(a)(4), amended subsec. (j) gener- 1953—Subsec. (b). Act Aug. 8, 1953, § 12(a), extended ally, substituting present provisions for provisions from one year to three years the period during which which authorized drawbacks for imported merchandise substitution for drawback purposes may be made. which, upon either exportation or destruction, was in Subsec. (c). Act Aug. 8, 1953, § 12(b), extended the pe- the same condition as when imported. riod during which the merchandise can be returned to Subsec. (l). Pub. L. 103–182, § 632(a)(5), substituted customs custody for exportation from thirty days to ‘‘the authority for the electronic submission of draw- ninety days or such longer period as the Secretary of back entries’’ for ‘‘the fixing of a time limit within the Treasury may allow; and provided for the refunding which drawback entries or entries for refund under any of duties in cases where the merchandise upon which of the provisions of this section or section 1309(b) of the duties have been paid was sent to the consignee this title shall be filed and completed,’’. without his consent. Subsecs. (n), (o). Pub. L. 103–182, § 203(b)(3), amended Subsec. (h). Act Aug. 8, 1953, § 12(c), substituted ref- subsecs. (n) and (o) generally, substituting present pro- erence to ‘‘this section’’ for ‘‘this section or of section visions for provisions which related to, in subsec. (n), 152a of this title (relating to drawback on shipments to drawback-eligible goods under United States-Canada the Philippine Islands),’’; struck out another reference Free-Trade Agreement Implementation Act of 1988 and, to the Philippine Islands; and substituted ‘‘five years’’ in subsec. (o), vessels built for Canadian account or for for ‘‘three years’’. Government of Canada. Subsec. (i). Act Aug. 8, 1953, § 12(c), broadened the au- Subsec. (p). Pub. L. 103–182, § 632(a)(6), amended sub- thority of the Secretary of the Treasury to make such sec. (p) generally, substituting present provisions for regulations for the administration of the drawback pro- provisions relating to substitution of crude petroleum visions as may be necessary. or petroleum derivatives. 1951—Subsec. (b). Act Aug. 8, 1951, extended the provi- Subsecs. (q) to (v). Pub. L. 103–182, § 632(a)(7), added sions of such subsection to flaxseed and linseed, and subsecs. (q) to (v). flaxseed and linseed oil, and omitted ‘‘(or shipment to 1990—Subsec. (n). Pub. L. 101–382, § 134(a)(1), inserted the Philippine Islands)’’ before ‘‘of any such articles’’. ‘‘, except an article’’ before ‘‘made from’’ and sub- 1936—Subsec. (d). Act June 26, 1936, inserted second stituted comma for ‘‘of 1988’’ before ‘‘does not’’. par. Subsec. (o). Pub. L. 101–382, § 134(a)(2), inserted at end CHANGE OF NAME ‘‘This subsection shall apply to vessels delivered to Ca- nadian account or owner, or to the Government of Can- ‘‘Puerto Rico’’ substituted in subsec. (j) for ‘‘Porto ada, on and after January 1, 1994 (or, if later, the date Rico’’ pursuant to act May 17, 1932, which is classified proclaimed by the President under section 204(b)(2)(B) to section 731a of Title 48, Territories and Insular Pos- of the United States-Canada Free-Trade Agreement Im- sessions. plementation Act of 1988).’’ EFFECTIVE DATE OF 2008 AMENDMENT Subsec. (p). Pub. L. 101–382, § 484A(a), added subsec. (p). Amendment of this section and repeal of Pub. L. 1988—Subsecs. (n), (o). Pub. L. 100–449 added subsecs. 110–234 by Pub. L. 110–246 effective May 22, 2008, the (n) and (o). date of enactment of Pub. L. 110–234, except as other- 1986—Subsec. (j)(2), (3). Pub. L. 99–514, § 1888(2)(A), re- wise provided, see section 4 of Pub. L. 110–246, set out designated par. (3) as (2) and redesignated par. (4) relat- as an Effective Date note under section 8701 of Title 7, ing to imported packaging material as (3). Agriculture. Subsec. (j)(4). Pub. L. 99–514, § 1888(2), redesignated Pub. L. 110–234, title XV, § 15334(b), May 22, 2008, 122 par. (4) relating to imported packaging material as (3) Stat. 1517, and Pub. L. 110–246, § 4(a), title XV, § 15334(b), Page 85 TITLE 19—CUSTOMS DUTIES § 1313

June 18, 2008, 122 Stat. 1664, 2279, provided that: ‘‘The ‘‘(B) any drawback entry filed before such date of amendment made by this section [amending this sec- enactment if the liquidation of the entry is not final tion] applies with respect to— on such date of enactment.’’ ‘‘(1) imports of ethyl alcohol or a mixture of ethyl Pub. L. 106–476, title I, § 1462(b), Nov. 9, 2000, 114 Stat. alcohol entered for consumption, or withdrawn from 2173, provided that: ‘‘The amendment made by this sec- warehouse for consumption, on or after October 1, tion [amending this section] shall apply to drawback 2008; and claims filed on or after the date of the enactment of ‘‘(2) imports of ethyl alcohol or a mixture of ethyl this Act [Nov. 9, 2000].’’ alcohol entered for consumption, or withdrawn from Amendment by title I of Pub. L. 106–476, except as warehouse for consumption, before October 1, 2008, if otherwise provided, applicable with respect to goods a duty drawback claim is filed with respect to such entered, or withdrawn from warehouse, for consump- imports on or after October 1, 2010.’’ tion, on or after the 15th day after Nov. 9, 2000, see sec- [Pub. L. 110–234 and Pub. L. 110–246 enacted identical tion 1471 of Pub. L. 106–476, set out as a note under sec- provisions. Pub. L. 110–234 was repealed by section 4(a) tion 58c of this title. of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.] EFFECTIVE DATE OF 1999 AMENDMENT Pub. L. 110–234, title XV, § 15421(b), May 22, 2008, 122 Pub. L. 106–36, title II, § 2404(b), June 25, 1999, 113 Stat. Stat. 1547, and Pub. L. 110–246, § 4(a), title XV, § 15421(b), 169, provided that: ‘‘The amendment made by this sec- June 18, 2008, 122 Stat. 1664, 2309, provided that: ‘‘The tion [amending this section] applies with respect to amendment made by subsection (a) [amending this sec- goods entered, or withdrawn from warehouse for con- tion] shall apply with respect to claims filed for draw- sumption, on or after the 15th day after the date of the back under section 313(j)(2) of the Tariff Act of 1930 [19 enactment of this Act [June 25, 1999].’’ U.S.C. 1313(j)(2)] on or after the date of the enactment Pub. L. 106–36, title II, § 2419(b), June 25, 1999, 113 Stat. of this Act [June 18, 2008].’’ 178, provided that: ‘‘The amendment made by this sec- [Pub. L. 110–234 and Pub. L. 110–246 enacted identical tion [amending this section] shall take effect on the provisions. Pub. L. 110–234 was repealed by section 4(a) date of the enactment of this Act [June 25, 1999], and of Pub. L. 110–246, set out as a note under section 8701 shall apply to drawback claims filed on and after such of Title 7, Agriculture.] date.’’ Pub. L. 106–36, title II, § 2420(e), June 25, 1999, 113 Stat. EFFECTIVE DATE OF 2004 AMENDMENT 179, provided that: ‘‘The amendments made by this sec- Pub. L. 108–429, title I, § 1557(b), Dec. 3, 2004, 118 Stat. tion [amending this section] shall take effect as if in- 2579, provided that: ‘‘The amendments made by this cluded in the amendment made by section 632(a)(6) of section [amending this section] shall take effect on the the North American Free Trade Agreement Implemen- date of the enactment of this Act [Dec. 3, 2004], and tation Act [Pub. L. 103–182, amending this section]. For shall apply to any drawback claim filed on or after that purposes of section 632(b) of that Act [set out as a note date and to any drawback entry filed before that date below], the 3-year requirement set forth in section if the liquidation of the entry is not final on that 313(r) of the Tariff Act of 1930 [19 U.S.C. 1313(r)] shall date.’’ not apply to any drawback claim filed within 6 months Pub. L. 108–429, title I, § 1563(g)(1), Dec. 3, 2004, 118 after the date of the enactment of this Act [June 25, Stat. 2587, provided that: ‘‘The amendments made by 1999] for which that 3-year period would have expired.’’ subsections (a), (b), (c), (d), and (f) [amending this section and section 1593a of this title] shall take effect on EFFECTIVE DATE OF 1994 AMENDMENT the date of the enactment of this Act [Dec. 3, 2004], and Pub. L. 103–465, title IV, § 404(e)(5)(B), Dec. 8, 1994, 108 shall apply to— Stat. 4961, provided that: ‘‘The amendment made by ‘‘(A) any drawback entry filed on and after such subparagraph (A) [amending this section] shall take ef- date of enactment; and fect on the earlier of the date of entry into force of the ‘‘(B) any drawback entry filed before such date of WTO Agreement with respect to the United States enactment if the liquidation of the entry is not final [Jan. 1, 1995] or January 1, 1995.’’ on such date of enactment.’’ Pub. L. 103–465, title IV, § 422(e), Dec. 8, 1994, 108 Stat. Pub. L. 108–429, title I, § 1571, Dec. 3, 2004, 118 Stat. 4965, provided that: ‘‘This section [amending this sec- 2587, provided that: ‘‘Except as otherwise provided in tion and sections 1314i and 1445 of Title 7, Agriculture, this title [amending this section and sections 1401, 1466, and enacting provisions set out as a note under section 1504, 1593a, 1629, 2463, and 2703 of this title, enacting 1445 of Title 7] and the amendments made by this sec- provisions set out as notes under this section and section shall be effective beginning on the effective date of tions 1401, 1466, 1504, 1629, and 2463 of this title, and re- the Presidential proclamation, authorized under sec- pealing provisions set out as a note under section 1629 tion 421 [set out as a note under section 2135 of this of this title], the amendments made by this title shall title], establishing a tariff-rate quota pursuant to Arti- apply with respect to goods entered, or withdrawn from cle XXVIII of the GATT 1947 or the GATT 1994 with re- warehouse for consumption, on or after the 15th day spect to tobacco.’’ after the date of the enactment of this Act [Dec. 3, [Proc. No. 6821, Sept. 12, 1995, 60 F.R. 47663, effective 2004].’’ Sept. 13, 1995, established tariff-rate quotas on certain tobacco.] EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 108–77 effective on the date Amendment by section 203(b)(3) of Pub. L. 103–182 ap- the United States-Chile Free Trade Agreement enters plicable (1) with respect to exports from the United into force (Jan. 1, 2004), and to cease to be effective on States to Canada on Jan. 1, 1996, if Canada is a NAFTA the date the Agreement ceases to be in force, see sec- country on that date and after such date for so long as tion 107(a), (c) of Pub. L. 108–77, set out in a note under Canada continues to be a NAFTA country and (2) with section 3805 of this title. respect to exports from the United States to Mexico on Jan. 1, 2001, if Mexico is a NAFTA country on that date EFFECTIVE DATE OF 2000 AMENDMENT and after such date for so long as Mexico continues to Pub. L. 106–476, title I, § 1422(a)(2), Nov. 9, 2000, 114 be a NAFTA country, see section 213(c) of Pub. L. Stat. 2156, provided that: ‘‘The amendments made by 103–182, set out as an Effective Date note under section paragraph (1) [amending this section] shall take effect 3331 of this title. on the date of the enactment of this Act [Nov. 9, 2000], Amendment by section 203(c) of Pub. L. 103–182 effec- and shall apply to— tive on the date the North American Free Trade Agree- ‘‘(A) any drawback claim filed on or after such date ment enters into force with respect to the United of enactment; and States [Jan. 1, 1994], see section 213(b) of Pub. L. § 1313a TITLE 19—CUSTOMS DUTIES Page 86

103–182, set out as an Effective Date note under section Department of the Treasury, including functions of the 3331 of this title. Secretary of the Treasury relating thereto, to the Sec- Section 632(b) of Pub. L. 103–182 provided that: ‘‘Not- retary of Homeland Security, and for treatment of re- withstanding section 514 of the Tariff Act of 1930 (19 lated references, see sections 203(1), 551(d), 552(d), and U.S.C. 1514) or any other provision of law, the amend- 557 of Title 6, Domestic Security, and the Department ment made by paragraph (6) of subsection (a) [amend- of Homeland Security Reorganization Plan of Novem- ing this section] shall apply to— ber 25, 2002, as modified, set out as a note under section ‘‘(1) claims filed or liquidated on or after January 542 of Title 6. 1, 1988, and Functions of all officers of Department of the Treas- ‘‘(2) claims that are unliquidated, under protest, or ury and functions of all agencies and employees of such in litigation on the date of the enactment of this Act Department transferred, with certain exceptions, to [Dec. 8, 1993].’’ Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of EFFECTIVE DATE OF 1990 AMENDMENT his functions, by any of such officers, agencies, and em- Amendment by section 484A(a) of Pub. L. 101–382 ap- ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July plicable to claims filed or liquidated on or after Jan. 1, 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the 1988, and claims that are unliquidated, under protest, Appendix to Title 5, Government Organization and Em- or in litigation on Aug. 20, 1990, see section 484A(c) of ployees. Commissioner of Internal Revenue, referred to Pub. L. 101–382, set out as a note under section 1309 of in this section, is an officer of Department of the this title. Treasury.

EFFECTIVE AND TERMINATION DATES OF 1988 PLAN AMENDMENTS NOT REQUIRED UNTIL AMENDMENT JANUARY 1, 1989 Amendment by Pub. L. 100–449 effective on date the For provisions directing that if any amendments United States-Canada Free-Trade Agreement enters made by subtitle A or subtitle C of title XI [§§ 1101–1147 into force (Jan. 1, 1989), and to cease to have effect on and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. date Agreement ceases to be in force, see section 501(a), 99–514 require an amendment to any plan, such plan (c) of Pub. L. 100–449, set out in a note under section amendment shall not be required to be made before the 2112 of this title. first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a EFFECTIVE DATE OF 1984 AMENDMENT note under section 401 of Title 26, Internal Revenue Code. Amendment by Pub. L. 98–573 effective on 15th day after Oct. 30, 1984, see section 214(a), (b) of Pub. L. § 1313a. Appropriations for refunds, drawbacks, 98–573, set out as a note under section 1304 of this title. bounties, etc. EFFECTIVE DATE OF 1980 AMENDMENT There are appropriated such amounts as here- Section 201(b) of Pub. L. 96–609 provided that: ‘‘The after may be necessary for refund or payment of amendments made by subsection (a) [amending this custom collections or receipts, and payment of section] shall apply with respect to articles entered, or debentures or drawbacks, bounties, and allow- withdrawn from warehouse, for consumption on or ances, as authorized by law. after the date of the enactment of this Act [Dec. 28, 1980].’’ (June 30, 1949, ch. 286, title I, 63 Stat. 360.)

EFFECTIVE DATE OF 1971 AMENDMENT CODIFICATION Section 3(b) of Pub. L. 91–692 provided that: ‘‘The Section was not enacted as part of the Tariff Act of amendments made by subsection (a) [amending this 1930 which comprises this chapter. section] shall apply with respect to articles exported on or after the date of the enactment of this Act [Jan. 12, § 1314. Repealed. June 25, 1938, ch. 679, § 35, 52 1971].’’ Stat. 1092, eff. July 25, 1938

EFFECTIVE DATE OF 1968 AMENDMENT Section, act June 17, 1930, ch. 497, title III, § 314, 46 Stat. 695, related to reimportation of tax-free exports. For effective date of amendment by Pub. L. 90–630, see section 4 of Pub. L. 90–630, set out as a note under § 1315. Effective date of rates of duty section 5008 of Title 26, Internal Revenue Code. (a) Articles entered or withdrawn from ware- EFFECTIVE DATE OF 1958 AMENDMENT house for consumption Section 2 of Pub. L. 85–673 provided that: ‘‘The Except as otherwise specially provided for, the amendment made by the first section of this Act [amending this section] shall be effective with respect rate or rates of duty imposed by or pursuant to to articles exported on or after the 30th day after the this chapter or any other law on any article en- date of the enactment of this Act [Aug. 18, 1958].’’ tered for consumption or withdrawn from warehouse for consumption shall be the rate or rates EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS in effect when the documents comprising the PROVISION entry for consumption or withdrawal from ware- Amendment by act Aug. 8, 1953, effective on and after house for consumption and any estimated or liq- thirtieth day following Aug. 8, 1953, and savings provi- uidated duties then required to be paid have sion, see notes set out under section 1304 of this title. been deposited with the Customs Service by CONSTRUCTION OF 1993 AMENDMENT written, electronic or such other means as the Secretary by regulation shall prescribe, except Amendment by section 203(c) of Pub. L. 103–182 to be that— made after amendment by section 632(a) of Pub. L. 103–182 is executed, see section 212 of Pub. L. 103–182, set (1) any article released under an informal out as a note under section 58c of this title. mail entry shall be subject to duty at the rate or rates in effect when the preparation of the TRANSFER OF FUNCTIONS entry is completed; For transfer of functions, personnel, assets, and li- (2) any article which is not subject to a abilities of the United States Customs Service of the quantitative or tariff-rate quota and which is Page 87 TITLE 19—CUSTOMS DUTIES § 1315

covered by an entry for immediate transpor- title III, § 301(b), June 2, 1970, 84 Stat. 287; Pub. tation made at the port of original importa- L. 93–618, title III, § 331(c), Jan. 3, 1975, 88 Stat. tion under section 1552 of this title, if entered 2053; Pub. L. 95–410, title I, § 101, title II, § 204, for consumption at the port designated by the Oct. 3, 1978, 92 Stat. 888, 900; Pub. L. 96–39, title consignee, or his agent, in such transportation XI, § 1106(e), July 26, 1979, 93 Stat. 312; Pub. L. entry without having been taken into the cus- 100–418, title I, § 1213(c), Aug. 23, 1988, 102 Stat. tody of the appropriate customs officer under 1155; Pub. L. 103–182, title VI, § 633, Dec. 8, 1993, section 1490 of this title, shall be subject to 107 Stat. 2198; Pub. L. 103–465, title II, the rate or rates in effect when the transpor- § 261(d)(1)(B)(i), Dec. 8, 1994, 108 Stat. 4909.) tation entry was accepted at the port of origi- REFERENCES IN TEXT nal importation; and The Harmonized Tariff Schedule of the United States (3) any article for which duties may, under and the Tariff Schedules of the United States, referred section 1505 of this title, be paid at a time to in subsecs. (c) and (d), are not set out in the Code. later than the time of making entry shall be See Publication of Harmonized Tariff Schedule note set subject to the rate or rates in effect at the out under section 1202 of this title. time of entry. For the effective date of title II of the Uruguay Round Agreements Act [Pub. L. 103–465], referred to in (b) Articles removed from intended place of re- subsec. (d), as Jan. 1, 1995, see section 291 of Pub. L. lease 103–465, set out as an Effective Date of 1994 Amendment Any article which has been entered for con- note under section 1671 of this title. sumption but which, before release from custody AMENDMENTS of the Customs Service, is removed from the 1994—Subsec. (d). Pub. L. 103–465 inserted ‘‘(as in ef- port or other place of intended release because fect on the day before the effective date of title II of of inaccessibility, overcarriage, strike, act of the Uruguay Round Agreements Act) or section 1671 of God, or unforeseen contingency, shall be subject this title’’ after ‘‘section 1303 of this title’’. to duty at the rate or rates in effect when the 1993—Subsec. (a). Pub. L. 103–182, § 633(1), substituted entry for consumption and any required duties ‘‘Customs Service by written, electronic or such other were deposited in accordance with subsection (a) means as the Secretary by regulation shall prescribe,’’ for ‘‘appropriate customs officer in the form and man- of this section, but only if the article is returned ner prescribed by regulations of the Secretary of the to such port or place within ninety days after Treasury,’’ in introductory provisions. the date of removal and the identity of the arti- Subsec. (b). Pub. L. 103–182, § 633(2), substituted ‘‘cus- cle as that covered by the entry is established in tody of the Customs Service’’ for ‘‘customs custody’’. accordance with regulations prescribed by the Subsec. (c). Pub. L. 103–182, § 633(3), substituted ‘‘chapter 98 of the Harmonized Tariff Schedule of the United Secretary of the Treasury. States’’ for ‘‘paragraph 813’’. (c) Quantity of merchandise at time of importa- 1988—Subsec. (d). Pub. L. 100–418 inserted at end tion ‘‘This subsection shall not apply with respect to increases in rates of duty resulting from the enactment Insofar as duties are based upon the quantity of the Harmonized Tariff Schedule of the United States of any merchandise, such duties shall, except as to replace the Tariff Schedules of the United States.’’ provided in chapter 98 of the Harmonized Tariff 1979—Subsec. (d). Pub. L. 96–39 amended directory Schedule of the United States and section 1562 of language of Pub. L. 93–618, § 331(c), to correct a typo- this title (relating respectively to certain bev- graphical error, and did not involve any change in text. erages and to manipulating warehouses), be lev- See 1975 Amendment note below. 1978—Subsec. (a)(3). Pub. L. 95–410, § 101, added par. ied and collected upon the quantity of such mer- (3). chandise at the time of its importation. Subsec. (d). Pub. L. 95–410, § 204, substituted ‘‘publica- (d) Effective date of administrative rulings re- tion in the Federal Register’’ for ‘‘publication in the sulting in higher rates weekly Treasury Decisions’’. 1975—Subsec. (d). Pub. L. 93–618, as amended by Pub. No administrative ruling resulting in the im- L. 96–39, inserted ‘‘or the imposition of countervailing position of a higher rate of duty or charge than duties under section 1303 of this title’’ after ‘‘antidump- the Secretary of the Treasury shall find to have ing duties’’. been applicable to imported merchandise under 1970—Subsec. (a). Pub. L. 91–271 substituted reference to the appropriate customs officer for reference to the an established and uniform practice shall be ef- collector. fective with respect to articles entered for con- 1953—Act Aug. 8, 1953, amended section generally by sumption or withdrawn from warehouse for con- dividing section into subsections, and by changing the sumption prior to the expiration of thirty days provisions set out as subsecs. (a) and (b) to clarify such after the date of publication in the Federal Reg- provisions with respect to effective dates of rates of ister of notice of such ruling; but this provision duty. 1938—Act June 25, 1938, amended section generally, shall not apply with respect to the imposition of among which changes it inserted provisions set out as antidumping duties, or the imposition of coun- subsecs. (c) and (d). tervailing duties under section 1303 of this title (as in effect on the day before the effective date EFFECTIVE DATE OF 1994 AMENDMENT of title II of the Uruguay Round Agreements Section 261(d)(2) of title II of Pub. L. 103–465 provided Act) or section 1671 of this title. This subsection that: ‘‘The amendments made by this subsection [amending this section and sections 1337, 1671, 1677i, shall not apply with respect to increases in rates 2192, and 2194 of this title and provisions set out as a of duty resulting from the enactment of the note under section 1303 of this title] shall take effect on Harmonized Tariff Schedule of the United States the effective date of this title [Jan. 1, 1995, see Effective to replace the Tariff Schedules of the United Date of 1994 Amendment note set out under section 1671 States. of this title]. (June 17, 1930, ch. 497, title III, § 315, 46 Stat. 695; EFFECTIVE DATE OF 1988 AMENDMENT June 25, 1938, ch. 679, § 6, 52 Stat. 1081; Aug. 8, Amendment by Pub. L. 100–418 effective Jan. 1, 1989, 1953, ch. 397, § 3(a), 67 Stat. 508; Pub. L. 91–271, and applicable with respect to articles entered on or § 1316 TITLE 19—CUSTOMS DUTIES Page 88 after such date, see section 1217(b)(1) of Pub. L. 100–418, TREATY BETWEEN UNITED STATES AND CUBA set out as an Effective Date note under section 3001 of The treaty concluded between the United States and this title. the Republic of Cuba on Dec. 11, 1902, referred to in EFFECTIVE DATE OF 1975 AMENDMENT text, was terminated Aug. 21, 1963, pursuant to notice given by the United States on Aug. 21, 1962. See Bevans, Section 331(d) of Pub. L. 93–618, as amended by Pub. Treaties, and Other International Agreements of the L. 103–465, title II, § 261(d)(1)(A)(i), Dec. 8, 1994, 108 Stat. United States of America, 1776 to 1949, vol. VI, page 4909, provided that: 1106. ‘‘(1) The amendments made by this section [amending this section and sections 1303 and 1516 of this title] § 1317. Tobacco products; supplies for certain shall take effect on the date of the enactment of this vessels and aircraft Act [Jan. 3, 1975.] ‘‘(2) For purposes of applying the provisions of sec- (a) Exportation of tobacco products tion 303(a)(4) of the Tariff Act of 1930 [section 1303(a)(4) of this title] (as amended by subsection (a)) with re- The shipment or delivery of manufactured to- spect to any investigation which was initiated before bacco, snuff, cigars, or cigarettes, for consump- the date of the enactment of this Act [Jan. 3, 1975] tion beyond the jurisdiction of the internal-rev- under section 303 of such Act (as in effect before such enue laws of the United States, as defined by date), such investigation shall be treated as having section 2197(a) of title 26, shall be deemed expor- been initiated on the day after such date of enactment tation within the meaning of the customs and under section 303(a)(3)(B) of such Act.’’ internal-revenue laws applicable to the expor- EFFECTIVE DATE OF 1970 AMENDMENT tation of such articles without payment of duty For effective date of amendment by Pub. L. 91–271, or internal-revenue tax. see section 203 of Pub. L. 91–271, set out as a note under (b) Exportation of supplies for certain vessels section 1500 of this title. and aircraft EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS The shipment or delivery of any merchandise PROVISION for use as supplies (including equipment) upon, Amendment by act Aug. 8, 1953, effective on and after or in the maintenance or repair of any vessel or thirtieth day following Aug. 8, 1953, and savings provi- aircraft described in subdivision (2) or (3) of sec- sion, see notes set out under section 1304 of this title. tion 1309(a) of this title, or for use as ground equipment for any such aircraft, shall be deemed EFFECTIVE DATE OF 1938 AMENDMENT an exportation within the meaning of the cus- Amendment by act June 25, 1938, effective on thirti- toms and internal-revenue laws applicable to eth day following June 25, 1938, except as otherwise spe- the exportation of such merchandise without cifically provided, see section 37 of act June 25, 1938, set out as a note under section 1401 of this title. the payment of duty or internal-revenue tax. With respect to merchandise for use as ground TRANSFER OF FUNCTIONS equipment, such shipment or delivery shall not For transfer of functions, personnel, assets, and li- be deemed an exportation within the meaning of abilities of the United States Customs Service of the the internal-revenue laws relating to taxes Department of the Treasury, including functions of the other than those imposed upon or by reason of Secretary of the Treasury relating thereto, to the Sec- importation. retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and (June 17, 1930, ch. 497, title III, § 317, 46 Stat. 696; 557 of Title 6, Domestic Security, and the Department June 25, 1938, ch. 679, § 5(b), 52 Stat. 1081; Aug. 8, of Homeland Security Reorganization Plan of Novem- 1953, ch. 397, § 11(b), 67 Stat. 514.) ber 25, 2002, as modified, set out as a note under section 542 of Title 6. REFERENCES IN TEXT Functions of all other officers of Department of the Section 2197(a) of title 26, referred to in subsec. (a), is Treasury and functions of all agencies and employees of a reference to section 2197(a) of the Internal Revenue such Department transferred, with certain exceptions, Code of 1939, which was repealed by section 7851 of Title to Secretary of the Treasury, with power vested in him 26, Internal Revenue Code. to authorize their performance or performance of any of his functions, by any of such officers, agencies, and AMENDMENTS employees, by 1950 Reorg. Plan No. 26, §§ 1, 2, eff. July 1953—Subsec. (b). Act Aug. 8, 1953, extended to foreign 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the vessels the exemption from payment of duty and inter- Appendix to Title 5, Government Organization and Em- nal revenue tax theretofore available for supplies used ployees. Customs officers, referred to in text, were in the maintenance or repair of aircraft; and provided under Department of the Treasury. an exemption for ground equipment for foreign-flag air- § 1316. Omitted craft from duties and taxes imposed on, by reason of, importation. CODIFICATION 1938—Act June 25, 1938, amended section catchline, Section, act June 17, 1930, ch. 497, title III, § 316, 46 designated existing provisions as subsec. (a), and added Stat. 695, prohibiting the construction of this chapter subsec. (b). so as to abrogate or affect the treaty between the EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS United States and Cuba concluded on Dec. 11, 1902, was PROVISION omitted in view of the termination of such treaty on Aug. 21, 1963 (see note below), and section 401 of Pub. L. Amendment by act Aug. 8, 1953, effective on and after 87–456, title IV, May 24, 1962, 76 Stat. 78, set out as a thirtieth day following Aug. 8, 1953, and savings provi- note under section 1351 of this title. Section 401(d) of sion, see notes set out under section 1304 of this title. Pub. L. 87–456 declares sections 124 and 125 of this title EFFECTIVE DATE OF 1938 AMENDMENT as inapplicable so long as section 401(a) of Pub. L. 87–456, declaring Cuba as a nation dominated or con- Amendment by act June 25, 1938, effective on thirti- trolled by the foreign government or foreign organiza- eth day following June 25, 1938, except as otherwise spe- tion controlling the world communist movement, ap- cifically provided, see section 37 of act June 25, 1938, set plies. out as a note under section 1401 of this title. Page 89 TITLE 19—CUSTOMS DUTIES § 1318

REPEALS 318 of the Tariff Act of 1930, comprising this section, and repealed by section 651(a)(1) of said 1930 Act. Insofar as subsec. (a) of this section related exclusively to Internal Revenue it was repealed and incor- AMENDMENTS porated as section 2197(b) of the Internal Revenue Code of 1939. See section 4(a) of enacting sections of Internal 2002—Pub. L. 107–210 designated existing provisions as Revenue Code of 1939. Section 2197(b) of I. R. C. 1939 subsec. (a) and added subsec. (b). was replaced by section 5704(b) of Title 26, Internal Rev- EFFECTIVE DATE OF 2002 AMENDMENT enue Code. Amendment by Pub. L. 107–210 applicable to petitions § 1318. Emergencies for certification filed under part 2 or 3 of subchapter II of chapter 12 of this title on or after the date that is 90 (a) Whenever the President shall by proclama- days after Aug. 6, 2002, except as otherwise provided, tion declare an emergency to exist by reason of see section 151 of Pub. L. 107–210, set out as a note pre- a state of war, or otherwise, he may authorize ceding section 2271 of this title. the Secretary of the Treasury to extend during TRANSFER OF FUNCTIONS the continuance of such emergency the time For transfer of functions, personnel, assets, and li- herein prescribed for the performance of any abilities of the United States Customs Service of the act, and may authorize the Secretary of the Department of the Treasury, including functions of the Treasury to permit, under such regulations as Secretary of the Treasury relating thereto, to the Sec- the Secretary of the Treasury may prescribe, retary of Homeland Security, and for treatment of re- the importation free of duty of food, clothing, lated references, see sections 203(1), 551(d), 552(d), and and medical, surgical, and other supplies for use 557 of Title 6, Domestic Security, and the Department in emergency relief work. The Secretary of the of Homeland Security Reorganization Plan of Novem- Treasury shall report to the Congress any action ber 25, 2002, as modified, set out as a note under section 542 of Title 6. taken under the provisions of this section. Functions of Secretary of the Treasury under this (b)(1) Notwithstanding any other provision of section with respect to functions transferred to Sec- law, the Secretary of the Treasury, when nec- retary of Commerce in sections 1303 and 1671 et seq. of essary to respond to a national emergency de- this title by section 5(a)(1)(C) of Reorg. Plan No. 3 of clared under the National Emergencies Act (50 1979 transferred to Secretary of Commerce pursuant to U.S.C. 1601 et seq.) or to a specific threat to Reorg. Plan No. 3 of 1979, § 5(a)(1)(E), 44 F.R. 69275, 93 human life or national interests, is authorized Stat. 1381, eff. Jan. 2, 1980, as provided by section to take the following actions on a temporary 1–107(a) of Ex. Ord. No. 12188, Jan. 2, 1980, 45 F.R. 993, set out as notes under section 2171 of this title, to be exer- basis: cised in consultation with Secretary of the Treasury. (A) Eliminate, consolidate, or relocate any office or port of entry of the Customs Service. PROC. NO. 2948. MERCHANDISE IN GENERAL-ORDER AND (B) Modify hours of service, alter services BONDED WAREHOUSES rendered at any location, or reduce the num- Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 Stat. c41, ber of employees at any location. provided: (C) Take any other action that may be nec- [Whereas clauses omitted] essary to respond directly to the national emergency or specific threat. NOW, THEREFORE, I, HARRY S. TRUMAN, Presi- dent of the United States of America, acting under and (2) Notwithstanding any other provision of by virtue of the authority vested in me by the fore- law, the Commissioner of Customs, when nec- going provision of section 318 of the Tariff Act of 1930 essary to respond to a specific threat to human [this section] do hereby authorize the Secretary of the life or national interests, is authorized to close Treasury, until the termination of the national emergency proclaimed on December 16, 1950, or until it shall temporarily any Customs office or port of entry be determined by the President and declared by his or take any other lesser action that may be nec- proclamation that such action is no longer necessary, essary to respond to the specific threat. whichever is earlier: (3) The Secretary of the Treasury or the Com- (1) To extend the one-year period prescribed in sec- missioner of Customs, as the case may be, shall tion 491, supra, as amended [section 1491 of this title], notify the Committee on Ways and Means of the for not more than one year from and after the expira- House of Representatives and the Committee on tion of such one-year period in any case in which such Finance of the Senate not later than 72 hours period has already expired or shall hereafter expire during the continuance of the said national emergency; after taking any action under paragraph (1) or (2) To extend the three-year period prescribed in sec- (2). tions 557 and 559, supra, as amended [sections 1557 and (June 17, 1930, ch. 497, title III, § 318, 46 Stat. 696; 1559 of this title], for not more than one year from and Pub. L. 107–210, div. A, title III, § 342, Aug. 6, 2002, after the expiration of such three-year period in any case in which such period has already expired or shall 116 Stat. 981.) hereafter expire during the continuance of the said na- REFERENCES IN TEXT tional emergency; and (3) To extend further the one-year period prescribed The National Emergencies Act, referred to in subsec. in section 491, supra, as amended [section 1491 of this (b)(1), is Pub. L. 94–412, Sept. 14, 1976, 90 Stat. 1255, as title], and the three-year period prescribed in sections amended, which is classified principally to chapter 34 557 and 559, supra, as amended [sections 1557 and 1559 of (§ 1601 et seq.) of Title 50, War and National Defense. this title], for additional periods of not more than one For complete classification of this Act to the Code, see year each from and after the expiration of the imme- Short Title note set out under section 1601 of Title 50 diately preceding extension in any case in which such and Tables. extension shall expire during the continuance of the said national emergency: PRIOR PROVISIONS Provided, however, that in each and every case under Provisions similar to those in subsec. (a) of this sec- numbered paragraphs (1), (2), and (3) above in which the tion were contained in act Sept. 21, 1922, ch. 356, title merchandise is charged against an entry bond the Sec- IV, § 622, 42 Stat. 988, which was superseded by section retary of the Treasury shall require that the principal § 1319 TITLE 19—CUSTOMS DUTIES Page 90 on such bond, in order to obtain the benefit of any ex- § 1319a. Duty on coffee; ratification of duties im- tension which may be granted under the authority of posed by Legislature of Puerto Rico this proclamation, shall furnish to the collector of customs at the port where the bond is on file either the The taxes and duties imposed by the Legisla- agreement of the sureties on the bond to remain bound ture of Puerto Rico by Joint Resolution Num- under the terms and conditions of the bond to the same bered 59 approved by the Governor of Puerto extent as if no extension had been granted, or an addi- Rico May 5, 1930, and by Act Numbered 77 ap- tional bond with acceptable sureties to cover the period proved by the Governor of Puerto Rico May 5, of extension; and that, in each and every case in which the merchandise remains charged against a carrier’s 1931, as amended by Act Numbered 7 approved by bond the Secretary of the Treasury shall require that the Governor April 9, 1934, including therein the principal on such bond shall agree to the extension such taxes and duties on coffee brought into and shall furnish to the collector of customs at the port Puerto Rico from any State or Territory or dis- where the charge was made the agreement of the sure- trict or possession of the United States, or other ties on the bond to remain bound under the terms and place subject to the jurisdiction of the United conditions of the bond to the same extent as if no ex- States, are legalized and ratified, and the collec- tension had been granted; and tion of all such taxes and duties made under or Provided further, that as a condition to the granting of any extension or further extension of the periods by authority of either of said acts of the Puerto prescribed in sections 491, 557, and 559 of the Tariff Act Rican Legislature, including such taxes and du- of 1930, supra, as amended [sections 1491, 1557 and 1559 ties on coffee brought into Puerto Rico from any of this title], under numbered paragraphs (1), (2), or (3) State, Territory, district, or possession of the above the Secretary of the Treasury may require that United States, or other place subject to the ju- there shall be furnished to the collector of customs in risdiction of the United States, is legalized, rati- the district in which the warehouse is located, in con- fied, and confirmed as fully to all intents and nection with the application for such extension, the purposes as if the same had, by prior Act of Con- consent of the warehouse proprietor to such extension or, in the alternative, proof of payment of all charges gress, been specifically authorized and directed. or amounts due or owing to such warehouse proprietor (June 18, 1934, ch. 604, 48 Stat. 1017; Aug. 20, 1935, for the storage or handling of the imported merchan- ch. 578, 49 Stat. 665.) dise; and Provided further, that the extensions of one year au- CODIFICATION thorized by this proclamation shall not apply to any Section was not enacted as part of Tariff Act of 1930 case in which the period sought to be extended expired which constitutes this chapter. prior to December 16, 1950, or in which the merchandise in question has been sold by the Government as aban- AMENDMENTS doned. This proclamation supersedes Proclamation No. 2599 1935—Act Aug. 20, 1935, amended section generally. of November 4, 1943, as amended by Proclamation No. 2712 of December 3, 1946, but it shall not be construed § 1320. Repealed. Aug. 8, 1953, ch. 397, § 6(b), 67 (1) as invalidating any action heretofore taken under Stat. 510 the provisions of the said Proclamation No. 2599 or Section, act June 17, 1930, ch. 497, title III, § 320, 46 under the provisions of that proclamation as amended Stat. 696, related to reciprocal agreements covering ad- by the said Proclamation No. 2712, or (2) as imposing vertising matter. the conditions set forth in the second proviso above upon the granting of extensions for which applications EFFECTIVE DATE OF REPEAL; SAVINGS PROVISION are pending on the date of this proclamation. Repeal effective on and after thirtieth day following HARRY S TRUMAN. Aug. 8, 1953, and savings provision, see notes set out under section 1304 of this title. § 1319. Duty on coffee imported into Puerto Rico § 1321. Administrative exemptions The Legislature of Puerto Rico is empowered to impose tariff duties upon coffee imported into (a) Disregard of minor discrepancies in collec- Puerto Rico, including coffee grown in a foreign tion of taxes and duties; admission of articles country coming into Puerto Rico from the free of duty or tax; limit on amount of ex- United States. Such duties shall be collected emption and accounted for as now provided by law in the The Secretary of the Treasury, in order to case of duties collected in Puerto Rico. avoid expense and inconvenience to the Govern- ment disproportionate to the amount of revenue (June 17, 1930, ch. 497, title III, § 319, 46 Stat. 696; that would otherwise be collected, is authorized, May 17, 1932, ch. 190, 47 Stat. 158.) under such regulations as he shall prescribe, to— CHANGE OF NAME (1) disregard a difference of an amount speci- ‘‘Puerto Rico’’ substituted in text for ‘‘Porto Rico’’ fied by the Secretary by regulation, but not pursuant to act May 17, 1932, which is classified to sec- less than $20, between the total estimated du- tion 731a of Title 48, Territories and Insular Posses- ties, fees, and taxes deposited, or the total du- sions. ties, fees, and taxes tentatively assessed, with respect to any entry of merchandise and the ACTIONS UNDER CARIBBEAN BASIN ECONOMIC RECOVERY PROGRAM NOT TO AFFECT PUERTO RICAN DUTIES ON total amount of duties, fees, taxes, and inter- IMPORTED COFFEE est actually accruing thereon; (2) admit articles free of duty and of any tax Pub. L. 98–67, title II, § 214(e), Aug. 5, 1983, 97 Stat. 393, imposed on or by reason of importation, but provided that: ‘‘No action pursuant to this title [19 U.S.C. 2701 et seq.] may affect any tariff duty imposed the aggregate fair retail value in the country by the Legislature of Puerto Rico pursuant to section of shipment of articles imported by one person 319 of the Tariff Act of 1930 (19 U.S.C. 1319) on coffee im- on one day and exempted from the payment of ported into Puerto Rico.’’ duty shall not exceed an amount specified by Page 91 TITLE 19—CUSTOMS DUTIES § 1321

the Secretary by regulation, but not less $10’’, inserted ‘‘, fees,’’ after ‘‘duties’’ wherever appear- than— ing, and struck out ‘‘and’’ at end. (A) $100 in the case of articles sent as bona Subsec. (a)(2). Pub. L. 103–182, § 651(2), substituted ‘‘shall not exceed an amount specified by the Secretary fide gifts from persons in foreign countries by regulation, but not less than—’’ for ‘‘shall not ex- to persons in the United States ($200 in the ceed—’’ in introductory provisions, substituted ‘‘$100’’ case of articles sent as bona fide gifts from and ‘‘$200’’ for ‘‘$50’’ and ‘‘$100’’, respectively, in subpar. persons in the Virgin Islands, Guam, and (A), substituted ‘‘$200’’ for ‘‘$25’’ in subpar. (B), sub- American Samoa), or stituted ‘‘$200’’ for ‘‘$5’’ in subpar. (C), and substituted (B) $200 in the case of articles accompany- ‘‘; and’’ for period at end. ing, and for the personal or household use of, Subsec. (a)(3). Pub. L. 103–182, § 651(3), added par. (3). Subsec. (b). Pub. L. 103–182, § 651(4), struck out ‘‘to di- persons arriving in the United States who minish any dollar amount specified in subsection (a) of are not entitled to any exemption from duty this section and’’ after ‘‘authorized by regulations’’ and under subheading 9804.00.30, 9804.00.65, or substituted ‘‘subsection (a) of this section’’ for ‘‘such 9804.00.70 of title I of this Act,1 or subsection’’ in two places. (C) $200 in any other case. 1988—Subsec. (a)(2)(B). Pub. L. 100–418 substituted ‘‘subheading 9804.00.30 or 9804.00.70’’ for ‘‘item 812.25 or The privilege of this subdivision (2) shall not 813.31’’. be granted in any case in which merchandise 1983—Subsec. (a)(2)(A). Pub. L. 97–446 substituted covered by a single order or contract is for- ‘‘$50’’ for ‘‘$25’’ and ‘‘$100’’ for ‘‘$40’’. warded in separate lots to secure the benefit of 1978—Subsec. (a)(1). Pub. L. 95–410, § 205(a), sub- this subdivision (2); and stituted ‘‘$10’’ for ‘‘$3’’ and ‘‘duties and taxes’’ for ‘‘duties or taxes’’ in three places. (3) waive the collection of duties, fees, taxes, Subsec. (a)(2). Pub. L. 95–410, § 205(b)(1)–(3), sub- and interest due on entered merchandise when stituted in: subpar. (A), ‘‘$25’’ and ‘‘$40’’ for ‘‘$10’’ and such duties, fees, taxes, or interest are less ‘‘$20’’; subpar. (B), ‘‘$25’’ for ‘‘$10’’; and subpar. (C), ‘‘$5’’ than $20 or such greater amount as may be for ‘‘$1’’. specified by the Secretary by regulation. 1975—Subsec. (a)(2)(A). Pub. L. 93–618 inserted ‘‘($20, in the case of articles sent as bona fide gifts from per- (b) Reduction or modification of exemption sons in the Virgin Islands, Guam, and American The Secretary of the Treasury is authorized by Samoa)’’ after ‘‘United States’’. regulations to prescribe exceptions to any ex- 1965—Subsec. (a)(2). Pub. L. 89–62 substituted ‘‘fair re- emption provided for in subsection (a) of this tail value in the country of shipment’’ for ‘‘value’’ in section whenever he finds that such action is the material preceding subpar. (A) and ‘‘item 812.25 or 813.31 of section 1202 of this title’’ for ‘‘paragraph consistent with the purpose of subsection (a) of 1798(b)(2) or (c)(2) of section 1201 of this title’’ in subpar. this section or is necessary for any reason to (B). protect the revenue or to prevent unlawful im- 1961—Subsec. (a). Pub. L. 87–261 inserted ‘‘(b)(2) or’’ portations. after ‘‘paragraph 1798’’. 1953—Act Aug. 8, 1953, (1) divided section into sub- (June 17, 1930, ch. 497, title III, § 321, as added sections; (2) increased from $1 to $3 the difference be- June 25, 1938, ch. 679, § 7, 52 Stat. 1081; amended tween deposited or assessed duties and actual duties Aug. 8, 1953, ch. 397, § 13, 67 Stat. 515; Pub. L. which may be disregarded by the collector; (3) per- 87–261, § 2(c), Sept. 21, 1961, 75 Stat. 541; Pub. L. mitted free entry of bona fide gifts from persons out- 89–62, § 2, June 30, 1965, 79 Stat. 208; Pub. L. side the United States up to $10; (4) allowed persons to 93–618, title VI, § 610(a), Jan. 3, 1975, 88 Stat. 2075; bring with them articles up to $10 in value for their Pub. L. 95–410, title II, § 205, Oct. 3, 1978, 92 Stat. personal use; (5) continued to allow free entry up to $1 in other cases; and (6) enabled the Secretary of the 900; Pub. L. 97–446, title I, § 115(b), Jan. 12, 1983, Treasury to reduce these amounts if he found such ac- 96 Stat. 2335; Pub. L. 100–418, title I, § 1214(h)(2), tion necessary to protect the revenue. Aug. 23, 1988, 102 Stat. 1157; Pub. L. 103–182, title VI, § 651, Dec. 8, 1993, 107 Stat. 2209; Pub. L. EFFECTIVE DATE OF 1996 AMENDMENT 104–295, § 3(a)(8), (12), Oct. 11, 1996, 110 Stat. 3516.) Section 3(b) of Pub. L. 104–295 provided that: ‘‘The amendments made by this section [amending this sec- REFERENCES IN TEXT tion and sections 1401, 1431, 1504, 1508, 1509, 1515, 1592, Title I of this Act, referred to in subsec. (a)(2)(B), and 1631 of this title and repealing section 1707 of this means title I of act June 17, 1930, as amended, which title] shall apply as of December 8, 1993.’’ contained the Tariff Schedules of the United States and EFFECTIVE DATE OF 1988 AMENDMENT which formerly were set out under section 1202 of this title. The Tariff Schedules of the United States were Amendment by Pub. L. 100–418 effective Jan. 1, 1989, replaced by the Harmonized Tariff Schedule of the and applicable with respect to articles entered on or United States. See Publication of Harmonized Tariff after such date, see section 1217(b)(1) of Pub. L. 100–418, Schedule note set out under section 1202 of this title. set out as an Effective Date note under section 3001 of this title. AMENDMENTS EFFECTIVE DATE OF 1983 AMENDMENT 1996—Subsec. (a)(1). Pub. L. 104–295, § 3(a)(12)(A), sub- Section 115(c) of Pub. L. 97–446 provided that: ‘‘The stituted ‘‘duties, fees, taxes, and interest actually ac- amendments made by this section [amending the Tariff cruing’’ for ‘‘duties, fees, and taxes actually accruing’’. Schedules and this section] shall apply with respect to Subsec. (a)(2)(B). Pub. L. 104–295, § 3(a)(8), inserted returning residents of the United States who arrive in ‘‘, 9804.00.65,’’ after ‘‘9804.00.30’’. the United States on or after the 15th day after the Subsec. (a)(3). Pub. L. 104–295, § 3(a)(12)(B), substituted date of the enactment of this Act [Jan. 12, 1983].’’ ‘‘taxes, and interest’’ for ‘‘and taxes’’ and ‘‘taxes, or interest’’ for ‘‘or taxes’’. EFFECTIVE DATE OF 1975 AMENDMENT 1993—Subsec. (a)(1). Pub. L. 103–182, § 651(1), sub- Section 610(b) of Pub. L. 93–618 provided that: ‘‘The stituted ‘‘of an amount specified by the Secretary by amendment made by subsection (a) [amending this sec- regulation, but not less than $20,’’ for ‘‘of less than tion] shall apply with respect to articles entered, or withdrawn from warehouse, for consumption after the 1 See References in Text note below. date of enactment of this Act [Jan. 3, 1975].’’ § 1322 TITLE 19—CUSTOMS DUTIES Page 92

EFFECTIVE DATE OF 1965 AMENDMENT purpose herein expressed, or not exported in Section 4 of Pub. L. 89–62 provided in part that: ‘‘The such time and manner as may be prescribed in amendments made by section 2 [amending this section] the regulations or instructions herein author- shall apply with respect to articles arriving in the ized, shall be forfeited to the United States. United States on or after October 1, 1965.’’ (June 17, 1930, ch. 497, title III, § 322, as added EFFECTIVE DATE OF 1961 AMENDMENT Aug. 8, 1953, ch. 397, § 14, 67 Stat. 516; amended Pub. L. 92–549, title I, § 107, Oct. 25, 1972, 86 Stat. Section 2(d) of Pub. L. 87–261 provided that: ‘‘The amendments made by subsections (a), (b), and (c) 1162; Pub. L. 98–573, title I, §§ 124(c), 127(b), Oct. [amending this section and former section 1201 of this 30, 1984, 98 Stat. 2959.) title] shall apply with respect to persons arriving in the AMENDMENTS United States on or after the 30th day after the date of the enactment of this Act [Sept. 21, 1961].’’ 1984—Subsec. (a). Pub. L. 98–573, § 127(b), substituted ‘‘excepted’’ for ‘‘granted the customary exceptions’’. EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS Pub. L. 98–573, § 124(c), inserted ‘‘The authority dele- PROVISION gated to the Secretary by this subsection shall not extend to communications satellites and components and Amendment by act Aug. 8, 1953, effective on and after parts thereof.’’ thirtieth day following Aug. 8, 1953, and savings provi- 1972—Pub. L. 92–549, § 107(a), inserted ‘‘United States- sion, see notes set out under section 1304 of this title. Mexico Boundary Treaty of 1970’’ in section catchline. Subsec. (b)(4). Pub. L. 92–549, § 107(b), added cl. (4). EFFECTIVE DATE EFFECTIVE DATE OF 1984 AMENDMENT Section effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see sec- Section 195(a), (b), (d) of Pub. L. 98–573 provided that: tion 37 of act June 25, 1938, set out as an Effective Date ‘‘(a) Except as provided in section 126 and in sub- of 1938 Amendment note under section 1401 of this title. sections (b) and (c), the amendments made by subtitles B, C, and D [amending this section and sections 1202 § 1322. International traffic and rescue work; and 1504 of this title] shall apply with respect to arti- United States-Mexico Boundary Treaty of cles entered on or after the 15th day after the date of the enactment of this Act [Oct. 30, 1984]. 1970 ‘‘(b)(1) The amendment made by sections 117 and 124 (a) Vehicles and other instruments of inter- [amending this section] shall apply with respect to ar- national traffic except communications sat- ticles entered on or after January 1, 1985. ‘‘(2) The amendments made by section 127 [amending ellites this section] shall apply with respect to articles en- Vehicles and other instruments of inter- tered on or after a date to be proclaimed by the Presi- national traffic, of any class specified by the dent which shall be consonant with the entering into Secretary of the Treasury, shall be excepted force for the United States of the Customs Convention on Containers, 1972. from the application of the customs laws to such ‘‘(d) For purposes of this section— extent and subject to such terms and conditions ‘‘(1) The term ‘entered’ means entered, or with- as may be prescribed in regulations or instruc- drawn from warehouse for consumption in the cus- tions of the Secretary of the Treasury. The au- toms territory of the United States. thority delegated to the Secretary by this sub- ‘‘(2) The term ‘entry’ includes any withdrawal from warehouse.’’ section shall not extend to communications satellites and components and parts thereof. EFFECTIVE DATE (b) Rescue and relief equipment; personal prop- Section effective on and after thirtieth day following erty related to use of land under United Aug. 8, 1953, see note set out under section 1304 of this States-Mexico Boundary Treaty of 1970; for- title. feit of articles to United States § 1323. Conservation of fishery resources The Secretary of the Treasury may provide by Upon the convocation of a conference on the regulation or instruction for the admission, use or conservation of international fishery re- without entry and without the payment of any sources, the President shall, by all appropriate duty or tax imposed upon or by reason of impor- means at his disposal, seek to persuade coun- tation, of— tries whose domestic fishing practices or poli- (1) aircraft, equipment, supplies, and spare cies affect such resources, to engage in negotia- parts for use in searches, rescues, investigations in good faith relating to the use or con- tions, repairs, and salvage in connection with servation of such resources. If, after such efforts accidental damage to aircraft; by the President and by other countries which (2) fire-fighting and rescue and relief equip- have agreed to engage in such negotiations, any ment and supplies for emergent temporary use other country whose conservation practices or in connection with conflagrations; policies affect the interests of the United States (3) rescue and relief equipment and supplies and such other countries, has, in the judgment for emergent temporary use in connection of the President, failed or refused to engage in with floods and other disasters; and such negotiations in good faith, the President (4) personal property related to the use and may, if he is satisfied that such action is likely enjoyment of a separated tract of land as de- to be effective in inducing such country to en- scribed in article III of the Treaty To Resolve gage in such negotiations in good faith, increase Pending Boundary Differences and Maintain the rate of duty on any fish (in any form) which the Rio Grande and Colorado Rivers as the is the product of such country, for such time as International Boundary between the United he deems necessary, to a rate not more than 50 States of America and the United Mexican percent above the rate existing on July 1, 1934. States signed on November 23, 1970. (June 17, 1930, ch. 497, title III, § 323, as added Any articles admitted under the authority of Pub. L. 87–794, title II, § 257(i), Oct. 11, 1962, 76 this subsection and used otherwise than for a Stat. 883.) Page 93 TITLE 19—CUSTOMS DUTIES § 1330

PART II—UNITED STATES INTERNATIONAL TRADE which an individual designated by the President COMMISSION takes office as chairman. (2) After June 16, 1978, the terms of office for § 1330. Organization of Commission the chairman and vice chairman of the Commis- (a) Membership sion shall be as follows: (A) The first term of office occurring after The United States International Trade Com- such date shall begin on June 17, 1978, and end mission (referred to in this subtitle as the at the close of June 16, 1980. ‘‘Commission’’) shall be composed of six com- (B) Each term of office thereafter shall begin missioners who shall be appointed by the Presi- on the day after the closing date of the imme- dent, by and with the advice and consent of the diately preceding term of office and end at the Senate. No person shall be eligible for appoint- close of the 2-year period beginning on such ment as a commissioner unless he is a citizen of day. the United States, and, in the judgment of the President, is possessed of qualifications req- (3)(A) The President may not designate as the uisite for developing expert knowledge of inter- chairman of the Commission for any term any national trade problems and efficiency in ad- commissioner who is a member of the political ministering the duties and functions of the Com- party of which the chairman of the Commission mission. A person who has served as a commis- for the immediately preceding term is a mem- sioner for more than 5 years (excluding service ber, or who has less than 1 year of continuous as a commissioner before January 3, 1975) shall service as a commissioner as of the date such not be eligible for reappointment as a commis- designation is being made. sioner. Not more than three of the commis- (B) The President may not designate as the sioners shall be members of the same political vice chairman of the Commission for any term party, and in making appointments members of any commissioner who is a member of the politi- different political parties shall be appointed al- cal party of which the chairman for that term is ternately as nearly as may be practicable. a member. (C) If any commissioner does not complete a (b) Terms of office term as chairman or vice chairman by reason of The terms of office of the commissioners hold- death, resignation, removal from office as a ing office on January 3, 1975, which (but for this commissioner, or expiration of his term of office sentence) would expire on June 16, 1975, June 16, as a commissioner, the President shall designate 1976, June 16, 1977, June 16, 1978, June 16, 1979, as the chairman or vice chairman, as the case and June 16, 1980, shall expire on December 16, may be, for the remainder of such term a com- 1976, June 16, 1978, December 16, 1979, June 16, missioner who is a member of the same political 1981, December 16, 1982, and June 16, 1984, respec- party. Designation of a chairman under this sub- tively. The term of office of each commissioner paragraph may be made without regard to the 1- appointed after such date shall expire 9 years year continuous service requirement under sub- from the date of the expiration of the term for paragraph (A). which his predecessor was appointed, except (4) The vice chairman shall act as chairman in that— case of the absence or disability of the chair- (1) any commissioner appointed to fill a va- man. During any period in which there is no cancy occurring prior to the expiration of the chairman or vice chairman, the commissioner term for which his predecessor was appointed having the longest period of continuous service shall be appointed for the remainder of such as a commissioner shall act as chairman. term, and (5) No commissioner shall actively engage in (2) any commissioner may continue to serve any business, vocation, or employment other as a commissioner after an expiration of his than that of serving as a commissioner. term of office until his successor is appointed (6) A majority of the commissioners in office and qualified. shall constitute a quorum, but the Commission (c) Chairman and vice chairman; quorum may function notwithstanding vacancies. (1) The chairman and the vice chairman of the (d) Effect of divided vote in certain cases Commission shall be designated by the Presi- (1) In a proceeding in which the Commission is dent from among the members of the Commis- required to determine— sion not ineligible, under paragraph (3), for des- (A) under section 2252 of this title, whether ignation. The President shall notify the Con- increased imports of an article are a substan- gress of his designations under this paragraph. tial cause of serious injury, or the threat If, as of the date on which a term begins under thereof, as described in subsection (b)(1) of paragraph (2), the President has not designated that section (hereafter in this subsection re- the chairman of the Commission for such term, ferred to as ‘‘serious injury’’), or the Commissioner 1 who, as of such date— (B) under section 2436 of this title, whether (A) is a member of a different political party market disruption exists. than the chairman of the Commission for the and the commissioners voting are equally di- immediately preceding term, and vided with respect to such determination, then (B) has the longest period of continuous the determination, agreed upon by either group service as a commissioner, of commissioners may be considered by the shall serve as chairman of the Commission for President as the determination of the Commis- the portion of such term preceding the date on sion. (2) If under section 2252(b) or 2436 of this title 1 So in original. Probably should not be capitalized. there is an affirmative determination of the § 1330 TITLE 19—CUSTOMS DUTIES Page 94

Commission, or a determination of the Commis- held in accordance with the statutory authority sion which the President may consider an af- covering the matter in question. firmative determination under paragraph (1), (e) Authorization of appropriations that serious injury or market disruption exists, (1) For the fiscal year beginning October 1, respectively, and a majority of the commis- 1976, and each fiscal year thereafter, there are sioners voting are unable to agree on a finding authorized to be appropriated to the Commis- or recommendation described in section sion only such sums as may hereafter be pro- 2252(e)(1) of this title or the finding described in vided by law. section 2436(a)(3) of this title, as the case may be (2)(A) There are authorized to be appropriated (hereafter in this subsection referred to as a to the Commission for necessary expenses (in- ‘‘remedy finding’’), then— cluding the rental of conference rooms in the (A) if a plurality of not less than three com- District of Columbia and elsewhere) not to ex- missioners so voting agree on a remedy find- ceed the following: ing, such remedy finding shall, for purposes of (i) $54,000,000 for fiscal year 2003. section 2253 of this title, be treated as the (ii) $57,240,000 for fiscal year 2004. remedy finding of the Commission, or (B) if two groups, both of which include not (B) Not to exceed $2,500 of the amount author- less than 3 commissioners, each agree upon a ized to be appropriated for any fiscal year under remedy finding and the President reports subparagraph (A) may be used, subject to the ap- under section 2254(a) of this title that— proval of the Chairman of the Commission, for (i) he is taking the action agreed upon by reception and entertainment expenses. one such group, then the remedy finding (C) No part of any sum that is appropriated agreed upon by the other group shall, for under the authority of subparagraph (A) may be purposes of section 2253 of this title, be used by the Commission in the making of any treated as the remedy finding of the Com- special study, investigation, or report that is remission, or quested by any agency of the executive branch (ii) he is taking action which differs from unless that agency reimburses the Commission the action agreed upon by both such groups, for the cost thereof. or that he will not take any action, then the (3) There are authorized to be appropriated to remedy finding agreed upon by either such the Commission for each fiscal year after Sep- group may be considered by the Congress as tember 30, 1977, in addition to any other amount the remedy finding of the Commission and authorized to be appropriated for such fiscal shall, for purposes of section 2253 of this year, such sums as may be necessary for in- title, be treated as the remedy finding of the creases authorized by law in salary, pay, retire- Commission. ment, and other employee benefits. (4) By not later than the date on which the (3) In any proceeding to which paragraph (1) President submits to Congress the budget of the applies in which the commissioners voting are United States Government for a fiscal year, the equally divided on a determination that serious Commission shall submit to the Committee on injury exists, or that market disruption exists, Ways and Means of the House of Representatives the Commission shall report to the President and the Committee on Finance of the Senate the the determination of each group of commis- projected amount of funds for the succeeding fis- sioners. In any proceeding to which paragraph cal year that will be necessary for the Commis- (2) applies, the Commission shall report to the sion to carry out its functions. President the remedy finding of each group of (f) Treatment of Commission under Paperwork commissioners voting. Reduction Act (4) In a case to which paragraph (2)(B)(ii) applies, for purposes of section 2253(a) of this title, The Commission shall be considered to be an notwithstanding section 2192(a)(1)(A) of this independent regulatory agency for purposes of title, the second blank space in the joint resolu- chapter 35 of title 44. tion described in such section 2192(a)(1)(A) of (June 17, 1930, ch. 497, title III, § 330, 46 Stat. 696; this title shall be filled with the appropriate Aug. 7, 1953, ch. 348, title II, § 201, 67 Stat. 472; date and the following: ‘‘The action which shall Pub. L. 93–618, title I, §§ 172(a), (b), 175(b), Jan. 3, take effect under section 203(a) of the Trade Act 1975, 88 Stat. 2009–2011; Pub. L. 94–455, title of 1974 is the finding or recommendation agreed XVIII, § 1801(a), (b), Oct. 4, 1976, 90 Stat. 1762; upon by Commissioners lllllll, Pub. L. 95–106, §§ 1, 2(a), Aug. 17, 1977, 91 Stat. lllllll, and llllll.’’ The three blank 867; Pub. L. 95–430, Oct. 10, 1978, 92 Stat. 1020; spaces shall be filled with the names of the ap- Pub. L. 97–456, § 1(a), Jan. 12, 1983, 96 Stat. 2503; propriate Commissioners. Pub. L. 98–573, title II, § 248(c), title VII, § 701, (5) Whenever, in any case in which the Com- Oct. 30, 1984, 98 Stat. 2998, 3043; Pub. L. 99–272, mission is authorized to make an investigation title XIII, § 13021, Apr. 7, 1986, 100 Stat. 305; Pub. upon its own motion, upon complaint, or upon L. 100–203, title IX, § 9502, Dec. 22, 1987, 101 Stat. application of any interested party, one-half of 1330–380; Pub. L. 100–418, title I, §§ 1401(b)(4), 1611, the number of commissioners voting agree that 1612, Aug. 23, 1988, 102 Stat. 1240, 1262; Pub. L. the investigation should be made, such inves- 100–647, title IX, § 9001(a)(15), Nov. 10, 1988, 102 tigation shall thereupon be carried out in ac- Stat. 3808; Pub. L. 101–207, § 2, Dec. 7, 1989, 103 cordance with the statutory authority covering Stat. 1833; Pub. L. 101–382, title I, § 101, Aug. 20, the matter in question. Whenever the Commis- 1990, 104 Stat. 633; Pub. L. 102–185, § 1(a)(1), (2), sion is authorized to hold hearings in the course (c)(1), Dec. 4, 1991, 105 Stat. 1280; Pub. L. 107–210, of any investigation and one-half of the number div. A, title III, § 371, Aug. 6, 2002, 116 Stat. 991; of commissioners voting agree that hearings Pub. L. 108–429, title II, § 2004(a)(13), Dec. 3, 2004, should be held, such hearings shall thereupon be 118 Stat. 2590.) Page 95 TITLE 19—CUSTOMS DUTIES § 1330

REFERENCES IN TEXT of any special study, investigation, or report that is requested by any agency of the executive branch unless Section 203(a) of the Trade Act of 1974, referred to in that agency reimburses the Commission for the cost subsec. (d)(4), is classified to section 2253(a) of this thereof.’’ title. 1989—Subsec. (e)(2). Pub. L. 101–207 substituted ‘‘1990’’ CODIFICATION for ‘‘1988’’ and ‘‘$39,943,000’’ for ‘‘$35,386,000’’. 1988—Subsec. (c)(3)(A)(i). Pub. L. 100–647 substituted Provisions of subsec. (c) which prescribed the annual ‘‘with the shortest period of service on’’ for ‘‘most re- basic compensation of the commissioners were omitted cently appointed to’’. to conform to the provisions of the Executive Schedule. Pub. L. 100–418, § 1611, which directed that subsec. See sections 5314 and 5315 of Title 5, Government Orga- (c)(A)(i) of this section be amended by substituting nization and Employees. ‘‘with the shortest period of service on’’ for ‘‘most re- PRIOR PROVISIONS cently appointed to’’, was probably intended to be an amendment to subsec. (c)(3)(A)(i). See amendment by Provisions similar to those in this section were con- Pub. L. 100–647 above. tained in act Sept. 8, 1916, ch. 463, § 700, 39 Stat. 795. Subsec. (d)(1)(A). Pub. L. 100–418, § 1401(b)(4)(A), sub- That section was superseded by section 330 of act June stituted ‘‘2252’’ for ‘‘2251’’. 17, 1930, comprising this section. Subsec. (d)(2). Pub. L. 100–418, § 1401(b)(4)(B)(i), (iii), in AMENDMENTS introductory provisions substituted ‘‘2252(b)’’ and ‘‘2252(e)(1)’’ for ‘‘2251’’ and ‘‘2251(d)(1)’’, respectively. 2004—Subsec. (e)(4). Pub. L. 108–429 made technical Subsec. (d)(2)(A). Pub. L. 100–418, § 1401(b)(4)(B)(iv), correction to directory language of Pub. L. 107–210, substituted ‘‘section 2253 of this title’’ for ‘‘sections § 371(b). See 2002 Amendment note below. 2252 and 2253 of this title’’. 2002—Subsec. (e)(2)(A)(i). Pub. L. 107–210, § 371(a)(1), Subsec. (d)(2)(B). Pub. L. 100–418, § 1401(b)(4)(B)(iv), added cl. (i) and struck out former cl. (i) which read as (v), in introductory provisions substituted ‘‘section follows: ‘‘$41,170,000 for fiscal year 1991.’’ 2254(a) of this title’’ for ‘‘section 2253(b) of this title’’ Subsec. (e)(2)(A)(ii). Pub. L. 107–210, § 371(a)(2), added and, in cls. (i) and (ii), substituted ‘‘section 2253 of this cl. (ii) and struck out former cl. (ii) which read as fol- title’’ for ‘‘sections 2252 and 2253 of this title’’. lows: ‘‘$44,052,000 for fiscal year 1992.’’ Subsec. (d)(4). Pub. L. 100–418, § 1401(b)(4)(C), sub- Subsec. (e)(4). Pub. L. 107–210, § 371(b), as amended by stituted ‘‘section 2253(a) of this title’’ for ‘‘section Pub. L. 108–429, added par. (4). 2253(c)(1) of this title’’ and ‘‘section 203(a) of the Trade 1991—Subsec. (c)(1). Pub. L. 102–185, § 1(c)(1), inserted Act of 1974’’ for ‘‘section 203(c)(1) of the Trade Act of at end ‘‘If, as of the date on which a term begins under 1974’’. paragraph (2), the President has not designated the Subsec. (f). Pub. L. 100–418, § 1612, added subsec. (f). chairman of the Commission for such term, the Com- 1987—Subsec. (e)(2). Pub. L. 100–203 substituted ‘‘for missioner who, as of such date— fiscal year 1988 not to exceed $35,386,000’’ for ‘‘fiscal ‘‘(A) is a member of a different political party than year 1986 not to exceed $28,901,000’’. the chairman of the Commission for the immediately 1986—Subsec. (e)(2). Pub. L. 99–272 amended first sen- preceding term, and tence generally, substituting ‘‘for fiscal year 1986 not ‘‘(B) has the longest period of continuous service as to exceed $28,901,000’’ for ‘‘for fiscal year 1985 not to ex- a commissioner, ceed $28,410,000’’. shall serve as chairman of the Commission for the por- 1984—Subsec. (d)(4). Pub. L. 98–573, § 248(c), sub- tion of such term preceding the date on which an indi- stituted ‘‘the joint resolution described in such section vidual designated by the President takes office as 2192(a)(1)(A)’’ for ‘‘the concurrent resolution described chairman.’’ in such section 2192’’. Subsec. (c)(3)(A). Pub. L. 102–185, § 1(a)(2)(A), inserted Subsec. (e)(2). Pub. L. 98–573, § 701, substituted author- ‘‘, or who has less than 1 year of continuous service as ization of appropriation of not more than $28,410,000 for a commissioner as of the date such designation is being fiscal year 1985 for necessary expenses, including the made’’ before the period. rental of conference rooms in the District of Columbia Pub. L. 102–185, § 1(a)(1)(A), amended subpar. (A) gen- and elsewhere for provision authorizing appropriation erally. Prior to amendment, subpar. (A) read as follows: of not more than $19,737,000 for necessary expenses for ‘‘The President may not designate as the chairman of fiscal year 1983, and inserted provision that not more the Commission for any term— than $2,500 may be used, subject to approval by the ‘‘(i) either of the two commissioners with the short- Chairman of the Commission, for reception and enter- est period of service on the Commission as of the be- tainment expenses. ginning date of the term of office for which the des- 1983—Subsec. (e)(2). Pub. L. 97–456 substituted author- ignation of chairman is to be made; or ization of appropriation of not exceeding $19,737,000 for ‘‘(ii) any commissioner who is a member of the po- fiscal 1983 for authorization not exceeding $12,963,000 for litical party of which the chairman of the Commis- fiscal 1979, and inserted provision relating to reim- sion for the immediately preceding term is a mem- bursement by agencies of the executive branch for stud- ber.’’ ies requested by them. Subsec. (c)(3)(C). Pub. L. 102–185, § 1(a)(2)(B), inserted 1978—Subsec. (e)(2). Pub. L. 95–430 substituted provi- at end ‘‘Designation of a chairman under this subpara- sions authorizing $12,963,000 to be appropriated for the graph may be made without regard to the 1-year con- necessary expenses of the Commission for fiscal year tinuous service requirement under subparagraph (A).’’ 1979 for provisions authorizing $11,522,000 to be appro- Pub. L. 102–185, § 1(a)(1)(B), struck out at end ‘‘Des- priated for similar expenses for fiscal year 1978. ignation of a chairman under this subparagraph may be 1977—Subsec. (c). Pub. L. 95–106, § 2(a), inserted provi- made without regard to the limitation set forth in sub- sions in par. (1) for the Congressional notification of paragraph (A)(i).’’ Presidential designations, substituted, in par. (2), pro- 1990—Subsec. (e)(2). Pub. L. 101–382 amended par. (2) visions covering the expiration of terms of office after generally. Prior to amendment, par. (2) read as follows: June 16, 1978, for provisions covering the expiration of ‘‘There are authorized to be appropriated to the Com- terms of office on and after June 17, 1975, added par. (3), mission for necessary expenses (including the rental of and redesignated as pars. (4) to (6) provisions formerly conference rooms in the District of Columbia and else- contained in par. (1). where) for fiscal year 1990 not to exceed $39,943,000; of Subsec. (e). Pub. L. 95–106, § 1, designated existing which not to exceed $2,500 may be used, subject to ap- provisions as par. (1) and added pars. (2) and (3). proval by the Chairman of the Commission, for recep- 1976—Subsec. (b). Pub. L. 94–455, § 1801(a), inserted tion and entertainment expenses. No part of any sum provisions that any commissioner may continue to that is appropriated under the authority of this para- serve as a commissioner after an expiration of his term graph may be used by the Commission for the making of office until his successor is appointed and qualified. § 1331 TITLE 19—CUSTOMS DUTIES Page 96

Subsec. (d)(1). Pub. L. 94–455, § 1801(b)(2), substituted EFFECTIVE DATE OF 1976 AMENDMENT provisions relating to consideration by the President of Section 1801(c) of Pub. L. 94–455 provided that: ‘‘The determinations of the Commission as to whether in- amendments made by subsection (b) [amending this creased imports of an article are a substantial cause of section] shall apply to determinations, findings, and serious injury or threat or whether market disruption recommendations made under sections 201 and 406 of exists for provisions relating to consideration by the the Trade Act of 1974 [sections 2251 and 2436 of this President of findings of the Commission in connection title] after the date of the enactment of this Act [Oct. with any authority conferred upon the President by 4, 1976].’’ law to make changes in import restrictions. Subsec. (d)(2) to (5). Pub. L. 94–455, § 1801(b), added APPOINTMENT OF CHAIRMAN IN 1992 pars. (2) to (4) and redesignated former par. (2) as (5). 1975—Subsec. (a). Pub. L. 93–618, § 172(a), substituted Section 1(b) of Pub. L. 102–185 provided that: ‘‘In the ‘‘United States International Trade Commission’’ for case of the term of the chairman of the United States ‘‘United States Tariff Commission’’ and inserted provi- International Trade Commission beginning June 17, sion that a person who has served as a commissioner 1992— for more than five years (excluding service as a com- ‘‘(1) section 330(c)(3)(A) of the Tariff Act of 1930 [19 missioner before January 3, 1975) shall not be eligible U.S.C. 1330(c)(3)(A)] shall not apply, and for reappointment as a commissioner. ‘‘(2) the President shall designate as chairman a Subsec. (b). Pub. L. 93–618, § 172(a), lengthened the Commissioner who is a member of the same political term of office from 6 years to 9 years for commissioners party as the chairman of the Commission serving on appointed after Jan. 3, 1975, and substituted Dec. 16, June 16, 1986.’’ 1976, June 16, 1978, Dec. 16, 1979, June 16, 1981, Dec. 16, 1982, and June 16, 1984, for June 16, 1975, June 16, 1976, § 1331. General powers June 16, 1977, June 16, 1978, June 16, 1979, and June 16, (a) Administration 1980, respectively, as the expiration dates for the terms of office of commissioners serving on Jan. 3, 1975. (1)(A) Except as provided in paragraph (2), the Subsec. (c). Pub. L. 93–618, § 172(b), designated existing chairman of the Commission shall— provisions as par. (1), inserted ‘‘Except as provided in (i) appoint and fix the compensation of such paragraph (2),’’ before ‘‘The’’, and added par. (2). employees of the Commission as he deems nec- Subsec. (e). Pub. L. 93–618, § 175(b), added subsec. (e). essary (other than the personal staff of each 1953—Subsec. (d). Act Aug. 7, 1953, added subsec. (d). commissioner), including the secretary, EFFECTIVE DATE OF 2002 AMENDMENT (ii) procure the services of experts and con- Amendment by Pub. L. 107–210 applicable to petitions sultants in accordance with the provisions of for certification filed under part 2 or 3 of subchapter II section 3109 of title 5, and of chapter 12 of this title on or after the date that is 90 (iii) exercise and be responsible for all other days after Aug. 6, 2002, except as otherwise provided, administrative functions of the Commission. see section 151 of Pub. L. 107–210, set out as a note preceding section 2271 of this title. (B) The chairman of the Commission may accept, hold, administer, and utilize gifts, devises, EFFECTIVE DATE OF 1991 AMENDMENT and bequests of property, both real and personal, Section 1(a)(3) of Pub. L. 102–185 provided that: for the purpose of aiding or facilitating the work ‘‘(A) MODIFICATION.—The amendments made by para- of the Commission. graph (1) [amending this section] shall apply to terms (C) Any decision by the chairman under sub- beginning on and after June 17, 1990. paragraph (A) or (B) shall be subject to dis- ‘‘(B) 1-YEAR REQUIREMENT.—The amendments made by approval by a majority vote of all the commis- paragraph (2) [amending this section] shall apply to terms beginning on and after June 17, 1996.’’ sioners in office. Section 1(c)(2) of Pub. L. 102–185 provided that: ‘‘The (2) Subject to approval by a majority vote of amendment made by this subsection [amending this all the commissioners in office, the chairman section] shall take effect on the 10th day following the may— date of the enactment of this Act [Dec. 4, 1991].’’ (A) terminate the employment of any super- EFFECTIVE DATE OF 1988 AMENDMENTS visory employee of the Commission whose duties involve substantial personal responsibil- Amendment by Pub. L. 100–647 applicable as if such ity for Commission matters and who is com- amendment took effect on Aug. 23, 1988, see section 9001(b) of Pub. L. 100–647, set out as an Effective and pensated at a rate equal to, or in excess of, the Termination Dates of 1988 Amendments note under sec- rate for grade GS–15 of the General Schedule tion 58c of this title. in section 5332 of title 5, and Amendment by section 1401(b)(4) of Pub. L. 100–418 ef- (B) formulate the annual budget of the Com- fective Aug. 23, 1988, and applicable with respect to in- mission. vestigations initiated under part 1 (§ 2251 et seq.) of subchapter II of chapter 12 of this title on or after that (3) No member of the Commission, in making date, see section 1401(c) of Pub. L. 100–418, set out as a public statements with respect to any policy note under section 2251 of this title. matter for which the Commission has responsibility, shall represent himself as speaking for EFFECTIVE DATE OF 1984 AMENDMENT the Commission, or his views as being the views Amendment by section 248(c) of Pub. L. 98–573 effec- of the Commission, with respect to such matter tive on 15th day after Oct. 30, 1984, see section 214(a), (b) except to the extent that the Commission has of Pub. L. 98–573, set out as a note under section 1304 of adopted the policy being expressed. this title. (b) Application of civil service law EFFECTIVE DATE OF 1977 AMENDMENT Except for employees excepted under civil Section 2(b) of Pub. L. 95–106 provided that: ‘‘The service rules, all employees of the commission amendment made by this section [amending this section] shall apply with respect to the designation of shall be appointed from lists of eligibles to be chairmen and vice chairmen of the United States Inter- supplied by the Director of the Office of Person- national Trade Commission for terms beginning after nel Management and in accordance with the June 16, 1978.’’ civil service law. Page 97 TITLE 19—CUSTOMS DUTIES § 1332

(c) Expenses Provisions similar to those in subsecs. (f) and (g) of this section were contained in act Sept. 21, 1922, ch. 356, All of the expenses of the commission, includ- title III, § 318, 42 Stat. 947. That section was superseded ing all necessary expenses for transportation in- by section 331 of act June 17, 1930, comprising this sec- curred by the commissioners or by their employ- tion, and repealed by section 651(a)(1) of the 1930 act. ees under their orders in making any investigation or upon official business in any other places AMENDMENTS than at their respective headquarters, shall be 1983—Subsec. (a)(1). Pub. L. 97–456 designated existing allowed and paid on the presentation of itemized provisions relating to the chairman’s exercise of and vouchers therefor approved by the chairman (ex- responsibility for all administrative functions as sub- cept that in the case of a commissioner, or the par. (A), redesignated former subpars. (A) through (C) as cls. (i) through (iii), added subpar. (B), designated personal staff of any commissioner, such vouch- provisions relating to disapproval by a majority of the ers may be approved by that commissioner). commissioners of any decision by the chairman as sub- (d) Principal office at Washington par. (C), and in (C) as so designated, substituted ‘‘subparagraph (A) or (B)’’ for ‘‘this paragraph’’ after The principal office of the commission shall be ‘‘chairman under’’. in the city of Washington, but it may meet and 1977—Subsec. (a). Pub. L. 95–106, § 3(a), designated ex- exercise all its powers at any other place. The isting provisions as par. (1), substituted provisions au- commission may, by one or more of its mem- thorizing the chairman to perform certain required bers, or by such agents as it may designate, functions subject to approval by the Commission for prosecute any inquiry necessary to its duties in provisions authorizing the Commission to perform cer- any part of the United States or in any foreign tain required functions and inserted provisions requir- country. ing the chairman to exercise and be responsible for all other administrative functions of the Commission, and (e) Office at New York added pars. (2) and (3). The commission is authorized to establish and Subsec. (c). Pub. L. 95–106, § 3(b)(1), substituted ‘‘ap- maintain an office at the port of New York for proved by the chairman (except that in the case of a the purpose of directing or carrying on any in- commissioner, or the personal staff of any commissioner, such vouchers may be approved by that commis- vestigation, receiving and compiling statistics, sioner)’’ for ‘‘approved by the Commission’’. selecting, describing, and filing samples of arti- Subsec. (d). Pub. L. 95–106, § 3(b)(2), redesignated sub- cles, and performing any of the duties or exer- secs. (e) to (g) as (d) to (f), respectively. Former subsec. cising any of the powers imposed upon it by law. (d), relating to offices and supplies, was struck out.

(f) Official seal EFFECTIVE DATE OF 1977 AMENDMENT The commission is authorized to adopt an offi- Section 3(c) of Pub. L. 95–106 provided that: ‘‘The cial seal, which shall be judicially noticed. amendments made by this section [amending this sec- (June 17, 1930, ch. 497, title III, § 331, 46 Stat. 697; tion] take effect on the date of enactment of this Act [Aug. 17, 1977].’’ Pub. L. 95–106, § 3(a), (b), Aug. 17, 1977, 91 Stat. 868; 1978 Reorg. Plan No. 2, § 102, eff. Jan. 1, 1979, TRANSFER OF FUNCTIONS 43 F.R. 36037, 92 Stat. 3783; Pub. L. 97–456, § 1(b), ‘‘Director of the Office of Personnel Management’’ Jan. 12, 1983, 96 Stat. 2503.) substituted for ‘‘Civil Service Commission’’ in subsec. (b) pursuant to Reorg. Plan No. 2 of 1978, § 102, 43 F.R. CODIFICATION 36037, 92 Stat. 3783, set out under section 1101 of Title In subsec. (a), provisions which specified a salary of 5, Government Organization and Employees, which $7,500 per year for the secretary to the commission transferred functions vested by statute in Civil Service have been omitted as obsolete and superseded. Sections Commission to Director of Office of Personnel Manage- 1202 and 1204 of the Classification Act of 1949, 63 Stat. ment (except as otherwise specified), effective Jan. 1, 972, 973, repealed the Classification Act of 1923 and all 1979, as provided by section 1–102 of Ex. Ord. No. 12107, other laws or parts of laws inconsistent with the 1949 Dec. 28, 1978, 44 F.R. 1055, set out under section 1101 of Act. The Classification Act of 1949 was repealed by Pub. Title 5. L. 89–554, Sept. 6, 1966, § 8(a), 80 Stat. 632, and reenacted as chapter 51 and subchapter III of chapter 53 of Title § 1332. Investigations 5, Government Organization and Employees. Section 5102 of Title 5 contains the applicability provisions of (a) Investigations and reports the 1949 Act, and section 5103 of Title 5 authorizes the It shall be the duty of the commission to in- Office of Personnel Management to determine the ap- vestigate the administration and fiscal and in- plicability to specific positions and employees. dustrial effects of the customs laws of this coun- In subsec. (b), the words ‘‘Except for employees excepted under the civil service rules’’ substituted for try, the relations between the rates of duty on ‘‘With the exception of the secretary, a clerk to each raw materials and finished or partly finished commissioner, and such special experts as the commis- products, the effects of ad valorem and specific sion may from time to time find necessary for the con- duties and of compound specific and ad valorem duct of its work’’. Appointments are now subject to the duties, all questions relative to the arrangement civil service laws unless specifically excepted by such of schedules and classification of articles in the laws or by laws enacted subsequent to Executive Order several schedules of the customs law, and, in 8743, Apr. 23, 1941, issued by the President pursuant to general, to investigate the operation of customs the act of Nov. 26, 1940, ch. 919, title I, § 1, 54 Stat. 1211, which covered most excepted positions into the classi- laws, including their relation to the Federal rev- fied (competitive) civil service. The Order is set out as enues, their effect upon the industries and labor a note under section 3301 of Title 5. of the country, and to submit reports of its investigations as hereafter provided. PRIOR PROVISIONS (b) Investigations of tariff relations Provisions similar to subsecs. (a) to (e) of this section were contained in act Sept. 8, 1916, ch. 463, § 701, 39 Stat. The commission shall have power to inves- 975. That section was superseded by section 331 of act tigate the tariff relations between the United June 17, 1930, comprising this section. States and foreign countries, commercial trea- § 1332 TITLE 19—CUSTOMS DUTIES Page 98 ties, preferential provisions, economic alliances, tee on Ways and Means of the House of Rep- the effect of export bounties and preferential resentatives, and the Committee on Finance of transportation rates, the volume of importa- the Senate, whenever requested, all information tions compared with domestic production and at its command, and shall make such investiga- consumption, and conditions, causes, and effects tions and reports as may be requested by the relating to competition of foreign industries President or by either of said committees or by with those of the United States, including either branch of the Congress. However, the dumping and cost of production. Commission may not release information which (c) Investigation of Paris Economy Pact the Commission considers to be confidential The commission shall have power to inves- business information unless the party submit- tigate the Paris Economy Pact and similar orga- ting the confidential business information had nizations and arrangements in Europe. notice, at the time of submission, that such in- (d) Information for President and Congress formation would be released by the Commission, or such party subsequently consents to the re- In order that the President and the Congress lease of the information. The Commission shall may secure information and assistance, it shall report to Congress on the first Monday of De- be the duty of the commission to— cember of each year after June 17, 1930, a state- (1) Ascertain conversion costs and costs of ment of the methods adopted and all expenses production in the principal growing, producing, or manufacturing centers of the United incurred, a summary of all reports made during States of articles of the United States, when- the year, and a list of all votes taken by the ever in the opinion of the commission it is commission during the year, showing those com- practicable; missioners voting in the affirmative and the (2) Ascertain conversion costs and costs of negative on each vote and those commissioners production in the principal growing, produc- not voting on each vote and the reasons for not ing, or manufacturing centers of foreign coun- voting. Each such annual report shall include a tries of articles imported into the United list of all complaints filed under section 1337 of States, whenever in the opinion of the com- this title during the year for which such report mission such conversion costs or costs of pro- is being made, the date on which each such com- duction are necessary for comparison with plaint was filed, and the action taken thereon, conversion costs or costs of production in the and the status of all investigations conducted by United States and can be reasonably ascer- the commission under such section during such tained; year and the date on which each such investiga- (3) Select and describe articles which are tion was commenced. representative of the classes or kinds of arti- (June 17, 1930, ch. 497, title III, § 332, 46 Stat. 698; cles imported into the United States and Pub. L. 93–618, title I, § 173, title III, § 341(b), Jan. which are similar to or comparable with arti- 3, 1975, 88 Stat. 2010, 2056; Pub. L. 96–39, title II, cles of the United States; select and describe § 202(a)(1), July 26, 1979, 93 Stat. 201; Pub. L. articles of the United States similar to or comparable with such imported articles; and 100–418, title I, § 1613, Aug. 23, 1988, 102 Stat. 1262; obtain and file samples of articles so selected, Pub. L. 100–647, title IX, § 9001(a)(16), Nov. 10, whenever the commission deems it advisable; 1988, 102 Stat. 3808.) (4) Ascertain import costs of such represent- CODIFICATION ative articles so selected; Subsec. (f) directed the Tariff Commission to ascer- (5) Ascertain the grower’s, producer’s, or tain the cost of crude petroleum during three years pre- manufacturer’s selling prices in the principal ceding 1930. growing, producing, or manufacturing centers of the United States of the articles of the PRIOR PROVISIONS United States so selected; and Provisions similar to subsecs. (a), (b), and (g) were (6) Ascertain all other facts which will show contained in act Sept. 8, 1916, ch. 463, §§ 702 to 704, 39 the differences in or which affect competition Stat. 796. Those sections were superseded by section 332 between articles of the United States and im- of act June 17, 1930, comprising this section. ported articles in the principal markets of the Provisions similar to those in subdiv. (c) were contained in act Sept. 8, 1916, ch. 463, § 708, 39 Stat. 798. United States. That section was superseded by section 332 of act June (e) Definitions 17, 1930, comprising this section. When used in this subdivision and in subdivi- Provisions similar to subdivs. (d) and (e) were con- sion (d) of this section— tained in act Sept. 21, 1922, ch. 356, title III, § 318, 42 (1) The term ‘‘article’’ includes any commod- Stat. 947. Section 318 of act 1922 was superseded by sec- ity, whether grown, produced, fabricated, mation 332 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of said 1930 act. nipulated, or manufactured; Act Oct. 3, 1913, ch. 16, § IV, R, 38 Stat. 201, directed (2) The term ‘‘import cost’’ means the trans- President to ascertain certain facts and report to Con- action value of the imported merchandise de- gress when imports amounted to less than 5 per centum termined in accordance with section 1401a(b) of domestic consumption, prior to repeal by act Sept. of this title plus, when not included in the 21, 1922, ch. 356, title III, § 321, 42 Stat. 947. transaction value, all necessary expenses, ex- AMENDMENTS clusive of customs duties, of bringing such merchandise to the United States. 1988—Subsec. (g). Pub. L. 100–647 substituted ‘‘report to Congress on the first’’ for ‘‘report to Congress. on (f) Omitted the first’’. (g) Reports to President and Congress Pub. L. 100–418 substituted ‘‘. However, the Commis- sion may not release information which the Commis- The commission shall put at the disposal of sion considers to be confidential business information the President of the United States, the Commit- unless the party submitting the confidential business Page 99 TITLE 19—CUSTOMS DUTIES § 1332a information had notice, at the time of submission, that § 1332a. Importation of red cedar shingles such information would be released by the Commission, or such party subsequently consents to the release of (a) Investigation by Commission the information. The Commission shall report to Con- The United States International Trade Com- gress.’’ for ‘‘, and shall report to Congress’’. mission is directed to conduct an investigation 1979—Subsec. (e)(2). Pub. L. 96–39 substituted ‘‘the as soon as practicable after the close of the cal- transaction value of the imported merchandise deter- endar year 1939 and each calendar year there- mined in accordance with section 1401a(b) of this title after, for the purpose of ascertaining the quan- plus, when not included in the transaction value, all necessary expenses, exclusive of customs duties, of tities of red cedar shingles shipped by producers bringing such merchandise to the United States’’ for in the United States and the quantities of im- ‘‘the price at which an article is freely offered for sale ported red cedar shingles entered for consump- in the ordinary course of trade in the usual wholesale tion, or withdrawn from warehouse for consump- quantities for exportation to the United States plus, tion, during each of the three calendar years im- when not included in such price, all necessary expenses, mediately preceding any such investigation. exclusive of customs duties, of bringing such imported (b) Duty on imported shingles; amount article to the United States’’. 1975—Subsec. (g). Pub. L. 93–618 substituted ‘‘a sum- If the Commission finds, on the basis of an in- mary of all reports made during the year, and a list of vestigation under subdivision (a) of this section, all votes taken by the commission during the year, that in any calendar year after 1938 the quantity showing those commissioners voting in the affirmative of imported red cedar shingles entered for con- and the negative on each vote and those commissioners sumption, or withdrawn from warehouse for con- not voting on each vote and the reasons for not voting’’ sumption, was in excess of 30 per centum of the for ‘‘and a summary of all reports made during the combined total for such year of the respective year’’, and inserted last sentence relating to complaints included in annual reports. quantities ascertained in such investigation, it shall so report to the President. If the President EFFECTIVE DATE OF 1988 AMENDMENT approves the report of the Commission, he shall Amendment by Pub. L. 100–647 applicable as if such so proclaim, and on and after the day following amendment took effect on Aug. 23, 1988, see section the filing of such proclamation with the Divi- 9001(b) of Pub. L. 100–647, set out as an Effective and sion of the Federal Register and so long as any Termination Dates of 1988 Amendments note under sec- trade agreement entered into under the author- tion 58c of this title. ity of section 1351 of this title, shall be in effect with respect to the importation into the United EFFECTIVE DATE OF 1979 AMENDMENT States of red cedar shingles, there shall be a Amendment by Pub. L. 96–39 effective July 1, 1980, see duty upon imported red cedar shingles entered section 204(a) of Pub. L. 96–39, set out as a note under for consumption, or withdrawn from warehouse section 1401a of this title. for consumption, in any calendar year in excess EFFECTIVE DATE OF 1975 AMENDMENT of 30 per centum of the annual average for the Amendment by Pub. L. 93–618 effective on 90th day preceding three calendar years of the combined after Jan. 3, 1975, see section 341(c) of Pub. L. 93–618, set total of the quantity of such shingles shipped by out as a note under section 1337 of this title. producers in the United States and of the quantity of such imported shingles entered for con- TERMINATION OF REPORTING REQUIREMENTS sumption, or withdrawn from warehouse for con- For termination, effective May 15, 2000, of provisions sumption. The rate of such duty shall be 25 cents in subsec. (g) relating to an annual report to Congress per square. Any duty imposed under this section on the first Monday of December of each year, see sec- shall be treated for the purposes of all provi- tion 3003 of Pub. L. 104–66, set out as a note under sec- sions of law relating to customs revenue as a tion 1113 of Title 31, Money and Finance, and page 194 duty imposed by section 1001 1 of this title, and of House Document No. 103–7. shall not apply to shingles entered for consump- DELEGATION OF FUNCTIONS tion before the duty becomes applicable. Functions of President under subsec. (g) of this sec- (c) Exemptions from duty tion regarding reports by United States International The quantity of red cedar shingles entitled to Trade Commission to President delegated to United exemption from any duty imposed pursuant to States Trade Representative, see section 5–301 of Ex. this section shall be ascertained for each quota Ord. No. 12661, Dec. 27, 1988, 54 F.R. 779, set out as a period by the Commission and reported to the note under section 2901 of this title. Secretary of the Treasury. CONTINUATION OF REPORTS WITH RESPECT TO (July 1, 1940, ch. 499, 54 Stat. 708; Pub. L. 93–618, SYNTHETIC ORGANIC CHEMICALS title I, § 171(b), Jan. 3, 1975, 88 Stat. 2009.) Pub. L. 95–106, § 5, Aug. 17, 1977, 91 Stat. 869, directed REFERENCES IN TEXT International Trade Commission to make, for each calendar year ending before Jan. 1, 1981, reports with re- Section 1001 of this title, referred to in subsec. (b), spect to synthetic organic chemicals similar in scope was struck out by Pub. L. 87–456, title I, § 101(a), May 24, to reports made with respect to such chemicals for cal- 1962, 76 Stat. 72. endar year 1976. CODIFICATION REVIEW OF CUSTOMS TARIFF SCHEDULES Section was not enacted as a part of the Tariff Act of Act Sept. 1, 1954, ch. 1213, title I, § 101, 68 Stat. 1136, 1930 which comprises this chapter. as amended Aug. 2, 1956, ch. 894, 70 Stat. 955; May 19, AMENDMENTS 1958, Pub. L. 85–418, § 3, 72 Stat. 120, provided for a complete study by the Tariff Commission for the purpose of 1975—Subsec. (a). Pub. L. 93–618 substituted ‘‘United clarifying and simplifying the tariff classification, with States International Trade Commission’’ for ‘‘United States Tariff Commission’’. a report to go to the President and to the chairmen of the appropriate committees of Congress no later than Jan. 1, 1959. See section 1332 of this title. 1 See References in Text note below. § 1333 TITLE 19—CUSTOMS DUTIES Page 100

§ 1333. Testimony and production of papers testify and produce documentary evidence before the commission, as hereinbefore provided. (a) Authority to obtain information (e) Fees and mileage of witnesses For the purposes of carrying out its functions and duties in connection with any investigation Witnesses summoned before the commission authorized by law, the commission or its duly shall be paid the same fees and mileage that are authorized agent or agents (1) shall have access paid witnesses in the courts of the United to and the right to copy any document, paper, or States, and witnesses whose depositions are record, pertinent to the subject matter under in- taken and the persons taking the same, except vestigation, in the possession of any person, employees of the commission, shall severally be firm, copartnership, corporation, or association entitled to the same fees and mileage as are paid engaged in the production, importation, or dis- for like services in the courts of the United tribution of any article under investigation, (2) States. may summon witnesses, take testimony, and ad- (f) Statements under oath minister oaths, (3) may require any person, firm, The commission is authorized, in order to as- copartnership, corporation, or association to certain any facts required by subdivision (d) of produce books or papers relating to any matter section 1332 of this title to require any importer pertaining to such investigation, and (4) may re- and any American grower, producer, manufac- quire any person, firm, copartnership, corpora- turer, or seller to file with the commission a tion, or association, to furnish in writing, in statement, under oath, giving his selling prices such detail and in such form as the commission in the United States of any article imported, may prescribe, information in their possession grown, produced, fabricated, manipulated, or pertaining to such investigation. Any member of manufactured by him. the commission may sign subpenas, and members and agents of the commission, when au- (g) Representation in court proceedings thorized by the commission, may administer The Commission shall be represented in all ju- oaths and affirmations, examine witnesses, take dicial proceedings by attorneys who are employ- testimony, and receive evidence. ees of the Commission or, at the request of the (b) Witnesses and evidence Commission, by the Attorney General of the United States. Such attendance of witnesses and the production of such documentary evidence may be re- (h) Administrative protective orders quired from any place in the United States at Any correspondence, private letters of rep- any designated place of hearing. And in case of rimand, and other documents and files relating disobedience to a subpena the commission may to violations or possible violations of adminis- invoke the aid of any district or territorial trative protective orders issued by the Commis- court of the United States in requiring the at- sion in connection with investigations or other tendance and testimony of witnesses and the proceedings under this subtitle shall be treated production of documentary evidence, and such as information described in section 552(b)(3) of court within the jurisdiction of which such in- title 5. quiry is carried on may, in case of contumacy or refusal to obey a subpena issued to any corpora- (June 17, 1930, ch. 497, title III, § 333, 46 Stat. 699; tion or other person, issue an order requiring June 25, 1936, ch. 804, 49 Stat. 1921; June 25, 1948, such corporation or other person to appear be- ch. 646, § 32(b), 62 Stat. 991; May 24, 1949, ch. 139, fore the commission, or to produce documentary § 127, 63 Stat. 107; Pub. L. 85–686, § 9(a), (b), Aug. evidence if so ordered or to give evidence touch- 20, 1958, 72 Stat. 679; Pub. L. 91–452, title II, § 229, ing the matter in question; and any failure to Oct. 15, 1970, 84 Stat. 930; Pub. L. 93–618, title I, obey such order of the court may be punished by § 174, Jan. 3, 1975, 88 Stat. 2011; Pub. L. 101–382, such court as a contempt thereof. title I, § 135(a), Aug. 20, 1990, 104 Stat. 651.) (c) Mandamus CODIFICATION At the request of the commission, any such As originally enacted subsec. (b) contained a ref- court shall have jurisdiction to issue writs of erence to the Supreme Court of the District of Colum- mandamus commanding compliance with the bia. Act June 25, 1936, substituted ‘‘the district court of the United States for the District of Columbia’’ for provisions of this part or any order of the com- ‘‘the Supreme Court of the District of Columbia’’, and mission made in pursuance thereof. act June 25, 1948, as amended by act May 24, 1949, sub- (d) Depositions stituted ‘‘United States District Court for the District of Columbia’’ for ‘‘district court of the United States The commission may order testimony to be for the District of Columbia’’. However, the words taken by deposition in any proceeding or inves- ‘‘United States District Court for the District of Co- tigation pending before the commission at any lumbia’’ have been deleted entirely as superfluous in stage of such proceeding or investigation. Such view of section 132(a) of Title 28, Judiciary and Judicial depositions may be taken before any person des- Procedure, which states that ‘‘There shall be in each ignated by the commission and having power to judicial district a district court which shall be a court administer oaths. Such testimony shall be re- of record known as the United States District Court for duced to writing by the person taking the depo- the district’’, and section 88 of Title 28 which states that ‘‘the District of Columbia constitutes one judicial sition, or under his direction, and shall then be district’’. subscribed by the deponent. Any person, firm, copartnership, corporation, or association, may PRIOR PROVISIONS be compelled to appear and depose and to Provisions similar to those in this section were con- produce documentary evidence in the same man- tained in act Sept. 8, 1916, ch. 463, § 706, 39 Stat. 797, as ner as witnesses may be compelled to appear and amended by act Sept. 21, 1922, ch. 356, title III, § 318(f), Page 101 TITLE 19—CUSTOMS DUTIES § 1336

42 Stat. 947. These acts were superseded by section 333 as it deems necessary to carry out its functions of act June 17, 1930, comprising this section, and sec- and duties. tion 318(f) of the 1922 act was repealed by section 651(a)(1) of the 1930 act. (June 17, 1930, ch. 497, title III, § 335, as added Aug. 20, 1958, Pub. L. 85–686, § 9(c)(2), 72 Stat. AMENDMENTS 680.) 1990—Subsec. (h). Pub. L. 101–382 added subsec. (h). 1975—Subsec. (c). Pub. L. 93–618, § 174(1), substituted PRIOR PROVISIONS ‘‘At the request of’’ for ‘‘Upon application of the Attor- A prior section 335 of act June 17, 1930, related to dis- ney General of the United States, at the request of’’. closure of trade secrets and prescribed penalty therefor, Subsec. (g). Pub. L. 93–618, § 174(2), added subsec. (g). prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat. 1970—Subsec. (e). Pub. L. 91–452 struck out provisions 862, eff. Sept. 1, 1948. See section 1905 of Title 18, Crimes relating to the immunity from prosecution of any natu- and Criminal Procedure. ral person compelled to testify or produce evidence in obedience to the subpoena of the commission. § 1336. Equalization of costs of production 1958—Subsec. (a). Pub. L. 85–686, § 9(a), substituted ‘‘For the purposes of carrying out its functions and du- (a) Change of classification or duties ties in connection with any investigation authorized by In order to put into force and effect the policy law’’ for ‘‘For the purposes of carrying Part II of this of Congress by this chapter intended, the com- subtitle into effect’’, inserted provisions empowering mission (1) upon request of the President, or (2) the commission to require any person, firm, copartner- upon resolution of either or both Houses of Con- ship, corporation, or association to furnish in writing, in such detail and in such form as the commission may gress, or (3) upon its own motion, or (4) when in prescribe, information in their possession pertaining to the judgment of the commission there is good an investigation. and sufficient reason therefor, upon application Subsec. (d). Pub. L. 85–686, § 9(b), substituted ‘‘pending of any interested party, shall investigate the before the commission’’ for ‘‘pending under Part II of differences in the costs of production of any do- this subtitle’’. mestic article and of any like or similar foreign EFFECTIVE DATE OF 1970 AMENDMENT article. In the course of the investigation the commission shall hold hearings and give reason- Amendment by Pub. L. 91–452 effective on sixtieth able public notice thereof, and shall afford rea- day following Oct. 15, 1970, and not to affect any immunity to which any individual is entitled under this sec- sonable opportunity for parties interested to be tion by reason of any testimony given before sixtieth present, to produce evidence, and to be heard at day following Oct. 15, 1970, see section 260 of Pub. L. such hearings. The commission shall report to 91–452, set out as an Effective Date; Savings Provision the President the results of the investigation note under section 6001 of Title 18, Crimes and Criminal and its findings with respect to such differences Procedure. in costs of production. If the commission finds it shown by the investigation that the duties ex- § 1334. Cooperation with other agencies pressly fixed by statute do not equalize the dif- The commission shall in appropriate matters ferences in the costs of production of the domes- act in conjunction and cooperation with the tic article and the like or similar foreign article Treasury Department, the Department of Com- when produced in the principal competing coun- merce, the Federal Trade Commission, or any try, the commission shall specify in its report other departments, or independent establish- such increases or decreases in rates of duty ex- ments of the Government, and such departments pressly fixed by statute (including any nec- and independent establishments of the Govern- essary change in classification) as it finds shown ment shall cooperate fully with the commission by the investigation to be necessary to equalize for the purposes of aiding and assisting in its such differences. In no case shall the total in- work, and, when directed by the President, shall crease or decrease of such rates of duty exceed furnish to the commission, on its request, all 50 per centum of the rates expressly fixed by records, papers, and information in their posses- statute. sion relating to any of the subjects of investiga- (b) Repealed. Pub. L. 96–39, title II, § 202(a)(2)(A), tion by the commission and shall detail, from July 26, 1979, 93 Stat. 202 time to time, such officials and employees to said commission as he may direct. (c) Proclamation by the President (June 17, 1930, ch. 497, title III, § 334, 46 Stat. 700.) The President shall by proclamation approve the rates of duty and changes in classification PRIOR PROVISIONS specified in any report of the commission under Provisions similar to those in this section were con- this section, if in his judgment such rates of tained in act Sept. 8, 1916, ch. 463, § 707, 39 Stat. 797. duty and changes are shown by such investiga- That section was superseded by section 334 of act June tion of the commission to be necessary to equal- 17, 1930, comprising this section. ize such differences in costs of production. TRANSFER OF FUNCTIONS (d) Effective date of rates and changes Executive and administrative functions of Federal Commencing thirty days after the date of any Trade Commission transferred, with certain reserva- presidential proclamation of approval the in- tions, to Chairman of such Commission by Reorg. Plan creased or decreased rates of duty and changes No. 8 of 1950, § 1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. in classification specified in the report of the 1264, set out in the Appendix to Title 5, Government Or- ganization and Employees. commission shall take effect. (e) Ascertainment of differences in costs of pro- § 1335. Rules and regulations duction The commission is authorized to adopt such In ascertaining under this section the dif- reasonable procedures and rules and regulations ferences in costs of production, the commission § 1336 TITLE 19—CUSTOMS DUTIES Page 102 shall take into consideration, in so far as it (3) The term ‘‘foreign country’’ means any finds it practicable: empire, country, dominion, colony, or protec- (1) In the case of a domestic article torate, or any subdivision or subdivisions thereof (other than the United States and its (A) The cost of production as hereinafter in possessions). this section defined; (B) transportation costs (4) The term ‘‘cost of production’’, when ap- and other costs incident to delivery to the plied with respect to either a domestic article principal market or markets of the United or a foreign article, includes, for a period States for the article; and (C) other relevant which is representative of conditions in pro- factors that constitute an advantage or dis- duction of the article: (A) The price or cost of advantage in competition. materials, labor costs, and other direct (2) In the case of a foreign article charges incurred in the production of the arti- (A) The cost of production as hereinafter in cle and in the processes or methods employed this section defined, or, if the commission in its production; (B) the usual general ex- finds that such cost is not readily ascertain- penses, including charges for depreciation or able, the commission may accept as evidence depletion which are representative of the thereof, or as supplemental thereto, the equipment and property employed in the pro- weighted average of the invoice prices or val- duction of the article and charges for rent or ues for a representative period and/or the aver- interest which are representative of the cost age wholesale selling price for a representative of obtaining capital or instruments of produc- period (which price shall be that at which the tion; and (C) the cost of containers and cover- article is freely offered for sale to all pur- ings of whatever nature, and other costs, chasers in the principal market or markets of charges, and expenses incident to placing the the principal competing country or countries article in condition packed ready for delivery. in the ordinary course of trade and in the (i) Rules and regulations of President usual wholesale quantities in such market or The President is authorized to make all need- markets); (B) transportation costs and other ful rules and regulations for carrying out his costs incident to delivery to the principal functions under the provisions of this section. market or markets of the United States for the article; (C) other relevant factors that (j) Repealed. Pub. L. 96–39, title II, § 202(a)(2)(D), constitute an advantage or disadvantage in July 26, 1979, 93 Stat. 202 competition, including advantages granted to (k) Investigations prior to June 17, 1930 the foreign producers by a government, person, partnership, corporation, or association All uncompleted investigations instituted in a foreign country. prior to June 17, 1930, under the provisions of 1 (f) Modification of changes in duty sections 154 to 159 of this title, including investigations in which the President has not pro- Any increased or decreased rate of duty or claimed changes in classification or increases or change in classification which has taken effect decreases in rates of duty, shall be dismissed as above provided may be modified or termi- without prejudice; but the information and evi- nated in the same manner and subject to the dence secured by the commission in any such in- same conditions and limitations (including time vestigation may be given due consideration in of taking effect) as is provided in this section in any investigation instituted under the provi- the case of original increases, decreases, or sions of this section. changes. (June 17, 1930, ch. 497, title III, § 336, 46 Stat. 701; (g) Prohibition against transfers from the free Aug. 2, 1956, ch. 887, § 2(d), 70 Stat. 946; Pub. L. list to the dutiable list or from the dutiable 85–686, § 9(c)(1), Aug. 20, 1958, 72 Stat. 679; Pub. L. list to the free list 96–39, title II, § 202(a)(2), July 26, 1979, 93 Stat. Nothing in this section shall be construed to 202.) authorize a transfer of an article from the dutiable list to the free list or from the free list to REFERENCES IN TEXT the dutiable list, nor a change in form of duty. Sections 154 to 159 of this title, referred to in subsec. Whenever it is provided in any paragraph of (k), were repealed by section 651(a)(1) of act June 17, Subtitle I of this chapter, or in any amendatory 1930. act, that the duty or duties shall not exceed a PRIOR PROVISIONS specified ad valorem rate upon the articles provided for in such paragraph, no rate determined Provisions similar to those in this section were con- under the provisions of this section upon such tained in act Sept. 21, 1922, ch. 356, title III, § 315, 42 Stat. 941. That section was superseded by section 336 of articles shall exceed the maximum ad valorem act June 17, 1930, comprising this section, and repealed rate so specified. by section 651(a)(1) of the 1930 act. (h) Definitions AMENDMENTS For the purpose of this section— 1979—Subsec. (b). Pub. L. 96–39, § 202(a)(2)(A), struck (1) The term ‘‘domestic article’’ means an out subsec. (b) which related to the setting of ad valo- article wholly or in part the growth or product rem rates based upon the American selling price of do- of the United States; and the term ‘‘foreign ar- mestic articles as would be necessary to equalize dif- ticle’’ means an article wholly or in part the ferences in the costs of production. growth or product of a foreign country. Subsec. (c). Pub. L. 96–39, § 202(a)(2)(B), substituted (2) The term ‘‘United States’’ includes the ‘‘changes in classification specified in any report’’ for several States and Territories and the District of Columbia. 1 See References in Text note below. Page 103 TITLE 19—CUSTOMS DUTIES § 1337

‘‘changes in classification and in basis of value speci- (C) The importation into the United States, fied in any report’’. the sale for importation, or the sale within the Subsec. (d). Pub. L. 96–39, § 202(a)(2)(C), substituted United States after importation by the owner, ‘‘changes in classification specified in the report’’ for importer, or consignee, of articles that in- ‘‘changes in classification or in basis of value specified in the report’’. fringe a valid and enforceable United States Subsec. (f). Pub. L. 96–39, § 202(a)(2)(C), substituted trademark registered under the Trademark ‘‘change in classification which has taken effect’’ for Act of 1946 [15 U.S.C. 1051 et seq.]. ‘‘change in classification or in basis of value which has (D) The importation into the United States, taken effect’’. the sale for importation, or the sale within the Subsec. (j). Pub. L. 96–39, § 202(a)(2)(D), struck out United States after importation by the owner, subsec. (j) which authorized the Secretary of the Treas- importer, or consignee, of a semiconductor ury to make necessary rules and regulations for the chip product in a manner that constitutes in- entry and declaration of foreign articles with respect to which a change in the basis of value had been made. fringement of a mask work registered under Subsec. (k). Pub. L. 96–39, § 202(a)(2)(C), substituted chapter 9 of title 17. ‘‘changes in classification or increases or decreases’’ (E) The importation into the United States, for ‘‘changes in classification or in basis of value or in- the sale for importation, or the sale within the creases or decreases’’. United States after importation by the owner, 1958—Subsec. (a). Pub. L. 85–686 struck out provisions importer, or consigner, of an article that con- which authorized the commission to adopt such reason- stitutes infringement of the exclusive rights able procedure and rules and regulations as it deemed in a design protected under chapter 13 of title necessary to execute its functions under this section. See section 1335 of this title. 17. 1956—Subsec. (b). Act Aug. 2, 1956, struck out ‘‘(as de- (2) Subparagraphs (B), (C), (D), and (E) of para- fined in section 1402(g))’’ after ‘‘selling price’’. graph (1) apply only if an industry in the United EFFECTIVE DATE OF 1979 AMENDMENT States, relating to the articles protected by the patent, copyright, trademark, mask work, or de- Amendment by Pub. L. 96–39 effective July 1, 1980, see section 204(a) of Pub. L. 96–39, set out as a note under sign concerned, exists or is in the process of section 1401a of this title. being established. (3) For purposes of paragraph (2), an industry EFFECTIVE DATE OF 1956 AMENDMENT in the United States shall be considered to exist Amendment by act Aug. 2, 1956, effective only as to if there is in the United States, with respect to articles entered, or withdrawn from warehouse, for con- the articles protected by the patent, copyright, sumption on or after thirtieth day following publica- trademark, mask work, or design concerned— tion of the final list provided for in section 6(a) of said (A) significant investment in plant and act, set out in note under section 1402 of this title, see section 8 of act Aug. 2, 1956, set out as an Effective Date equipment; note under section 1401a of this title. (B) significant employment of labor or capital; or § 1337. Unfair practices in import trade (C) substantial investment in its exploi- (a) Unlawful activities; covered industries; defi- tation, including engineering, research and de- nitions velopment, or licensing. (1) Subject to paragraph (2), the following are (4) For the purposes of this section, the phrase unlawful, and when found by the Commission to ‘‘owner, importer, or consignee’’ includes any exist shall be dealt with, in addition to any agent of the owner, importer, or consignee. other provision of law, as provided in this sec- (b) Investigation of violations by Commission tion: (1) The Commission shall investigate any al- (A) Unfair methods of competition and un- leged violation of this section on complaint fair acts in the importation of articles (other under oath or upon its initiative. Upon com- than articles provided for in subparagraphs mencing any such investigation, the Commis- (B), (C), (D), and (E)) into the United States, sion shall publish notice thereof in the Federal or in the sale of such articles by the owner, Register. The Commission shall conclude any importer, or consignee, the threat or effect of such investigation and make its determination which is— under this section at the earliest practicable (i) to destroy or substantially injure an in- time after the date of publication of notice of dustry in the United States; such investigation. To promote expeditious ad- (ii) to prevent the establishment of such judication, the Commission shall, within 45 days an industry; or after an investigation is initiated, establish a (iii) to restrain or monopolize trade and target date for its final determination. commerce in the United States. (2) During the course of each investigation (B) The importation into the United States, under this section, the Commission shall consult the sale for importation, or the sale within the with, and seek advice and information from, the United States after importation by the owner, Department of Health and Human Services, the importer, or consignee, of articles that— Department of Justice, the Federal Trade Com- (i) infringe a valid and enforceable United mission, and such other departments and agen- States patent or a valid and enforceable cies as it considers appropriate. United States copyright registered under (3) Whenever, in the course of an investigation title 17; or under this section, the Commission has reason (ii) are made, produced, processed, or to believe, based on information before it, that mined under, or by means of, a process cov- a matter, in whole or in part, may come within ered by the claims of a valid and enforceable the purview of part II of subtitle IV of this chap- United States patent. ter, it shall promptly notify the Secretary of § 1337 TITLE 19—CUSTOMS DUTIES Page 104

Commerce so that such action may be taken as Court of Appeals for the Federal Circuit for re- is otherwise authorized by such part II. If the view in accordance with chapter 7 of title 5. Not- Commission has reason to believe that the mat- withstanding the foregoing provisions of this ter before it (A) is based solely on alleged acts subsection, Commission determinations under and effects which are within the purview of sec- subsections (d), (e), (f), and (g) of this section tion 1671 or 1673 of this title, or (B) relates to an with respect to its findings on the public health alleged copyright infringement with respect to and welfare, competitive conditions in the which action is prohibited by section 1008 of United States economy, the production of like title 17, the Commission shall terminate, or not or directly competitive articles in the United institute, any investigation into the matter. If States, and United States consumers, the the Commission has reason to believe the mat- amount and nature of bond, or the appropriate ter before it is based in part on alleged acts and remedy shall be reviewable in accordance with effects which are within the purview of section section 706 of title 5. Determinations by the 1671 or 1673 of this title, and in part on alleged Commission under subsections (e), (f), and (j) of acts and effects which may, independently from this section with respect to forfeiture of bonds or in conjunction with those within the purview and under subsection (h) of this section with re- of such section, establish a basis for relief under spect to the imposition of sanctions for abuse of this section, then it may institute or continue discovery or abuse of process shall also be re- an investigation into the matter. If the Commis- viewable in accordance with section 706 of title sion notifies the Secretary or the administering 5. authority (as defined in section 1677(1) of this (d) Exclusion of articles from entry title) with respect to a matter under this para- (1) If the Commission determines, as a result graph, the Commission may suspend its inves- of an investigation under this section, that tigation during the time the matter is before there is a violation of this section, it shall di- the Secretary or administering authority for rect that the articles concerned, imported by final decision. Any final decision by the admin- any person violating the provision of this sec- istering authority under section 1671 or 1673 of tion, be excluded from entry into the United this title with respect to the matter within such States, unless, after considering the effect of section 1671 or 1673 of this title of which the such exclusion upon the public health and wel- Commission has notified the Secretary or ad- fare, competitive conditions in the United ministering authority shall be conclusive upon States economy, the production of like or di- the Commission with respect to the issue of less- rectly competitive articles in the United States, than-fair-value sales or subsidization and the and United States consumers, it finds that such matters necessary for such decision. articles should not be excluded from entry. The (c) Determinations; review Commission shall notify the Secretary of the The Commission shall determine, with respect Treasury of its action under this subsection di- to each investigation conducted by it under this recting such exclusion from entry, and upon re- section, whether or not there is a violation of ceipt of such notice, the Secretary shall, this section, except that the Commission may, through the proper officers, refuse such entry. by issuing a consent order or on the basis of an (2) The authority of the Commission to order agreement between the private parties to the in- an exclusion from entry of articles shall be lim- vestigation, including an agreement to present ited to persons determined by the Commission the matter for arbitration, terminate any such to be violating this section unless the Commis- investigation, in whole or in part, without mak- sion determines that— ing such a determination. Each determination (A) a general exclusion from entry of arti- under subsection (d) or (e) of this section shall cles is necessary to prevent circumvention of be made on the record after notice and oppor- an exclusion order limited to products of tunity for a hearing in conformity with the pro- named persons; or visions of subchapter II of chapter 5 of title 5. (B) there is a pattern of violation of this sec- All legal and equitable defenses may be pre- tion and it is difficult to identify the source of sented in all cases. A respondent may raise any infringing products. counterclaim in a manner prescribed by the (e) Exclusion of articles from entry during inves- Commission. Immediately after a counterclaim tigation except under bond; procedures ap- is received by the Commission, the respondent plicable; preliminary relief raising such counterclaim shall file a notice of (1) If, during the course of an investigation removal with a United States district court in under this section, the Commission determines which venue for any of the counterclaims raised that there is reason to believe that there is a by the party would exist under section 1391 of violation of this section, it may direct that the title 28. Any counterclaim raised pursuant to articles concerned, imported by any person with this section shall relate back to the date of the respect to whom there is reason to believe that original complaint in the proceeding before the such person is violating this section, be excluded Commission. Action on such counterclaim shall from entry into the United States, unless, after not delay or affect the proceeding under this considering the effect of such exclusion upon the section, including the legal and equitable de- public health and welfare, competitive condi- fenses that may be raised under this subsection. tions in the United States economy, the produc- Any person adversely affected by a final deter- tion of like or directly competitive articles in mination of the Commission under subsection the United States, and United States consumers, (d), (e), (f), or (g) of this section may appeal such it finds that such articles should not be excluded determination, within 60 days after the deter- from entry. The Commission shall notify the mination becomes final, to the United States Secretary of the Treasury of its action under Page 105 TITLE 19—CUSTOMS DUTIES § 1337 this subsection directing such exclusion from prescribe the terms and conditions under which entry, and upon receipt of such notice, the Sec- the bonds may be forfeited under this paragraph. retary shall, through the proper officers, refuse (2) Any person who violates an order issued by such entry, except that such articles shall be en- the Commission under paragraph (1) after it has titled to entry under bond prescribed by the Sec- become final shall forfeit and pay to the United retary in an amount determined by the Commis- States a civil penalty for each day on which an sion to be sufficient to protect the complainant importation of articles, or their sale, occurs in from any injury. If the Commission later deter- violation of the order of not more than the mines that the respondent has violated the pro- greater of $100,000 or twice the domestic value of visions of this section, the bond may be forfeited the articles entered or sold on such day in viola- to the complainant. tion of the order. Such penalty shall accrue to (2) A complainant may petition the Commis- the United States and may be recovered for the sion for the issuance of an order under this sub- United States in a civil action brought by the section. The Commission shall make a deter- Commission in the Federal District Court for mination with regard to such petition by no the District of Columbia or for the district in later than the 90th day after the date on which which the violation occurs. In such actions, the the Commission’s notice of investigation is pub- United States district courts may issue manda- lished in the Federal Register. The Commission tory injunctions incorporating the relief sought may extend the 90-day period for an additional by the Commission as they deem appropriate in 60 days in a case it designates as a more com- the enforcement of such final orders of the Com- plicated case. The Commission shall publish in mission. the Federal Register its reasons why it des- (g) Exclusion from entry or cease and desist ignated the case as being more complicated. The order; conditions and procedures applicable Commission may require the complainant to (1) If— post a bond as a prerequisite to the issuance of (A) a complaint is filed against a person an order under this subsection. If the Commis- under this section; sion later determines that the respondent has (B) the complaint and a notice of investiga- not violated the provisions of this section, the tion are served on the person; bond may be forfeited to the respondent. (C) the person fails to respond to the com- (3) The Commission may grant preliminary re- plaint and notice or otherwise fails to appear lief under this subsection or subsection (f) of to answer the complaint and notice; this section to the same extent as preliminary (D) the person fails to show good cause why injunctions and temporary restraining orders the person should not be found in default; and may be granted under the Federal Rules of Civil (E) the complainant seeks relief limited Procedure. solely to that person; (4) The Commission shall prescribe the terms the Commission shall presume the facts alleged and conditions under which bonds may be for- in the complaint to be true and shall, upon re- feited under paragraphs (1) and (2). quest, issue an exclusion from entry or a cease (f) Cease and desist orders; civil penalty for vio- and desist order, or both, limited to that person lation of orders unless, after considering the effect of such ex- (1) In addition to, or in lieu of, taking action clusion or order upon the public health and wel- under subsection (d) or (e) of this section, the fare, competitive conditions in the United Commission may issue and cause to be served on States economy, the production of like or di- any person violating this section, or believed to rectly competitive articles in the United States, be violating this section, as the case may be, an and United States consumers, the Commission order directing such person to cease and desist finds that such exclusion or order should not be from engaging in the unfair methods or acts in- issued. (2) In addition to the authority of the Commis- volved, unless after considering the effect of sion to issue a general exclusion from entry of such order upon the public health and welfare, articles when a respondent appears to contest an competitive conditions in the United States investigation concerning a violation of the pro- economy, the production of like or directly com- visions of this section, a general exclusion from petitive articles in the United States, and entry of articles, regardless of the source or im- United States consumers, it finds that such porter of the articles, may be issued if— order should not be issued. The Commission may (A) no person appears to contest an inves- at any time, upon such notice and in such man- tigation concerning a violation of the provi- ner as it deems proper, modify or revoke any sions of this section, such order, and, in the case of a revocation, may (B) such a violation is established by sub- take action under subsection (d) or (e) of this stantial, reliable, and probative evidence, and section, as the case may be. If a temporary cease (C) the requirements of subsection (d)(2) of and desist order is issued in addition to, or in this section are met. lieu of, an exclusion order under subsection (e) (h) Sanctions for abuse of discovery and abuse of of this section, the Commission may require the process complainant to post a bond, in an amount determined by the Commission to be sufficient to The Commission may by rule prescribe sanc- protect the respondent from any injury, as a tions for abuse of discovery and abuse of process prerequisite to the issuance of an order under to the extent authorized by Rule 11 and Rule 37 this subsection. If the Commission later deter- of the Federal Rules of Civil Procedure. mines that the respondent has not violated the (i) Forfeiture provisions of this section, the bond may be for- (1) In addition to taking action under sub- feited to the respondent. The Commission shall section (d) of this section, the Commission may § 1337 TITLE 19—CUSTOMS DUTIES Page 106 issue an order providing that any article im- sections, except that articles directed to be exported in violation of the provisions of this sec- cluded from entry under subsection (d) of this tion be seized and forfeited to the United States section or subject to a cease and desist order if— under subsection (f) of this section shall, until (A) the owner, importer, or consignee of the such determination becomes final, be entitled to article previously attempted to import the ar- entry under bond prescribed by the Secretary in ticle into the United States; an amount determined by the Commission to be (B) the article was previously denied entry sufficient to protect the complainant from any into the United States by reason of an order injury. If the determination becomes final, the issued under subsection (d) of this section; and bond may be forfeited to the complainant. The (C) upon such previous denial of entry, the Commission shall prescribe the terms and condi- Secretary of the Treasury provided the owner, tions under which bonds may be forfeited under importer, or consignee of the article written this paragraph. notice of— (4) If the President does not disapprove such (i) such order, and determination within such 60-day period, or if he (ii) the seizure and forfeiture that would notifies the Commission before the close of such result from any further attempt to import period that he approves such determination, the article into the United States. then, for purposes of paragraph (3) and subsection (c) of this section such determination (2) The Commission shall notify the Secretary shall become final on the day after the close of of the Treasury of any order issued under this such period or the day on which the President subsection and, upon receipt of such notice, the notifies the Commission of his approval, as the Secretary of the Treasury shall enforce such case may be. order in accordance with the provisions of this section. (k) Period of effectiveness; termination of viola- (3) Upon the attempted entry of articles sub- tion or modification or rescission of exclu- ject to an order issued under this subsection, the sion or order Secretary of the Treasury shall immediately no- (1) Except as provided in subsections (f) and (j) tify all ports of entry of the attempted importa- of this section, any exclusion from entry or tion and shall identify the persons notified order under this section shall continue in effect under paragraph (1)(C). until the Commission finds, and in the case of (4) The Secretary of the Treasury shall pro- exclusion from entry notifies the Secretary of vide— the Treasury, that the conditions which led to (A) the written notice described in para- such exclusion from entry or order no longer graph (1)(C) to the owner, importer, or con- exist. signee of any article that is denied entry into (2) If any person who has previously been the United States by reason of an order issued found by the Commission to be in violation of under subsection (d) of this section; and this section petitions the Commission for a de- (B) a copy of such written notice to the termination that the petitioner is no longer in Commission. violation of this section or for a modification or rescission of an exclusion from entry or order (j) Referral to President under subsection (d), (e), (f), (g), or (i) of this (1) If the Commission determines that there is section— a violation of this section, or that, for purposes (A) the burden of proof in any proceeding be- of subsection (e) of this section, there is reason fore the Commission regarding such petition to believe that there is such a violation, it shall be on the petitioner; and shall— (B) relief may be granted by the Commission (A) publish such determination in the Fed- with respect to such petition— eral Register, and (i) on the basis of new evidence or evidence (B) transmit to the President a copy of such that could not have been presented at the determination and the action taken under sub- prior proceeding, or section (d), (e), (f), (g), or (i) of this section, (ii) on grounds which would permit relief with respect thereto, together with the record from a judgment or order under the Federal upon which such determination is based. Rules of Civil Procedure. (2) If, before the close of the 60-day period be- (l) Importation by or for United States ginning on the day after the day on which he re- Any exclusion from entry or order under sub- ceives a copy of such determination, the Presi- section (d), (e), (f), (g), or (i) of this section, in dent, for policy reasons, disapproves such deter- cases based on a proceeding involving a patent, mination and notifies the Commission of his dis- copyright, mask work, or design under sub- approval, then, effective on the date of such no- section (a)(1) of this section, shall not apply to tice, such determination and the action taken any articles imported by and for the use of the under subsection (d), (e), (f), (g), or (i) of this United States, or imported for, and to be used section with respect thereto shall have no force for, the United States with the authorization or or effect. consent of the Government. Whenever any arti- (3) Subject to the provisions of paragraph (2), cle would have been excluded from entry or such determination shall, except for purposes of would not have been entered pursuant to the subsection (c) of this section, be effective upon provisions of such subsections but for the oper- publication thereof in the Federal Register, and ation of this subsection, an owner of the patent, the action taken under subsection (d), (e), (f), copyright, mask work, or design adversely af- (g), or (i) of this section, with respect thereto fected shall be entitled to reasonable and entire shall be effective as provided in such sub- compensation in an action before the United Page 107 TITLE 19—CUSTOMS DUTIES § 1337

States Court of Federal Claims pursuant to the (b), Aug. 23, 1988, 102 Stat. 1157, 1212, 1215; Pub. procedures of section 1498 of title 28. L. 100–647, title IX, § 9001(a)(7), (12), Nov. 10, 1988, (m) ‘‘United States’’ defined 102 Stat. 3807; Pub. L. 102–563, § 3(d), Oct. 28, 1992, 106 Stat. 4248; Pub. L. 103–465, title II, For purposes of this section and sections 1338 § 261(d)(1)(B)(ii), title III, § 321(a), Dec. 8, 1994, 108 and 1340 1 of this title, the term ‘‘United States’’ Stat. 4909, 4943; Pub. L. 104–295, § 20(b)(11), (12), means the customs territory of the United (c)(2), Oct. 11, 1996, 110 Stat. 3527, 3528; Pub. L. States as defined in general note 2 of the Har- 106–113, div. B, § 1000(a)(9) [title V, § 5005(b)], Nov. monized Tariff Schedule of the United States. 29, 1999, 113 Stat. 1536, 1501A–594; Pub. L. 108–429, (n) Disclosure of confidential information title II, § 2004(d)(5), Dec. 3, 2004, 118 Stat. 2592.) (1) Information submitted to the Commission REFERENCES IN TEXT or exchanged among the parties in connection with proceedings under this section which is The Trademark Act of 1946, referred to in subsec. properly designated as confidential pursuant to (a)(1)(C), is act July 5, 1946, ch. 540, 60 Stat. 427, as Commission rules may not be disclosed (except amended, also popularly known as the Lanham Act, which is classified generally to chapter 22 (§ 1051 et seq.) under a protective order issued under regula- of Title 15, Commerce and Trade. For complete classi- tions of the Commission which authorizes lim- fication of this Act to the Code, see Short Title note ited disclosure of such information) to any per- set out under section 1051 of Title 15 and Tables. son (other than a person described in paragraph The Federal Rules of Civil Procedure, referred to in (2)) without the consent of the person submit- subsecs. (e)(3), (h), and (k)(2)(B)(ii), are set out in the ting it. Appendix to Title 28, Judiciary and Judicial Procedure. (2) Notwithstanding the prohibition contained Section 1340 of this title, referred to in subsec. (m), in paragraph (1), information referred to in that was omitted from the Code. The Harmonized Tariff Schedule of the United States, paragraph may be disclosed to— referred to in subsec. (m), is not set out in the Code. (A) an officer or employee of the Commis- See Publication of Harmonized Tariff Schedule note set sion who is directly concerned with— out under section 1202 of this title. (i) carrying out the investigation or related proceeding in connection with which the CODIFICATION information is submitted, The reference to the Philippine Islands, formerly con- (ii) the administration of a bond posted tained in subsec. (k), was omitted because of independ- pursuant to subsection (e), (f), or (j) of this ence of the Philippines proclaimed by the President of section, the United States in Proc. No. 2695, issued pursuant to (iii) the administration or enforcement of section 1394 of Title 22, Foreign Relations and Inter- course, and set out as a note thereunder. an exclusion order issued pursuant to subsection (d), (e), or (g) of this section, a cease PRIOR PROVISIONS and desist order issued pursuant to sub- Provisions similar to those in this section were con- section (f) of this section, or a consent order tained in act Sept. 21, 1922, ch. 356, title III, § 316, 42 issued pursuant to subsection (c) of this sec- Stat. 943. That section was superseded by section 337 of tion, act June 17, 1930, comprising this section, and repealed (iv) proceedings for the modification or re- by section 651(a)(1) of the 1930 act. scission of a temporary or permanent order AMENDMENTS issued under subsection (d), (e), (f), (g), or (i) 2004—Subsec. (a)(1)(E). Pub. L. 108–429, § 2004(d)(5)(A), of this section, or a consent order issued realigned margins. under this section, or Subsec. (a)(2). Pub. L. 108–429, § 2004(d)(5)(B), sub- (v) maintaining the administrative record stituted ‘‘(D), and (E)’’ for ‘‘and (D)’’. of the investigation or related proceeding, 1999—Subsec. (a)(1)(A). Pub. L. 106–113, § 1000(a)(9) (B) an officer or employee of the United [title V, § 5005(b)(1)(A)(i)], substituted ‘‘(D), and (E)’’ for ‘‘and (D)’’. States Government who is directly involved in Subsec. (a)(1)(E). Pub. L. 106–113, § 1000(a)(9) [title V, the review under subsection (j) of this section, § 5005(b)(1)(A)(ii)], added subpar. (E). or Subsec. (a)(2), (3). Pub. L. 106–113, § 1000(a)(9) [title V, (C) an officer or employee of the United § 5005(b)(1)(B)], substituted ‘‘mask work, or design’’ for States Customs Service who is directly in- ‘‘or mask work’’. volved in administering an exclusion from Subsec. (l). Pub. L. 106–113, § 1000(a)(9) [title V, entry under subsection (d), (e), or (g) of this § 5005(b)(2)], substituted ‘‘mask work, or design’’ for ‘‘or section resulting from the investigation or re- mask work’’ in two places. 1996—Subsec. (b)(3). Pub. L. 104–295, § 20(c)(2), amended lated proceeding in connection with which the Pub. L. 103–465, § 321(a)(1)(C)(i). See 1994 Amendment information is submitted. note below. (June 17, 1930, ch. 497, title III, § 337, 46 Stat. 703; Pub. L. 104–295, § 20(b)(12), struck out ‘‘such section Proc. No. 2695, July 4, 1946, 11 F.R. 7517, 60 Stat. and’’ before ‘‘such part II’’ in first sentence. Pub. L. 104–295, § 20(b)(11), amended Pub. L. 103–465, 1352; Pub. L. 85–686, § 9(c)(1), Aug. 20, 1958, 72 § 261(d)(1)(B)(ii)(I). See 1994 Amendment note below. Stat. 679; Pub. L. 93–618, title III, § 341(a), Jan. 3, 1994—Subsec. (b). Pub. L. 103–465, § 321(a)(1)(A), struck 1975, 88 Stat. 2053; Pub. L. 96–39, title I, out ‘‘; time limits’’ after ‘‘Commission’’ in heading. § 106(b)(1), title XI, § 1105, July 26, 1979, 93 Stat. Subsec. (b)(1). Pub. L. 103–465, § 321(a)(1)(B), sub- 193, 310; Pub. L. 96–417, title VI, § 604, Oct. 10, stituted third and fourth sentences for ‘‘The Commis- 1980, 94 Stat. 1744; Pub. L. 97–164, title I, sion shall conclude any such investigation, and make §§ 160(a)(5), 163(a)(4), Apr. 2, 1982, 96 Stat. 48, 49; its determination under this section, at the earliest Pub. L. 98–620, title IV, § 413, Nov. 8, 1984, 98 Stat. practicable time, but not later than one year (18 months in more complicated cases) after the date of 3362; Pub. L. 100–418, title I, §§ 1214(h)(3), 1342(a), publication of notice of such investigation. The Com- mission shall publish in the Federal Register its rea- 1 See References in Text note below. sons for designating any investigation as a more com- § 1337 TITLE 19—CUSTOMS DUTIES Page 108 plicated investigation. For purposes of the one-year the complainant to post a bond, in an amount deter- and 18-month periods prescribed by this subsection, mined by the Commission to be sufficient to protect there shall be excluded any period of time during which the respondent from any injury, as a prerequisite to the such investigation is suspended because of proceedings issuance of an order under this subsection. If the Com- in a court or agency of the United States involving mission later determines that the respondent has not similar questions concerning the subject matter of such violated the provisions of this section, the bond may be investigation.’’ forfeited to the respondent. The Commission shall pre- Subsec. (b)(3). Pub. L. 103–465, § 321(a)(1)(C)(ii), struck scribe the terms and conditions under which the bonds out after fourth sentence ‘‘For purposes of computing may be forfeited under this paragraph.’’ the 1-year or 18-month periods prescribed by this sub- Subsec. (g)(2)(C). Pub. L. 103–465, § 321(a)(5)(B), added section, there shall be excluded such period of suspen- subpar. (C). sion.’’ Subsec. (j)(3). Pub. L. 103–465, § 321(a)(6), substituted Pub. L. 103–465, § 321(a)(1)(C)(i), as amended by Pub. L. ‘‘shall, until such determination becomes final, be enti- 104–295, § 20(c)(2), in first sentence, made technical tled to entry under bond prescribed by the Secretary in amendment to reference in original act which appears an amount determined by the Commission to be suffi- in text as reference to ‘‘such part II’’. cient to protect the complainant from any injury. If Pub. L. 103–465, § 261(d)(1)(B)(ii)(II)–(V), in second sen- the determination becomes final, the bond may be for- tence, struck out ‘‘1303,’’ after ‘‘purview of section’’ and feited to the complainant. The Commission shall pre- comma after ‘‘1671’’ and made technical amendment to scribe the terms and conditions under which bonds may references to sections 1671 and 1673 of this title to cor- be forfeited under this paragraph.’’ for ‘‘shall be entitled to entry under bond determined by the Commis- rect references to corresponding sections of original sion and prescribed by the Secretary until such deter- act, in third sentence, substituted ‘‘1671’’ for ‘‘1303, mination becomes final.’’ 1671,’’, and in last sentence, struck out ‘‘of the Sec- Subsec. (l). Pub. L. 103–465, § 321(a)(8), substituted retary under section 1303 of this title or’’ after ‘‘Any ‘‘Court of Federal Claims’’ for ‘‘Claims Court’’. final decision’’ and substituted ‘‘1671 or’’ for ‘‘1303, 1671, Subsec. (n)(2)(A). Pub. L. 103–465, § 321(a)(7)(A), or’’. amended subpar. (A) generally. Prior to amendment, Pub. L. 103–465, § 261(d)(1)(B)(ii)(I), as amended by subpar. (A) read as follows: ‘‘an officer or employee of Pub. L. 104–295, § 20(b)(11), in first sentence, struck out the Commission who is directly concerned with carry- reference to section 1303 of this title after ‘‘within the ing out the investigation in connection with which the purview’’ and made technical amendment to reference information is submitted,’’. to part II of subtitle IV of this chapter by substituting Subsec. (n)(2)(C). Pub. L. 103–465, § 321(a)(7)(B), amend- in the original ‘‘of subtitle B of title VII of this Act’’ ed subpar. (C) generally. Prior to amendment, subpar. for ‘‘of section 303 or of subtitle B of title VII of the (C) read as follows: ‘‘an officer or employee of the Tariff Act of 1930’’. United States Customs Service who is directly involved Subsec. (c). Pub. L. 103–465, § 321(a)(2), in first sen- in administering an exclusion from entry under this tence, substituted ‘‘an agreement between the private section resulting from the investigation in connection parties to the investigation, including an agreement to with which the information is submitted.’’ present the matter for arbitration’’ for ‘‘a settlement 1992—Subsec. (b)(3). Pub. L. 102–563 amended second agreement’’, inserted after third sentence ‘‘A respond- sentence generally. Prior to amendment, second sen- ent may raise any counterclaim in a manner prescribed tence read as follows: ‘‘If the Commission has reason to by the Commission. Immediately after a counterclaim believe the matter before it is based solely on alleged is received by the Commission, the respondent raising acts and effects which are within the purview of section such counterclaim shall file a notice of removal with a 1303, 1671, or 1673 of this title, it shall terminate, or not United States district court in which venue for any of institute, any investigation into the matter.’’ the counterclaims raised by the party would exist 1988—Subsec. (a). Pub. L. 100–418, § 1342(a)(1), amended under section 1391 of title 28. Any counterclaim raised subsec. (a) generally. Prior to amendment, subsec. (a) pursuant to this section shall relate back to the date of read as follows: ‘‘Unfair methods of competition and the original complaint in the proceeding before the unfair acts in the importation of articles into the Commission. Action on such counterclaim shall not United States, or in their sale by the owner, importer, delay or affect the proceeding under this section, in- consignee, or agent of either, the effect or tendency of cluding the legal and equitable defenses that may be which is to destroy or substantially injure an industry, raised under this subsection.’’, and inserted at end ‘‘De- efficiently and economically operated, in the United terminations by the Commission under subsections (e), States, or to prevent the establishment of such an in- (f), and (j) of this section with respect to forfeiture of dustry, or to restrain or monopolize trade and com- bonds and under subsection (h) of this section with re- merce in the United States, are declared unlawful, and spect to the imposition of sanctions for abuse of discov- when found by the Commission to exist shall be dealt ery or abuse of process shall also be reviewable in ac- with, in addition to any other provisions of law, as pro- cordance with section 706 of title 5.’’ vided in this section.’’ Subsec. (d). Pub. L. 103–465, § 321(a)(5)(A), designated Subsec. (b)(2). Pub. L. 100–418, § 1342(b)(1)(A), sub- existing provisions as par. (1), substituted ‘‘there is a stituted ‘‘Department of Health and Human Services’’ violation’’ for ‘‘there is violation’’ in first sentence, for ‘‘Department of Health, Education, and Welfare’’. Subsec. (b)(3). Pub. L. 100–418, § 1342(b)(1)(B), sub- and added par. (2). stituted ‘‘Secretary of Commerce’’ for ‘‘Secretary of Subsec. (e)(1). Pub. L. 103–465, § 321(a)(3)(A), in last the Treasury’’. sentence, substituted ‘‘prescribed by the Secretary in Subsec. (c). Pub. L. 100–418, § 1342(a)(2), inserted before an amount determined by the Commission to be suffi- period at end of first sentence ‘‘, except that the Com- cient to protect the complainant from any injury. If mission may, by issuing a consent order or on the basis the Commission later determines that the respondent of a settlement agreement, terminate any such inves- has violated the provisions of this section, the bond tigation, in whole or in part, without making such a may be forfeited to the complainant.’’ for ‘‘determined determination’’. by the Commission and prescribed by the Secretary.’’ Pub. L. 100–418, § 1342(b)(2), inserted reference to sub- Subsec. (e)(2). Pub. L. 103–465, § 321(a)(3)(B), inserted sec. (g) in two places. at end ‘‘If the Commission later determines that the re- Subsec. (e). Pub. L. 100–418, § 1342(a)(3), designated ex- spondent has not violated the provisions of this sec- isting provisions as par. (1) and added pars. (2) and (3). tion, the bond may be forfeited to the respondent.’’ Subsec. (f)(1). Pub. L. 100–418, § 1342(a)(4)(A), sub- Subsec. (e)(4). Pub. L. 103–465, § 321(a)(3)(C), added par. stituted ‘‘In addition to, or in lieu of,’’ for ‘‘In lieu of’’. (4). Subsec. (f)(2). Pub. L. 100–418, § 1342(a)(4)(B), sub- Subsec. (f)(1). Pub. L. 103–465, § 321(a)(4), inserted at stituted ‘‘$100,000 or twice’’ for ‘‘$10,000 or’’. end ‘‘If a temporary cease and desist order is issued in Subsecs. (g) to (i). Pub. L. 100–418, § 1342(a)(5), added addition to, or in lieu of, an exclusion order under sub- subsecs. (g) to (i). Former subsecs. (g) to (i) redesig- section (e) of this section, the Commission may require nated (j) to (l), respectively. Page 109 TITLE 19—CUSTOMS DUTIES § 1337

Subsec. (j). Pub. L. 100–418, § 1342(a)(5)(A), redesig- thorized to investigate any alleged violation hereof’’ in nated former subsec. (g) as (j). Former subsec. (j) redes- first sentence of par. (1) as so designated, and added re- ignated (m). mainder of par. (1) and pars. (2) and (3). Subsec. (j)(1)(B), (2), (3). Pub. L. 100–418, § 1342(b)(3), Subsec. (c). Pub. L. 93–618 substituted provisions cov- inserted reference to subsecs. (g) and (i). ering determinations by the Commission and appeals to Subsec. (k). Pub. L. 100–418, § 1342(b)(4), which directed the United States Court of Customs and Patent Appeals the substitution ‘‘(j)’’ for ‘‘(g)’’ was executed by making for provisions covering all aspects of hearings and re- that substitution in par. (1) and not in par. (2), as added view as part of investigations of unfair practices in im- by Pub. L. 100–418, § 1342(a)(6), to reflect the probable in- port trade. tent of Congress. Subsec. (d). Pub. L. 93–618 substituted provisions cov- Pub. L. 100–418, § 1342(a)(6), as amended by Pub. L. ering the exclusion of articles from entry, formerly 100–647, § 9001(a)(7), designated existing provisions as covered in subsec. (e), for provisions directing that par. (1) and added par. (2). final findings of the Commission be transmitted with Pub. L. 100–418, § 1342(a)(5)(A), redesignated former the record to the President, covered by subsec. (g). subsec. (h) as (k). Subsec. (e). Pub. L. 93–618 substituted provisions cov- Subsec. (l). Pub. L. 100–418, § 1342(b)(5), inserted ref- ering the entry of articles under bond during investiga- erence to subsecs. (g) and (i). tion, formerly covered in subsec. (f), for provisions cov- Pub. L. 100–418, § 1342(a)(7), substituted ‘‘a proceeding ering the exclusion of articles from entry, covered by involving a patent, copyright, or mask work under sub- subsec. (d). section (a)(1)’’ for ‘‘claims of United States letters pat- Subsec. (f). Pub. L. 93–618 added subsec. (f). Provisions ent’’ and ‘‘an owner of the patent, copyright, or mask of former subsec. (f) covering entry of articles under work’’ for ‘‘a patent owner’’. bond are covered by subsec. (e). Pub. L. 100–418, § 1342(a)(5)(A), redesignated former Subsec. (g). Pub. L. 93–618 substituted provisions cov- subsec. (i) as (l). ering referral to the President, formerly covered by Subsec. (m). Pub. L. 100–418, § 1342(a)(5)(A), redesig- subsec. (d), for provisions covering the continuance of nated former subsec. (j) as (m). exclusion, covered by subsec. (h). Pub. L. 100–418, § 1214(h)(3), substituted ‘‘general note Subsec. (h). Pub. L. 93–618 substituted provisions cov- 2 of the Harmonized Tariff Schedule of the United ering the period of effectiveness, formerly covered by States’’ for ‘‘general headnote 2 of the Tariff Schedules subsec. (g), for provisions defining ‘‘United States’’, of the United States’’. covered by subsec. (j). Subsec. (n). Pub. L. 100–418, § 1342(a)(8), added subsec. Subsec. (i). Pub. L. 93–618 added subsec. (i). (n). Subsec. (j). Pub. L. 93–618 added subsec. (j) defining Subsec. (n)(2)(B). Pub. L. 100–647, § 9001(a)(12), sub- ‘‘United States’’, formerly covered by subsec. (h). stituted ‘‘subsection (j)’’ for ‘‘subsection (h)’’. 1958—Subsec. (c). Pub. L. 85–686 struck out ‘‘under 1984—Subsec. (c). Pub. L. 98–620 inserted ‘‘, within 60 and in accordance with such rules as it may promul- days after the determination becomes final,’’ after ‘‘ap- gate’’ after ‘‘commission shall make such investiga- peal such determination’’. tion’’. See section 1335 of this title. 1982—Subsec. (c). Pub. L. 97–164, § 163(a)(4), substituted ‘‘Court of Appeals for the Federal Circuit’’ for EFFECTIVE DATE OF 1994 AMENDMENT ‘‘Court of Customs and Patent Appeals’’. Subsec. (i). Pub. L. 97–164, § 160(a)(5), substituted Amendment by section 261(d)(1)(B)(ii) of Pub. L. ‘‘United States Claims Court’’ for ‘‘Court of Claims’’. 103–465 effective on effective date of title II of Pub. L. 1980—Subsec. (c). Pub. L. 96–417 provided that the ap- 103–465, Jan. 1, 1995, see section 261(d)(2) of Pub. L. peal of determinations to the United States Court of 103–465, set out as a note under section 1315 of this title. Customs and Patent Appeals be reviewed in accordance Section 322 of title III of Pub. L. 103–465 provided with chapter 7 of title 5 and substituted provision that that: ‘‘The amendments made by this subtitle [subtitle review of findings concerning the public health and C (§§ 321, 322) of title III of Pub. L. 103–465, enacting sec- welfare, competitive conditions in the United States tions 1368 and 1659 of Title 28, Judiciary and Judicial economy, the production of like or directly competitive Procedure, and amending this section and section 1446 articles in the United States, and United States con- of Title 28] apply— sumers, the amount and nature of bond, or the appro- ‘‘(1) with respect to complaints filed under section priate remedy, be in accordance with section 706 of title 337 of the Tariff Act of 1930 [19 U.S.C. 1337] on or after 5 for provision giving such court jurisdiction to review the date on which the WTO Agreement enters into determinations in same manner and subject to same force with respect to the United States [Jan. 1, 1995], limitations and conditions as in case of appeals from or decisions of the United States Customs Court. ‘‘(2) in cases under such section 337 in which no 1979—Subsec. (b)(3). Pub. L. 96–39, § 1105(a), sub- complaint is filed, with respect to investigations ini- stituted ‘‘a matter, in whole or in part,’’ for ‘‘the mat- tiated under such section on or after such date.’’ ter’’ and inserted provisions relating to matters based EFFECTIVE DATE OF 1988 AMENDMENTS solely or in part on alleged acts and effects within the purview of section 1303, 1671, or 1673 of this title. Amendment by Pub. L. 100–647 applicable as if such Pub. L. 96–39, § 106(b)(1), substituted ‘‘part II of sub- amendment took effect on Aug. 23, 1988, see section title IV of this chapter’’ for ‘‘the Antidumping Act, 9001(b) of Pub. L. 100–647, set out as an Effective and 1921’’. Termination Dates of 1988 Amendments note under sec- Subsec. (c). Pub. L. 96–39, § 1105(c), substituted ‘‘Any tion 58c of this title. person adversely affected by a final determination of Amendment by section 1214(h)(3) of Pub. L. 100–418 ef- the Commission under subsection (d), (e), or (f) of this fective Jan. 1, 1989, and applicable with respect to arti- section’’ for ‘‘Any person adversely affected by a final cles entered on or after such date, see section 1217(b)(1) determination of the Commission under subsection (d) of Pub. L. 100–418, set out as an Effective Date note or (e) of this section’’. under section 3001 of this title. Subsec. (f). Pub. L. 96–39, § 1105(b), designated existing Section 1342(d) of Pub. L. 100–418 provided that: provisions as par. (1) and added par. (2). ‘‘(1)(A) Subject to subparagraph (B), the amendments 1975—Subsec. (a) Pub. L. 93–618 substituted ‘‘Commis- made by this section [amending this section and repeal- sion’’ for ‘‘President’’ and ‘‘as provided in this section’’ ing section 1337a of this title] shall take effect on the for ‘‘as hereinafter provided’’. date of the enactment of this Act [Aug. 23, 1988]. Subsec. (b). Pub. L. 93–618 designated existing provi- ‘‘(B) The United States International Trade Commis- sions as first sentence of par. (1), substituted ‘‘The sion is not required to apply the provision in section Commission shall investigate any alleged violation of 337(e)(2) of the Tariff Act of 1930 [19 U.S.C. 1337(e)(2)] (as this section’’ for ‘‘To assist the President in making amended by subsection (a)(3) of this section) relating to any decisions under this section the commission is au- the posting of bonds until the earlier of— § 1337a TITLE 19—CUSTOMS DUTIES Page 110

‘‘(i) the 90th day after such date of enactment; or practices is cumbersome and costly and has not pro- ‘‘(ii) the day on which the Commission issues in- vided United States owners of intellectual property terim regulations setting forth the procedures relat- rights with adequate protection against foreign coming to such posting. panies violating such rights. ‘‘(2) Notwithstanding any provision of section 337 of ‘‘(b) PURPOSE.—The purpose of this part [part 3 the Tariff Act of 1930, the United States International (§§ 1341, 1342) of subtitle C of title I of Pub. L. 100–418, Trade Commission may extend, by not more than 90 amending this section, repealing section 1337a of this days, the period within which the Commission is re- title, and enacting provisions set out as a note above] quired to make a determination in an investigation is to amend section 337 of the Tariff Act of 1930 to make conducted under such section 337 if— it a more effective remedy for the protection of United ‘‘(A) the Commission would, but for this paragraph, States intellectual property rights.’’ be required to make such determination before the 180th day after the date of enactment of this Act; and ASSIGNMENT OF CERTAIN FUNCTIONS ‘‘(B) the Commission finds that the investigation is Memorandum of President of the United States, July complicated.’’ 21, 2005, 70 F.R. 43251, provided: EFFECTIVE DATE OF 1982 AMENDMENT Memorandum for the United States Trade Represent- ative Amendment by Pub. L. 97–164 effective Oct. 1, 1982, By the authority vested in me by the Constitution see section 402 of Pub. L. 97–164, set out as a note under and the laws of the United States of America, including section 171 of Title 28, Judiciary and Judicial Proce- section 301 of title 3, United States Code, I hereby as- dure. sign to you the functions of the President under section 337(j)(1)(B), section 337(j)(2), and section 337(j)(4) of the EFFECTIVE DATE OF 1980 AMENDMENT Tariff Act of 1930, as amended (19 U.S.C. 1337(j)(1), (j)(2), Amendment by Pub. L. 96–417 applicable with respect and (j)(4)). to civil actions commenced on or after Nov. 1, 1980, see You are authorized and directed to publish this section 701(b)(2) of Pub. L. 96–417, set out as a note memorandum in the Federal Register. under section 251 of Title 28, Judiciary and Judicial GEORGE W. BUSH. Procedure.

EFFECTIVE DATE OF 1979 AMENDMENT § 1337a. Repealed. Pub. L. 100–418, title I, § 1342(c), Aug. 23, 1988, 102 Stat. 1215 Amendment by section 106(b)(1) of Pub. L. 96–39 effective Jan. 1, 1980, see section 107 of Pub. L. 96–39, set out Section, act July 2, 1940, ch. 515, 54 Stat. 724, related as an Effective Date note under section 1671 of this to importation of products produced under process cov- title. ered by claims of unexpired patent. Amendment by section 1105 of Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out EFFECTIVE DATE OF REPEAL as an Effective Date note under section 2581 of this Repeal effective Aug. 23, 1988, see section 1342(d) of title. Pub. L. 100–418, set out as an Effective Date of 1988 EFFECTIVE DATE OF 1975 AMENDMENT Amendment note under section 1337 of this title. Section 341(c) of Pub. L. 93–618 provided that: ‘‘The § 1338. Discrimination by foreign countries amendments made by this section [amending this section and section 1337 of this title] shall take effect on (a) Additional duties the 90th day after the date of the enactment of this Act [Jan. 3, 1975], except that, for purposes of issuing regu- The President when he finds that the public lations under section 337 of the Tariff Act of 1930 [this interest will be served shall by proclamation section], such amendments shall take effect on the date specify and declare new or additional duties as of the enactment of this Act [Jan. 3, 1975]. For purposes hereinafter provided upon articles wholly or in of applying section 337(b) of the Tariff Act of 1930 [subpart the growth or product of, or imported in a sec. (b) of this section] (as amended by subsection (a) vessel of, any foreign country whenever he shall [as amended by section 341(a) of Pub. L. 93–618]) with find as a fact that such country— respect to investigations being conducted by the Inter- (1) Imposes, directly or indirectly, upon the national Trade Commission under section 337 of the Tariff Act [this section] on the day prior to the 90th disposition in or transportation in transit day after the date of the enactment of this Act [Jan. 3, through or reexportation from such country of 1975], such investigations shall be considered as having any article wholly or in part the growth or been commenced on such 90th day.’’ product of the United States any unreasonable charge, exaction, regulation, or limitation TRANSFER OF FUNCTIONS which is not equally enforced upon the like ar- For transfer of functions, personnel, assets, and li- ticles of every foreign country; or abilities of the United States Customs Service of the (2) Discriminates in fact against the com- Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- merce of the United States, directly or indi- retary of Homeland Security, and for treatment of re- rectly, by law or administrative regulation or lated references, see sections 203(1), 551(d), 552(d), and practice, by or in respect to any customs, ton- 557 of Title 6, Domestic Security, and the Department nage, or port duty, fee, charge, exaction, clas- of Homeland Security Reorganization Plan of Novem- sification, regulation, condition, restriction, ber 25, 2002, as modified, set out as a note under section or prohibition, in such manner as to place the 542 of Title 6. commerce of the United States at a disadvan- CONGRESSIONAL FINDINGS AND PURPOSES RESPECTING tage compared with the commerce of any for- PART 3 OF PUB. L. 100–418 eign country. Section 1341 of Pub. L. 100–418 provided that: (b) Exclusion from importation ‘‘(a) FINDINGS.—The Congress finds that— If at any time the President shall find it to be ‘‘(1) United States persons that rely on protection of intellectual property rights are among the most a fact that any foreign country has not only dis- advanced and competitive in the world; and criminated against the commerce of the United ‘‘(2) the existing protection under section 337 of the States, as aforesaid, but has, after the issuance Tariff Act of 1930 [this section] against unfair trade of a proclamation as authorized in subdivision Page 111 TITLE 19—CUSTOMS DUTIES § 1339

(a) of this section, maintained or increased its and after thirty days after the date of any such said discriminations against the commerce of proclamation such new or additional rate or the United States, the President is authorized, if rates of duty so specified and declared in such he deems it consistent with the interests of the proclamation shall be levied, collected, and paid United States, to issue a further proclamation upon such articles. directing that such products of said country or (f) Forfeiture of articles such articles imported in its vessels as he shall deem consistent with the public interests shall All articles imported contrary to the provi- be excluded from importation into the United sions of this section shall be forfeited to the States. United States and shall be liable to be seized, prosecuted, and condemned in like manner and (c) Application of proclamation under the same regulations, restrictions, and Any proclamation issued by the President provisions as may from time to time be estab- under the authority of this section shall, if he lished for the recovery, collection, distribution, deems it consistent with the interests of the and remission of forfeitures to the United States United States, extend to the whole of any for- by the several revenue laws. Whenever the pro- eign country or may be confined to any subdivi- visions of this chapter shall be applicable to im- sion or subdivisions thereof; and the President portations into the United States of articles shall, whenever he deems the public interests re- wholly or in part the growth or product of any quire, suspend, revoke, supplement, or amend foreign country, they shall be applicable thereto any such proclamation. whether such articles are imported directly or (d) Duties to offset commercial disadvantages indirectly. Whenever the President shall find as a fact (g) Ascertainment by Commission of discrimina- that any foreign country places any burden or tions disadvantage upon the commerce of the United It shall be the duty of the commission to as- States by any of the unequal impositions or dis- certain and at all times to be informed whether criminations aforesaid, he shall, when he finds any of the discriminations against the com- that the public interest will be served thereby, merce of the United States enumerated in sub- by proclamation specify and declare such new or divisions (a), (b), and (e) of this section are prac- additional rate or rates of duty as he shall de- ticed by any country; and if and when such dis- termine will offset such burden or disadvantage, criminatory acts are disclosed, it shall be the not to exceed 50 per centum ad valorem or its duty of the commission to bring the matter to equivalent, on any products of, or on articles the attention of the President, together with imported in a vessel of, such foreign country; recommendations. and thirty days after the date of such proclama- (h) Rules and regulations of Secretary of the tion there shall be levied, collected, and paid Treasury upon the articles enumerated in such proclamation when imported into the United States from The Secretary of the Treasury with the ap- such foreign country such new or additional rate proval of the President shall make such rules or rates of duty; or, in case of articles declared and regulations as are necessary for the execu- subject to exclusion from importation into the tion of such proclamations as the President may United States under the provisions of subdivi- issue in accordance with the provisions of this sion (b) of this section, such articles shall be ex- section. cluded from importation. (i) ‘‘Foreign country’’ defined (e) Duties to offset benefits to third country When used in this section the term ‘‘foreign Whenever the President shall find as a fact country’’ means any empire, country, dominion, that any foreign country imposes any unequal colony or protectorate, or any subdivision or imposition or discrimination as aforesaid upon subdivisions thereof (other than the United the commerce of the United States, or that any States and its possessions), within which sepa- benefits accrue or are likely to accrue to any in- rate tariff rates or separate regulations of com- dustry in any foreign country by reason of any merce are enforced. such imposition or discrimination imposed by (June 17, 1930, ch. 497, title III, § 338, 46 Stat. 704.) any foreign country other than the foreign country in which such industry is located, and when- PRIOR PROVISIONS ever the President shall determine that any new Provisions similar to those in this section were con- or additional rate or rates of duty or any prohi- tained in act Sept. 21, 1922, ch. 356, title III, § 317, 42 bition hereinbefore provided for do not effec- Stat. 944. That section was superseded by section 338 of tively remove such imposition or discrimination act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 Act. and that any benefits from any such imposition or discrimination accrue or are likely to accrue § 1339. Trade Remedy Assistance Office to any industry in any foreign country, he shall, when he finds that the public interest will be (a) Establishment; public information served thereby, by proclamation specify and de- There is established in the Commission a sepa- clare such new or additional rate or rates of rate office to be known as the Trade Remedy As- duty upon the articles wholly or in part the sistance Office which shall provide full informa- growth or product of any such industry as he tion to the public upon request and shall, to the shall determine will offset such benefits, not to extent feasible, provide assistance and advice to exceed 50 per centum ad valorem or its equiva- interested parties concerning— lent, upon importation from any foreign country (1) remedies and benefits available under the into the United States of such articles; and on trade laws, and § 1340 TITLE 19—CUSTOMS DUTIES Page 112

(2) the petition and application procedures, title. For complete classification of this Act to the and the appropriate filing dates, with respect Code, see section 2101 of this title and Tables. to such remedies and benefits. PRIOR PROVISIONS (b) Procedural assistance by Office and other A prior section 339 of act June 17, 1930, related to ef- agencies fect of repeal and reenactment of laws relating to Tar- The Trade Remedy Assistance Office, in co- iff Commission upon status of appropriations, employees, and privileges, prior to repeal by Pub. L. 89–554, ordination with each agency responsible for ad- § 8(a), Sept. 6, 1966, 80 Stat. 648. ministering a trade law, shall provide technical and legal assistance and advice to eligible small AMENDMENTS businesses to enable them— 1988—Subsec. (a). Pub. L. 100–418, § 1614(1), substituted (1) to prepare and file petitions and applica- ‘‘a separate office to be known as the Trade’’ for ‘‘a tions (other than those which, in the opinion Trade’’, and ‘‘upon request and shall, to the extent fea- of the Office, are frivolous); and sible, provide assistance and advice to interested parties’’ for ‘‘, upon request,’’ in introductory provisions. (2) to seek to obtain the remedies and bene- Subsec. (b). Pub. L. 100–418, § 1614(2), amended subsec. fits available under the trade laws, including (b) generally. Prior to amendment, subsec. (b) read as any administrative review or administrative follows: ‘‘Each agency responsible for administering a appeal thereunder. trade law shall provide technical assistance to eligible (c) Definitions small businesses to enable them to prepare and file petitions and applications (other than those which, in the For purposes of this section— opinion of the agency, are frivolous) to obtain the rem- (1) The term ‘‘eligible small business’’ means edies and benefits that may be available under that any business concern which, in the agency’s law.’’ judgment, due to its small size, has neither 1986—Subsec. (c)(2)(A). Pub. L. 99–514 substituted ‘‘inadequate internal resources nor financial abil- jury’’ for ‘‘relief’’. ity to obtain qualified outside assistance in EFFECTIVE DATE preparing and filing petitions and applications Section 221(b) of Pub. L. 98–573 provided that: ‘‘Sec- for remedies and benefits under trade laws. In tion 339 of the Tariff Act of 1930 [this section] (as added determining whether a business concern is an by subsection (a)) shall take effect on the 90th day after ‘‘eligible small business’’, the agency may con- the date of the enactment of this Act [Oct. 30, 1984].’’ sult with the Small Business Administration, PLAN AMENDMENTS NOT REQUIRED UNTIL and shall consult with any other agency that JANUARY 1, 1989 has provided assistance under subsection (b) of For provisions directing that if any amendments this section to that business concern. An agen- made by subtitle A or subtitle C of title XI [§§ 1101–1147 cy decision regarding whether a business con- and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. cern is an eligible small business for purposes 99–514 require an amendment to any plan, such plan of this section is not reviewable by any other amendment shall not be required to be made before the agency or by any court. first plan year beginning on or after Jan. 1, 1989, see (2) The term ‘‘trade laws’’ means— section 1140 of Pub. L. 99–514, as amended, set out as a (A) chapter 1 of title II of the Trade Act of note under section 401 of Title 26, Internal Revenue 1974 (19 U.S.C. 2251 et seq., relating to injury Code. caused by import competition); § 1340. Omitted (B) chapters 2 and 3 of such title II [19 CODIFICATION U.S.C. 2271 et seq., 2341 et seq.] (relating to adjustment assistance for workers and Section, act June 17, 1930, ch. 497, title III, § 340, 46 firms); Stat. 706, related to preparation of a certain report by (C) chapter 1 of title III of the Trade Act commission to Congress. See Tariff Commission Re- ports, No. 46, Parts 1 to 8. of 1974 (19 U.S.C. 2411 et seq., relating to relief from foreign import restrictions and ex- § 1341. Interference with functions of Commis- port subsidies); sion (D) subtitle IV of this chapter (relating to (a) Interfering with or influencing the Commis- the imposition of countervailing duties and sion or its employees antidumping duties); (E) section 1862 of this title (relating to It shall be unlawful for any person (1) to pre- the safeguarding of national security); and vent or attempt to prevent, by force, intimida- (F) section 1337 of this title (relating to tion, threat, or in any other manner, any mem- unfair practices in import trade). ber or employee of the commission from exercising the functions imposed upon the commission (June 17, 1930, ch. 497, title III, § 339, as added by this subtitle, or (2) to induce, or attempt to Pub. L. 98–573, title II, § 221[(a)], Oct. 30, 1984, 98 induce, by like means any such member or em- Stat. 2989; Pub. L. 99–514, title XVIII, § 1888(3), ployee to make any decision or order, or to take Oct. 22, 1986, 100 Stat. 2924; Pub. L. 100–418, title any action, with respect to any matter within I, § 1614, Aug. 23, 1988, 102 Stat. 1263.) the authority of the commission. REFERENCES IN TEXT (b) Penalty The Trade Act of 1974, referred to in subsec. (c)(2)(A) Any person who violates any of the provisions to (C), is Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, as of this section shall, upon conviction thereof, be amended. Chapters 1, 2, and 3 of title II of the Trade fined not more than $1,000 or imprisonment for Act of 1974 are classified generally to parts 1 (§ 2251 et not more than one year, or both. seq.), 2 (§ 2271 et seq.), and 3 (§ 2341 et seq.) of subchapter (c) ‘‘Person’’ defined II of chapter 12 of this title, respectively. Chapter 1 of title III of the Trade Act of 1974 is classified generally As used in this section the term ‘‘person’’ in- to subchapter III (§ 2411 et seq.) of chapter 12 of this cludes an individual, corporation, association, Page 113 TITLE 19—CUSTOMS DUTIES § 1351 partnership, or any other organization or group (D) In order to carry out a foreign trade of individuals. agreement entered into by the President on or (June 17, 1930, ch. 497, title III, § 341, 46 Stat. 707.) after June 12, 1955, and before July 1, 1958, decreasing (except as provided in subparagraph PART III—PROMOTION OF FOREIGN TRADE (C) of this paragraph) any rate of duty below the lowest of the following rates: § 1351. Foreign trade agreements (i) The rate 15 per centum below the rate (a) Authority of President; modification and de- existing on January 1, 1955. crease of duties; altering import restrictions (ii) In the case of any article subject to an ad valorem rate of duty above 50 per centum (1) For the purpose of expanding foreign mar- (or a combination of ad valorem rates aggre- kets for the products of the United States (as a gating more than 50 per centum), the rate 50 means of assisting in establishing and maintain- per centum ad valorem (or a combination of ing a better relationship among various ad valorem rates aggregating 50 per cen- branches of American agriculture, industry, tum). In the case of any article subject to a mining, and commerce) by regulating the admis- specific rate of duty (or a combination of sion of foreign goods into the United States in rates including a specific rate) the ad valo- accordance with the characteristics and needs of rem equivalent of which has been deter- various branches of American production so mined by the President to have been above that foreign markets will be made available to 50 per centum during a period determined by those branches of American production which the President to be a representative period, require and are capable of developing such out- the rate 50 per centum ad valorem or the lets by affording corresponding market opportu- rate (or a combination of rates), however nities for foreign products in the United States, stated, the ad valorem equivalent of which the President, whenever he finds as a fact that the President determines would have been 50 any existing duties or other import restrictions per centum during such period. The stand- of the United States or any foreign country are ards of valuation contained in section 1401a unduly burdening and restricting the foreign of this title (as in effect, with respect to the trade of the United States and that the purpose article concerned, during the representative above declared will be promoted by the means period) shall be utilized by the President, to hereinafter specified, is authorized from time to the maximum extent he finds such utiliza- time— (A) To enter into foreign trade agreements tion practicable, in making the determina- with foreign governments or instrumentalities tions under the preceding sentence. thereof: Provided, That the enactment of the (E) In order to carry out a foreign trade Trade Agreements Extension Act of 1955 shall agreement entered into by the President on or not be construed to determine or indicate the after July 1, 1958, decreasing any rate of duty approval or disapproval by the Congress of the below the lowest of the rates provided for in executive agreement known as the General paragraph (4)(A) of this subsection. Agreement on Tariffs and Trade. (3)(A) Subject to the provisions of subpara- (B) To proclaim such modifications of exist- graphs (B) and (C) of this paragraph and of sub- ing duties and other import restrictions, or paragraph (B) of paragraph (4) of this sub- such additional import restrictions, or such section, the provisions of any proclamation continuance, and for such minimum periods, made under paragraph (1)(B) of this subsection, of existing customs or excise treatment of any and the provisions of any proclamation of sus- article covered by foreign trade agreements, pension under paragraph (5) of this subsection, as are required or appropriate to carry out any shall be in effect from and after such time as is foreign trade agreement that the President specified in the proclamation. has entered into hereunder. (B) In the case of any decrease in duty to (2) No proclamation pursuant to paragraph which paragraph (2)(D) of this subsection ap- (1)(B) of this subsection shall be made— plies— (A) Increasing by more than 50 per centum (i) if the total amount of the decrease under any rate of duty existing on July 1, 1934; ex- the foreign trade agreement does not exceed 15 cept that a specific rate of duty existing on per centum of the rate existing on January 1, July 1, 1934, may be converted to its ad valo- 1955, the amount of decrease becoming ini- rem equivalent based on the value of imports tially effective at one time shall not exceed 5 of the article concerned during the calendar per centum of the rate existing on January 1, year 1934 (determined in the same manner as 1955; provided in subparagraph (D)(ii)) and the proc- (ii) except as provided in clause (i), not more lamation may provide an ad valorem rate of than one-third of the total amount of the de- duty not in excess of 50 per centum above such crease under the foreign trade agreement shall ad valorem equivalent. become initially effective at one time; and (B) Transferring any article between the du- (iii) no part of the decrease after the first tiable and free lists. part shall become initially effective until the (C) In order to carry out a foreign trade immediately previous part shall have been in agreement entered into by the President be- effect for a period or periods aggregating not fore June 12, 1955, or with respect to which no- less than one year. tice of intention to negotiate was published in (C) No part of any decrease in duty to which the Federal Register on November 16, 1954, de- the alternative specified in paragraph (2)(D)(i) of creasing by more than 50 per centum any rate this subsection applies shall become initially ef- of duty existing on January 1, 1945. fective after the expiration of the three-year pe- § 1351 TITLE 19—CUSTOMS DUTIES Page 114 riod which begins on July 1, 1955. If any part of increased since that date, exceed such 10 per such decrease has become effective, then for pur- centum or one-third of the total amount of the poses of this subparagraph any time thereafter decrease under the foreign trade agreement, during which such part of the decrease is not in whichever is the greater. effect by reason of legislation of the United (ii) In the case of any decrease in duty to States or action thereunder shall be excluded in which clause (ii) of subparagraph (A) of this determining when the three-year period expires. paragraph applies, such decrease shall become (D) If (in order to carry out a foreign trade initially effective in not more than four annual agreement entered into by the President on or stages, and no amount of decrease becoming ini- after June 12, 1955) the President determines tially effective at one time shall exceed 1 per that such action will simplify the computation centum ad valorem or, in any case in which the of the amount of duty imposed with respect to rate has been increased since July 1, 1958, exceed an article, he may exceed any limitation speci- such 1 per centum or one-third of the total fied in paragraph (2)(C) or (D) or paragraph amount of the decrease under the foreign trade (4)(A) or (B) of this subsection or subparagraph agreement, whichever is the greater. (B) of this paragraph by not more than which- (iii) In the case of any decrease in duty to ever of the following is lesser: which clause (iii) of subparagraph (A) of this (i) The difference between the limitation and paragraph applies, such decrease shall become the next lower whole number, or initially effective in not more than four annual (ii) One-half of 1 per centum ad valorem. stages, and no amount of decrease becoming ini- In the case of a specific rate (or of a combina- tially effective at one time shall exceed one- tion of rates which includes a specific rate), the third of the total amount of the decrease under one-half of 1 per centum specified in clause (ii) the foreign trade agreement. of the preceding sentence shall be determined in (C) In the case of any decrease in duty to the same manner as the ad valorem equivalent which subparagraph (A) of this paragraph ap- of rates not stated wholly in ad valorem terms plies (i) no part of a decrease after the first part is determined for the purposes of paragraph shall become initially effective until the imme- (2)(D)(ii) of this subsection. diately previous part shall have been in effect (4)(A) No proclamation pursuant to paragraph for a period or periods aggregating not less than (1)(B) of this subsection shall be made, in order one year, nor after the first part shall have been to carry out a foreign trade agreement entered in effect for a period or periods aggregating into by the President on or after July 1, 1958, de- more than three years, and (ii) no part of a decreasing any rate of duty below the lowest of the crease shall become initially effective after the following rates: expiration of the four-year period which begins (i) The rate which would result from de- on July 1, 1962. If any part of a decrease has be- creasing the rate existing on July 1, 1958, by 20 come effective, then for the purposes of clauses per centum of such rate. (i) and (ii) of the preceding sentence any time (ii) Subject to paragraph (2)(B) of this sub- thereafter during which such part of the de- section, the rate 2 per centum ad valorem crease is not in effect by reason of legislation of below the rate existing on July 1, 1958. the United States or action thereunder shall be (iii) The rate 50 per centum ad valorem or, in excluded in determining when the three-year pe- the case of any article subject to a specific riod or the four-year period, as the case may be, rate of duty or to a combination of rates in- expires. cluding a specific rate, any rate (or combina- (5) Repealed. Pub. L. 87–794, title II, § 257(b), tion of rates), however stated, the ad valorem Oct. 11, 1962, 76 Stat. 882. equivalent of which has been determined as 50 (6) The President may at any time terminate, per centum ad valorem. in whole or in part, any proclamation made pursuant to this section. The provisions of clauses (ii) and (iii) of this subparagraph and of subparagraph (B)(ii) of this (b) Cuba; preferential customs treatment; de- paragraph shall, in the case of any article, sub- crease of rates ject to a combination of ad valorem rates of Nothing in this section or the Trade Expan- duty, apply to the aggregate of such rates; and, sion Act of 1962 [19 U.S.C. 1801 et seq.] shall be in the case of any article, subject to a specific construed to prevent the application, with re- rate of duty or to a combination of rates includ- spect to rates of duty established under this sec- ing a specific rate, such provisions shall apply tion or the Trade Expansion Act of 1962 pursuant on the basis of the ad valorem equivalent of to agreements with countries other than Cuba, such rate or rates, during a representative pe- of the provisions of the treaty of commercial riod (whether or not such period includes July 1, reciprocity concluded between the United States 1958), determined in the same manner as the ad and the Republic of Cuba on December 11, 1902, valorem equivalent of rates not stated wholly in or to preclude giving effect to an agreement ad valorem terms is determined for the purpose with Cuba concluded under this section or the of paragraph (2)(D)(ii) of this subsection. Trade Expansion Act of 1962, modifying the ex- (B)(i) In the case of any decrease in duty to isting preferential customs treatment of any ar- which clause (i) of subparagraph (A) of this para- ticle the growth, produce, or manufacture of graph applies, such decrease shall become ini- Cuba. Nothing in this chapter or the Trade Ex- tially effective in not more than four annual pansion Act of 1962 shall be construed to pre- stages, and no amount of decrease becoming ini- clude the application to any product of Cuba (in- tially effective at one time shall exceed 10 per cluding products preferentially free of duty) of a centum of the rate of duty existing on July 1, rate of duty not higher than the rate applicable 1958, or, in any case in which the rate has been to the like products of other foreign countries Page 115 TITLE 19—CUSTOMS DUTIES § 1351

(except the Philippines), whether or not the ap- to withdraw or modify, after the termination of plication of such rate involves any preferential war or an emergency, a rate on a specific com- customs treatment. No rate of duty on products modity, the rate on such commodity to be con- of Cuba shall be decreased— sidered as ‘‘existing on January 1, 1945’’ for the (1) In order to carry out a foreign trade purpose of this section shall be the rate which agreement entered into by the President be- would have existed if the agreement had not fore June 12, 1955, by more than 50 per centum been entered into. of the rate of duty existing on January 1, 1945, (3) No proclamation shall be made pursuant to with respect to products of Cuba. this section for the purpose of carrying out any (2) In order to carry out a foreign trade foreign trade agreement the proclamation with agreement entered into by the President on or respect to which has been terminated in whole after June 12, 1955, and before July 1, 1962, by the President prior to July 5, 1945. below the applicable alternative specified in (e) Repealed. Pub. L. 87–794, title II, § 257(b), Oct. subsection (a)(2)(C) or (D) or (4)(A) of this sec- 11, 1962, 76 Stat. 882 tion (subject to the applicable provisions of subsection (a)(3)(B), (C), and (D) and (4)(B) and (f) Information and advice from industry, agri- (C) of this section), each such alternative to be culture, and labor read for the purposes of this paragraph as re- It is declared to be the sense of the Congress lating to the rate of duty applicable to prod- that the President, during the course of nego- ucts of Cuba. With respect to products of Cuba, tiating any foreign trade agreement under this the limitation of subsection (a)(2)(D)(ii) or section, should seek information and advice (4)(A)(iii) of this section may be exceeded to with respect to such agreement from representa- such extent as may be required to maintain an tives of industry, agriculture, and labor. absolute margin of preference to which such products are entitled. (June 17, 1930, ch. 497, title III, § 350, as added (3) In order to carry out a foreign trade June 12, 1934, ch. 474, § 1, 48 Stat. 943; amended agreement entered into after June 30, 1962, and June 7, 1943, ch. 118, § 2, 57 Stat. 125; July 5, 1945, before July 1, 1967, below the lowest rate per- ch. 269, §§ 2, 3, 59 Stat. 410; Sept. 26, 1949, ch. 585, missible by applying title II of the Trade Ex- §§ 4, 6, 63 Stat. 698; June 21, 1955, ch. 169, § 3, 69 pansion Act of 1962 [19 U.S.C. 1821 et seq.] to Stat. 162; Pub. L. 85–686, § 3, Aug. 20, 1958, 72 Stat. the rate of duty (however established, and 673; Pub. L. 87–794, title II, § 257(a), (b), Oct. 11, even though temporarily suspended by Act of 1962, 76 Stat. 881, 882; Pub. L. 96–39, title II, Congress or otherwise) existing on July 1, 1962, § 202(a)(3), July 26, 1979, 93 Stat. 202.) with respect to such product. REFERENCES IN TEXT (c) Definitions The Trade Agreements Extension Act of 1955, referred (1) As used in this section, the term ‘‘duties to in subsec. (a)(1)(A), is act June 21, 1955, ch. 169, 69 and other import restrictions’’ includes (A) rate Stat. 162, which is classified to sections 1351(a), (b), (c), and form of import duties and classification of (e), 1352(c), 1352a, 1363(b), and 1364(a), (b), (e) of this articles, and (B) limitations, prohibitions, title. For complete classification of this Act to the charges, and exactions other than duties, im- Code, see Short Title of 1955 Amendment note set out posed on importation or imposed for the regula- under section 1654 of this title and Tables. tion of imports. Paragraph (5) of this subsection, referred to in subsec. (2) For purposes of this section— (a)(3)(A), was repealed by Pub. L. 87–794, title III, § 257(b), Oct. 11, 1962, 76 Stat. 882. (A) Except as provided in subsection (d) of The Trade Expansion Act of 1962, referred to in sub- this section, the terms ‘‘existing on July 1, sec. (b), is Pub. L. 87–794, Oct. 11, 1962, 76 Stat. 872, as 1934’’, ‘‘existing on January 1, 1945’’, ‘‘existing amended, which is classified generally to chapter 7 on January 1, 1955’’, and ‘‘existing on July 1, (§ 1801 et seq.) of this title. Title II of the Trade Expan- 1958’’ refer to rates of duty (however estab- sion Act of 1962, also referred to in subsec. (b), is classi- lished, and even though temporarily suspended fied generally to subchapter II (§ 1821 et seq.) of chapter by Act of Congress or otherwise) existing on 7 of this title. For complete classification of this Act to the date specified, except rates in effect by the Code, see Short Title note set out under section 1801 of this title and Tables. reason of action taken pursuant to section 1362 Section 1362 of this title, referred to in subsec. of this title. (c)(2)(A), related to suspension or withdrawal of conces- (B) The term ‘‘existing’’ without the speci- sions from Communistic areas and was repealed by fication of any date, when used with respect to Pub. L. 87–794, title II, § 257(e)(1), Oct. 11, 1962, 76 Stat. any matter relating to the conclusion of, or 882. proclamation to carry out, a foreign trade AMENDMENTS agreement, means existing on the day on which that trade agreement is entered into. 1979—Subsec. (a)(2)(D)(ii). Pub. L. 96–39 struck out (d) Rate basis for additional increases or de- reference to standards of valuation contained in section 1402 of this title. creases; restoration of terminated treaties 1962—Subsec. (a)(5). Pub. L. 87–794, § 257(b), repealed forbidden par. (5) which provided that, subject to the provisions (1) When any rate of duty has been increased of section 1362 of this title, duties and other import re- or decreased for the duration of war or an emer- strictions proclaimed pursuant to this section shall gency, by agreement or otherwise, any further apply to all articles the growth, produce, or manufacture of all foreign countries, whether imported directly increase or decrease shall be computed upon the or indirectly, and required the President to suspend the basis of the post-war or post-emergency rate application to articles the growth, produce, or manu- carried in such agreement or otherwise. facture of any country because of its discriminatory (2) Where under a foreign trade agreement the treatment of American commerce or because of other United States has reserved the unqualified right acts (including the operations of international cartels) § 1351 TITLE 19—CUSTOMS DUTIES Page 116 or policies which in his opinion tend to defeat the pur- temporarily suspended by Act of Congress).’’ for ‘‘now poses of this section. payable thereon’’ in proviso. Subsec. (b). Pub. L. 87–794, § 257(a), inserted references Subsec. (d). Act July 5, 1945, added subsec. (d). to the Trade Expansion Act of 1962 in first and second 1943—Subsec. (a)(2). Act June 7, 1943, inserted matter sentences, substituted ‘‘1955, and before July 1, 1962’’ within parentheses in proviso. for ‘‘1955’’ in par. (2), and added par. (3). Subsec. (e). Pub. L. 87–794, § 257(b), repealed subsec. (e) EFFECTIVE DATE OF 1979 AMENDMENT which related to reports to Congress by the President Amendment by Pub. L. 96–39 effective July 1, 1980, see and the Tariff Commission. section 204(a) of Pub. L. 96–39, set out as a note under 1958—Subsec. (a)(2)(A). Pub. L. 85–686, § 3(a)(1), subsection 1401a of this title. stituted ‘‘any rate of duty existing on July 1, 1934’’ for ‘‘any rate of duty existing on July 1, 1945’’, and inserted TREATY BETWEEN UNITED STATES AND CUBA provisions permitting conversion of a specific rate of The treaty concluded between the United States and duty existing on July 1, 1934, to its ad valorem equiva- the Republic of Cuba, on Dec. 11, 1902, referred to in lent, and allowing an ad valorem rate of duty not in ex- subsec. (b) of the text, was terminated Aug. 21, 1963, cess of 50 per centum above such ad valorem equiva- pursuant to notice given by the United States on Aug. lent. Subsec. (a)(2)(D). Pub. L. 85–686, § 3(a)(2), (3), inserted 21, 1962. See Bevans, Treaties and Other International ‘‘and before July 1, 1958,’’ after ‘‘June 12, 1955’’, in open- Agreements of the United States of America, 1776–1949, ing par., and substituted ‘‘section 1401a or 1402 of this vol. VI, page 1106. title (as in effect, with respect to the article con- TARIFF TREATMENT OF CUBAN PRODUCTS cerned,’’ for ‘‘section 1402 of this title (as in effect’’. Subsec. (a)(2)(E). Pub. L. 85–686, § 3(a)(4), added sub- Section 401 of Pub. L. 87–456, title IV, May 24, 1962, 76 par. (E). Stat. 78, provided that: Subsec. (a)(3)(A). Pub. L. 85–686, § 3(a)(5), inserted ‘‘(a) Cuba is hereby declared to be a nation described ‘‘and of subparagraph (B) of paragraph 4 of this sub- in section 5 of the Trade Agreements Extension Act of section’’ after ‘‘subparagraphs (B) and (C) of this para- 1951, as amended (19 U.S.C. 1362, relating to imports graph’’, and substituted ‘‘suspension under paragraph from nations and areas dominated or controlled by the (5)’’ for ‘‘suspension under paragraph (4)’’. foreign government or foreign organization controlling Subsec. (a)(3)(D). Pub. L. 85–686, § 3(a)(6), inserted ‘‘or the world Communist movement). Articles which are— paragraph (4)(A) or (B)’’ after ‘‘paragraph (2)(C) or (D)’’. ‘‘(1) the growth, produce, or manufacture of Cuba, Subsec. (a)(4) to (6). Pub. L. 85–686, § 3(a)(7), (8), added and par. (4) and redesignated former pars. (4) and (5) as (5) ‘‘(2) imported on or after the date of enactment of and (6), respectively. this Act [May 24, 1962], Subsec. (b). Pub. L. 85–686, § 3(b)(1), substituted ‘‘an shall be denied the benefits of concessions contained in agreement with Cuba’’ for ‘‘an exclusive agreement any trade agreement entered into under the authority with Cuba’’ in opening par. of section 350 of the Tariff Act of 1930, as amended (19 Subsec. (b)(2). Pub. L. 85–686, § 3(b)(2), inserted ‘‘or U.S.C. 1351). (4)(A)’’ after ‘‘subsection (a)(2)(C) or (D)’’, ‘‘and (4)(B) ‘‘(b) Nothing in subsection (a) shall affect the rates of and (C)’’ after ‘‘subsection (a)(3)(B), (C), and (D)’’, and duty or the customs or excise treatment of articles the ‘‘or (4)(A)(iii)’’ after ‘‘subsection (a)(2)(D)(ii)’’. growth, produce, or manufacture of any country other Subsec. (c)(2)(A). Pub. L. 85–686, § 3(c), defined ‘‘exist- than Cuba. ing on July 1, 1934’’ and ‘‘existing on July 1, 1958’’. ‘‘(c) Subsection (a) shall not apply on or after the Subsec. (e)(1). Pub. L. 85–686, § 3(d), provided for the date on which the President proclaims that he has de- inclusion in the report of the results of action taken to termined that Cuba is no longer dominated or con- obtain removal of foreign trade restrictions (including trolled by the foreign government or foreign organiza- discriminatory restrictions) against United States ex- tion controlling the world Communist movement. ports, remaining restrictions, and the measures avail- ‘‘(d) The Act of December 17, 1903 (19 U.S.C. 124, 125), able to seek their removal in accordance with the ob- and section 316 of the Tariff Act of 1930, as amended (19 jectives of this section. U.S.C. 1316), both relating to the implementation of the Subsec. (f). Pub. L. 85–686, § 3(e), added subsec. (f). treaty with Cuba concluded on December 11, 1902, shall 1955—Subsec. (a). Act June 21, 1955, § 3(a), among not apply during the period during which subsection (a) other changes, authorized the President to reduce tariff applies.’’ rates existing on January 1, 1955 by a total of 15 percent in stages of not more than 5 percent of such rates, or ADMINISTRATION OF TRADE AGREEMENTS PROGRAM to reduce those rates which are higher than 50 percent For provisions relating to the administration of the of the value of an import to a rate not less than 50 per- trade agreements program, see Ex. Ord. No. 11846, Mar. cent, in stages of not more than one-third of the reduc- 27, 1975, 40 F.R. 14291, set out as a note under section tion in any one year. 2111 of this title. Subsec. (b). Act June 21, 1955, § 3(b), made applicable to Cuban products the new limits of authority to re- CONGRESSIONAL APPROVAL OR DISAPPROVAL OF duce tariffs. GENERAL AGREEMENT ON TARIFFS AND TRADE Subsec. (c). Act June 21, 1955, § 3(c), designated existing provisions as par. (1) and added par. (2). Section 10 of Pub. L. 85–686 provided that: ‘‘The en- Subsec. (e). Act June 21, 1955, § 3(d), added subsec. (e). actment of this Act [enacting section 1335 of this title, 1949—Subsec. (a). Act Sept. 26, 1949, struck out obso- amending sections 1333, 1336, 1337, 1351, 1352a, 1360 and lete language referring to the depression which existed 1364 of this title, and enacting notes set out under sec- at the time of the original enactment of section. tions 1351 and 1352 of this title] shall not be construed Subsec. (b). Act Sept. 26, 1949, substituted period for to determine or indicate the approval or disapproval by colon following Cuba, struck out proviso which fol- the Congress of the executive agreement known as the lowed, and inserted in lieu thereof the last two sen- General Agreement on Tariffs and Trade.’’ tences. REDUCTION OF PROTECTION RESULTING FROM 1956 1945—Subsec. (a)(2). Act July 5, 1945, struck out ‘‘ex- AMENDMENTS isting’’ after ‘‘per centum any’’, and inserted ‘‘, however established, existing on January 1, 1945 Section 2(e) of act Aug. 2, 1956, ch. 887, 70 Stat. 946, (even though temporarily suspended by Act of Con- provided that: ‘‘In any action relating to tariff adjust- gress),’’ after ‘‘rate of duty’’. ments by executive action, including action taken pur- Subsec. (b). Act July 5, 1945, struck out ‘‘payable’’ suant to section 350 of the Tariff Act of 1930, as amend- after ‘‘That the duties’’, and substituted ‘‘however es- ed [this section] the United States Tariff Commission tablished, existing on January 1, 1945 (even though [now United States International Trade Commission] Page 117 TITLE 19—CUSTOMS DUTIES § 1352 and each officer of the executive branch of the Govern- agreement has been concluded on like flour pro- ment concerned shall give full consideration to any reduced in any other country; and upon the with- duction in the level of tariff protection which has re- drawal of wheat flour from bonded manufactur- sulted or is likely to result from the amendment of sec- ing warehouses for exportation to the country tion 402 of the Tariff Act of 1930 made by this Act [sections 1401a and 1402 of this title].’’ with which such agreement has been concluded, Section 2(e) of act Aug. 2, 1956, effective only as to ar- there shall be levied, collected, and paid on the ticles entered, or withdrawn from warehouse, for con- imported wheat used, a duty equal to the sumption on or after thirtieth day following publica- amount of such assured preference. tion of the final list provided for in section 6(a) of said (b) Termination of foreign trade agreement act Aug. 2, 1956, set out in note under section 1402 of this title, see note set out under section 1401a of this Every foreign trade agreement concluded pur- title. suant to this part shall be subject to termination, upon due notice to the foreign govern- COMMISSION ON FOREIGN ECONOMIC POLICY ment concerned, at the end of not more than Act Aug. 7, 1953, ch. 348, title III, §§ 301–310, 67 Stat. three years from the date on which the agree- 473–475, as amended by Pub. L. 89–554, § 8(a), Sept. 6, ment comes into force, and, if not then termi- 1966, 80 Stat. 657, provided for the establishment of a nated, shall be subject to termination thereafter Commission on Foreign Economic Policy to examine and report on the subjects of international trade and upon not more than six months’ notice. its enlargement consistent with a sound domestic econ- (c) Termination of authority of President omy, our foreign economic policy, and the trade aspects of our national security and total foreign policy, The authority of the President to enter into and to recommend appropriate policies and measures. foreign trade agreements under section 1351 of The Commission was to submit a report on its findings this title shall terminate on June 30, 1958. within 60 days after the second session of the 83rd Con- (June 12, 1934, ch. 474, § 2, 48 Stat. 944; Mar. 1, gress was convened, and was to expire 90 days after the submission of its report to Congress. 1937, ch. 22, 50 Stat. 24; Apr. 12, 1940, ch. 96, 54 Stat. 107; June 7, 1943, ch. 118, § 1, 57 Stat. 125; EXTENSION OF PRESIDENTIAL AUTHORITY July 5, 1945, ch. 269, § 1, 59 Stat. 410; Sept. 26, Authority of President to enter into trade agree- 1949, ch. 585, § 3, 63 Stat. 698; June 16, 1951, ch. ments under this section extended until close of Dec. 141, §§ 2, 9(a), 65 Stat. 72, 75; Aug. 7, 1953, ch. 348, 31, 1962, see note under section 1352 of this title. title I, § 101, 67 Stat. 472; July 1, 1954, ch. 445, § 1, 68 Stat. 360; June 21, 1955, ch. 169, § 2, 69 Stat. 162; EXECUTIVE ORDER NO. 9832 Pub. L. 87–794, title II, § 257(d), Oct. 11, 1962, 76 Ex. Ord. No. 9832, Feb. 25, 1947, 12 F.R. 1363, revoked Stat. 882; Pub. L. 93–618, title VI, § 602(a), Jan. 3, by Ex. Ord. No. 10004, Oct. 6, 1948, 13 F.R. 5851. 1975, 88 Stat. 2072; Pub. L. 96–39, title XI, EXECUTIVE ORDER NO. 10004 § 1106(h)(2), July 26, 1979, 93 Stat. 313.) Ex. Ord. No. 10004, Oct. 6, 1948, 13 F.R. 5851, superseded REFERENCES IN TEXT by Ex. Ord. No. 10082, Oct. 5, 1949, 14 F.R. 6105. The Trade Expansion Act of 1962, referred to in sub- EXECUTIVE ORDER NO. 10082 sec. (a), is Pub. L. 87–794, Oct. 11, 1962, 76 Stat. 872, as amended, which is classified generally to chapter 7 Ex. Ord. No. 10082, Oct. 5, 1949, 14 F.R. 6105, as amend- (§ 1801 et seq.) of this title. For complete classification ed by Ex. Ord. No. 10170, Oct. 13, 1950, 15 F.R. 6901, which of this Act to the Code, see Short Title note set out related to administrative procedures for reciprocal under section 1801 of this title and Tables. trade-agreements program, was revoked by Ex. Ord. No. The Trade Act of 1974, referred to in subsec. (a), is 11075, Jan. 15, 1963, 28 F.R. 473, set out as a note under Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, as amended, section 1801 of this title. which is classified principally to chapter 12 (§ 2101 et seq.) of this title. For complete classification of this EXECUTIVE ORDER NO. 10741 Act to the Code, see References in Text note set out Ex. Ord. No. 10741, Nov. 26, 1957, 22 F.R. 9451, which es- under section 2101 of this title and Tables. tablished the Trade Policy Committee, was revoked by Ex. Ord. No. 11075, Jan. 15, 1963, 28 F.R. 473, set out as AMENDMENTS a note under section 1801 of this title. 1979—Subsec. (a). Pub. L. 96–39 amended directory language of Pub. L. 93–618, § 602(a), to correct a typo- § 1352. Equalization of costs of production graphical error, and did not involve any change in text. (a) Application to importation of articles under See 1975 Amendment note below. 1975—Subsec. (a). Pub. L. 93–618, as amended by Pub. foreign-trade agreement L. 96–39, inserted reference to the Trade Act of 1974. The provisions of section 1336 of this title 1962—Subsec. (a). Pub. L. 87–794 inserted references to shall not apply to any article with respect to the agreements concluded pursuant to the Trade Expansion importation of which into the United States a Act of 1962. foreign-trade agreement has been concluded pur- 1955—Subsec. (c). Act June 21, 1955, substituted ‘‘June 30, 1958’’ for ‘‘June 12, 1955’’. suant to this part or the Trade Expansion Act of 1954—Subsec. (c). Act July 1, 1954, substituted ‘‘1955’’ 1962 [19 U.S.C. 1801 et seq.] or the Trade Act of for ‘‘1954’’. 1974 [19 U.S.C. 2101 et seq.] or to any provision of 1953—Subsec. (c). Act Aug. 7, 1953, substituted ‘‘1954’’ any such agreement. The third paragraph of sec- for ‘‘1953’’. tion 1311 of this title shall apply to any agree- 1951—Subsec. (a). Act June 16, 1951, substituted ‘‘sec- ment concluded pursuant to this part or the tion 1336 of this title’’ for ‘‘sections 1336 and 1516(b) of Trade Expansion Act of 1962 or the Trade Act of this title’’. 1974 to the extent only that such agreement as- Subsec. (c). Act June 16, 1951, substituted ‘‘1953’’ for ‘‘1951’’. sures to the United States a rate of duty on 1949—Subsec. (c). Act Sept. 26, 1949, § 3, substituted wheat flour produced in the United States which ‘‘1953’’ for ‘‘1948’’. is preferential in respect to the lowest rate of 1945—Subsec. (c). Act. July 5, 1945, substituted ‘‘1948’’ duty imposed by the country with which such for ‘‘1945’’. § 1352a TITLE 19—CUSTOMS DUTIES Page 118

1943—Subsec. (c). Joint Res. June 7, 1943, substituted § 12(a), 63 Stat. 591; Sept. 26, 1949, ch. 585, § 5, 63 ‘‘1945’’ for ‘‘1943’’. Stat. 698; June 16, 1951, ch. 141, § 3(c), 65 Stat. 73; 1940—Subsec. (c). Joint Res. Apr. 12, 1940, substituted Pub. L. 93–618, title I, § 171(b), Jan. 3, 1975, 88 ‘‘1943’’ for ‘‘1940’’. 1937—Subsec. (c). Act Mar. 1, 1937, substituted ‘‘1937’’ Stat. 2009.) for ‘‘1934’’. AMENDMENTS REPEALS 1975—Pub. L. 93–618 substituted ‘‘United States Inter- Act Sept. 26, 1949, § 2, repealed act June 26, 1948, ch. national Trade Commission’’ for ‘‘United States Tariff 678, § 2, 62 Stat. 1053, which had extended the Presi- Commission’’. dent’s authority from June 12, 1948, until the close of 1951—Act June 16, 1951, provided that the President June 30, 1949. request the Tariff Commission to make the investigation and report. EXTENSION OF PRESIDENTIAL AUTHORITY 1949—Act Sept. 26, 1949, changed the Tariff Commis- Section 257(c) of Pub. L. 87–794 extended authority of sion’s functions under these sections from investiga- President to enter into foreign trade agreements under tory to advisory functions. section 350 of the Tariff Act of 1930 (section 1351 of this 1945—Act July 5, 1945, inserted ‘‘War, Navy,’’ after title) from close of June 30, 1962, until close of Dec. 31, ‘‘Departments of State’’. 1962. CHANGE OF NAME Section 2 of Pub. L. 85–686, Aug. 20, 1958, 72 Stat. 673, extended authority of President to enter into foreign National Military Establishment changed to Depart- trade agreements under section 350 of the Tariff Act of ment of Defense by act Aug. 10, 1949. 1930 (section 1351 of this title) from close of June 30, REPEALS 1958, until close of June 30, 1962. Act Sept. 26, 1949, § 2, repealed act June 26, 1948, ch. § 1352a. Repealed. Pub. L. 87–794, title II, § 257(f), 678, § 3(c), 62 Stat. 1054, formerly cited as a credit to this Oct. 11, 1962, 76 Stat. 882 section. Section, acts July 1, 1954, ch. 445, § 2, 68 Stat. 360; §§ 1355, 1356. Repealed. Pub. L. 89–23, § 7, May 22, June 21, 1955, ch. 169, § 7, 69 Stat. 166; Aug. 20, 1958, Pub. 1965, 79 Stat. 113 L. 85–686, § 8(a), 72 Stat. 678, related to restriction on decrease of duties, impairment of national security, in- Sections, act Apr. 11, 1941, ch. 59, §§ 1, 2, 55 Stat. 133, vestigations and reports, and reports to Congress. See 134, related to the importation of coffee under Inter- section 1801 et seq. of this title. American Coffee Agreement. See sections 1356a to 1356e of this title. ACTIONS COMMENCED PRIOR TO OCTOBER 11, 1962 Section 257(f) of Pub. L. 87–794 provided in part that: EFFECTIVE DATE OF REPEAL ‘‘Any action (including any investigation begun) under Repeal effective May 22, 1965, the date the President section 2 [section 1352a of this title] before the date of made the determination required by section 8 of Pub. the enactment of this Act [Oct. 11, 1962] shall be consid- L. 89–23, set out as a note under section 1356a of this ered as having been taken or begun under section 232 title. [section 1862 of this title].’’ §§ 1356a to 1356j. Omitted § 1353. Indebtedness of foreign countries, effect on CODIFICATION Nothing in this part shall be construed to give Sections were omitted. See sections 1356k and 1356l of this title. any authority to cancel or reduce, in any man- Section 1356a, Pub. L. 89–23, § 2, May 22, 1965, 79 Stat. ner, any of the indebtedness of any foreign coun- 112, authorized the President, for a period not to exceed try to the United States. October 1, 1968, to carry out the provisions of the Inter- (June 12, 1934, ch. 474, § 3, 48 Stat. 944.) national Coffee Agreement, 1962. Section 1356b, Pub. L. 89–23, § 3, May 22, 1965, 79 Stat. § 1354. Notice of intention to negotiate agree- 112, defined ‘‘coffee’’ for section 1356a of this title. ment; opportunity to be heard; President to Section 1356c, Pub. L. 89–23, § 4, May 22, 1965, 79 Stat. seek information and advice 112, authorized delegation of Presidential powers and duties and required protection of consumer interests Before any foreign trade agreement is con- under sections 1356a to 1356e of this title. cluded with any foreign government or instru- Section 1356d, Pub. L. 89–23, § 5, May 22, 1965, 79 Stat. mentality thereof under the provisions of this 113, required the President to submit an annual report part, reasonable public notice of the intention to Congress on the International Coffee Agreement, 1962. to negotiate an agreement with such govern- Section 1356e, Pub. L. 89–23, § 6, May 22, 1965, 79 Stat. ment or instrumentality shall be given in order 113, authorized appropriations for sections 1356a to that any interested person may have an oppor- 1356e of this title and limited contributions for admin- tunity to present his views to the President, or istration of the International Coffee Agreement, 1962. to such agency as the President may designate, Section 1356f, Pub. L. 90–634, title III, § 302, Oct. 24, under such rules and regulations as the Presi- 1968, 82 Stat. 1348; Pub. L. 91–694, § 1, Jan. 12, 1971, 84 dent may prescribe; and before concluding such Stat. 2077; Pub. L. 92–262, Mar. 24, 1972, 86 Stat. 113, au- agreement the President shall request the Inter- thorized the President, for a period not to exceed Octo- ber 1, 1973, to carry out the provisions of the Inter- national Trade Commission to make the inves- national Coffee Agreement, 1968. tigation and report provided for by section 1360 Section 1356g, Pub. L. 90–634, title III, § 303, Oct. 24, of this title, and shall seek information and ad- 1968, 82 Stat. 1348, defined ‘‘coffee’’ for section 1356f of vice with respect to such agreement from the this title. Departments of State, Agriculture, Commerce, Section 1356h, Pub. L. 90–634, title III, § 304, Oct. 24, and Defense, and from such other sources as he 1968, 82 Stat. 1348, authorized delegation of Presidential may deem appropriate. powers and duties and required protection of consumer interests under sections 1356f to 1356j of this title and (June 12, 1934, ch. 474, § 4, 48 Stat. 945; July 5, provided for remedial action under the International 1945, ch. 269, § 4, 59 Stat. 411; Aug. 10, 1949, ch. 412, Coffee Agreement, 1968. Page 119 TITLE 19—CUSTOMS DUTIES § 1360

Section 1356i, Pub. L. 90–634, title III, § 305, Oct. 24, 1983—Pub. L. 98–120 in provisions preceding par. (1) 1968, 82 Stat. 1349, required the President to submit an substituted ‘‘, 1983’’ for ‘‘1976’’ and ‘‘before October 1, annual report to Congress on the International Coffee 1986’’ for ‘‘for such period prior to October 1, 1983 as the Agreement, 1968. agreement remains in effect’’. Section 1356j, Pub. L. 90–634, title III, § 306, Oct. 24, Pub. L. 97–446 substituted ‘‘October 1, 1983’’ for ‘‘the 1968, 82 Stat. 1349, provided procedures to prevent dis- expiration of this joint resolution’’. crimination against vessels registered under laws of the 1982—Pub. L. 97–276 substituted ‘‘the expiration of United States in shipping coffee to the United States. this joint resolution’’ for ‘‘October 1, 1982’’.

§ 1356k. Importation of coffee under Inter- EFFECTIVE DATE OF 1988 AMENDMENT national Coffee Agreement, 1983; Presi- Section 1123(b) of Pub. L. 100–418 provided that: ‘‘The dential powers and duties amendment made by subsection (a) [amending this sec- On and after the entry into force of the Inter- tion] shall take effect January 1, 1987.’’ national Coffee Agreement, 1983, and before Oc- SHORT TITLE tober 1, 1989, the President is authorized, in Section 1 of Pub. L. 96–599 provided that: ‘‘This Act order to carry out and enforce the provisions of [enacting this section and sections 1356l to 1356n of this that agreement— title] may be cited as the ‘International Coffee Agree- (1) to regulate the entry of coffee for con- ment Act of 1980’.’’ sumption, or withdrawal of coffee from warehouse for consumption, or any other form of § 1356l. ‘‘Coffee’’ defined entry or withdrawal of coffee such as for As used in this section and section 1356k of transportation or exportation, including this title, the term ‘‘coffee’’ means coffee as de- whenever quotas are in effect pursuant to the fined in article 3 of the International Coffee agreement, (A) the limitation of entry, or Agreement, 1983. withdrawal from warehouse, of coffee imported from countries which are not members (Pub. L. 96–599, § 3, Dec. 24, 1980, 94 Stat. 3491; of the International Coffee Organization, and Pub. L. 98–120, § 1(1), Oct. 12, 1983, 97 Stat. 809.) (B) the prohibition of entry of any shipment from any member of the International Coffee CODIFICATION Organization of coffee which is not accom- Section was enacted as part of the International Cof- panied either by a valid certificate of origin, a fee Agreement Act of 1980, and not as part of the Tariff valid certificate of reexport, a valid certificate Act of 1930 which comprises this chapter. of reshipment, or a valid certificate of transit, AMENDMENTS issued by a qualified agency in such form as 1983—Pub. L. 98–120 substituted ‘‘, 1983’’ for ‘‘1976’’. required under the agreement; (2) to require that every export or reexport §§ 1356m, 1356n. Repealed. Pub. L. 105–362, title of coffee from the United States shall be ac- XIV, § 1401(a), Nov. 10, 1998, 112 Stat. 3294 companied by a valid certificate of origin or a valid certificate of reexport, issued by a quali- Section 1356m, Pub. L. 96–599, § 4, Dec. 24, 1980, 94 Stat. fied agency of the United States designated by 3492, related to delegation of Presidential powers and him, in such form as required under the agree- duties, protection of interests of United States consum- ment; ers, and remedial action with respect to the Inter- (3) to require the keeping of such records, national Coffee Agreement Act of 1980. Section 1356n, Pub. L. 96–599, § 5, Dec. 24, 1980, 94 Stat. statistics, and other information, and the ren- 3492; Pub. L. 98–120, § 1(1), Oct. 12, 1983, 97 Stat. 809, re- dering of such reports, relating to the impor- lated to annual report by the President to Congress on tation, distribution, prices, and consumption the International Coffee Agreement, 1983. of coffee as he may from time to time prescribe; and §§ 1357 to 1359. Repealed. Sept. 26, 1949, ch. 585, (4) to take such other action, and issue and § 2, 63 Stat. 698 enforce such rules and regulations, as he may Sections, act June 26, 1948, ch. 678, §§ 3(a), (b), 4, 5, 62 consider necessary or appropriate in order to Stat. 1053, 1054, related to the investigatory functions implement the obligations of the United of the Tariff Commission and the report by the Presi- States under the agreement. dent to Congress. (Pub. L. 96–599, § 2, Dec. 24, 1980, 94 Stat. 3491; § 1360. Investigation before trade negotiations Pub. L. 97–276, § 161, Oct. 2, 1982, 96 Stat. 1204; Pub. L. 97–446, § 154, Jan. 12, 1983, 96 Stat. 2345; (a) Report by International Trade Commission Pub. L. 98–120, § 1, Oct. 12, 1983, 97 Stat. 809; Pub. Before entering into negotiations concerning L. 100–418, title I, § 1123(a), Aug. 23, 1988, 102 Stat. any proposed foreign trade agreement under sec- 1146.) tion 1351 of this title, the President shall furnish REFERENCES IN TEXT the United States International Trade Commis- The International Coffee Agreement, 1983, referred to sion (hereinafter in sections 1352(a), (c), 1354, and in text, was entered into force for the United States 1360 to 1367 of this title, and section 624(b) of provisionally Oct. 1, 1983, and definitively Sept. 11, 1985. title 7, referred to as the ‘‘Commission’’) with a list of all articles imported into the United CODIFICATION States to be considered for possible modification Section was enacted as part of the International Cof- of duties and other import restrictions, imposi- fee Agreement Act of 1980, and not as part of the Tariff tion of additional import restrictions, or con- Act of 1930 which comprises this chapter. tinuance of existing customs or excise treat- AMENDMENTS ment. Upon receipt of such list the Commission 1988—Pub. L. 100–418 substituted ‘‘October 1, 1989’’ for shall make an investigation and report to the ‘‘October 1, 1986’’. President the findings of the Commission with § 1361 TITLE 19—CUSTOMS DUTIES Page 120 respect to each such article as to (1) the limit to CODIFICATION which such modification, imposition, or con- Section was not enacted as part of the Tariff Act of tinuance may be extended in order to carry out 1930 which comprises this chapter. the purpose of said section without causing or Section is comprised of subsecs. (a) and (b) of section threatening serious injury to the domestic in- 3 of act June 16, 1951. Subsec. (c) of the 1951 act amend- dustry producing like or directly competitive ed section 1354 of this title. articles; and (2) if increases in duties or addi- In subsec. (b)(2), ‘‘section 5151 of title 31’’ was sub- tional import restrictions are required to avoid stituted for ‘‘section 522 of the Tariff Act of 1930 [31 U.S.C. 372]’’ on authority of Pub. L. 97–258, § 4(b), Sept. serious injury to the domestic industry produc- 13, 1982, 96 Stat. 1067, the first section of which enacted ing like or directly competitive articles the Title 31, Money and Finance. minimum increases in duties or additional import restrictions required. Such report shall be AMENDMENTS made by the Commission to the President not 1975—Subsec. (a). Pub. L. 93–618 substituted ‘‘United later than six months after the receipt of such States International Trade Commission’’ for ‘‘United list by the Commission. No such foreign trade States Trade Commission’’. agreement shall be entered into until the Com- 1958—Subsec. (a). Pub. L. 85–686, § 4(a), substituted mission has made its report to the President or ‘‘six months’’ for ‘‘120 days’’, and ‘‘six-month’’ for ‘‘120- day’’. until the expiration of the six-month period. Subsec. (b). Pub. L. 85–686, § 4(b), (c), redesignated existing provisions as par. (1), inserted provision to re- (b) Procedures and determinations quire the Commission to promptly institute an inves- (1) In the course of any investigation pursuant tigation pursuant to section 1364 of this title when the to this section the Commission shall hold hear- Commission finds with respect to any article on the list ings and give reasonable public notice thereof, upon which a tariff concession has been granted that an increase in duty or additional import restriction is re- and shall afford reasonable opportunity for par- quired to avoid serious injury to the domestic industry ties interested to be present, to produce evi- producing like or directly competitive articles, and dence, and to be heard at such hearings. If in the added par. (2). course of any such investigation the Commis- sion shall find with respect to any article on the § 1361. Action by President; reports to Congress list upon which a tariff concession has been (a) Transmittal by President of trade agreement granted that an increase in duty or additional and message to Congress import restriction is required to avoid serious injury to the domestic industry producing like Within thirty days after any trade agreement or directly competitive articles, the Commission under section 1351 of this title has been entered shall promptly institute an investigation with into which, when effective, will (1) require or respect to that article pursuant to section 1364 make appropriate any modification of duties or of this title. other import restrictions, the imposition of ad- (2) In each such investigation the Commission ditional import restrictions, or the continuance shall, to the extent practicable and without ex- of existing customs or excise treatment, which cluding other factors, ascertain for the last cal- modification, imposition, or continuance will endar year preceding the investigation the aver- exceed the limit to which such modification, image invoice price on a country-of-origin basis position, or continuance may be extended with- (converted into currency of the United States in out causing or threatening serious injury to the accordance with the provisions of section 5151 of domestic industry producing like or directly title 31) at which the foreign article was sold for competitive articles as found and reported by export to the United States, and the average the United States International Trade Commis- prices at which the like or directly competitive sion under section 1360 of this title, or (2) fail to domestic articles were sold at wholesale in the require or make appropriate the minimum in- principal markets of the United States. The crease in duty or additional import restrictions Commission shall also, to the extent prac- required to avoid such injury, the President ticable, estimate for each article on the list the shall transmit to Congress a copy of such agree- maximum increase in annual imports which ment together with a message accurately identi- may occur without causing serious injury to the fying the article with respect to which such lim- domestic industry producing like or directly its or minimum requirements are not complied competitive articles. The Commission shall re- with, and stating his reasons for the action quest the executive departments and agencies taken with respect to such article. If either the for information in their possession concerning Senate or the House of Representatives, or both, prices and other economic data from the prin- are not in session at the time of such trans- cipal supplier foreign country of each such arti- mission, such agreement and message shall be cle. filed with the Secretary of the Senate or the Clerk of the House of Representatives, or both, (June 16, 1951, ch. 141, § 3(a), (b), 65 Stat. 72; Pub. as the case may be. L. 85–686, § 4, Aug. 20, 1958, 72 Stat. 675; Pub. L. 93–618, title I, § 171(b), Jan. 3, 1975, 88 Stat. 2009.) (b) Transmittal by Commission of copy of report to the President to Congressional committees

REFERENCES IN TEXT Promptly after the President has transmitted such foreign trade agreement to Congress the Sections 1362 to 1365 of this title, included in the ref- Commission shall deposit with the Committee erence in subsec. (a) to sections 1360 to 1367 of this title, were repealed by Pub. L. 87–749, title II, § 257(e)(1), Oct. on Ways and Means of the House of Representa- 11, 1962, 76 Stat. 882; section 1367 of this title was re- tives, and the Committee on Finance of the Sen- pealed by Pub. L. 87–456, title III, § 303(c), May 24, 1962, ate, a copy of the portions of its report to the 76 Stat. 78. President dealing with the articles with respect Page 121 TITLE 19—CUSTOMS DUTIES § 1401 to which such limits or minimum requirements PRIOR PROVISIONS are not complied with. Similar provisions were contained in act July 1, 1954, (June 16, 1951, ch. 141, § 4, 65 Stat. 73; Pub. L. ch. 445, § 3, 68 Stat. 360, other sections of which amended 93–618, title I, § 171(b), Jan. 3, 1975, 88 Stat. 2009.) section 1352(c) of this title and enacted section 1352a of this title; and in act Aug. 7, 1953, ch. 348, title I, § 103, CODIFICATION 67 Stat. 472, which act amended section 624(b) of title 7, and sections 1330(d), 1352(c) and former section 1364(a) Section was not enacted as part of the Tariff Act of of this title, and enacted provisions set out as notes 1930 which comprises this chapter. under sections 1351 and 1364 of this title. AMENDMENTS CONGRESSIONAL APPROVAL OR DISAPPROVAL OF 1975—Subsec. (a). Pub. L. 93–618 substituted ‘‘United GENERAL AGREEMENT ON TARIFFS AND TRADE States International Trade Commission’’ for ‘‘Tariff Commission’’. Section 10 of Pub. L. 85–686 provided that: ‘‘The enactment of this Act [enacting section 1335 of this title, §§ 1362 to 1365. Repealed. Pub. L. 87–794, title II, amending sections 1333, 1336, 1337, 1351, 1352a, 1360, and § 257(e)(1), Oct. 11, 1962, 76 Stat. 882 former section 1364 of this title, and enacting notes set out under sections 1352 and 1366 of this title] shall not Section 1362, act June 16, 1951, ch. 141, § 5, 65 Stat. 73, be construed to determine or indicate the approval or related to suspension or withdrawal of concessions disapproval by the Congress of the executive agreement from Communistic areas. See section 1801 et seq. of this known as the General Agreement on Tariffs and title. Trade.’’ Section 1363, acts June 16, 1951, ch. 141, § 6, 65 Stat. 73; June 21, 1955, ch. 169, § 4, 69 Stat. 165, provided for an es- § 1367. Repealed. Pub. L. 87–456, title III, § 303(c), cape clause for future agreements, and insertion in past May 24, 1962, 76 Stat. 78 agreements. Section 1364, acts June 16, 1951, ch. 141, § 7, 65 Stat. 74; Section, act June 16, 1951, ch. 141, § 11, 65 Stat. 75, re- Aug. 7, 1953, ch. 348, title I, § 102, 67 Stat. 472; June 21, quired the President to take such measures as may be 1955, ch. 169, §§ 5, 6, 69 Stat. 166; Aug. 20, 1958, Pub. L. necessary to prevent the importation of ermine, fox, 85–686, §§ 5(a), (b)(1), (c), 6, 72 Stat. 676, related to the op- kolinsky, marten, mink, muskrat, and weasel furs and eration of the escape clause. skins which are the product of the Union of Soviet So- Section 1365, act June 16, 1951, ch. 141, § 8(a), 65 Stat. cialist Republics or of Communist China. 75, provided for emergency action for perishable agricultural products. EFFECTIVE DATE OF REPEAL

PRESIDENTIAL ACTION IN EFFECT ON OCTOBER 11, 1962 Repeal effective with respect to articles entered, or withdrawn from warehouse, for consumption on or Section 257(e)(2) of Pub. L. 87–794 provided that: ‘‘Ac- after Aug. 31, 1963, see section 501(a) of Pub. L. 87–456, tion taken by the President under section 5 of such Act set out as a note preceding section 1202 of this title. [former section 1362 of this title] and in effect on the date of the enactment of this Act [Oct. 11, 1962] shall be SUBTITLE III—ADMINISTRATIVE considered as having been taken by the President under PROVISIONS section 231 [section 1861 of this title].’’

CONTINUATION OF INVESTIGATIONS PART I—DEFINITIONS AND NATIONAL CUSTOMS Section 257(e)(3) of Pub. L. 87–794 provided that: ‘‘Any AUTOMATION PROGRAM investigation by the Tariff Commission [now the United States International Trade Commission] under SUBPART A—DEFINITIONS section 7 of such Act [former section 1364 of this title] which is in progress on the date of the enactment of § 1401. Miscellaneous this Act [Oct. 11, 1962] shall be continued under section When used in this subtitle or in part I of sub- 301 [section 1901 of this title] as if the application by title II of this chapter— the interested party were a petition under such section for tariff adjustment under section 351 [section 1981 of (a) Vessel this title]. For purposes of section 301(f) [section 1901(f) The word ‘‘vessel’’ includes every description of this title], such petition shall be treated as having of water craft or other contrivance used, or ca- been filed on the date of the enactment of this Act [Oct. 11, 1962].’’ pable of being used, as a means of transportation in water, but does not include aircraft. § 1366. General Agreement on Tariff and Trade (b) Vehicle unaffected The word ‘‘vehicle’’ includes every description The enactment of sections 1352(a), (c), 1354, of carriage or other contrivance used, or capable and 1360 to 1367 of this title, and section 624(f) of of being used, as a means of transportation on title 7, shall not be construed to determine or land, but does not include aircraft. indicate the approval or disapproval by the Con- gress of the Executive Agreement known as the (c) Merchandise General Agreement on Tariffs and Trade. The word ‘‘merchandise’’ means goods, wares, and chattels of every description, and includes (June 16, 1951, ch. 141, § 10, 65 Stat. 75.) merchandise the importation of which is prohib- REFERENCES IN TEXT ited, and monetary instruments as defined in Sections 1362 to 1365 of this title, included in the ref- section 5312 of title 31. erence to sections 1360 to 1367 of this title, were re- (d) Person pealed by Pub. L. 87–749, title II, § 257(e)(1), Oct. 11, 1962, 76 Stat. 882; section 1367 of this title was repealed by The word ‘‘person’’ includes partnerships, as- Pub. L. 87–456, title III, § 303(c), May 24, 1962, 76 Stat. 78. sociations, and corporations.

CODIFICATION (e) Master Section was not enacted as part of the Tariff Act of The word ‘‘master’’ means the person having 1930 which comprises this chapter. the command of the vessel. § 1401 TITLE 19—CUSTOMS DUTIES Page 122

(f) Day (n) Electronic transmission The word ‘‘day’’ means the time from eight The term ‘‘electronic transmission’’ means the o’clock antemeridian to five o’clock post- transfer of data or information through an au- meridian. thorized electronic data interchange system (g) Night consisting of, but not limited to, computer modems and computer networks. The word ‘‘night’’ means the time from five o’clock postmeridian to eight o’clock ante- (o) Electronic entry meridian. The term ‘‘electronic entry’’ means the elec- (h) United States tronic transmission to the Customs Service of— The term ‘‘United States’’ includes all Terri- (1) entry information required for the entry tories and possessions of the United States ex- of merchandise, and cept the Virgin Islands, American Samoa, Wake (2) entry summary information required for Island, Midway Islands, Kingman Reef, Johnston the classification and appraisement of the Island, and the island of Guam. merchandise, the verification of statistical information, and the determination of compli- (i) Officer of the customs; customs officer ance with applicable law. The terms ‘‘officer of the customs’’ and ‘‘customs officer’’ mean any officer of the United (p) Electronic data interchange system States Customs Service of the Treasury Depart- The term ‘‘electronic data interchange sys- ment (also hereinafter referred to as the ‘‘Cus- tem’’ means any established mechanism ap- toms Service’’) or any commissioned, warrant, proved by the Commissioner of Customs through or petty officer of the Coast Guard, or any agent which information can be transferred electroni- or other person, including foreign law enforce- cally. ment officers, authorized by law or designated (q) National Customs Automation Program by the Secretary of the Treasury to perform any The term ‘‘National Customs Automation Pro- duties of an officer of the Customs Service. gram’’ means the program established under (j) Customs waters section 1411 of this title. The term ‘‘customs waters’’ means, in the case (r) Import activity summary statement of a foreign vessel subject to a treaty or other arrangement between a foreign government and The term ‘‘import activity summary state- the United States enabling or permitting the au- ment’’ refers to data or information transmitted thorities of the United States to board, examine, electronically to the Customs Service, in ac- search, seize, or otherwise to enforce upon such cordance with such regulations as the Secretary vessel upon the high seas the laws of the United prescribes, at the end of a specified period of States, the waters within such distance of the time which enables the Customs Service to as- coast of the United States as the said authori- sess properly the duties, taxes and fees on mer- ties are or may be so enabled or permitted by chandise imported during that period, collect such treaty or arrangement and, in the case of accurate statistics and determine whether any every other vessel, the waters within four other applicable requirement of law (other than leagues of the coast of the United States. a requirement relating to release from customs custody) is met. (k) Hovering vessel (s) Reconciliation The term ‘‘hovering vessel’’ means— (1) any vessel which is found or kept off the The term ‘‘reconciliation’’ means an elec- coast of the United States within or without tronic process, initiated at the request of an im- the customs waters, if, from the history, con- porter, under which the elements of an entry duct, character, or location of the vessel, it is (other than those elements related to the admis- reasonable to believe that such vessel is being sibility of the merchandise) that are undeter- used or may be used to introduce or promote mined at the time the importer files or trans- or facilitate the introduction or attempted in- mits the documentation or information required troduction of merchandise into the United by section 1484(a)(1)(B) of this title, or the im- States in violation of the laws of the United port activity summary statement, are provided States; and to the Customs Service at a later time. A rec- (2) any vessel which has visited a vessel de- onciliation is treated as an entry for purposes of scribed in paragraph (1). liquidation, reliquidation, recordkeeping, and (l) Secretary protest. The term ‘‘Secretary’’ means the Secretary of (t) Reconfigured entry the Treasury or his delegate. The term ‘‘reconfigured entry’’ means an (m) Controlled substance entry filed on an import activity summary statement which substitutes for all or part of 1 The term ‘‘controlled substance’’ has the or more entries filed under section 1484(a)(1)(A) meaning given that term in section 802(6) of of this title or filed on a reconciliation entry title 21. For purposes of this chapter, a con- that aggregates the entry elements to be rec- trolled substance shall be treated as merchan- onciled under section 1484(b) of this title for pur- dise the importation of which into the United poses of liquidation, reliquidation, or protest. States is prohibited, unless the importation is authorized under— (June 17, 1930, ch. 497, title IV, § 401, 46 Stat. 708; (1) an appropriate license or permit; or Aug. 5, 1935, ch. 438, title II, § 201, 49 Stat. 521; (2) the Controlled Substances Import and June 25, 1938, ch. 679, § 2, 52 Stat. 1077; Proc. No. Export Act [21 U.S.C. 951 et seq.]. 2695, July 4, 1946, 11 F.R. 7517, 60 Stat. 1352; June Page 123 TITLE 19—CUSTOMS DUTIES § 1401

30, 1955, ch. 258, § 2(a)(3), 69 Stat. 242; Pub. L. charge of matters of reappraisement, etc., of imported 91–271, title III, § 301(c), June 2, 1970, 84 Stat. 288; goods and litigation incident thereto. Section 30 was Pub. L. 99–570, title III, § 3111, Oct. 27, 1986, 100 incorporated into the Code as section 296 of former Stat. 3207–80; Pub. L. 103–182, title VI, § 634, Dec. Title 5, Executive Departments and Government Offi- cers and Employees, and subsequently repealed by Pub. 8, 1993, 107 Stat. 2198; Pub. L. 104–295, §§ 3(a)(6)(A), L. 89–554, Sept. 6, 1966, § 8(a), 80 Stat. 632. 18(a), Oct. 11, 1996, 110 Stat. 3515, 3524; Pub. L. 108–7, div. J, title I, § 127(b), Feb. 20, 2003, 117 AMENDMENTS Stat. 441; Pub. L. 108–429, title I, § 1561(a), (c), 2004—Subsec. (i). Pub. L. 108–429, § 1561(c), repealed title II, § 2106, Dec. 3, 2004, 118 Stat. 2581, 2582, Pub. L. 108–7, § 127(b). See 2003 Amendment note below. 2598.) Pub. L. 108–429, § 1561(a), inserted ‘‘, including foreign law enforcement officers,’’ after ‘‘or other person’’. REFERENCES IN TEXT Subsec. (t). Pub. L. 108–429, § 2106, added subsec. (t). The Controlled Substances Import and Export Act, 2003—Subsec. (i). Pub. L. 108–7, § 127(b), which directed referred to in subsec. (m)(2), is title III of Pub. L. amendment of section 1401(i) of title 19 by inserting 91–513, Oct. 27, 1970, 84 Stat. 1285, as amended, which is ‘‘, including foreign law enforcement officers,’’ after classified principally to subchapter II (§ 951 et seq.) of ‘‘or other person’’, was repealed by Pub. L. 108–429, chapter 13 of Title 21, Food and Drugs. For complete § 1561(c). classification of this Act to the Code, see Short Title 1996—Subsec. (s). Pub. L. 104–295, § 18(a), amended first note set out under section 951 of Title 21 and Tables. sentence generally. Prior to amendment, first sentence read as follows: ‘‘The term ‘reconciliation’ means an CODIFICATION electronic process, initiated at the request of an importer, under which the elements of an entry, other Section is based on the designated subsections of sec- than those elements related to the admissibility of the tion 401 of act June 17, 1930, as amended. The last un- merchandise, that are undetermined at the time of designated paragraph of section 401, as added by section entry summary are provided to the Customs Service at 201 of act Aug. 5, 1935, was classified to section 1432a of a later time.’’ this title, prior to being repealed by Pub. L. 103–182, Pub. L. 104–295, § 3(a)(6)(A), inserted ‘‘recordkeeping,’’ § 690(c)(5), Dec. 8, 1993, 107 Stat. 2223. after ‘‘reliquidation,’’. Words ‘‘the Philippine Islands’’ formerly set out in 1993—Subsec. (k). Pub. L. 103–182, § 634(1), amended subsec. (h) were omitted on authority of Proc. No. 2695, subsec. (k) generally. Prior to amendment, subsec. (k) which is set out as a note under section 1394 of Title 22, read as follows: Foreign Relations and Intercourse, and in which the ‘‘(1) The term ‘hovering vessel’ means any vessel President proclaimed the independence of the Phil- which is found or kept off the coast of the United ippines. States within or without the customs waters, if, from PRIOR PROVISIONS the history, conduct, character, or location of the vessel, it is reasonable to believe that such vessel is being Provisions similar to those in this section were con- used or may be used to introduce or promote or facili- tained in act Sept. 21, 1922, ch. 356, title IV, § 401, 42 tate the introduction or attempted introduction of Stat. 948, which superseded R.S. §§ 2766 and Section 401 merchandise into the United States in violation of the of the 1922 act was superseded by section 401 of act June laws respecting the revenue. 17, 1930, comprising this section, and repealed by sec- ‘‘(2) For the purposes of sections 1432, 1433, 1434, 1448, tion 651(a)(1) of the 1930 Act. 1585, and 1586 of this title, any vessel which— Section III of the Underwood Tariff Act of Oct. 3, ‘‘(A) has visited any hovering vessel; 1913, ch. 16, 38 Stat. 181, amending the Customs Admin- ‘‘(B) has received merchandise while in the customs istrative Act of June 10, 1890, ch. 407, 26 Stat. 131, was waters beyond the territorial sea; or repealed by section 643 of the act of Sept. 21, 1922, ch. ‘‘(C) has received merchandise while on the high 356, title IV, 42 Stat. 989. seas; Section III, by subdivision A thereof, amended the shall be deemed to arrive or have arrived, as the case Customs Administrative Act of June 10, 1890, ch. 407, 26 may be, from a foreign port or place.’’ Stat. 131, as previously amended, to read as set forth in Subsecs. (n) to (s). Pub. L. 103–182, § 634(2), added subsection III, subdivisions B–CC. By that amendment and secs. (n) to (s). reenactment, the Customs Administrative Act of June 1986—Subsec. (c). Pub. L. 99–570, § 3111(1), inserted 10, 1890, and the amendments thereof by act July 24, ‘‘, and monetary instruments as defined in section 5312 1897, ch. 11, § 32, 30 Stat. 211, act May 17, 1898, ch. 341, of title 31’’. 30 Stat. 417, Act Dec. 15, 1902, ch. 1, 32 Stat. 753, act May Subsec. (k). Pub. L. 99–570, § 3111(2), (3), designated ex- 27, 1908, ch. 205, 35 Stat. 403, and the Payne-Aldrich Tar- isting provisions as par. (1) and added par. (2). iff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 91, were super- Subsec. (m). Pub. L. 99–570, § 3111(4), added subsec. seded, except the provisions thereof mentioned in a (m). proviso of section IV, S, of that act. 1970—Subsec. (h). Pub. L. 91–271, § 301(c)(1), (2), struck The Customs Administrative Act of June 10, 1890, as out subsec. (h) which defined ‘‘collector’’, and redesig- originally enacted and as amended previous to the nated subsec. (k) as (h). Payne-Aldrich Tariff Act, consisted of thirty sections, Subsec. (i). Pub. L. 91–271, § 301(c)(1), (2), struck out of which section 30 prescribed the time when the act subsec. (i) which defined ‘‘comptroller of customs’’, re- should go into effect. Of the preceding twenty-nine sec- designated subsec. (l) as (i), and, as so redesignated, de- tions of the original act, section 15 providing for review fined ‘‘customs officer’’. by the courts of decisions of the Board of General Ap- Subsec. (j). Pub. L. 91–271, § 301(c)(1), (2), struck out praisers, was omitted from the act as further amended subsec. (j) which defined ‘‘appraiser’’, and redesignated by the Payne-Aldrich Tariff Act, and the remaining subsec. (m) as (j). twenty-eight sections were amended thereby, con- Subsec. (k). Pub. L. 91–271, § 301(c)(1), (2), redesignated stituting sections 1–28 thereof. A new section, des- subsec. (n) as (k). Former subsec. (k) redesignated (h). ignated as section 29, was added by the Payne-Aldrich Subsec. (l). Pub. L. 91–271, § 301(c)(2), (3), added subsec. Tariff Act, which created a Court of Customs Appeals (l). Former subsec. (l) redesignated (i). and prescribed its jurisdiction and powers, proceedings, Subsecs. (m), (n). Pub. L. 91–271, § 301(c)(2), redesig- etc. Its provisions were incorporated in and superseded nated subsecs. (m) and (n) as (j) and (k), respectively. by chapter 8 of the Judicial Code of March 3, 1911. An- 1955—Subsec. (k). Act June 30, 1955, inserted ‘‘John- other new section, designated as section 30, was also ston Island’’. added by the Payne-Aldrich Tariff Act, which provided 1938—Subsec. (k). Act June 25, 1938, inserted ‘‘Wake for the appointment of an Assistant Attorney-General, Island, Midway Islands, Kingman Reef’’ before ‘‘and the a Deputy Assistant Attorney-General, and attorneys, in island of Guam’’. § 1401a TITLE 19—CUSTOMS DUTIES Page 124

1935—Subsecs. (l) to (n). Act Aug. 5, 1935, added sub- Functions of all officers of Department of the Treas- secs. (l) to (n). ury and functions of all agencies and employees of such Department transferred, with certain exceptions, to CHANGE OF NAME Secretary of the Treasury, with power vested in him to United States Customs Service substituted for Bu- authorize their performance or performance of any of reau of Customs in subsec. (i) pursuant to Treasury De- his functions, by any of those officers, agencies, and partment Order 165–23, Apr. 4, 1973, eff. Aug. 1, 1973, 38 employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July F.R. 13037. See, also, section 308 of Title 31, Money and 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Finance. Appendix to Title 5, Government Organization and Em- ployees. EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–429, title I, § 1561(d), Dec. 3, 2004, 118 Stat. § 1401a. Value 2582, provided that: ‘‘This section [amending this sec- (a) Generally tion and section 1629 of this title and repealing provisions set out as a note under section 1629 of this title], (1) Except as otherwise specifically provided and the amendments made by this section, take effect for in this chapter, imported merchandise shall on the date of the enactment of this Act [Dec. 3, 2004].’’ be appraised, for the purposes of this chapter, on Pub. L. 108–429, title II, § 2108, Dec. 3, 2004, 118 Stat. the basis of the following: 2598, provided that: ‘‘The amendments made by this (A) The transaction value provided for under subtitle [subtitle B (§§ 2101–2108) of title II of Pub. L. subsection (b) of this section. 108–429, amending this section and sections 1484, 1501, (B) The transaction value of identical mer- 1504, 1514, 1515, and 1520 of this title] shall apply to merchandise entered, or withdrawn from warehouse for chandise provided for under subsection (c) of consumption, on or after the 15th day after the date of this section, if the value referred to in sub- the enactment of this Act [Dec. 3, 2004].’’ paragraph (A) cannot be determined, or can be determined but cannot be used by reason of EFFECTIVE DATE OF 1996 AMENDMENT subsection (b)(2) of this section. Amendment by section 3(a)(6)(A) of Pub. L. 104–295 (C) The transaction value of similar mer- applicable as of Dec. 8, 1993, see section 3(b) of Pub. L. chandise provided for under subsection (c) of 104–295, set out as a note under section 1321 of this title. this section, if the value referred to in sub- EFFECTIVE DATE OF 1970 AMENDMENT paragraph (B) cannot be determined. (D) The deductive value provided for under For effective date of amendment by Pub. L. 91–271, subsection (d) of this section, if the value re- see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. ferred to in subparagraph (C) cannot be determined and if the importer does not request al- EFFECTIVE DATE OF 1955 AMENDMENT ternative valuation under paragraph (2). Section 2(d) of act June 30, 1955, provided that: ‘‘The (E) The computed value provided for under amendments made by this section [amending this sec- subsection (e) of this section, if the value re- tion, sections 1557, 1562, and 1709 of this title, and sec- ferred to in subparagraph (D) cannot be deter- tions 542, 544, and 545 of Title 18, Crimes and Criminal mined. Procedure] shall take effect on the day following the (F) The value provided for under subsection day on which this Act is enacted [July 1, 1955].’’ (f) of this section, if the value referred to in EFFECTIVE DATE OF 1938 AMENDMENT subparagraph (E) cannot be determined. Section 37 of act June 25, 1938, provided that: ‘‘Sec- (2) If the value referred to in paragraph (1)(C) tions 31 and 34 of this Act [amending section 1001 of this cannot be determined with respect to imported title] shall take effect on the date of enactment of this merchandise, the merchandise shall be appraised Act [June 25, 1938]. Except as otherwise specially pro- on the basis of the computed value provided for vided in this Act, the remainder of this Act [amending under paragraph (1)(E), rather than the deduc- this section and sections 1001, 1201, 1304, 1308, 1309, 1315, 1317, 1402, 1451, 1459, 1460, 1484, 1485, 1491, 1499, 1501, 1516, tive value provided for under paragraph (1)(D), if 1520, 1524, 1553, 1557, 1558, 1559, 1562, 1563, 1603, 1607, 1609, the importer makes a request to that effect to 1613, 1623, and 1709 of this title, enacting sections 1321, the customs officer concerned within such time 1467, and 1528 of this title, and amending section 331 of as the Secretary shall prescribe. If the computed former Title 46, Shipping] shall take effect on the thir- value of the merchandise cannot subsequently tieth day following the date of its enactment.’’ be determined, the merchandise may not be ap- TRANSFER OF FUNCTIONS praised on the basis of the value referred to in paragraph (1)(F) unless the deductive value of For transfer of functions, personnel, assets, and li- the merchandise cannot be determined under abilities of the United States Customs Service of the paragraph (1)(D). Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- (3) Upon written request therefor by the im- retary of Homeland Security, and for treatment of re- porter of merchandise, and subject to provisions lated references, see sections 203(1), 551(d), 552(d), and of law regarding the disclosure of information, 557 of Title 6, Domestic Security, and the Department the customs officer concerned shall provide the of Homeland Security Reorganization Plan of Novem- importer with a written explanation of how the ber 25, 2002, as modified, set out as a note under section value of that merchandise was determined under 542 of Title 6. this section. For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities (b) Transaction value of imported merchandise and functions of the Secretary of Transportation relat- (1) The transaction value of imported mer- ing thereto, to the Department of Homeland Security, chandise is the price actually paid or payable for and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- the merchandise when sold for exportation to rity, and the Department of Homeland Security Reor- the United States, plus amounts equal to— ganization Plan of November 25, 2002, as modified, set (A) the packing costs incurred by the buyer out as a note under section 542 of Title 6. with respect to the imported merchandise; Page 125 TITLE 19—CUSTOMS DUTIES § 1401a

(B) any selling commission incurred by the chandise that was exported to the United States buyer with respect to the imported merchan- at or about the same time as the imported mer- dise; chandise. (C) the value, apportioned as appropriate, of (C) In applying the values used for comparison any assist; purposes under subparagraph (B), there shall be (D) any royalty or license fee related to the taken into account differences with respect to imported merchandise that the buyer is re- the sales involved (if such differences are based quired to pay, directly or indirectly, as a con- on sufficient information whether supplied by dition of the sale of the imported merchandise the buyer or otherwise available to the customs for exportation to the United States; and officer concerned) in— (E) the proceeds of any subsequent resale, (i) commercial levels; disposal, or use of the imported merchandise (ii) quantity levels; that accrue, directly or indirectly, to the sell- (iii) the costs, commissions, values, fees, and er. proceeds described in paragraph (1); and The price actually paid or payable for imported (iv) the costs incurred by the seller in sales merchandise shall be increased by the amounts in which he and the buyer are not related that attributable to the items (and no others) de- are not incurred by the seller in sales in which scribed in subparagraphs (A) through (E) only to he and the buyer are related. the extent that each such amount (i) is not (3) The transaction value of imported mer- otherwise included within the price actually paid or payable; and (ii) is based on sufficient in- chandise does not include any of the following, formation. If sufficient information is not avail- if identified separately from the price actually able, for any reason, with respect to any amount paid or payable and from any cost or other item referred to in the preceding sentence, the trans- referred to in paragraph (1): action value of the imported merchandise con- (A) Any reasonable cost or charge that is in- cerned shall be treated, for purposes of this sec- curred for— tion, as one that cannot be determined. (i) the construction, erection, assembly, or (2)(A) The transaction value of imported mer- maintenance of, or the technical assistance chandise determined under paragraph (1) shall provided with respect to, the merchandise be the appraised value of that merchandise for after its importation into the United States; the purposes of this chapter only if— or (i) there are no restrictions on the disposi- (ii) the transportation of the merchandise tion or use of the imported merchandise by after such importation. the buyer other than restrictions that— (B) The customs duties and other Federal (I) are imposed or required by law, taxes currently payable on the imported mer- (II) limit the geographical area in which chandise by reason of its importation, and any the merchandise may be resold, or Federal excise tax on, or measured by the (III) do not substantially affect the value value of, such merchandise for which vendors of the merchandise; in the United States are ordinarily liable. (ii) the sale of, or the price actually paid or payable for, the imported merchandise is not (4) For purposes of this subsection— subject to any condition or consideration for (A) The term ‘‘price actually paid or pay- which a value cannot be determined with re- able’’ means the total payment (whether di- spect to the imported merchandise; rect or indirect, and exclusive of any costs, (iii) no part of the proceeds of any subse- charges, or expenses incurred for transpor- quent resale, disposal, or use of the imported tation, insurance, and related services inci- merchandise by the buyer will accrue directly dent to the international shipment of the mer- or indirectly to the seller, unless an appro- chandise from the country of exportation to priate adjustment therefor can be made under the place of importation in the United States) paragraph (1)(E); and made, or to be made, for imported merchan- (iv) the buyer and seller are not related, or dise by the buyer to, or for the benefit of, the the buyer and seller are related but the trans- seller. action value is acceptable, for purposes of this (B) Any rebate of, or other decrease in, the subsection, under subparagraph (B). price actually paid or payable that is made or (B) The transaction value between a related otherwise effected between the buyer and sell- buyer and seller is acceptable for the purposes of er after the date of the importation of the this subsection if an examination of the circum- merchandise into the United States shall be stances of the sale of the imported merchandise disregarded in determining the transaction indicates that the relationship between such value under paragraph (1). buyer and seller did not influence the price actu- (c) Transaction value of identical merchandise ally paid or payable; or if the transaction value and similar merchandise of the imported merchandise closely approxi- (1) The transaction value of identical mer- mates— chandise, or of similar merchandise, is the (i) the transaction value of identical mer- transaction value (acceptable as the appraised chandise, or of similar merchandise, in sales value for purposes of this chapter under sub- to unrelated buyers in the United States; or section (b) of this section but adjusted under (ii) the deductive value or computed value paragraph (2) of this subsection) of imported for identical merchandise or similar merchan- merchandise that is— dise; (A) with respect to the merchandise being but only if each value referred to in clause (i) or appraised, either identical merchandise or (ii) that is used for comparison relates to mer- similar merchandise, as the case may be; and § 1401a TITLE 19—CUSTOMS DUTIES Page 126

(B) exported to the United States at or about which subparagraph (A)(iii) applies) at which the time that the merchandise being appraised such sales take place, in a total volume that is is exported to the United States. (i) greater than the total volume sold at any other unit price, and (ii) sufficient to establish (2) Transaction values determined under this the unit price. subsection shall be based on sales of identical (3)(A) the price determined under paragraph merchandise or similar merchandise, as the case (2) shall be reduced by an amount equal to— may be, at the same commercial level and in (i) any commission usually paid or agreed to substantially the same quantity as the sales of be paid, or the addition usually made for prof- the merchandise being appraised. If no such sale it and general expenses, in connection with is found, sales of identical merchandise or simi- sales in the United States of imported mer- lar merchandise at either a different commer- chandise that is of the same class or kind, re- cial level or in different quantities, or both, gardless of the country of exportation, as the shall be used, but adjusted to take account of merchandise concerned; any such difference. Any adjustment made (ii) the actual costs and associated costs of under this paragraph shall be based on sufficient transportation and insurance incurred with re- information. If in applying this paragraph with spect to international shipments of the mer- respect to any imported merchandise, two or chandise concerned from the country of expor- more transaction values for identical merchan- tation to the United States; dise, or for similar merchandise, are determined, (iii) the usual costs and associated costs of such imported merchandise shall be appraised transportation and insurance incurred with re- on the basis of the lower or lowest of such val- spect to shipments of such merchandise from ues. the place of importation to the place of deliv- (d) Deductive value ery in the United States, if such costs are not (1) For purposes of this subsection, the term included as a general expense under clause (i); (iv) the customs duties and other Federal ‘‘merchandise concerned’’ means the merchan- taxes currently payable on the merchandise dise being appraised, identical merchandise, or concerned by reason of its importation, and similar merchandise. any Federal excise tax on, or measured by the (2)(A) The deductive value of the merchandise value of, such merchandise for which vendors being appraised is whichever of the following in the United States are ordinarily liable; and prices (as adjusted under paragraph (3)) is appro- (v) (but only in the case of a price deter- priate depending upon when and in what condi- mined under paragraph (2)(A)(iii)) the value tion the merchandise concerned is sold in the added by the processing of the merchandise United States: after importation to the extent that the value (i) If the merchandise concerned is sold in is based on sufficient information relating to the condition as imported at or about the date cost of such processing. of importation of the merchandise being appraised, the price is the unit price at which (B) For purposes of applying paragraph (A)— the merchandise concerned is sold in the (i) the deduction made for profits and gen- greatest aggregate quantity at or about such eral expenses shall be based upon the import- date. er’s profits and general expenses, unless such (ii) If the merchandise concerned is sold in profits and general expenses are inconsistent the condition as imported but not sold at or with those reflected in sales in the United about the date of importation of the merchan- States of imported merchandise of the same dise being appraised, the price is the unit price class or kind, in which case the deduction at which the merchandise concerned is sold in shall be based on the usual profit and general the greatest aggregate quantity after the date expenses reflected in such sales, as determined of importation of the merchandise being ap- from sufficient information; and praised but before the close of the 90th day (ii) any State or local tax imposed on the after the date of such importation. importer with respect to the sale of imported (iii) If the merchandise concerned was not merchandise shall be treated as a general ex- sold in the condition as imported and not sold pense. before the close of the 90th day after the date (C) The price determined under paragraph (2) of importation of the merchandise being ap- shall be increased (but only to the extent that praised, the price is the unit price at which such costs are not otherwise included) by an the merchandise being appraised, after further amount equal to the packing costs incurred by processing, is sold in the greatest aggregate the importer or the buyer, as the case may be, quantity before the 180th day after the date of with respect to the merchandise concerned. such importation. This clause shall apply to (D) For purposes of determining the deductive appraisement of merchandise only if the im- value of imported merchandise, any sale to a porter so elects and notifies the customs offi- person who supplies any assist for use in connec- cer concerned of that election within such tion with the production or sale for export of the time as shall be prescribed by the Secretary. merchandise concerned shall be disregarded. (B) For purposes of subparagraph (A), the unit (e) Computed value price at which merchandise is sold in the great- (1) The computed value of imported merchan- est aggregate quantity is the unit price at which dise is the sum of— such merchandise is sold to unrelated persons, (A) the cost or value of the materials and at the first commercial level after importation the fabrication and other processing of any (in cases to which subparagraph (A)(i) or (ii) ap- kind employed in the production of the im- plies) or after further processing (in cases to ported merchandise; Page 127 TITLE 19—CUSTOMS DUTIES § 1401a

(B) an amount for profit and general ex- (A) Members of the same family, including penses equal to that usually reflected in sales brothers and sisters (whether by whole or half of merchandise of the same class or kind as blood), spouse, ancestors, and lineal descend- the imported merchandise that are made by ants. the producers in the country of exportation for (B) Any officer or director of an organization export to the United States; and such organization. (C) any assist, if its value is not included (C) An officer or director of an organization under subparagraph (A) or (B); and and an officer or director of another organiza- (D) the packing costs. tion, if each such individual is also an officer (2) For purposes of paragraph (1)— or director in the other organization. (A) the cost or value of materials under (D) Partners. paragraph (1)(A) shall not include the amount (E) Employer and employee. of any internal tax imposed by the country of (F) Any person directly or indirectly own- exportation that is directly applicable to the ing, controlling, or holding with power to materials or their disposition if the tax is re- vote, 5 percent or more of the outstanding vot- mitted or refunded upon the exportation of the ing stock or shares of any organization and merchandise in the production of which the such organization. materials were used; and (G) Two or more persons directly or indi- (B) the amount for profit and general ex- rectly controlling, controlled by, or under penses under paragraph (1)(B) shall be based common control with, any person. upon the producer’s profits and expenses, un- (2) For purposes of this section, merchandise less the producer’s profits and expenses are in- (including, but not limited to, identical mer- consistent with those usually reflected in chandise and similar merchandise) shall be sales of merchandise of the same class or kind treated as being of the same class or kind as as the imported merchandise that are made by other merchandise if it is within a group or producers in the country of exportation for ex- range of merchandise produced by a particular port to the United States, in which case the industry or industry sector. amount under paragraph (1)(B) shall be based (3) For purposes of this section, information on the usual profit and general expenses of that is submitted by an importer, buyer, or pro- such producers in such sales, as determined ducer in regard to the appraisement of merchan- from sufficient information. dise may not be rejected by the customs officer (f) Value if other values cannot be determined or concerned on the basis of the accounting method used by which that information was prepared, if the (1) If the value of imported merchandise can- preparation was in accordance with generally not be determined, or otherwise used for the accepted accounting principles. The term ‘‘gen- purposes of this chapter, under subsections (b) erally accepted accounting principles’’ refers to through (e) of this section, the merchandise any generally recognized consensus or substan- shall be appraised for the purposes of this chap- tial authoritative support regarding— ter on the basis of a value that is derived from (A) which economic resources and obliga- the methods set forth in such subsections, with tions should be recorded as assets and liabil- such methods being reasonably adjusted to the ities; extent necessary to arrive at a value. (B) which changes in assets and liabilities (2) Imported merchandise may not be ap- should be recorded; praised, for the purposes of this chapter, on the (C) how the assets and liabilities and basis of— changes in them should be measured; (A) the selling price in the United States of (D) what information should be disclosed merchandise produced in the United States; and how it should be disclosed; and (B) a system that provides for the appraise- (E) which financial statements should be ment of imported merchandise at the higher of prepared. two alternative values; The applicability of a particular set of generally (C) the price of merchandise in the domestic accepted accounting principles will depend upon market of the country of exportation; the basis on which the value of the merchandise (D) a cost of production, other than a value is sought to be established. determined under subsection (e) of this section for merchandise that is identical merchandise (h) Definitions or similar merchandise to the merchandise As used in this section— being appraised; (1)(A) The term ‘‘assist’’ means any of the (E) the price of merchandise for export to a following if supplied directly or indirectly, and country other than the United States; free of charge or at reduced cost, by the buyer (F) minimum values for appraisement; or of imported merchandise for use in connection (G) arbitrary or fictitious values. with the production or the sale for export to the United States of the merchandise: This paragraph shall not apply with respect to (i) Materials, components, parts, and simi- the ascertainment, determination, or estimation lar items incorporated in the imported mer- of foreign market value or United States price chandise. under subtitle IV of this chapter. (ii) Tools, dies, molds, and similar items (g) Special rules used in the production of the imported mer- (1) For purposes of this section, the persons chandise. specified in any of the following subparagraphs (iii) Merchandise consumed in the produc- shall be treated as persons who are related: tion of the imported merchandise. § 1401a TITLE 19—CUSTOMS DUTIES Page 128

(iv) Engineering, development, artwork, (iii) is commercially interchangeable design work, and plans and sketches that are with the merchandise being appraised; or undertaken elsewhere than in the United (B) if merchandise meeting the require- States and are necessary for the production ments under subparagraph (A) cannot be of the imported merchandise. found (or for purposes of applying subsection (B) No service or work to which subpara- (b)(2)(B)(i) of this section, regardless of graph (A)(iv) applies shall be treated as an as- whether merchandise meeting such require- sist for purposes of this section if such service ments can be found), merchandise that— or work— (i) was produced in the same country as, (i) is performed by an individual who is but not produced by the same person as, domiciled within the United States; the merchandise being appraised, and (ii) is performed by that individual while (ii) meets the requirement set forth in he is acting as an employee or agent of the subparagraph (A)(ii) and (iii). buyer of the imported merchandise; and Such term does not include merchandise that (iii) is incidental to other engineering, de- incorporates or reflects any engineering, development, artwork, design work, or plans or velopment, artwork, design work, or plan or sketches that are undertaken within the sketch that— United States. (I) was supplied free or at reduced cost by (C) For purposes of this section, the follow- the buyer of the merchandise for use in con- ing apply in determining the value of assists nection with the production or the sale for described in subparagraph (A)(iv): export to the United States of the merchan- (i) The value of an assist that is available dise; and in the public domain is the cost of obtaining (II) is not an assist because undertaken copies of the assist. within the United States. (ii) If the production of an assist occurred (5) The term ‘‘sufficient information’’, when in the United States and one or more foreign required under this section for determining— countries, the value of the assist is the value (A) any amount— thereof that is added outside the United (i) added under subsection (b)(1) of this States. section to the price actually paid or payable, (2) The term ‘‘identical merchandise’’ (ii) deducted under subsection (d)(3) of means— this section as profit or general expense or (A) merchandise that is identical in all re- value from further processing, or spects to, and was produced in the same (iii) added under subsection (e)(2) of this country and by the same person as, the mer- section as profit or general expense; chandise being appraised; or (B) if merchandise meeting the require- (B) any difference taken into account for ments under subparagraph (A) cannot be purposes of subsection (b)(2)(C) of this sec- found (or for purposes of applying subsection tion; or (b)(2)(B)(i) of this section, regardless of (C) any adjustment made under subsection whether merchandise meeting such require- (c)(2) of this section; ments can be found), merchandise that is means information that establishes the accu- identical in all respects to, and was produced racy of such amount, difference, or adjust- in the same country as, but not produced by ment. the same person as, the merchandise being (June 17, 1930, ch. 497, title IV, § 402, as added appraised. Aug. 2, 1956, ch. 887, § 2(a), 70 Stat. 943; amended Such term does not include merchandise that Pub. L. 96–39, title II, § 201(a), July 26, 1979, 93 incorporates or reflects any engineering, de- Stat. 194; Pub. L. 96–490, § 2, Dec. 2, 1980, 94 Stat. velopment, artwork, design work, or plan or 2556.) sketch that— AMENDMENTS (I) was supplied free or at reduced cost by the buyer of the merchandise for use in con- 1980—Subsec. (b)(2)(B). Pub. L. 96–490 amended par. nection with the production or the sale for (B) generally, omitting cl. (iii) which provided that ‘‘the transaction value determined under this sub- export to the United States of the merchan- section in sales to unrelated buyers of merchandise, for dise; and exportation to the United States, that is identical in (II) is not an assist because undertaken all respects to the imported merchandise but was not within the United States. produced in the country in which the imported mer- (3) The term ‘‘packing costs’’ means the cost chandise was produced’’, and omitting the provision relating to cl. (iii) which provided that ‘‘No two sales to of all containers and coverings of whatever na- unrelated buyers may be used for comparison for pur- ture and of packing, whether for labor or ma- poses of clause (iii) unless the sellers are unrelated.’’ terials, used in placing merchandise in condi- 1979—Pub. L. 96–39 completely revised statutory tion, packed ready for shipment to the United standards for appraising the value of imported mer- States. chandise to conform to Customs Valuation Agreement, (4) The term ‘‘similar merchandise’’ means— incorporating, as part of that revision, a new format of (A) merchandise that— five methods of determining customs value in subsecs. (i) was produced in the same country and (b) through (f), a group of special rules in subsec. (g), by the same person as the merchandise and definition of terms in subsec. (h). being appraised, EFFECTIVE DATE OF 1980 AMENDMENT (ii) is like the merchandise being ap- Section 2 of Pub. L. 96–490 provided in part that the praised in characteristics and component amendment made by that section is ‘‘effective on the material, and latest of— Page 129 TITLE 19—CUSTOMS DUTIES § 1401a

‘‘(1) the date on which the amendments made by ‘‘(ii) shall apply with respect to merchandise ex- title II of the Trade Agreements Act of 1979 (except ported to the United States on or after January 1, the amendments made by section 223(b)) take effect 1981, and before the date on which the Agreement [July 1, 1980], enters into such force. ‘‘(2) the date on which the President accepts the ‘‘(b) APPLICATION OF OLD LAW VALUATION STAND- Protocol [to the Agreement on Implementation of Ar- ARDS.—For purposes of the administration of the cus- ticle VII of the General Agreement on Tariffs and toms laws, all merchandise (other than merchandise to Trade] for the United States [Dec. 30, 1980], or which subsections (a) and (c) apply) shall be appraised ‘‘(3) the date on which the President determines on the same basis, and in the same manner, as if the that the European Economic Community has imple- amendments made by this title had not been enacted. mented the Protocol under its laws [Jan. 1, 1981], and effective with respect to merchandise exported to ‘‘(c) SPECIAL TREATMENT FOR CERTAIN RUBBER FOOT- the United States on or after that date’’. WEAR.—The amendments made by section 223(b) [For delegation of authority of the President to make [amending schedule 7, part 1, subpart A of the Tariff the determinations required by pars. (1) to (3), above, to Schedules of the United States] shall take effect July the United States Trade Representative, see Memoran- 1, 1981, or, if later, the date on which the Agreement en- dum of President of the United States, Dec. 17, 1980, 45 ters into force with respect to the United States, and F.R. 83467.] shall apply, together with the other amendments made [For determination of the United States Trade Rep- by this title, to rubber footwear exported to the United resentative that the conditions of pars. (1) to (3), above, States on or after such date. For purposes of the ad- were satisfied effective on Jan. 1, 1981, see Determina- ministration of the customs laws, all rubber footwear tion of United States Trade Representative, 46 F.R. (other than rubber footwear to which the preceding 1073.] sentence applies) shall be appraised on the same basis, and in the same manner, as if the amendments made by EFFECTIVE DATE OF 1979 AMENDMENT; TRANSITION TO this title had not been enacted. NEW VALUATION STANDARDS ‘‘(d) DEFINITION.—For purposes of this section, the Section 204 of title II of Pub. L. 96–39 provided that: term ‘rubber footwear’ means articles described in item ‘‘(a) EFFECTIVE DATE OF AMENDMENTS.— 700.60 of the Tariff Schedules of the United States (as ‘‘(1) IN GENERAL.—Except as provided in paragraph in effect on the day before the day on which the amend- (2), the amendments made by this title [amending the ments made by section 223(b) [amending schedule 7, Tariff Schedules of the United States (see Publica- part 1, subpart A of the Tariff Schedules of the United tion of Tariff Schedules note under section 1202 of States] take effect).’’ this title), sections 1332, 1336, 1351, 1401a, 1500, and 2481 of this title, and section 993 of Title 26, Internal Reve- [For Presidential proclamation specifying in accord- nue Code, repealing section 1402 of this title, and en- ance with subsec. (a)(2), above, that the amendments by acting provisions set out as notes under sections 1202, title II of Pub. L. 96–39 are effective July 1, 1980, see 1401a, and 2111 of this title] (except the amendments sections 5(b) and 2(a) of Proc. No. 4768, June 28, 1980, 45 made by section 223(b) [amending schedule 7, part 1, F.R. 45136, 45137, set out as a note under section 2111 of subpart A of the Tariff Schedules of the United this title.] States] shall take effect on— ‘‘(A) January 1, 1981, if the Agreement enters into EFFECTIVE DATE force with respect to the United States by that date; or Section 8 of act Aug. 2, 1956, provided that: ‘‘This Act ‘‘(B) if subparagraph (A) does not apply, that date [enacting this section and provisions set out in notes after January 1, 1981, on which the Agreement en- under this section and sections 2, 160, 1351, and 1402 of ters into such force; this title, amending sections 1001, 1402, 1500, and 1583 of and shall apply with respect to merchandise that is this title, and sections 372 and 711 of former Title 31, exported to the United States on or after whichever Money and Finance, and repealing sections 12 to 18, 21 of such dates applies. to 24, 26 to 28, 30, 40, 53 to 57, 59, 61, 62, 67, 376, 379, 390, ‘‘(2) EARLIER EFFECTIVE DATE UNDER CERTAIN CIR- 494, 526, 541, 542, 549, and 579 of this title] shall be effec- CUMSTANCES.—If the President determines before Jan- tive on and after the day following the date of its en- uary 1, 1981, that— actment [Aug. 2, 1956], except that section 2 [enacting ‘‘(A) the European Economic Community has ac- this section and provisions set out in note under sec- cepted the obligations of the Agreement with re- tion 1351 of this title, and amending sections 1001, 1336, spect to the United States; and and 1402 of this title] shall be effective only as to arti- ‘‘(B) each of the member states of the European cles entered, or withdrawn from warehouse, for con- Economic Community has implemented the Agree- sumption on or after the thirtieth day following the ment under its laws; the President shall by proclamation announce such publication of the final list provided for in section 6(a) determination and the amendments made by this of this Act [set out in note under section 1402 of this title (except the amendments made by section 223(b) title], and section 3 [amending section 372 of former [amending schedule 7, part 1, subpart A of the Tariff Title 31] shall be effective as to entries filed on or after Schedules of the United States] shall take effect on the thirtieth day following the date of enactment of the date specified in the proclamation [July 1, 1980] this Act [Aug. 2, 1956].’’ (but not before July 1, 1980) and shall apply with respect to merchandise that is exported to the United PRESIDENTIAL REPORT TO CONGRESS ON OPERATION OF States on or after such date; except that unless the AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF Agreement enters into force with respect to the THE GENERAL AGREEMENT ON TARIFFS AND TRADE United States by January 1, 1981, all provisions of law OVER 2-YEAR PERIOD that were amended by such amendments are revived (as in effect on the day before such amendments took Section 203 of Pub. L. 96–39 provided that: ‘‘As soon as effect) on January 1, 1981, and such provisions— practicable after the close of the 2-year period begin- ‘‘(i) shall remain in effect until the date on which ning on the date on which the amendments made by the Agreement enters into force with respect to the this title (other than section 223(b), relating to certain United States (and on such date the amendments rubber footwear) take effect [see Effective Date of 1979 made by this title (except the amendments made by Amendment note set out above], the President shall section 223(b) [amending schedule 7, part 1, subpart prepare and submit to Congress a report containing an A of the Tariff Schedules of the United States]) are evaluation of the operation of the Agreement on Imple- revived and shall apply with respect to merchandise mentation of Article VII of the General Agreement on exported to the United States on or after such Tariffs and Trade approved under section 2(a) [section date); and 2503(a) of this title] (hereinafter in this subtitle re- § 1402 TITLE 19—CUSTOMS DUTIES Page 130 ferred to as the ‘Agreement’), both domestically and §§ 301–304, 42 Stat. 15, 16, all of which were superseded by internationally, during that period.’’ act Sept. 21, 1922, ch. 356, title IV, § 402, 42 Stat. 949, and were repealed by section 643 thereof. Section 402 of the LIST OF ARTICLES TO BE VALUED; PRELIMINARY LIST; 1922 act was superseded by section 402 of act June 17, ADDITIONS; FINAL LIST; TRANSMITTAL TO CONGRES- 1930, comprising this section, and repealed by section SIONAL COMMITTEES 651(a)(1) of the 1930 act. Section 6 of act Aug. 2, 1956, provided that: Earlier provisions on the subject were contained in ‘‘(a) The Secretary of the Treasury shall determine R.S. §§ 2905–2907, and 2952, prior to repeal by act June 10, and make public a list of the articles which shall be 1890, ch. 407, § 29, 26 Stat. 141; and in act June 10, 1890, valued in accordance with section 402a, Tariff Act of ch. 407, §§ 11 and 19, 26 Stat. 136, 139, as amended by act 1930, as amended by this Act [former section 1402 of this July 24, 1897, ch. 11, § 32, 30 Stat. 211, and act Aug. 5, title], as follows: 1909, ch. 6, § 28, 36 Stat. 97, 101, prior to repeal by act ‘‘As soon as practicable after the enactment of this Oct. 3, 1913, ch. 16, § IV, S, 38 Stat. 201. Act [Aug. 2, 1956] the Secretary shall make public a R.S. § 2906, requiring the collector to cause the actual preliminary list of the imported articles which he shall market value, or wholesale price at the period of expor- have determined, after such investigation as he deems tation, to be appraised, and providing that such ap- necessary, would have been appraised in accordance praised value should be considered the value upon with section 402 of the Tariff Act of 1930, as amended by which duty should be assessed, and R.S. § 2913, relative this Act [this section], at average values for each arti- to the appraisement of gloves protected by trademark, cle which are 95 (or less) per centum of the average val- were repealed by section 642 of the act of Sept. 21, 1922, ues at which such article was actually appraised during ch. 356, title IV, § 643, 42 Stat. 989. the fiscal year 1954. If within sixty days after the publication of such preliminary list any manufacturer, pro- EFFECTIVE DATE OF REPEAL ducer, or wholesaler in the United States presents to Repeal effective July 1, 1980, see section 204(a)(2) of the Secretary his reason for belief that any imported Pub. L. 96–39, set out as an Effective Date of 1979 articles not specified in such list and like or similar to Amendment note under section 1401a of this title. articles manufactured, produced, or sold at wholesale by him would have been appraised in accordance with SUBPART B—NATIONAL CUSTOMS AUTOMATION such section 402 [section 1401a of this title] at average PROGRAM values which are 95 (or less) per centum of the average values at which they were or would have been appraised § 1411. National Customs Automation Program under section 402a, Tariff Act of 1930, as amended by (a) Establishment this Act, the Secretary shall cause such investigation of the matter to be made as he deems necessary. If in The Secretary shall establish the National the opinion of the Secretary the reason for belief is Customs Automation Program (hereinafter in substantiated by the investigation, the articles in- this subpart referred to as the ‘‘Program’’) volved shall be added to the preliminary list and such which shall be an automated and electronic sys- list, including any additions so made thereto, shall be tem for processing commercial importations and published as a final list. Every article so specified in shall include the following existing and planned the final list which is entered, or withdrawn from warehouse, for consumption on or after the thirtieth day components: following the date of publication of the final list shall (1) Existing components: be appraised in accordance with the provisions of sec- (A) The electronic entry of merchandise. tion 402a, Tariff Act of 1930, as amended by this Act. (B) The electronic entry summary of re- ‘‘(b) The final list published in accordance with the quired information. provisions of subsection (a), together with explanatory (C) The electronic transmission of invoice data, shall be transmitted promptly to the chairmen of information. the Committee on Ways and Means of the House of Rep- (D) The electronic transmission of mani- resentatives and the Committee on Finance of the Sen- ate.’’ fest information. (E) Electronic payments of duties, fees, § 1402. Repealed. Pub. L. 96–39, title II, § 201(b), and taxes. July 26, 1979, 93 Stat. 201 (F) The electronic status of liquidation and reliquidation. Section, acts June 17, 1930, ch. 497, title IV, § 402a, for- (G) The electronic selection of high risk merly § 402, 46 Stat. 708; June 25, 1938, ch. 679, § 8, 52 Stat. 1081, renumbered and amended Aug. 2, 1956, ch. entries for examination (cargo selectivity 887, § 2(a), (f), 70 Stat. 943, 946; June 2, 1970, Pub. L. and entry summary selectivity). 91–271, title III, § 301(d), 84 Stat. 288, provided an alter- (2) Planned components: native basis for valuation of articles designated by the (A) The electronic filing and status of pro- Secretary of Treasury as provided for by act Aug. 2, 1956, ch. 887, § 6(a), 70 Stat. 948, as either the foreign tests. value or the export value, whichever is higher, or if the (B) The electronic filing (including remote appropriate customs officer determines that neither filing under section 1414 of this title) of the foreign value nor the export value can be satisfac- entry information with the Customs Service torily ascertained, then the United States value, or if at any location. the appropriate customs officer determines that nei- (C) The electronic filing of import activity ther the foreign value, the export value, nor the United summary statements and reconciliation. States value can be satisfactorily ascertained, then the (D) The electronic filing of bonds. cost of production, or in the case of an article with re- (E) The electronic penalty process. spect to which there is in effect under section 1336 of this title a rate of duty based upon the American sell- (F) The electronic filing of drawback ing price of a domestic article, then the American sell- claims, records, or entries. ing price of such article, defined foreign value, export (G) Any other component initiated by the value, United States value, cost of production, and Customs Service to carry out the goals of American selling price, and provided for review of the this subpart. decision of the appropriate customs officer. (b) Participation in Program Provisions similar to those of this section were contained in act Oct. 3, 1913, ch. 16, § III, L and R, 38 Stat. The Secretary shall by regulation prescribe 185, 189, and in act May 27, 1921, ch. 14, title III, the eligibility criteria for participation in the Page 131 TITLE 19—CUSTOMS DUTIES § 1411

Program. The Secretary may, by regulation, re- within the United States Customs and Bor- quire the electronic submission of information der Protection that is responsible for main- described in subsection (a) of this section or any taining the ITDS. other information required to be submitted to (2) Data elements the Customs Service separately pursuant to this subpart. (A) In general (c) Foreign-trade zones The Interagency Steering Committee (established under paragraph (3)) shall, in con- Not later than January 1, 2000, the Secretary sultation with the agencies participating in shall provide for the inclusion of commercial the ITDS, define the standard set of data importation data from foreign-trade zones under elements to be collected, stored, and shared the Program. in the ITDS, consistent with laws applicable (d) International Trade Data System to the collection and protection of import (1) Establishment and export information. The Interagency Steering Committee shall periodically re- (A) In general view the data elements in order to update The Secretary of the Treasury (in this sub- the standard set of data elements, as nec- section, referred to as the ‘‘Secretary’’) shall essary. oversee the establishment of an electronic (B) Commitments and obligations trade data interchange system to be known as the ‘‘International Trade Data System’’ The Interagency Steering Committee shall (ITDS). The ITDS shall be implemented not ensure that the ITDS data requirements are later than the date that the Automated compatible with the commitments and obli- Commercial Environment (commonly re- gations of the United States as a member of ferred to as ‘‘ACE’’) is fully implemented. the World Customs Organization (WCO) and the World Trade Organization (WTO) for the (B) Purpose entry and movement of cargo. The purpose of the ITDS is to eliminate re- (3) Interagency Steering Committee dundant information requirements, to efficiently regulate the flow of commerce, and There is established an Interagency Steering to effectively enforce laws and regulations Committee (in this section, referred to as the relating to international trade, by establish- ‘‘Committee’’). The members of the Commit- ing a single portal system, operated by the tee shall include the Secretary (who shall United States Customs and Border Protec- serve as the chairperson of the Committee), tion, for the collection and distribution of the Director of the Office of Management and standard electronic import and export data Budget, and the head of each agency partici- required by all participating Federal agen- pating in the ITDS. The Committee shall as- cies. sist the Secretary in overseeing the implementation of, and participation in, the ITDS. (C) Participation (4) Report (i) In general The President shall submit a report before All Federal agencies that require docu- the end of each fiscal year to the Committee mentation for clearing or licensing the im- on Finance of the Senate and the Committee portation and exportation of cargo shall on Ways and Means of the House of Represent- participate in the ITDS. atives. Each report shall include information (ii) Waiver on— The Director of the Office of Manage- (A) the status of the ITDS implementa- ment and Budget may waive, in whole or tion; in part, the requirement for participation (B) the extent of participation in the ITDS for any Federal agency based on the vital by Federal agencies; national interest of the United States. (C) the remaining barriers to any agency’s participation; (D) Consultation (D) the consistency of the ITDS with appli- The Secretary shall consult with and as- cable standards established by the World sist the United States Customs and Border Customs Organization and the World Trade Protection and other agencies in the transi- Organization; tion from paper to electronic format for the (E) recommendations for technological and submission, issuance, and storage of docu- other improvements to the ITDS; and ments relating to data required to enter (F) the status of the development, imple- cargo into the United States. In so doing, mentation, and management of the Auto- the Secretary shall also consult with private mated Commercial Environment within the sector stakeholders, including the Commer- United States Customs and Border Protec- cial Operations Advisory Committee, in de- tion. veloping uniform data submission require- (5) Sense of Congress ments, procedures, and schedules, for the ITDS. It is the sense of Congress that agency participation in the ITDS is an important prior- (E) Coordination ity of the Federal Government and that the The Secretary shall be responsible for co- Secretary shall coordinate the operation of ordinating the operation of the ITDS among the ITDS closely among the participating the participating agencies and the office agencies and the office within the United § 1412 TITLE 19—CUSTOMS DUTIES Page 132

States Customs and Border Protection that is Secretary of the Treasury relating thereto, to the Sec- responsible for maintaining the ITDS. retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and (6) Construction 557 of Title 6, Domestic Security, and the Department Nothing in this section shall be construed as of Homeland Security Reorganization Plan of Novem- amending or modifying subsection (g) of sec- ber 25, 2002, as modified, set out as a note under section tion 301 of title 13. 542 of Title 6. (7) Definition § 1413. Implementation and evaluation of Pro- The term ‘‘Commercial Operations Advisory gram Committee’’ means the Advisory Committee (a) Overall Program plan established pursuant to section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 (1) In general U.S.C. 2071 note) or any successor committee. Before the 180th day after December 8, 1993, the Secretary shall develop and transmit to (June 17, 1930, ch. 497, title IV, § 411, as added the Committees an overall plan for the Pro- Pub. L. 103–182, title VI, § 631(2), Dec. 8, 1993, 107 gram. The overall Program plan shall set Stat. 2188; amended Pub. L. 106–36, title II, § 2405, forth— June 25, 1999, 113 Stat. 169; Pub. L. 107–210, div. (A) a general description of the ultimate A, title III, § 338, Aug. 6, 2002, 116 Stat. 980; Pub. configuration of the Program; L. 109–347, title IV, § 405, Oct. 13, 2006, 120 Stat. (B) a description of each of the existing 1929.) components of the Program listed in section REFERENCES IN TEXT 1411(a)(1) of this title; and Section 9503(c) of the Omnibus Budget Reconciliation (C) estimates regarding the stages on Act of 1987, referred to in subsec. (d)(7), is section which planned components of the Program 9503(c) of Pub. L. 100–203, which is set out as a note listed in section 1411(a)(2) of this title will be under section 2071 of this title. brought on-line.

AMENDMENTS (2) Additional information 2006—Subsec. (d). Pub. L. 109–347 added subsec. (d). In addition to the information required 2002—Subsec. (b). Pub. L. 107–210 inserted second sen- under paragraph (1), the overall Program plan tence and struck out former second sentence which shall include a statement regarding— read as follows: ‘‘Participation in the Program is vol- (A) the extent to which the existing com- untary.’’ ponents of the Program currently meet, and 1999—Subsec. (c). Pub. L. 106–36 added subsec. (c). the planned components will meet, the Pro- EFFECTIVE DATE OF 2002 AMENDMENT gram goals set forth in section 1412 of this title; and Amendment by Pub. L. 107–210 applicable to petitions for certification filed under part 2 or 3 of subchapter II (B) the effects that the existing compo- of chapter 12 of this title on or after the date that is 90 nents are currently having, and the effects days after Aug. 6, 2002, except as otherwise provided, that the planned components will likely see section 151 of Pub. L. 107–210, set out as a note pre- have, on— ceding section 2271 of this title. (i) importers, brokers, and other users of TRANSFER OF FUNCTIONS the Program, and (ii) Customs Service occupations, oper- For transfer of functions, personnel, assets, and li- ations, processes, and systems. abilities of the United States Customs Service of the Department of the Treasury, including functions of the (b) Implementation plan, testing, and evaluation Secretary of the Treasury relating thereto, to the Sec- (1) Implementation plan retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and For each of the planned components of the 557 of Title 6, Domestic Security, and the Department Program listed in section 1411(a)(2) of this of Homeland Security Reorganization Plan of Novem- title, the Secretary shall— ber 25, 2002, as modified, set out as a note under section (A) develop an implementation plan; 542 of Title 6. (B) test the component in order to assess its viability; § 1412. Program goals (C) evaluate the component in order to as- The goals of the Program are to ensure that sess its contribution toward achieving the all regulations and rulings that are adminis- program goals; and tered or enforced by the Customs Service are ad- (D) transmit to the Committees the imple- ministered and enforced in a manner that— mentation plan, the testing results, and an (1) is uniform and consistent; evaluation report. (2) is as minimally intrusive upon the nor- In developing an implementation plan under mal flow of business activity as practicable; subparagraph (A) and evaluating components and under subparagraph (C), the Secretary shall (3) improves compliance. publish a request for comments in the Cus- (June 17, 1930, ch. 497, title IV, § 412, as added toms Bulletin and shall consult with the trade Pub. L. 103–182, title VI, § 631(2), Dec. 8, 1993, 107 community, including importers, brokers, Stat. 2189.) shippers, and other affected parties.

TRANSFER OF FUNCTIONS (2) Implementation For transfer of functions, personnel, assets, and li- (A) The Secretary may implement on a per- abilities of the United States Customs Service of the manent basis any Program component re- Department of the Treasury, including functions of the ferred to in paragraph (1) on or after the date Page 133 TITLE 19—CUSTOMS DUTIES § 1414

which is 30 days after paragraph (1)(D) is com- 557 of Title 6, Domestic Security, and the Department plied with. of Homeland Security Reorganization Plan of Novem- (B) For purposes of subparagraph (A), the 30 ber 25, 2002, as modified, set out as a note under section days shall be computed by excluding— 542 of Title 6. (i) the days either House is not in session § 1414. Remote location filing because of an adjournment of more than 3 days to a day certain or an adjournment of (a) Core entry information the Congress sine die, and (1) In general (ii) any Saturday and Sunday, not ex- A Program participant may file electroni- cluded under clause (i), when either House is cally an entry of merchandise with the Cus- not in session. toms Service from a location other than the (3) Evaluation and report district designated in the entry for examina- The Secretary shall— tion (hereafter in this section referred to as a (A) develop a user satisfaction survey of ‘‘remote location’’) if— parties participating in the Program; (A) the Customs Service is satisfied that (B) evaluate the results of the user satis- the participant has the capabilities referred faction survey on a biennial basis (fiscal to in paragraph (2)(A) regarding such meth- years) and transmit a report to the Commit- od of filing; and tees on the evaluation by no later than the (B) the participant elects to file from the 90th day after the close of each 2d fiscal remote location. year; (2) Requirements (C) with respect to the existing Program (A) In general component listed in section 1411(a)(1)(G) of In order to qualify for filing from a remote this title transmit to the Committees— location, a Program participant must have (i) a written evaluation of such compo- the capability to provide, on an entry-by- nent before the 180th day after December 8, entry basis, for the following: 1993, and before the implementation of the (i) The electronic entry of merchandise. planned Program components listed in sec- (ii) The electronic entry summary of re- tion 1411(a)(2)(B) and (C) of this title, and quired information. (ii) a report on such component for each (iii) The electronic transmission of in- of the 3 full fiscal years occurring after voice information (when required by the December 8, 1993, which report shall be Customs Service). transmitted not later than the 90th day (iv) The electronic payment of duties, after the close of each such year; and fees, and taxes. (D) not later than the 90th day after the (v) Such other electronic capabilities close of fiscal year 1994, and annually there- within the existing or planned components after through fiscal year 2000, transmit to of the Program as the Secretary shall by the Committees a written evaluation with regulation require. respect to the implementation and effect on (B) Restriction on exemption from require- users of each of the planned Program compo- ments nents listed in section 1411(a)(2) of this title. The Customs Service may not permit any In carrying out the provisions of this para- exemption or waiver from the requirements graph, the Secretary shall publish requests for established by this section for participation comments in the Customs Bulletin and shall in remote entry filing. consult with the trade community, including (3) Conditions on filing under this section importers, brokers, shippers, and other affected parties. The Secretary may prohibit a Program participant from participating in remote location (c) Committees filing, and may remove a Program participant For purposes of this section, the term ‘‘Com- from participation in remote location filing, if mittees’’ means the Committee on Ways and the participant— Means of the House of Representatives and the (i) fails to meet all the compliance re- Committee on Finance of the Senate. quirements and operational standards of re- (June 17, 1930, ch. 497, title IV, § 413, as added mote location filing; or Pub. L. 103–182, title VI, § 631(2), Dec. 8, 1993, 107 (ii) fails to adhere to all applicable laws Stat. 2189; amended Pub. L. 104–295, § 21(e)(15), and regulations. Oct. 11, 1996, 110 Stat. 3531.) (4) Alternative filing Any Program participant that is eligible to AMENDMENTS file entry information electronically from a 1996—Subsec. (a)(1). Pub. L. 104–295 made technical remote location but chooses not to do so in amendment to reference in original act which appears the case of any entry must file any paper doc- in text as reference to December 8, 1993. umentation for the entry at the designated lo- TRANSFER OF FUNCTIONS cation referred to in subsection (d) of this sec- For transfer of functions, personnel, assets, and li- tion. abilities of the United States Customs Service of the (b) Additional entry information Department of the Treasury, including functions of the (1) In general Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- A Program participant that is eligible under lated references, see sections 203(1), 551(d), 552(d), and subsection (a) of this section to file entry in- § 1431 TITLE 19—CUSTOMS DUTIES Page 134

formation from a remote location may, if the (June 17, 1930, ch. 497, title IV, § 414, as added Customs Service is satisfied that the partici- Pub. L. 103–182, title VI, § 631(2), Dec. 8, 1993, 107 pant meets the requirements under paragraph Stat. 2191.) (2), also electronically file from the remote lo- TRANSFER OF FUNCTIONS cation additional information that is required by the Customs Service to be presented before For transfer of functions, personnel, assets, and li- the acceptance of entry summary information abilities of the United States Customs Service of the Department of the Treasury, including functions of the and at the time of acceptance of entry sum- Secretary of the Treasury relating thereto, to the Sec- mary information. retary of Homeland Security, and for treatment of re- (2) Requirements lated references, see sections 203(1), 551(d), 552(d), and The Secretary shall publish, and periodically 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- update, a list of those capabilities within the ber 25, 2002, as modified, set out as a note under section existing and planned components of the Pro- 542 of Title 6. gram that a Program participant must have for purposes of this subsection. PART II—REPORT, ENTRY, AND UNLADING OF (3) Filing of additional information VESSELS AND VEHICLES (A) If information electronically acceptable § 1431. Manifests A Program participant that is eligible (a) In general under paragraph (1) to file additional infor- Every vessel required to make entry under mation from a remote location shall elec- section 1434 of this title or obtain clearance tronically file all such information that the under section 60105 of title 46 shall have a mani- Customs Service can accept electronically. fest that complies with the requirements pre- (B) Alternative filing scribed under subsection (d) of this section. If the Customs Service cannot accept addi- (b) Production of manifest tional information electronically, the Pro- Any manifest required by the Customs Service gram participant shall file the paper docu- shall be signed, produced, delivered or electroni- mentation with respect to the information cally transmitted by the master or person in at the appropriate filing location. charge of the vessel, aircraft, or vehicle, or by (C) Appropriate location any other authorized agent of the owner or oper- For purposes of subparagraph (B), the ‘‘ap- ator of the vessel, aircraft, or vehicle in accord- propriate location’’ is— ance with the requirements prescribed under (i) before January 1, 1999, a designated subsection (d) of this section. A manifest may be location; and supplemented by bill of lading data supplied by (ii) after December 31, 1998— the issuer of such bill. If any irregularity of (I) if the paper documentation is re- omission or commission occurs in any way in required for release, a designated location; spect to any manifest or bill of lading data, the or owner or operator of the vessel, aircraft or vehi- (II) if the paper documentation is not cle, or any party responsible for such irregular- required for release, a remote location ity, shall be liable for any fine or penalty pre- designated by the Customs Service or a scribed by law with respect to such irregularity. designated location. The Customs Service may take appropriate ac- (D) Other tion against any of the parties. A Program participant that is eligible (c) Public disclosure of certain manifest informa- under paragraph (1) to file additional infor- tion mation electronically from a remote loca- (1) Except as provided in subparagraph (2), the tion but chooses not to do so must file the following information, when contained in a ves- paper documentation with respect to the in- sel vessel 1 or aircraft manifest, shall be avail- formation at a designated location. able for public disclosure: (c) Post-entry summary information (A) The name and address of each importer or consignee and the name and address of the A Program participant that is eligible to file shipper to such importer or consignee, unless electronically entry information under sub- the importer or consignee has made a biennial section (a) of this section and additional infor- certification, in accordance with procedures mation under subsection (b) of this section from adopted by the Secretary of the Treasury, a remote location may file at any remote loca- claiming confidential treatment of such infor- tion designated by the Customs Service any in- mation. formation required by the Customs Service after (B) The general character of the cargo. entry summary. (C) The number of packages and gross (d) Definitions weight. As used in this section: (D) The name of the vessel, aircraft, or car- (1) The term ‘‘designated location’’ means a rier. customs office located in the customs district (E) The seaport or airport of loading. designated by the entry filer for purposes of (F) The seaport or airport of discharge. customs examination of the merchandise. (G) The country of origin of the shipment. (2) The term ‘‘Program participant’’ means, (H) The trademarks appearing on the goods with respect to an entry of merchandise, any or packages. party entitled to make the entry under section 1484(a)(2)(B) of this title. 1 So in original. Page 135 TITLE 19—CUSTOMS DUTIES § 1431

(2) The information listed in paragraph (1) July 2, 1996, 110 Stat. 1389; Pub. L. 104–295, shall not be available for public disclosure if— § 3(a)(3), Oct. 11, 1996, 110 Stat. 3515.) (A) the Secretary of the Treasury makes an REFERENCES IN TEXT affirmative finding on a shipment-by-shipment basis that disclosure is likely to pose a threat The Harmonized Tariff Schedule of the United States, referred to in subsec. (d)(2)(C)(i), (ii), is not set out in of personal injury or property damage; or the Code. See Publication of Harmonized Tariff Sched- (B) the information is exempt under the pro- ule note set out under section 1202 of this title. visions of section 552(b)(1) of title 5. CODIFICATION (3) The Secretary of the Treasury, in order to In subsec. (a), ‘‘section 60105 of title 46’’ substituted allow for the timely dissemination and publica- for ‘‘section 4197 of the Revised Statutes of the United tion of the information listed in paragraph (1), States (46 U.S.C. App. 91)’’ on authority of Pub. L. shall establish procedures to provide access to 109–304, § 18(c), Oct. 6, 2006, 120 Stat. 1709, which Act en- manifests. Such procedures shall include provi- acted section 60105 of Title 46, Shipping. sions for adequate protection against the public PRIOR PROVISIONS disclosure of information not available for pub- R.S. §§ 2806, 2807 (as amended by act June 3, 1902, ch. lic disclosure from such manifests. 86, § 1, 27 Stat. 41), and 2808, requiring manifests, and (d) Regulations prescribing their contents, were superseded by act (1) In general Sept. 21, 1922, ch. 356, title IV, § 431, 42 Stat. 950, and repealed by section 642 thereof. Section 431 of the 1922 act The Secretary shall by regulation— was superseded by section 431 of act June 17, 1930, com- (A) specify the form for, and the informa- prising this section, and repealed by section 651(a)(1) of tion and data that must be contained in, the the 1930 act. manifest required by subsection (a) of this R.S. § 2805, relative to the administration of oaths re- section; quired by that chapter, was superseded to a great extent by the Customs Administrative Act of June 10, (B) allow, at the option of the individual 1890, ch. 407, § 22, 26 Stat. 140, amended by the Payne-Al- producing the manifest and subject to para- drich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 102, graph (2), letters and documents shipments and by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, to be accounted for by summary manifesting § IV, S., 38 Stat. 201, which abolished all oaths adminis- procedures; tered by officers of the customs, except as provided in (C) prescribe the manner of production for, those acts and repealed by act Sept. 21, 1922, ch. 356, and the delivery for electronic transmittal title IV, § 642, 42 Stat. 989. of, the manifest required by subsection (a) of AMENDMENTS this section; and 1996—Subsec. (c). Pub. L. 104–295 substituted ‘‘a vessel (D) prescribe the manner for supple- manifest’’ for ‘‘such manifest’’ in introductory provi- menting manifests with bill of lading data sions. under subsection (b) of this section. Pub. L. 104–153 inserted ‘‘vessel or aircraft’’ before ‘‘manifest’’ in introductory provisions, amended sub- (2) Letters and documents shipments pars. (D) to (F) generally, substituting ‘‘vessel, aircraft, For purposes of paragraph (1)(B)— or carrier’’ for ‘‘vessel or carrier’’ in subpar. (D) and (A) the Customs Service may require with ‘‘seaport or airport’’ for ‘‘port’’ in subpars. (E) and (F), respect to letters and documents ship- and added subpar. (H). 1993—Subsecs. (a) and (b). Pub. L. 103–182, § 635(1), ments— amended subsecs. (a) and (b) generally, substituting (i) that they be segregated by country of present provisions for provisions relating to, in subsec. origin, and (a), the requirement, form, and contents of manifests (ii) additional examination procedures and, in subsec. (b), the signing and delivery of mani- that are not necessary for individually fests. manifested shipments; Subsec. (d). Pub. L. 103–182, § 635(2), added subsec. (d). 1988—Subsec. (c)(1)(G). Pub. L. 100–690 substituted (B) standard letter envelopes and standard ‘‘country of origin’’ for ‘‘country or origin’’. document packs shall be segregated from 1984—Subsec. (a). Pub. L. 98–573, § 203(1), inserted larger document shipments for purposes of ‘‘; and the names of the shippers of such merchandise’’ in par. Third. customs inspections; and Subsec. (c). Pub. L. 98–573, § 203(2), added subsec. (c). (C) the term ‘‘letters and documents’’ 1953—Act Aug. 8, 1953, designated existing provisions means— as subsec. (a) and added subsec. (b). (i) data described in General Headnote EFFECTIVE DATE OF 1996 AMENDMENT 4(c) of the Harmonized Tariff Schedule of the United States, Amendment by Pub. L. 104–295 applicable as of Dec. 8, 1993, see section 3(b) of Pub. L. 104–295, set out as a note (ii) securities and similar evidences of under section 1321 of this title. value described in heading 4907 of such Schedule, but not monetary instruments EFFECTIVE DATE OF 1984 AMENDMENT defined pursuant to chapter 53 of title 31, Amendment by Pub. L. 98–573 effective on 15th day and after Oct. 30, 1984, see section 214(a), (b) of Pub. L. (iii) personal correspondence, whether on 98–573, set out as a note under section 1304 of this title. paper, cards, photographs, tapes, or other EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS media. PROVISION (June 17, 1930, ch. 497, title IV, § 431, 46 Stat. 710; Amendment to this section effective on and after Aug. 8, 1953, ch. 397, § 15, 67 Stat. 516; Pub. L. thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under section 1304 of this title. 98–573, title II, § 203, Oct. 30, 1984, 98 Stat. 2974; Pub. L. 100–690, title VII, § 7367(c)(1), Nov. 18, REGULATIONS 1988, 102 Stat. 4479; Pub. L. 103–182, title VI, § 635, Section 14 of Pub. L. 104–153 provided that: ‘‘Not later Dec. 8, 1993, 107 Stat. 2199; Pub. L. 104–153, § 11, than 6 months after the date of the enactment of this § 1431a TITLE 19—CUSTOMS DUTIES Page 136

Act [July 2, 1996], the Secretary of the Treasury shall (2) When cargo is booked by 1 vessel carrier to prescribe such regulations or amendments to existing be transported on the vessel of another vessel regulations that may be necessary to carry out the carrier, the booking carrier shall notify the op- amendments made by sections 9, 10, 11, 12, and 13 of this erator of the vessel that the cargo has been Act [amending this section, sections 1484 and 1526 of this title, and section 80302 of Title 49, Transpor- properly documented in accordance with this tation].’’ section. The operator of the vessel may rely on such notification in releasing the cargo for load- TRANSFER OF FUNCTIONS ing aboard the vessel. For transfer of functions, personnel, assets, and li- (d) Reporting of undocumented cargo abilities of the United States Customs Service of the Department of the Treasury, including functions of the (1) In general Secretary of the Treasury relating thereto, to the Sec- A vessel carrier shall notify the Customs retary of Homeland Security, and for treatment of re- Service of any cargo tendered to such carrier lated references, see sections 203(1), 551(d), 552(d), and that is not properly documented pursuant to 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- this section and that has remained in the ma- ber 25, 2002, as modified, set out as a note under section rine terminal for more than 48 hours after 542 of Title 6. being delivered to the marine terminal, and the location of the cargo in the marine termi- § 1431a. Documentation of waterborne cargo nal. (a) Applicability (2) Sharing arrangements This section shall apply to all cargo to be ex- For vessel carriers that are members of ves- ported that is moved by a vessel carrier from a sel sharing agreements (or any other arrange- port in the United States. ment whereby a carrier moves cargo on an- (b) Documentation required other carrier’s vessel), the vessel carrier ac- (1) No shipper of cargo subject to this section cepting the booking shall be responsible for re- (including an ocean transportation intermediary porting undocumented cargo, without regard that is a non-vessel-operating common carrier to whether it operates the vessel on which the (as defined in section 40102(16) of title 46) may transportation is to be made. tender or cause to be tendered to a vessel carrier (3) Reassignment to another vessel cargo subject to this section for loading on a For purposes of this subsection and sub- vessel in a United States port, unless such cargo section (f) of this section, if merchandise has is properly documented pursuant to this sub- been tendered to a marine terminal operator section. and subsequently reassigned for carriage on (2) For the purposes of this subsection, cargo another vessel, the merchandise shall be con- shall be considered properly documented if the sidered properly documented if the informa- shipper submits to the vessel carrier or its agent tion provided reflects carriage on the pre- a complete set of shipping documents no later viously assigned vessel and otherwise meets than 24 hours after the cargo is delivered to the the requirements of subsection (b) of this sec- marine terminal operator, but under no circum- tion. Notwithstanding the preceding sentence, stances later than 24 hours prior to departure of it shall be the responsibility of the vessel car- the vessel. rier to notify the Customs Service promptly of (3) A complete set of shipping documents shall any reassignment of merchandise for carriage include— on a vessel other than the vessel on which the (A) for shipments for which a shipper’s ex- merchandise was originally assigned. port declaration is required, a copy of the ex- (4) Multiple containers port declaration or, if the shipper files such declarations electronically in the Automated If a single shipment is comprised of multiple Export System, the complete bill of lading, containers, the 48-hour period described in and the master or equivalent shipping instruc- paragraph (1) shall begin to run from the time tions, including the Internal Transaction the last container of the shipment is delivered Number (ITN); or to the marine terminal operator. It shall be (B) for shipments for which a shipper’s ex- the responsibility of the person tendering the port declaration is not required, a shipper’s cargo to inform the carrier that the shipment export declaration exemption statement and consists of multiple containers that will be de- such other documents or information as the livered to the marine terminal operator at dif- Secretary may by regulation prescribe. ferent times as part of a single shipment. (4) The Secretary shall by regulation prescribe (e) Assessment of penalties the time, manner, and form by which shippers Whoever is found to have violated subsection shall transmit documents or information re- (b) of this section shall be liable to the United quired under this subsection to the Customs States for civil penalties in a monetary amount Service. up to the value of the cargo, or the actual cost (c) Loading undocumented cargo prohibited of the transportation, whichever is greater. (1) No marine terminal operator (as defined in (f) Seizure of undocumented cargo section 40102(14) of title 46) may load, or cause to (1) Any cargo that is not properly documented be loaded, any cargo subject to this section on a pursuant to this section and has remained in the vessel unless instructed by the vessel carrier op- marine terminal for more than 48 hours after erating the vessel that such cargo has been prop- being delivered to the marine terminal operator erly documented in accordance with this sec- shall be subject to search, seizure, and forfeit- tion. ure. Page 137 TITLE 19—CUSTOMS DUTIES § 1433

(2) The shipper of any such cargo is liable to 84 Stat. 287, required that the manifest of any vessel ar- the marine terminal operator and to the ocean riving from foreign port or place separately specify ar- carrier for demurrage and other applicable ticles to be retained on board as sea stores, ship’s charges for any undocumented cargo which has stores, bunker coal, or bunker oil and provided for forfeiture and penalties for omitted articles. been notified to or searched or seized by the Section 1432a, act June 17, 1930, ch. 497, title IV, § 401 Customs Service for the entire period the cargo (part), as added Aug. 5, 1935, ch. 438, title II, § 201, 49 remains under the order and direction of the Stat. 521, provided that any vessel which had visited Customs Service. Unless the cargo is seized by any hovering vessel would be deemed to have arrived the Customs Service and forfeited, the marine from a foreign port or place, for purposes of certain terminal operator and the ocean carrier shall provisions of law. Section 690(c)(5) of Pub. L. 103–182 have a lien on the cargo for the amount of the which directed the repeal of the ‘‘last undesignated demurrage and other charges. paragraph of section 201 of the Act of August 5, 1935 (19 U.S.C. 1432a)’’, was executed by repealing this section, (g) Effect on other provisions which was based on the last undesignated paragraph of Nothing in this section shall be construed, in- section 401 of act June 17, 1930, as added by section 201 terpreted, or applied to relieve or excuse any of act Aug. 5, 1935, to reflect the probable intent of Con- party from compliance with any obligation or gress. requirement arising under any other law, regu- § 1433. Report of arrival of vessels, vehicles, and lation, or order with regard to the documenta- aircraft tion or carriage of cargo. (a) Vessel arrival (June 17, 1930, ch. 497, title IV, § 431A, as added Pub. L. 107–210, div. A, title III, § 343(b), Aug. 6, (1) Immediately upon the arrival at any port 2002, 116 Stat. 983; amended Pub. L. 107–295, title or place within the United States or the Virgin I, § 108(a), Nov. 25, 2002, 116 Stat. 2088.) Islands of— (A) any vessel from a foreign port or place; CODIFICATION (B) any foreign vessel from a domestic port; In subsec. (b)(1), ‘‘(as defined in section 40102(16) of (C) any vessel of the United States carrying title 46)’’ substituted for ‘‘(as defined in section 3(17)(B) foreign merchandise for which entry has not of the Shipping Act of 1984 (46 U.S.C. App. 1702(17)(B))’’ been made; or and in subsec. (c)(1), ‘‘section 40102(14) of title 46’’ substituted for ‘‘section 3(14) of the Shipping Act of 1984 (46 (D) any vessel which has visited a hovering U.S.C. App. 1702(14))’’ on authority of Pub. L. 109–304, vessel or received merchandise while outside § 18(c), Oct. 6, 2006, 120 Stat. 1709, which Act enacted sec- the territorial sea; tion 40102 of Title 46, Shipping. the master of the vessel shall report the arrival AMENDMENTS at the nearest customs facility or such other 2002—Subsec. (d). Pub. L. 107–295 amended heading place as the Secretary may prescribe by regula- and text of subsec. (d) generally. Prior to amendment, tions. text read as follows: ‘‘A vessel carrier shall notify the (2) The Secretary may by regulation— Customs Service of any cargo tendered to such carrier (A) prescribe the manner in which arrivals that is not properly documented pursuant to this sec- are to be reported under paragraph (1); and tion and that has remained in the marine terminal for (B) extend the time in which reports of ar- more than 48 hours after being delivered to the marine rival must be made, but not later than 24 terminal, and the location of the cargo in the marine terminal. For vessel carriers that are members of ves- hours after arrival. sel sharing agreements (or any other arrangement (b) Vehicle arrival whereby a carrier moves cargo on another carrier’s vessel), the vessel carrier accepting the booking shall be (1) Vehicles may arrive in the United States responsible for reporting undocumented cargo, without only at border crossing points designated by the regard to whether it operates the vessel on which the Secretary. transportation is to be made.’’ (2) Except as otherwise authorized by the Sec- retary, immediately upon the arrival of any ve- EFFECTIVE DATE hicle in the United States at a border crossing Section applicable to petitions for certification filed point, the person in charge of the vehicle shall— under part 2 or 3 of subchapter II of chapter 12 of this (A) report the arrival; and title on or after the date that is 90 days after Aug. 6, 2002, except as otherwise provided, see section 151 of (B) present the vehicle, and all persons and Pub. L. 107–210, set out as an Effective Date of 2002 merchandise (including baggage) on board, for Amendment note preceding section 2271 of this title. inspection;

TRANSFER OF FUNCTIONS to the customs officer at the customs facility For transfer of functions, personnel, assets, and li- designated for that crossing point. abilities of the United States Customs Service of the (c) Aircraft arrival Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- The pilot of any aircraft arriving in the retary of Homeland Security, and for treatment of re- United States or the Virgin Islands from any lated references, see sections 203(1), 551(d), 552(d), and foreign airport or place shall comply with such 557 of Title 6, Domestic Security, and the Department advance notification, arrival reporting, and of Homeland Security Reorganization Plan of Novem- landing requirements as the Secretary may by ber 25, 2002, as modified, set out as a note under section regulation prescribe. 542 of Title 6. (d) Presentation of documentation §§ 1432, 1432a. Repealed. Pub. L. 103–182, title VI, The master, person in charge of a vehicle, or § 690(b)(1), (c)(5), Dec. 8, 1993, 107 Stat. 2223 aircraft pilot shall present, or transmit pursu- Section 1432, acts June 17, 1930, ch. 497, title IV, § 432, ant to an electronic data interchange system, to 46 Stat. 710; June 2, 1970, Pub. L. 91–271, title III, § 301(b), the Customs Service such information, data, § 1434 TITLE 19—CUSTOMS DUTIES Page 138 documents, papers, or manifests as the Sec- after the 15th day after Nov. 9, 2000, see section 1471 of retary may by regulation prescribe. Pub. L. 106–476, set out as a note under section 58c of this title. (e) Prohibition on departures and discharge Unless otherwise authorized by law, a vessel, TRANSFER OF FUNCTIONS aircraft or vehicle after arriving in the United For transfer of functions, personnel, assets, and li- States or Virgin Islands may, but only in ac- abilities of the United States Customs Service of the cordance with regulations prescribed by the Sec- Department of the Treasury, including functions of the retary— Secretary of the Treasury relating thereto, to the Sec- (1) depart from the port, place, or airport of retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and arrival; or 557 of Title 6, Domestic Security, and the Department (2) discharge any passenger or merchandise of Homeland Security Reorganization Plan of Novem- (including baggage). ber 25, 2002, as modified, set out as a note under section (June 17, 1930, ch. 497, title IV, § 433, 46 Stat. 711; 542 of Title 6. Pub. L. 99–570, title III, § 3112, Oct. 27, 1986, 100 § 1434. Entry; vessels Stat. 3207–80; Pub. L. 103–182, title VI, § 652, Dec. 8, 1993, 107 Stat. 2209; Pub. L. 106–476, title I, (a) Formal entry § 1452(a)(1), Nov. 9, 2000, 114 Stat. 2167.) Within 24 hours (or such other period of time PRIOR PROVISIONS as may be provided under subsection (c)(2) of this section) after the arrival at any port or Provisions similar to those in this section were con- place in the United States of— tained in act Sept. 21, 1922, ch. 356, title IV, § 433, 42 (1) any vessel from a foreign port or place; Stat. 951. That section was superseded by section 433 of act June 17, 1930, comprising this section, and repealed (2) any foreign vessel from a domestic port; by section 651(a)(1) of the 1930 act. (3) any vessel of the United States having on R.S. § 2774, requiring a report of arrival, and a further board foreign merchandise for which entry has report in the form of a manifest, and imposing a pen- not been made; or alty for violations was superseded by act Sept. 21, 1922, (4) any vessel which has visited a hovering ch. 356, title IV, § 433, 42 Stat. 951, and repealed by sec- vessel or has delivered or received merchan- tion 642 of that act. dise while outside the territorial sea; R.S. § 2772, relative to report and entry by the master of every vessel, bound to a port of delivery; section the master of the vessel shall, unless otherwise 2775, requiring a special report by the master of any provided by law, make formal entry at the near- vessel having on board distilled spirits or wines; and est customs facility or such other place as the section 2832, relative to report of arrival of vessels pro- Secretary may prescribe by regulation. ceeding to the ports of Natchez or Vicksburg, were also repealed by section 642 of the act of Sept. 21, 1922, ch. (b) Preliminary entry 356. The Secretary may by regulation permit the AMENDMENTS master to make preliminary entry of the vessel with the Customs Service in lieu of formal entry 2000—Subsec. (a)(1)(C). Pub. L. 106–476 struck out ‘‘bonded merchandise, or’’ before ‘‘foreign merchan- or before formal entry is made. In permitting dise’’. preliminary entry, the Customs Service shall 1993—Subsec. (a)(1)(D). Pub. L. 103–182, § 652(1), added board a sufficient number of vessels to ensure subpar. (D). compliance with the laws it enforces. Subsec. (d). Pub. L. 103–182, § 652(2), substituted (c) Regulations ‘‘present, or transmit pursuant to an electronic data interchange system, to the Customs Service such infor- The Secretary may by regulation— mation, data,’’ for ‘‘present to customs officers such’’. (1) prescribe the manner and format in Subsec. (e). Pub. L. 103–182, § 652(3), amended subsec. which entry under subsection (a) of this sec- (e) generally. Prior to amendment, subsec. (e) read as tion or subsection (b) of this section, or both, follows: ‘‘Unless otherwise authorized by law, a vessel, must be made, and such regulations may pro- aircraft, or vehicle may, after arriving in the United States or the Virgin Islands— vide that any such entry may be made elec- ‘‘(1) depart from the port, place, or airport of arriv- tronically pursuant to an electronic data al; or interchange system; ‘‘(2) discharge any passenger or merchandise (in- (2) provide that— cluding baggage); (A) formal entry must be made within a only in accordance with regulations prescribed by the greater or lesser time than 24 hours after ar- Secretary.’’ rival, but in no case more than 48 hours after 1986—Pub. L. 99–570 amended section generally. Prior arrival, and to amendment, section read as follows: ‘‘Within twenty-four hours after the arrival of any vessel from a for- (B) formal entry may be made before arriv- eign port or place, or of a foreign vessel from a domes- al; and tic port, or of a vessel of the United States carrying (3) authorize the Customs Service to permit bonded merchandise, or foreign merchandise for which entry or preliminary entry of any vessel to be entry has not been made, at any port or place within the United States at which such vessel shall come to, made at a place other than a designated port the master shall, unless otherwise provided by law, re- of entry, under such conditions as may be pre- port the arrival of the vessel at the nearest custom- scribed. house, under such regulations as the Commissioner of (June 17, 1930, ch. 497, title IV, § 434, 46 Stat. 711; Customs may prescribe.’’ Aug. 5, 1935, ch. 438, title III. § 301, 49 Stat. 527; EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 Amendment by Pub. L. 106–476, except as otherwise Stat. 287; Pub. L. 103–182, title VI, § 653, Dec. 8, provided, applicable with respect to goods entered, or 1993, 107 Stat. 2210; Pub. L. 106–476, title I, withdrawn from warehouse, for consumption, on or § 1452(a)(2), Nov. 9, 2000, 114 Stat. 2167.) Page 139 TITLE 19—CUSTOMS DUTIES § 1436

PRIOR PROVISIONS Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- Provisions similar to those in this section were con- retary of Homeland Security, and for treatment of retained in act Sept. 21, 1922, ch. 356, title IV, § 434, 42 lated references, see sections 203(1), 551(d), 552(d), and Stat. 951. That section was superseded by section 434 of 557 of Title 6, Domestic Security, and the Department act June 17, 1930, comprising this section, and repealed of Homeland Security Reorganization Plan of Novem- by section 651(a)(1) of the 1930 act. ber 25, 2002, as modified, set out as a note under section Provisions for deposit of the register and other papers 542 of Title 6. previous to entry, and for their return to the master or owner of the vessel on clearance of the vessel, were con- § 1435. Repealed. Pub. L. 103–182, title VI, tained in R.S. § 2790, which was superseded by act Sept. 21, 1922, ch. 356, title IV, § 434, 42 Stat. 951, and repealed § 690(b)(2), Dec. 8, 1993, 107 Stat. 2223 by section 642 of that act. Section, act June 17, 1930, ch. 497, title IV, § 435, 46 R.S. § 2836, relative to the entry of vessels arriving Stat. 711, set forth entry requirements for foreign ves- within the districts of Petersburg or Richmond (abol- sels arriving within limits of any customs collection ished by the Plan of Reorganization of the Customs district. Service set forth in a note to section 1 of this title) was also repealed by section 642 of act Sept. 21, 1922, ch. 356. § 1435a. Transferred Special provisions for Astoria and Portland were contained in R.S. §§ 2588–2590, which were also repealed by CODIFICATION section 642 of the act of Sept. 21, 1922, ch. 356. Section, act May 4, 1934, ch. 212, 48 Stat. 663, was R.S. § 2835, prescribing the duties of masters of vessels transferred to section 91a of former Title 46, Shipping, bound up James River, Virginia, in regard to deposit of and subsequently repealed by Pub. L. 103–182, title VI, manifests, etc., was repealed by act Mar. 3, 1897, ch. 389, § 690(c)(7), Dec. 8, 1993, 107 Stat. 2223. § 16, 29 Stat. 691. Special provisions to facilitate the entry of steam- § 1435b. Repealed. Pub. L. 103–182, title VI, ships running in an established line in foreign trade, § 690(c)(6), Dec. 8, 1993, 107 Stat. 2223 made by act June 5, 1894, ch. 92, § 1, 28 Stat. 85, and extended to steamships trading between Porto Rico and Section, acts June 16, 1937, ch. 362, 50 Stat. 303; 1946 Hawaii and the United States by act May 31, 1900, ch. Reorg. Plan No. 3, §§ 101–104, eff. July 16, 1946, 11 F.R. 600, 31 Stat. 249, were repealed by section 6 of act Feb. 7875, 60 Stat. 1097; June 2, 1970, Pub. L. 91–271, title III, 13, 1911, ch. 46, the preceding sections of which act § 320, 84 Stat. 293, related to clearance of vessels arriv- made more comprehensive provisions for preliminary ing on Sundays, holidays, or at night. entry of any vessel from a foreign port, and for the lading or unlading of such vessels at night. Sections 1 to § 1436. Penalties for violations of arrival, report- 4 of said act of 1911, were repealed by section 643 of the ing, entry, and clearance requirements act of Sept. 21, 1922, ch. 356. (a) Unlawful acts AMENDMENTS It is unlawful— 2000—Subsec. (a)(3). Pub. L. 106–476 struck out ‘‘bond- (1) to fail to comply with section 1431, 1433, ed merchandise or’’ before ‘‘foreign merchandise’’. 1993—Pub. L. 103–182 amended section generally. Prior or 1434 of this title or section 60105 of title 46; to amendment, section read as follows: ‘‘Except as (2) to present or transmit, electronically or otherwise provided by law, and under such regulations otherwise, any forged, altered, or false docu- as the Commissioner of Customs may prescribe, the ment, paper, information, data or manifest to master of a vessel of the United States arriving in the the Customs Service under section 1431, United States from a foreign port or place shall, within 1433(d), or 1434 of this title or section 60105 of forty-eight hours after its arrival within the limits of title 46 without revealing the facts; any customs collection district, make formal entry of (3) to fail to make entry or to obtain clear- the vessel at the customhouse by producing and depos- iting with the appropriate customs officer the vessel’s ance as required by section 1434 or 1644 of this crew list, its register, or document in lieu thereof, the title, section 60105 of title 46, or section clearance and bills of health issued to the vessel at the 1644a(b)(1) or (c)(1) of this title; or foreign port or ports from which it arrived, together (4) to fail to comply with, or violate, any with the original and one copy of the manifest, and regulation prescribed under any section re- shall make oath that the ownership of the vessel is as ferred to in any of paragraphs (1) through (3). indicated in the register, or document in lieu thereof, and that the manifest was made out in accordance with (b) Civil penalty section 1431 of this title.’’ Any master, person in charge of a vehicle, or 1970—Pub. L. 91–271 substituted reference to appro- aircraft pilot who commits any violation listed priate customs officer for reference to collector. in subsection (a) of this section is liable for a 1935—Act Aug. 5, 1935, inserted ‘‘or document in lieu thereof’’ after ‘‘indicated in the register’’. civil penalty of $5,000 for the first violation, and $10,000 for each subsequent violation, and any EFFECTIVE DATE OF 2000 AMENDMENT conveyance used in connection with any such Amendment by Pub. L. 106–476, except as otherwise violation is subject to seizure and forfeiture. provided, applicable with respect to goods entered, or (c) Criminal penalty withdrawn from warehouse, for consumption, on or after the 15th day after Nov. 9, 2000, see section 1471 of In addition to being liable for a civil penalty Pub. L. 106–476, set out as a note under section 58c of under subsection (b) of this section, any master, this title. person in charge of a vehicle, or aircraft pilot EFFECTIVE DATE OF 1970 AMENDMENT who intentionally commits any violation listed in subsection (a) of this section is, upon convic- For effective date of amendment by Pub. L. 91–271, tion, liable for a fine of not more than $2,000 or see section 203 of Pub. L. 91–271, set out as a note under imprisonment for 1 year, or both; except that if section 1500 of this title. the conveyance has, or is discovered to have TRANSFER OF FUNCTIONS had, on board any merchandise (other than sea For transfer of functions, personnel, assets, and li- stores or the equivalent for conveyances other abilities of the United States Customs Service of the than vessels) the importation of which into the § 1437 TITLE 19—CUSTOMS DUTIES Page 140

United States is prohibited, such individual is spirits, wines, or other alcoholic liquors, such master liable for an additional fine of not more than shall be subject to an additional fine of not more than $10,000 or imprisonment for not more than 5 $2,000 or to imprisonment for not more than one year, or to both such fine and imprisonment. years, or both. ‘‘Every master who presents a forged, altered, or false (d) Additional civil penalty document or paper on making entry of a vessel as re- If any merchandise (other than sea stores or quired by section 1434 or 1435 of this title, knowing the same to be forged, altered, or false and without reveal- the equivalent for conveyances other than a ves- ing the fact, shall, in addition to any forfeiture to sel) is imported or brought into the United which in consequence the vessel may be subject, be lia- States in or aboard a conveyance which was not ble to a fine of not more than $5,000 nor less than $50 properly reported or entered, the master, person or to imprisonment for not more than two years, or to in charge of a vehicle, or aircraft pilot shall be both such fine and imprisonment.’’ liable for a civil penalty equal to the value of 1935—Act Aug. 5, 1935, inserted provisions relating to additional penalty for vessel carrying nonimportable the merchandise and the merchandise may be merchandise or liquor and added second par. seized and forfeited unless properly entered by the importer or consignee. If the merchandise TRANSFER OF FUNCTIONS consists of any controlled substance listed in For transfer of functions, personnel, assets, and li- section 1584 of this title, the master, individual abilities of the United States Customs Service of the in charge of a vehicle, or pilot shall be liable to Department of the Treasury, including functions of the the penalties prescribed in that section. Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- (June 17, 1930, ch. 497, title IV, § 436, 46 Stat. 711; lated references, see sections 203(1), 551(d), 552(d), and Aug. 5, 1935, ch. 438, title II, § 202, 49 Stat. 521; 557 of Title 6, Domestic Security, and the Department Pub. L. 99–570, title III, § 3113(a), Oct. 27, 1986, 100 of Homeland Security Reorganization Plan of Novem- Stat. 3207–81; Pub. L. 103–182, title VI, § 611, Dec. ber 25, 2002, as modified, set out as a note under section 542 of Title 6. 8, 1993, 107 Stat. 2170; Pub. L. 104–295, § 21(e)(3), Oct. 11, 1996, 110 Stat. 3530.) § 1437. Repealed. Pub. L. 103–182, title VI, CODIFICATION § 690(b)(3), Dec. 8, 1993, 107 Stat. 2223 In subsec. (a)(1) to (3), ‘‘section 60105 of title 46’’ sub- Section, act June 17, 1930, ch. 497, title IV, § 437, 46 stituted for ‘‘section 4197 of the Revised Statutes of the Stat. 711, provided for return of register or document to United States (46 U.S.C. App. 91)’’ on authority of Pub. master or owner of vessel upon clearance. L. 109–304, § 18(c), Oct. 6, 2006, 120 Stat. 1709, which Act enacted section 60105 of Title 46, Shipping. § 1438. Unlawful return of foreign vessel’s papers In subsec. (a)(3), ‘‘section 1644a(b)(1) or (c)(1) of this It shall not be lawful for any foreign consul to title’’ substituted for ‘‘section 1109 of the Federal Avia- deliver to the master of any foreign vessel the tion Act of 1958 (49 U.S.C. App. 1509)’’ on authority of register, or document in lieu thereof, deposited Pub. L. 103–272, § 6(b), July 5, 1994, 108 Stat. 1378, the first section of which enacted subtitles II, III, and V to with him in accordance with the provisions of X of Title 49, Transportation. section 1434 of this title, or regulations issued thereunder, until such master shall produce to PRIOR PROVISIONS him a clearance in due form from the Customs Provisions similar to those in this section were con- Service in the port in which such vessel has en- tained in R.S. § 2834, as amended by act Mar. 3, 1897, ch. tered. Any consul offending against the provi- 389, § 15, 29 Stat. 691, which was superseded by act Sept. sions of this section shall be liable to a fine of 21, 1922, ch. 356, title IV, § 436, 42 Stat. 951, and was re- not more than $5,000. pealed by section 642 thereof. Section 436 of the 1922 act was superseded by section 436 of act June 17, 1930, com- (June 17, 1930, ch. 497, title IV, § 438, 46 Stat. 712; prising this section, and repealed by section 651(a)(1) of Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 the 1930 act. Stat. 287; Pub. L. 103–182, title VI, § 654, Dec. 8, AMENDMENTS 1993, 107 Stat. 2210.) 1996—Subsec. (a)(2). Pub. L. 104–295 substituted ‘‘1431’’ PRIOR PROVISIONS for ‘‘1431(e)’’ and struck out ‘‘or’’ after semicolon at Provisions similar to those in this section were con- end. tained in act Sept. 21, 1922, ch. 356, title IV, § 438, 42 1993—Pub. L. 103–182, § 611(2), substituted ‘‘entry, and Stat. 952. That section was superseded by section 438 of clearance’’ for ‘‘and entry’’ in section catchline. act June 17, 1930, comprising this section, and repealed Subsec. (a)(1). Pub. L. 103–182, § 611(1)(A), substituted by section 651(a)(1) of the 1930 act. ‘‘section 1431, 1433, or 1434 of this title or section 91 of title 46, Appendix’’ for ‘‘section 1433 of this title’’. AMENDMENTS Subsec. (a)(2), (3). Pub. L. 103–182, § 611(1)(B), (C), 1993—Pub. L. 103–182 substituted ‘‘section 1434’’ for amended pars. (2) and (3) generally. Prior to amend- ‘‘section 1435’’, inserted ‘‘, or regulations issued there- ment, pars. (2) and (3) read as follows: under,’’ before ‘‘until such master’’, and substituted ‘‘(2) to present any forged, altered, or false document, ‘‘the Customs Service in the port in which such vessel paper, or manifest to a customs officer under section has entered’’ for ‘‘the appropriate customs officer of 1433(d) of this title without revealing the facts; the port where such vessel has been entered’’. ‘‘(3) to fail to make entry as required by section 1434, 1970—Pub. L. 91–271 substituted reference to appro- 1435, or 1644 of this title or section 1509 of title 49, Ap- priate customs officers for reference to collector. pendix; or’’. 1986—Pub. L. 99–570 amended section generally. Prior EFFECTIVE DATE OF 1970 AMENDMENT to amendment, section read as follows: ‘‘Every master For effective date of amendment by Pub. L. 91–271, who fails to make the report or entry provided for in see section 203 of Pub. L. 91–271, set out as a note under sections 1433, 1434, or 1435 of this title shall, for each of- section 1500 of this title. fense, be liable to a fine of not more than $1,000 and, if the vessel have, or be discovered to have had, on board TRANSFER OF FUNCTIONS any merchandise (sea stores excepted), the importation For transfer of functions, personnel, assets, and li- of which into the United States is prohibited, or any abilities of the United States Customs Service of the Page 141 TITLE 19—CUSTOMS DUTIES § 1441

Department of the Treasury, including functions of the stores, or ship’s stores and which shall depart Secretary of the Treasury relating thereto, to the Sec- within twenty-four hours after arrival without retary of Homeland Security, and for treatment of re- having landed or taken on board any pas- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department sengers, or any merchandise other than bunk- of Homeland Security Reorganization Plan of Novem- er coal, bunker oil, sea stores, or ship’s stores: ber 25, 2002, as modified, set out as a note under section Provided, That the master, owner, or agent of 542 of Title 6. such vessel shall report under oath to the appropriate customs officer the hour and date of §§ 1439, 1440. Repealed. Pub. L. 103–182, title VI, arrival and departure and the quantity of § 690(b)(4), (5), Dec. 8, 1993, 107 Stat. 2223 bunker coal, bunker oil, sea stores, or ship’s Section 1439, acts June 17, 1930, ch. 497, title IV, § 439, stores taken on board. 46 Stat. 712; Aug. 8, 1953, ch. 397, § 2(b), 67 Stat. 507, re- (6) Any vessel required to anchor at the quired master of a vessel from a foreign port or place, Belle Isle Anchorage in the waters of the De- immediately upon arrival, to mail or deliver to des- troit River in the State of Michigan, for the ignated employee a copy of manifest and any correc- purposes of awaiting the availability of cargo tions thereto. Section 1440, acts June 17, 1930, ch. 497, title IV, § 440, or berthing space or for the purpose of taking 46 Stat. 712; Aug. 8, 1953, ch. 397, § 2(c), 67 Stat. 508, re- on a pilot or awaiting pilot services, or at the quired master of a vessel to make post entry of any direction of the Coast Guard, prior to proceed- baggage or merchandise not included on manifest and ing to the Port of Toledo, Ohio, where the ves- to mail or deliver such entry to designated employee. sel makes entry under section 1434 of this title § 1441. Exceptions to vessel entry and clearance or obtains clearance under section 60105 of requirements title 46. The following vessels shall not be required to (June 17, 1930, ch. 497, title IV, § 441, 46 Stat. 712; make entry under section 1434 of this title or to Aug. 5, 1935, ch. 438, title III, § 302, 49 Stat. 527; obtain clearance under section 60105 of title 46: Aug. 14, 1937, ch. 620, § 1, 50 Stat. 638; Sept. 1, (1) Vessels of war and public vessels em- 1954, ch. 1213, title V, § 501(b), 68 Stat. 1140; Pub. ployed for the conveyance of letters and dis- L. 91–271, title III, § 301(b), June 2, 1970, 84 Stat. patches and not permitted by the laws of the 287; Pub. L. 98–573, title II, § 204, Oct. 30, 1984, 98 nations to which they belong to be employed Stat. 2974; Pub. L. 103–182, title VI, § 655, Dec. 8, in the transportation of passengers or mer- 1993, 107 Stat. 2210; Pub. L. 104–295, § 21(e)(5), Oct. chandise in trade. 11, 1996, 110 Stat. 3530; Pub. L. 106–36, title I, (2) Passenger vessels making three trips or § 1001(b)(10), June 25, 1999, 113 Stat. 132; Pub. L. oftener a week between a port of the United 106–476, title I, § 1452(b), Nov. 9, 2000, 114 Stat. States and a foreign port, or vessels used ex- 2168.) clusively as ferryboats, carrying passengers, CODIFICATION baggage, or merchandise: Provided, That the master of any such vessel shall be required to ‘‘Section 60105 of title 46’’ substituted in introductory report such baggage and merchandise to the provisions for ‘‘section 4197 of the Revised Statutes of appropriate customs officer within twenty- the United States (46 U.S.C. App. 91)’’ and in par. (6) for ‘‘section 4197 of the Revised Statutes of the United four hours after arrival. States’’ on authority of Pub. L. 109–304, § 18(c), Oct. 6, (3) Any vessel carrying passengers on excur- 2006, 120 Stat. 1709, which Act enacted section 60105 of sion from the United States Virgin Islands to Title 46, Shipping. the British Virgin Islands and returning, if— (A) the vessel does not in any way violate PRIOR PROVISIONS the customs or navigation laws of the United Provisions somewhat similar to those in par. (1) of States; this section were contained in R.S. § 2791. R.S. § 3123 (B) the vessel has not visited any hovering provided that steam-tugs duly enrolled and licensed to vessel; and engage in the foreign and coasting trade on the north- (C) the master of the vessel, if there is on ern, northeastern, and northwestern frontiers of the board any article required by law to be en- United States, when exclusively employed in towing tered, reports the article to the Customs vessels, should not be required to report and clear at Service immediately upon arrival. the custom-house but that when employed in towing rafts or other vessels without sale or steam motive- (4) Any United States documented vessel power, not required to be enrolled or licensed they with recreational endorsement or any undocu- should report and clear in the same manner as other mented United States pleasure vessel not en- vessels. Both sections were superseded and more closely gaged in trade, if— assimilated to this section by act Sept. 21, 1922, ch. 356, (A) the vessel complies with the reporting title IV, § 441, 42 Stat. 952, and repealed by section 642 requirements of section 1433 of this title, and thereof. Section 441 of the 1922 act was superseded by section 441 of act June 17, 1930, comprising this section, with the customs and navigation laws of the and repealed by section 651(a)(1) of the 1930 act. United States; (B) the vessel has not visited any hovering AMENDMENTS vessel; and 2000—Par (6). Pub. L. 106–476 added par. (6). (C) the master of, and any other person on 1999—Par. (6). Pub. L. 106–36 struck out par. (6) which board, the vessel, if the master or such per- read as follows: ‘‘Tugs documented under chapter 121 of son has on board any article required by law title 46 with a Great Lakes endorsement when towing to be entered or declared, reports such arti- vessels which are required by law to enter and clear.’’ cle to the Customs Service immediately 1996—Pars. (1), (2), (4), (5). Pub. L. 104–295 substituted upon arrival. period for semicolon at end of pars. (1), (2), and (4) and substituted period for ‘‘; and’’ at end of par. (5). (5) Vessels arriving in distress or for the pur- 1993—Pub. L. 103–182, § 655(1), (5), substituted catch- pose of taking on bunker coal, bunker oil, sea line for one which read ‘‘Vessels not required to enter’’ § 1442 TITLE 19—CUSTOMS DUTIES Page 142 and amended introductory provisions generally. Prior Department of the Treasury, including functions of the to amendment, introductory provisions read as follows: Secretary of the Treasury relating thereto, to the Sec- ‘‘The following vessels shall not be required to make retary of Homeland Security, and for treatment of re- entry at the customhouse:’’. lated references, see sections 203(1), 551(d), 552(d), and Par. (3). Pub. L. 103–182, § 655(2), amended par. (3) gen- 557 of Title 6, Domestic Security, and the Department erally. Prior to amendment, par. (3) read as follows: of Homeland Security Reorganization Plan of Novem- ‘‘Vessels carrying passengers on excursion from the ber 25, 2002, as modified, set out as a note under section United States Virgin Islands to the British Virgin Is- 542 of Title 6. lands and returning, and licensed yachts or undocu- For transfer of authorities, functions, personnel, and mented American pleasure vessels not engaged in assets of the Coast Guard, including the authorities trade: Provided, That such vessels do not in any way and functions of the Secretary of Transportation relat- violate the customs or navigation laws of the United ing thereto, to the Department of Homeland Security, States and have not visited any hovering vessel: Pro- and for treatment of related references, see sections vided further, That the master of any such vessel which 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- has on board any article required by law to be entered rity, and the Department of Homeland Security Reor- shall be required to report such article to the appro- ganization Plan of November 25, 2002, as modified, set priate customs officer within twenty-four hours after out as a note under section 542 of Title 6. arrival.’’ Pars. (4), (5). Pub. L. 103–182, § 655(3), added par. (4) § 1442. Residue cargo and redesignated former par. (4) as (5). Former par. (5) Any vessel having on board merchandise redesignated (6). Par. (6). Pub. L. 103–182, § 655(3), (4), redesignated par. shown by the manifest to be destined to a for- (5) as (6) and substituted ‘‘documented under chapter eign port or place may, after the report and 121 of title 46 with a Great Lakes endorsement’’ for entry of such vessel under the provisions of this ‘‘enrolled and licensed to engage in the foreign and chapter, proceed to such foreign port of destina- coasting trade in the northern, northeastern, and tion with the cargo so destined therefor, without northwestern frontiers’’. unlading the same and without the payment of 1984—Par. (3). Pub. L. 98–573 amended par. (3) gener- duty thereon. Any vessel arriving from a foreign ally, inserting provision referring to vessels carrying passengers on excursion from the United States Virgin port or place having on board merchandise Islands to the British Virgin Islands and returning. shown by the manifest to be destined to a port 1970—Pars. (2) to (4). Pub. L. 91–271 substituted ref- or ports in the United States other than the port erences to appropriate customs officer for references to of entry at which such vessel first arrived and collector wherever appearing. made entry may proceed with such merchandise 1954—Par. (3). Act Sept. 1, 1954, exempted undocu- from port to port or from district to district for mented American pleasure vessels from entry require- the unlading thereof. ments, and provided that both yachts and undocumented pleasure vessels report to the collector of cus- (June 17, 1930, ch. 497, title IV, § 442, 46 Stat. 713.) toms, within 24 hours after arrival, all articles, whether dutiable or not, for which a customs entry is re- PRIOR PROVISIONS quired. Provisions similar to those in this section were con- 1937—Par. (4). Act Aug. 14, 1937, substituted ‘‘sea tained in R.S. §§ 2776 (as amended by act June 26, 1884, stores, or ship’s stores’’ for ‘‘or necessary sea stores’’ ch. 121, § 29, 23 Stat. 59), 2777–2779, 2782, and 2783, all of wherever appearing. which were superseded by act Sept. 21, 1922, ch. 356, 1935—Par. (3). Act. Aug. 5, 1935, inserted ‘‘And not vis- title IV, § 442, 42 Stat. 952, and were repealed by section iting any hovering vessel, nor having at any time or, if 642 thereof. Section 442 of the 1922 act was superseded forfeited to the United States or to a foreign govern- by section 442 of act June 17, 1930, comprising this sec- ment, at any time after forfeiture, become liable to sei- tion, and repealed by section 651(a)(1) of the 1930 act. zure and forfeiture for any violation of the laws of the Provisions authorizing the Secretary of the Treasury United States’’. to require bonds in cases of vessels carrying goods destined for ports other than port of entry were contained EFFECTIVE DATE OF 2000 AMENDMENT in the 1922 act and prior acts. These provisions were Amendment by Pub. L. 106–476, except as otherwise omitted from this section. General provisions authoriz- provided, applicable with respect to goods entered, or ing the Secretary to require bonds where not specifi- withdrawn from warehouse, for consumption, on or cally required are contained in section 1623 of this title. after the 15th day after Nov. 9, 2000, see section 1471 of Special provisions concerning Astoria and Portland Pub. L. 106–476, set out as a note under section 58c of were contained in R.S. §§ 2588 and 2590, prior to repeal this title. by section 642 of the act of Sept. 21, 1922, ch. 356. EFFECTIVE DATE OF 1984 AMENDMENT §§ 1443 to 1445. Repealed. Pub. L. 103–182, title Amendment by Pub. L. 98–573 applicable with respect VI, § 690(b)(6), Dec. 8, 1993, 107 Stat. 2223 to vessels returning from the British Virgin Islands on Section 1443, acts June 17, 1930, ch. 497, title IV, § 443, or after 15th day after Oct. 30, 1984, see section 214(a), 46 Stat. 713; June 2, 1970, Pub. L. 91–271, title III, § 301(b), (c)(1) of Pub. L. 98–573, set out as a note under section 84 Stat. 287, related to manifests and permits for mer- 1304 of this title. chandise arriving for delivery in different districts or EFFECTIVE DATE OF 1970 AMENDMENT ports of entry. Section 1444, acts June 17, 1930, ch. 497, title IV, § 444, For effective date of amendment by Pub. L. 91–271, 46 Stat. 713; June 2, 1970, Pub. L. 91–271, title III, § 301(b), see section 203 of Pub. L. 91–271, set out as a note under 84 Stat. 287, required master to report his arrival at an- section 1500 of this title. other port to a customs officer within twenty-four EFFECTIVE DATE OF 1937 AMENDMENT hours and to produce copies of permit and manifest. Section 1445, acts June 17, 1930, ch. 497, title IV, § 445, Section 2 of act Aug. 14, 1937, provided as follows: 46 Stat. 713; June 2, 1970, Pub. L. 91–271, title III, § 301(b), ‘‘The amendment made by this Act [amending this sec- 84 Stat. 287, set forth penalties for failure of master to tion] shall take effect on the day following the date of obtain or produce permit or manifest. its enactment [Aug. 14, 1937].’’

TRANSFER OF FUNCTIONS § 1446. Supplies and stores retained on board For transfer of functions, personnel, assets, and li- Vessels arriving in the United States from for- abilities of the United States Customs Service of the eign ports may retain on board, without the Page 143 TITLE 19—CUSTOMS DUTIES § 1448 payment of duty, all coal and other fuel sup- PRIOR PROVISIONS plies, ships’ stores, sea stores, and the legiti- Provisions similar to those in this section were con- mate equipment of such vessels. Any such sup- tained in act Sept. 21, 1922, ch. 356, title IV, § 447, 42 plies, ships’ stores, sea stores, or equipment Stat. 953. That section was superseded by section 447 of landed and delivered from such vessel shall be act June 17, 1930, comprising this section, and repealed considered and treated as imported merchan- by section 651(a)(1) of the 1930 act. dise: Provided, That bunker coal, bunker oil, Provisions concerning the place of entry and unlad- ships’ stores, sea stores, or the legitimate equip- ing of foreign vessels and vessels from foreign ports were contained in R.S. §§ 2770 and 2771, prior to repeal ment of vessels belonging to regular lines plying by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. between foreign ports and the United States, Special provisions concerning the place of lading and which are delayed in port for any cause, may be unlading vessels laden with the products of Canada, transferred under a permit by the appropriate New Brunswick, Nova Scotia, Newfoundland and Prince customs officer and under customs supervision Edward Island were contained in R.S. § 3129, prior to re- from the vessel so delayed to another vessel of peal by section 642 of the 1922 act. the same line and owner, and engaged in the for- R.S. § 2897 authorized Secretary of the Treasury, eign trade, without the payment of duty thereunder regulations by him prescribed, to permit unloading of salt, imported from foreign places, on right bank on. of Mississippi River, opposite New Orleans, at any point (June 17, 1930, ch. 497, title IV, § 446, 46 Stat. 713; on said bank between upper and lower corporate limits Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 of said city, prior to repeal by act Mar. 3, 1897, ch. 389, Stat. 287.) § 16, 29 Stat. 691. AMENDMENTS PRIOR PROVISIONS 1993—Pub. L. 103–182 substituted ‘‘the Customs Serv- Provisions similar to those in this section were con- ice considers’’ for ‘‘the appropriate customs officer tained in act Sept. 21, 1922, ch. 356, title IV, § 446, 42 shall consider’’. Stat. 953. That section was superseded by section 446 of 1970—Pub. L. 91–271 substituted reference to appro- act June 17, 1930, comprising this section, and repealed priate customs officer for reference to collector. by section 651(a)(1) of the 1930 act. Provisions similar to those in the last sentence of EFFECTIVE DATE OF 1970 AMENDMENT this section concerning sea stores and equipment, were contained in R.S. § 2797, as amended by act Mar. 3, 1897, For effective date of amendment by Pub. L. 91–271, ch. 389, § 17, 29 Stat. 691. A provision that steam vessels see section 203 of Pub. L. 91–271, set out as a note under might retain coal on board without being required to section 1500 of this title. land it or pay duty was contained in R.S. § 2798. Provi- TRANSFER OF FUNCTIONS sion for collection of duty on excessive quantities of sea stores was made by R.S. § 2796. All of these sections For transfer of functions, personnel, assets, and li- were repealed by act Sept. 21, 1922, ch. 356, title IV, abilities of the United States Customs Service of the § 642, 42 Stat. 989. Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- AMENDMENTS retary of Homeland Security, and for treatment of re- 1970—Pub. L. 91–271 substituted reference to appro- lated references, see sections 203(1), 551(d), 552(d), and priate customs officer for reference to collector. 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- EFFECTIVE DATE OF 1970 AMENDMENT ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For effective date of amendment by Pub. L. 91–271, Functions of all officers of Department of the Treas- see section 203 of Pub. L. 91–271, set out as a note under ury and functions of all agencies and employees of such section 1500 of this title. Department transferred, with certain exceptions, to § 1447. Place of entry and unlading Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of It shall be unlawful to make entry of any ves- his functions, by any of such officers, agencies, and em- sel or to unlade the cargo or any part thereof of ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July any vessel elsewhere than at a port of entry: 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Provided, That upon good cause therefor being Appendix to Title 5, Government Organization and Em- ployees. Customs personnel, referred to in text, were shown, the Commissioner of Customs may per- under Department of the Treasury. mit entry of any vessel to be made at a place ‘‘Commissioner of Customs’’ substituted in text for other than a port of entry designated by him, ‘‘Secretary of Commerce’’ on authority of Reorg. Plan under such conditions as he shall prescribe: And No. 3 of 1946, set out in the Appendix to Title 5. provided further, That any vessel laden with merchandise in bulk may proceed after entry of § 1448. Unlading such vessel to any place designated by the Sec- (a) Permits and preliminary entries retary of the Treasury for the purpose of unlad- Except as provided in section 1441 of this title ing such cargo, under the supervision of customs (relating to vessels not required to enter or officers if the Customs Service considers the clear), no merchandise, passengers, or baggage same necessary, and in such case the compensa- shall be unladen from any vessel required to tion and expenses of such officers shall be reim- make entry under section 1434 of this title, or bursed to the Government by the party in inter- vehicle required to report arrival under section est. 1433 of this title, until entry of such vessel or re- (June 17, 1930, ch. 497, title IV, § 447, 46 Stat. 714; port of the arrival of such vehicle has been made 1946 Reorg. Plan No. 3, §§ 101–104, eff. July 16, and a permit for the unlading of the same issued 1946, 11 F.R. 7875, 60 Stat. 1097; Pub. L. 91–271, or transmitted pursuant to an electronic data title III, § 301(b), June 2, 1970, 84 Stat. 287; Pub. interchange system by the Customs Service. L. 103–182, title VI, § 649(a), Dec. 8, 1993, 107 Stat. After the entry of any vessel or report of the ar- 2208.) rival of any vehicle, the Customs Service may § 1449 TITLE 19—CUSTOMS DUTIES Page 144 issue a permit, electronically pursuant to an au- title,’’ for ‘‘or vehicle arriving from a foreign port or thorized electronic data interchange system or place’’, inserted ‘‘or transmitted pursuant to an elec- otherwise, to the master of the vessel, or to the tronic data interchange system’’ after ‘‘issued’’, and person in charge of the vehicle, to unlade mer- substituted ‘‘the Customs Service.’’ for ‘‘the appropriate customs officer: Provided, That the master may chandise or baggage, but except as provided in make a preliminary entry of a vessel by making oath subdivision (b) of this section merchandise or or affirmation to the truth of the statements contained baggage so unladen shall be retained at the in the vessel’s manifest and delivering the manifest to place of unlading until entry therefor is made the customs officer who boards such vessel, but the and a permit for its delivery granted, and the making of such preliminary entry shall not excuse the owners of the vessel or vehicle from which any master from making formal entry of his vessel at the imported merchandise is unladen prior to entry customhouse, as provided by this chapter.’’, in second of such merchandise shall be liable for the pay- sentence, struck out ‘‘, preliminary or otherwise,’’ after ‘‘After the entry’’, substituted ‘‘the Customs ment of the duties accruing on any part thereof Service’’ for ‘‘such customs officer’’, and inserted that may be removed from the place of unlading ‘‘, electronically pursuant to an authorized electronic without a permit therefor having been issued. data interchange system or otherwise,’’ after ‘‘may The owner or master of any vessel or vehicle, or issue a permit’’, and substituted last four sentences for agent thereof, shall notify the Customs Service former last sentence which read as follows: ‘‘Any mer- of any merchandise or baggage so unladen for chandise or baggage so unladen from any vessel or vehi- which entry is not made within the time pre- cle for which entry is not made within forty-eight scribed by law or regulation. The Secretary hours exclusive of Sunday and holidays from the time of the entry of the vessel or report of the vehicle, un- shall by regulation prescribe administrative less a longer time is granted by such customs officer, penalties not to exceed $1,000 for each bill of lad- as provided in section 1484 of this title, shall be sent to ing for which notice is not given. Any such ad- a bonded warehouse or the public stores and held as un- ministrative penalty shall be subject to mitiga- claimed at the risk and expense of the consignee in the tion and remittance under section 1618 of this case of merchandise and of the owner in the case of title. Such unentered merchandise or baggage baggage, until entry thereof is made.’’ shall be the responsibility of the master or per- 1970—Subsec. (a). Pub. L. 91–271 substituted ref- son in charge of the importing vessel or vehicle, erences to appropriate customs officer or such customs officer for references to collector wherever appearing. or agent thereof, until it is removed from the carrier’s control in accordance with section 1490 EFFECTIVE DATE OF 1970 AMENDMENT of this title. For effective date of amendment by Pub. L. 91–271, (b) Special delivery permit see section 203 of Pub. L. 91–271, set out as a note under The Secretary of the Treasury is authorized to section 1500 of this title. provide by regulations for the issuing of special TRANSFER OF FUNCTIONS permits for delivery, prior to formal entry For transfer of functions, personnel, assets, and li- therefor, of perishable articles and other arti- abilities of the United States Customs Service of the cles, the immediate delivery of which is nec- Department of the Treasury, including functions of the essary. Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- (June 17, 1930, ch. 497, title IV, § 448, 46 Stat. 714; lated references, see sections 203(1), 551(d), 552(d), and Pub. L. 91–271, title III, § 301(e), June 2, 1970, 84 557 of Title 6, Domestic Security, and the Department Stat. 288; Pub. L. 103–182, title VI, § 656, Dec. 8, of Homeland Security Reorganization Plan of Novem- 1993, 107 Stat. 2211.) ber 25, 2002, as modified, set out as a note under section 542 of Title 6. PRIOR PROVISIONS Provisions similar to those in this section were con- § 1449. Unlading at port of entry tained in act Sept. 21, 1922, ch. 356, title IV, § 448, 42 Stat. 953. That section was superseded by section 448 of Except as provided in sections 1442 and 1447 of act June 17, 1930, comprising this section, and repealed this title (relating to residue cargo and to bulk by section 651(a)(1) of the 1930 act. cargo respectively), merchandise and baggage Provisions similar to those in this section concerning imported in any vessel by sea shall be unladen preliminary entries, and a further provision that on at the port of entry to which such vessel is des- making such entry lading might proceed by both day tined, unless (1) such vessel is compelled by any and night, were contained in act Feb. 13, 1911, ch. 46, § 2, cause to put into another port of entry, and the 36 Stat. 900, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. Customs Service issues a permit for the unlad- Provisions for the estimation of duties, and the issuing of such merchandise or baggage at such port, ance of permits for delivery of merchandise, and provi- or (2) the Secretary of the Treasury, because of sions prescribing the contents of such permits, were an emergency existing at the port of destina- contained in R.S. § 2869, (as amended by act June 5, 1894, tion, authorizes such vessel to proceed to an- ch. 92, § 2, 28 Stat. 86) and § 2870, prior to repeal by act other port of entry. Merchandise and baggage so Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. unladen may be entered in the same manner as Provisions as to the removal of merchandise brought other imported merchandise or baggage and may in any vessel from a foreign port or place, from the wharf or place where it might be landed or put, before be treated as unclaimed merchandise or baggage it had been weighed, gauged, measured, etc., were con- and stored at the expense and risk of the owner tained in R.S. § 2882, prior to repeal by act Sept. 21, 1922, thereof, or may be reladen without entry upon ch. 356, title IV, § 642, 42 Stat. 989. the vessel from which it was unladen for transportation to its destination. AMENDMENTS 1993—Pub. L. 103–182 in first sentence, substituted (June 17, 1930, ch. 497, title IV, § 449, 46 Stat. 714; ‘‘enter or clear)’’ for ‘‘enter)’’ and ‘‘required to make Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 entry under section 1434 of this title, or vehicle re- Stat. 287; Pub. L. 103–182, title VI, § 649(b), Dec. quired to report arrival under section 1433 of this 8, 1993, 107 Stat. 2208.) Page 145 TITLE 19—CUSTOMS DUTIES § 1451

PRIOR PROVISIONS by act June 30, 1906, ch. 3909, 34 Stat. 633, were repealed by section 6 of act Feb. 13, 1911, ch. 46, and provision for Provisions similar to those in this section were con- the grant of a special license to lade or unlade at night, tained in act Sept. 21, 1922, ch. 356, title IV, § 449, 42 and the grant of permits for immediate lading and un- Stat. 954. That section was superseded by section 449 of lading of vessels admitted to preliminary entry, etc., act June 17, 1930, comprising this section, and repealed was made, in sections 1 and 4 of that act, which were by section 651(a)(1) of the 1930 act. repealed by section 643 of the act of Sept. 21, 1922, ch. Provisions concerning protests and reports by vessels 356. compelled by distress of weather or other necessity to A special provision on the subject matter of this sec- put into a port of the United States; permits for the un- tion for the northern, northeastern and northwestern lading thereof; the storage of the goods; the disposal of frontiers was contained in R.S. § 3120, as amended by perishable goods; variances between the report, and the act Feb. 27, 1877, ch. 69, § 1, 19 Stat. 248, prior to repeal delivery of the cargo, and the reloading of such vessels, by section 642 of the act of Sept. 21, 1922, ch. 356. and a special provision for Spanish vessels arriving in distress, were contained in R.S. §§ 2891–2895. Provisions AMENDMENTS for report and entry of vessels prevented by ice from getting to the port or place at which her cargo was in- 1993—Pub. L. 103–66 in section catchline substituted tended to be delivered, and for the unlading or landing ‘‘during overtime hours’’ for ‘‘at night’’, and in text of the cargo, were contained in R.S. § 2896. All of these substituted ‘‘during overtime hours’’ for ‘‘at night’’ and sections were repealed by act Sept. 21, 1922, ch. 356, inserted ‘‘aircraft,’’ before ‘‘vessel’’. title IV, § 642, 42 Stat. 989. 1970—Pub. L. 91–271 substituted reference to appropriate customs officer for reference to collector. AMENDMENTS EFFECTIVE DATE OF 1993 AMENDMENT 1993—Pub. L. 103–182 substituted ‘‘Customs Service issues a permit for the unlading of such merchandise or Amendment by Pub. L. 103–66 applicable to customs baggage at such port,’’ for ‘‘appropriate customs officer inspectional services provided on or after Jan. 1, 1994, of such port issues a permit for the unlading of such see section 13811(c) of Pub. L. 103–66, set out as a note merchandise or baggage,’’. under section 267 of this title. 1970—Pub. L. 91–271 substituted reference to appro- EFFECTIVE DATE OF 1970 AMENDMENT priate customs officers for reference to collector. For effective date of amendment by Pub. L. 91–271, EFFECTIVE DATE OF 1970 AMENDMENT see section 203 of Pub. L. 91–271, set out as a note under For effective date of amendment by Pub. L. 91–271, section 1500 of this title. see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. § 1451. Extra compensation

TRANSFER OF FUNCTIONS Before any such special license to unlade shall be granted, the master, owner, or agent of such For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the vessel or vehicle, or the person in charge of such Department of the Treasury, including functions of the vehicle, shall be required to deposit sufficient Secretary of the Treasury relating thereto, to the Sec- money to pay, or to give a bond in an amount to retary of Homeland Security, and for treatment of re- be fixed by the Secretary conditioned to pay, lated references, see sections 203(1), 551(d), 552(d), and the compensation and expenses of the customs 557 of Title 6, Domestic Security, and the Department officers and employees assigned to duty in con- of Homeland Security Reorganization Plan of Novem- nection with such unlading at night or on Sun- ber 25, 2002, as modified, set out as a note under section day or a holiday, in accordance with the provi- 542 of Title 6. sions of section 267 of this title. In lieu of such § 1450. Unlading on Sundays, holidays, or during deposit or bond the owner or agent of any vessel overtime hours or vehicle or line of vessels or vehicles may execute a bond in an amount to be fixed by the Sec- No merchandise, baggage, or passengers arriv- retary of the Treasury to cover and include the ing in the United States from any foreign port issuance of special licenses for the unlading of or place, and no bonded merchandise or baggage such vessels or vehicles for a period not to ex- being transported from one port to another, ceed one year. Upon a request made by the shall be unladen from the carrying aircraft, ves- owner, master, or person in charge of a vessel or sel or vehicle on Sunday, a holiday, or during vehicle, or by or on behalf of a common carrier overtime hours, except under special license or by or on behalf of the owner or consignee of granted by the appropriate customs officer any merchandise or baggage, for overtime serv- under such regulations as the Secretary of the ices of customs officers or employees at night or Treasury may prescribe. on a Sunday or holiday, the appropriate customs (June 17, 1930, ch. 497, title IV, § 450, 46 Stat. 715; officer shall assign sufficient customs officers or Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 employees if available to perform any such serv- Stat. 287; Pub. L. 103–66, title XIII, § 13811(b)(2), ices which may lawfully be performed by them Aug. 10, 1993, 107 Stat. 670.) during regular hours of business, but only if the person requesting such services deposits suffi- PRIOR PROVISIONS cient money to pay, or gives a bond in an Provisions similar to those in this section were con- amount to be fixed by the 1 such customs officer, tained in R.S. § 2872, as amended by the act of June 26, conditioned to pay the compensation and ex- 1884, ch. 121, § 25, 23 Stat. 59, which was superseded by penses of such customs officers and employees, act Sept. 21, 1922, ch. 356, title IV, § 450, 42 Stat. 954, and who shall be entitled to rates of compensation was repealed by section 642 thereof. Section 450 of the fixed on the same basis and payable in the same 1922 act was superseded by section 450 of act June 17, manner and upon the same terms and conditions 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. as in the case of customs officers and employees R.S. § 2871 providing for the granting of a special license to unlade at night, and the amendment thereof 1 So in original. The word ‘‘the’’ probably should not appear. § 1451a TITLE 19—CUSTOMS DUTIES Page 146 assigned to duty in connection with lading or § 451, 42 Stat. 954, and was repealed by section 643 there- unlading at night or on Sunday or a holiday. of. Section 451 of the 1922 act was superseded by section Nothing in this section shall be construed to im- 451 of act June 17, 1930, comprising this section, and repair the existing authority of the Treasury De- pealed by section 651(a)(1) of the 1930 act. partment to assign customs officers or employ- AMENDMENTS ees to regular tours of duty at nights or on Sun- 1970—Pub. L. 91–271 substituted references to appro- days or holidays when such assignments are in priate customs officer or such customs officer for ref- the public interest: Provided, That the provi- erences to collector wherever appearing. sions of this section, sections 1450 and 1452 of 1954—Act Sept. 1, 1954, permitted the deposit of suffi- this title, and the provisions of section 267 of cient money to cover costs of night, Sunday, or holiday this title insofar as such section 267 of this title service in lieu of filing of bond. 1944—Act June 3, 1944, inserted proviso. requires payment of compensation by the mas- 1938—Act June 25, 1938, amended third sentence gen- ter, owner, agent, or consignee of a vessel or erally. conveyance, shall not apply to the owner, operator, or agent of a highway vehicle, bridge, tun- EFFECTIVE DATE OF 1970 AMENDMENT nel, or ferry, between the United States and For effective date of amendment by Pub. L. 91–271, Canada or between the United States and Mex- see section 203 of Pub. L. 91–271, set out as a note under ico, nor to the lading or unlading of merchan- section 1500 of this title. dise, baggage, or persons arriving in or depart- EFFECTIVE DATE OF 1938 AMENDMENT ing from the United States by motor vehicle, Amendment by act June 25, 1938, effective on thirti- trolley car, on foot, or by other means of high- eth day following June 25, 1938, except as otherwise spe- way travel upon, over, or through any highway, cifically provided, see section 37 of act June 25, 1938, set bridge, tunnel, or ferry. At ports of entry and out as a note under section 1401 of this title. customs stations where any merchandise, bag- TRANSFER OF FUNCTIONS gage, or persons shall arrive in or depart from the United States by motor vehicle, trolley car, Functions of all officers of Department of the Treas- on foot, or by other means of highway travel ury and functions of all agencies and employees of such upon, over, or through any highway, bridge, tun- Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to nel, or ferry, between the United States and authorize their performance or performance of any of Canada or between the United States and Mex- his functions, by any of those officers, agencies, and ico, the appropriate customs officer, under such employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July regulations as the Secretary of the Treasury 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the may prescribe, shall assign customs officers and Appendix to Title 5, Government Organization and Em- employees to duty at such times during the ployees. twenty-four hours of each day, including Sun- § 1451a. Repealed. Pub. L. 103–66, title XIII, days and holidays, as the Secretary of the Treas- § 13811(b)(1), Aug. 10, 1993, 107 Stat. 670 ury in his discretion may determine to be necessary to facilitate the inspection and passage of Section, act June 3, 1944, ch. 233, § 2, 58 Stat. 270, pro- such merchandise, baggage, or persons. Officers vided that certain extra compensation of customs offi- and employees assigned to such duty at night or cers and employees assigned to performance of inspec- on Sunday or a holiday shall be paid compensa- tional services in connection with traffic over high- ways, toll bridges, etc. on Sundays or holidays prior to tion in accordance with existing law as inter- June 3, 1944, was to be payable by the U.S. without re- preted by the United States Supreme Court in imbursement by the applicant for such services and the case of the United States v. Howard C. that any reimbursement which had accrued and been Myers (320 U.S. 561); but all compensation pay- collected since Jan. 6, 1941, was to be refunded. able to such customs officers and employees EFFECTIVE DATE OF REPEAL shall be paid by the United States without requiring any license, bond, obligation, financial Repeal applicable to customs inspectional services undertaking, or payment in connection there- provided on or after Jan. 1, 1994, see section 13811(c) of Pub. L. 103–66, set out as an Effective Date of 1993 with on the part of any owner, operator, or Amendment note under section 267 of this title. agent of any such highway vehicle, bridge, tunnel, or ferry, or other person. As used in this § 1452. Lading on Sundays, holidays, or at night section, the term ‘‘ferry’’ shall mean a pas- No merchandise or baggage entered for trans- senger service operated with the use of vessels portation under bond or for exportation with the which arrive in the United States on regular benefit of drawback, or other merchandise or schedules at intervals of at least once each hour baggage required to be laden under customs su- during any period in which customs service is to pervision, shall be laden on any vessel or vehicle be furnished without reimbursement as above at night or on Sunday or a holiday, except under provided. special license therefor to be issued by the ap- (June 17, 1930, ch. 497, title IV, § 451, 46 Stat. 715; propriate customs officer under the same condi- June 25, 1938, ch. 679, § 9, 52 Stat. 1082; June 3, tions and limitations as pertain to the unlading 1944, ch. 233, § 1, 58 Stat. 269; Sept. 1, 1954, ch. of imported merchandise or merchandise being 1213, title V, § 503, 68 Stat. 1141; Pub. L. 91–271, transported in bond. title III, § 301(f), June 2, 1970, 84 Stat. 288.) (June 17, 1930, ch. 497, title IV, § 452, 46 Stat. 715; PRIOR PROVISIONS Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 Provisions similar to those in this section, but apply- Stat. 287.) ing also to the issuance of a permit for immediate lad- PRIOR PROVISIONS ing or unlading after preliminary entry, were contained in act Feb. 13, 1911, ch. 46, § 3, 36 Stat. 900, which was su- Provisions similar to those in this section were con- perseded in part by act Sept. 21, 1922, ch. 356, title IV, tained in act Sept. 21, 1922, ch. 356, title IV, § 452, 42 Page 147 TITLE 19—CUSTOMS DUTIES § 1456

Stat. 955. That section was superseded by section 452 of 1970—Pub. L. 91–271 substituted reference to appro- act June 17, 1930, comprising this section, and repealed priate customs officer for reference to collector. by section 651(a)(1) of the 1930 act. EFFECTIVE DATE OF 1970 AMENDMENT AMENDMENTS For effective date of amendment by Pub. L. 91–271, 1970—Pub. L. 91–271 substituted reference to appro- see section 203 of Pub. L. 91–271, set out as a note under priate customs officer for reference to collector. section 1500 of this title. EFFECTIVE DATE OF 1970 AMENDMENT § 1455. Boarding and discharging inspectors For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under The appropriate customs officer for the dis- section 1500 of this title. trict in which any vessel or vehicle arrives from a foreign port or place may put on board of such § 1453. Lading and unlading of merchandise or vessel or vehicle while within such district, and baggage; penalties if necessary while going from one district to an- If any merchandise or baggage is laden on, or other, one or more inspectors or other customs unladen from, any vessel or vehicle without a officers to examine the cargo and contents of special license or permit therefor issued by the such vessel or vehicle and superintend the un- appropriate customs officer, the master of such lading thereof, and to perform such other duties vessel or the person in charge of such vehicle as may be required by law or the customs regu- and every other person who knowingly is con- lations for the protection of the revenue. Such cerned, or who aids therein, or in removing or inspector or other customs officer may, if he otherwise securing such merchandise or bag- shall deem the same necessary for the protec- gage, shall each be liable to a penalty equal to tion of the revenue, secure the hatches or other the value of the merchandise or baggage so communications or outlets of such vessel or ve- laden or unladen, and such merchandise or bag- hicle with customs seals or other proper fasten- gage shall be subject to forfeiture, and if the ings while such vessel is not in the act of unlad- value thereof is $500 or more, the vessel or vehi- ing and such fastenings shall not be removed cle on or from which the same shall be laden or without permission of the inspector or other unladen shall be subject to forfeiture. customs officer. Such inspector or other cus- (June 17, 1930, ch. 497, title IV, § 453, 46 Stat. 716; toms officer may require any vessel or vehicle to Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 discontinue or suspend unlading during the con- Stat. 287.) tinuance of unfavorable weather or any conditions rendering the discharge of cargo dangerous PRIOR PROVISIONS or detrimental to the revenue. Any officer, Provisions similar to those in this section were con- owner, agent of the owner, or member of the tained in act Sept. 21, 1922, ch. 356, title IV, § 453, 42 crew of any such vessel who obstructs or hinders Stat. 955. That section was superseded by section 453 of any such inspector or other customs officer in act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. the performance of his duties, shall be liable to Provisions imposing penalties and forfeitures for vio- a penalty of not more than $500. lation of R.S. § 2872, which required a special license for (June 17, 1930, ch. 497, title IV, § 455, 46 Stat. 716; unloading or delivering merchandise otherwise than in open day, were contained in R.S. §§ 2873 and 2874, prior Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 287.) Stat. 989. PRIOR PROVISIONS AMENDMENTS Provisions similar to those in this section were con- 1970—Pub. L. 91–271 substituted reference to appro- tained in act Sept. 21, 1922, ch. 356, title IV, § 454, 42 priate customs officer for reference to collector. Stat. 955. That section was superseded by section 455 of act June 17, 1930, comprising this section, and repealed EFFECTIVE DATE OF 1970 AMENDMENT by section 651(a)(1) of the 1930 act. For effective date of amendment by Pub. L. 91–271, Provisions on the subject matter of this section were see section 203 of Pub. L. 91–271, set out as a note under contained in R.S. §§ 2834 (as amended by act Mar. 3, 1897, section 1500 of this title. ch. 389, § 15, 29 Stat. 691), 2875, and 3070; and special provisions for particular ports in sections 2588, 2590 and § 1454. Unlading of passengers; penalty 2832. Provisions as to the duties of inspectors, the If any passenger is unladen from any vessel or records to be kept and returns to be made by them and vehicle without a special license or permit the comparison of their returns with the manifests and entries, were contained in R.S. §§ 2876, 2877, 2888 and therefor issued by the appropriate customs offi- 2889. All the foregoing sections were repealed by act cer, the master of such vessel or the person in Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. charge of such vehicle and every other person who knowingly is concerned, or who aids there- AMENDMENTS in, shall each be liable to a penalty of $1,000 for 1970—Pub. L. 91–271 substituted reference to appro- the first passenger and $500 for each additional priate customs officer for reference to collector. such passenger so unladen. EFFECTIVE DATE OF 1970 AMENDMENT (June 17, 1930, ch. 497, title IV, § 454, 46 Stat. 716; For effective date of amendment by Pub. L. 91–271, Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 see section 203 of Pub. L. 91–271, set out as a note under Stat. 287; Pub. L. 99–570, title III, § 3114, Oct. 27, section 1500 of this title. 1986, 100 Stat. 3207–82.) § 1456. Compensation and expenses of inspectors AMENDMENTS between ports; reimbursement 1986—Pub. L. 99–570 substituted ‘‘$1,000 for the first passenger and $500 for each additional such passenger’’ The compensation of any inspector or other for ‘‘$500 for each such passenger’’. customs officer, stationed on any vessel or vehi- § 1457 TITLE 19—CUSTOMS DUTIES Page 148 cle while proceeding from one port to another quired in connection with the unlading shall, for and returning therefrom, shall be reimbursed to every day consumed in unlading in excess of the Government by the master or owner of such twenty-five days from the date of the vessel’s vessel, together with the actual expense of such entry, be reimbursed by the master or owner of inspector or customs officer for subsistence, or such vessel. in lieu of such expenses such vessel or vehicle (June 17, 1930, ch. 497, title IV, § 458, 46 Stat. 717.) may furnish such inspector or customs officer, the accommodations usually supplied to pas- PRIOR PROVISIONS sengers. Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 458, 42 (June 17, 1930, ch. 497, title IV, § 456, 46 Stat. 716.) Stat. 956. That section was superseded by section 458 of act June 17, 1930, comprising this section, and repealed PRIOR PROVISIONS by section 651(a)(1) of the 1930 act. Provisions similar to those in this section were con- Provisions somewhat similar to those in this section, tained in act Sept. 21, 1922, ch. 356, title IV, § 455, 42 but applicable only to vessels laden with specified arti- Stat. 955. That section was superseded by section 456 of cles, were contained in R.S. § 2881, as amended by act act June 17, 1930, comprising this section, and repealed June 3, 1892, ch. 86, § 2, 27 Stat. 41, prior to repeal by act by section 651(a)(1) of the 1930 act. Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. Provisions on the subject matter of this section were contained in R.S. § 2878, and particular provisions for § 1459. Reporting requirements for individuals certain ports in sections 2588 and 2833. Section 2878 con- (a) Individuals arriving other than by convey- tained a further provision prohibiting inspectors from ance performing any other duties or service than what was required by that title. All these sections were repealed Except as otherwise authorized by the Sec- by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. retary, individuals arriving in the United States other than by vessel, vehicle, or aircraft shall— § 1457. Time for unlading (1) enter the United States only at a border crossing point designated by the Secretary; Whenever any merchandise remains on board and any vessel or vehicle from a foreign port more (2) immediately— than twenty-five days after the date on which (A) report the arrival, and report of said vessel or vehicle was made, the ap- (B) present themselves, and all articles ac- propriate customs officer may take possession of companying them for inspection; such merchandise and cause the same to be unladen at the expense and risk of the owners to the customs officer at the customs facility thereof, or may place one or more inspectors or designated for that crossing point. other customs officers on board of said vessel or (b) Individuals arriving by reported conveyance vehicle to protect the revenue. The compensa- Except as otherwise authorized by the Sec- tion and expenses of any such inspector or cus- retary, passengers and crew members aboard a toms officer for subsistence while on board of conveyance the arrival in the United States of such vessel or vehicle shall be reimbursed to the which was made or reported in accordance with Government by the owner or master of such ves- section 1433 or 1644 of this title or section sel or vehicle. 1644a(b)(1) or (c)(1) of this title, or in accordance (June 17, 1930, ch. 497, title IV, § 457, 46 Stat. 716; with applicable regulations, shall remain aboard Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 the conveyance until authorized to depart the Stat. 287.) conveyance by the appropriate customs officer. Upon departing the conveyance, the passengers PRIOR PROVISIONS and crew members shall immediately report to Provisions similar to those in this section were con- the designated customs facility with all articles tained in R.S. §§ 2879, 2880 and 2969 (as amended by act accompanying them. May 9, 1896, ch. 164, 29 Stat. 115), which were superseded (c) Individuals arriving by unreported convey- by act Sept. 21, 1922, ch. 356, title IV, § 456, 42 Stat. 955, ance and were repealed by section 642 thereof. Section 456 of the 1922 act was superseded by section 457 of act June Except as otherwise authorized by the Sec- 17, 1930, comprising this section, and repealed by secretary, individuals aboard a conveyance the ar- tion 651(a)(1) of the 1930 act. rival in the United States of which was not made or reported in accordance with the laws or AMENDMENTS regulations referred to in subsection (b) of this 1970—Pub. L. 91–271 substituted reference to appro- section shall immediately notify a customs offi- priate customs officer for reference to collector. cer and report their arrival, together with appropriate information concerning the convey- EFFECTIVE DATE OF 1970 AMENDMENT ance on or in which they arrived, and present For effective date of amendment by Pub. L. 91–271, their property for customs examination and in- see section 203 of Pub. L. 91–271, set out as a note under spection. section 1500 of this title. (d) Departure from designated customs facilities § 1458. Bulk cargo, time for unlading Except as otherwise authorized by the Sec- The limitation of time for unlading shall not retary, any person required to report to a des- extend to vessels laden exclusively with mer- ignated customs facility under subsection (a), chandise in bulk consigned to one consignee and (b), or (c) of this section may not depart that fa- arriving at a port for orders, but if the master of cility until authorized to do so by the appro- such vessel requests a longer time to discharge priate customs officer. its cargo, the compensation of the inspectors or (e) Unlawful acts other customs officers whose services are re- It is unlawful— Page 149 TITLE 19—CUSTOMS DUTIES § 1461

(1) to fail to comply with subsection (a), (b), eign territory adjacent to the United States, were con- or (c) of this section; tained in R.S. § 3098. (2) to present any forged, altered, or false R.S. § 3121, provided that the master of any vessel document or paper to a customs officer under with cargo, passengers, or baggage from any foreign port, should obtain a permit and comply with existing subsection (a), (b), or (c) of this section with- laws before discharging or landing the same. out revealing the facts; R.S. § 3128, made special provision for landing of mer- (3) to violate subsection (d) of this section; chandise imported by steamboat on Lake Champlain. or All of the foregoing sections of the Revised Statutes (4) to fail to comply with, or violate, any (3095–3098, 3109, 3121 and 3128) with the exception of R.S. regulation prescribed to carry out subsection § 3109, were repealed by act Sept. 21, 1922, ch. 356, title (a), (b), (c), or (d) of this section. IV, § 642, 42 Stat. 989. (f) Civil penalty AMENDMENTS Any individual who violates any provision of 1986—Pub. L. 99–570 amended section generally. Prior subsection (e) of this section is liable for a civil to amendment, section read as follows: ‘‘The master of penalty of $5,000 for the first violation, and any vessel of less than five net tons carrying merchan- $10,000 for each subsequent violation. dise and the person in charge of any vehicle arriving in the United States from contiguous country, shall im- (g) Criminal penalty mediately report his arrival to the customs officer at In addition to being liable for a civil penalty the port of entry or customhouse which shall be near- under subsection (f) of this section, any individ- est to the place at which such vessel or vehicle shall ual who intentionally violates any provision of cross the boundary line or shall enter the territorial waters of the United States, and if such vessel or vehi- subsection (e) of this section is, upon conviction, cle have on board any merchandise, shall produce to liable for a fine of not more than $5,000, or im- such customs officer a manifest as required by law, and prisonment for not more than 1 year, or both. no such vessel or vehicle shall proceed farther inland (June 17, 1930, ch. 497, title IV, § 459, 46 Stat. 717; nor shall discharge or land any merchandise, passengers, or baggage without receiving a permit therefor June 25, 1938, ch. 679, § 10(a), 52 Stat. 1082; Pub. L. from such customs officer. Any person importing or 99–570, title III, § 3115(a), Oct. 27, 1986, 100 Stat. bringing merchandise into the United States from a 3207–82.) contiguous country otherwise than in a vessel or vehicle shall immediately report his arrival to the customs CODIFICATION officer at the port of entry or customhouse which shall In subsec. (b), ‘‘section 1644a(b)(1) or (c)(1) of this be nearest to the place at which he shall cross the title’’ substituted for ‘‘section 1109 of the Federal Avia- boundary line and shall present such merchandise to tion Act of 1958’’ on authority of Pub. L. 103–272, § 6(b), such customs officer for inspection.’’ July 5, 1994, 108 Stat. 1378, the first section of which en- 1938—Act June 25, 1938, substituted provisions requir- acted subtitles II, III, and V to X of Title 49, Transpor- ing any person importing merchandise from a contig- tation. uous country otherwise than in a vessel to report his arrival at the nearest customshouse and present such PRIOR PROVISIONS merchandise for inspection for provisions setting pen- Provisions similar to those in this section were con- alties of $100 for for the failure of the master of any tained in act Sept. 21, 1922, ch. 356, title IV, § 459, 42 vessel to report its arrival in the United States, forfeit- Stat. 956. That section was superseded by section 459 of ure of vessel and goods for unlading without a permit, act June 17, 1930, comprising this section, and repealed and $500 for the unlading of any passenger without a by section 651(a)(1) of the 1930 act. permit. R.S. § 3109, as amended by act Feb. 17, 1898, ch. 26, § 4, 30 Stat. 248, was omitted from the Code as superseded EFFECTIVE DATE OF 1938 AMENDMENT by this section. It read as follows: ‘‘The master of any Amendment by act June 25, 1938, effective on thirti- foreign vessel, laden or in ballast, arriving, whether by eth day following June 25, 1938, except as otherwise spe- sea or otherwise, in the waters of the United States cifically provided, see section 37 of act June 25, 1938, set from any foreign territory adjacent to the northern, out as a note under section 1401 of this title. northeastern, or northwestern frontiers of the United States, shall report at the office of any collector or § 1460. Repealed. Pub. L. 99–570, title III, deputy collector of the customs, which shall be nearest § 3115(b), Oct. 27, 1986, 100 Stat. 3207–83 to the point at which such vessel may enter such waters; and such vessel shall not transfer her cargo or pas- Section, acts June 17, 1930, ch. 497, title IV, § 460, 46 sengers to another vessel or proceed farther inland, ei- Stat. 717; June 25, 1938, ch. 679, § 10(b), 52 Stat. 1082, re- ther to unlade or take in cargo, without a special per- lated to penalties for failure to report or file manifest. mit from such collector or deputy collector, issued under and in accordance with such general or special § 1461. Inspection of merchandise and baggage regulations as the Secretary of the Treasury may, in his discretion, from time to time prescribe. This sec- All merchandise and baggage imported or tion shall also apply to trade with or through Alaska. brought in from any contiguous country, except For any violation of this section such vessel shall be as otherwise provided by law or by regulations seized and forfeited.’’ of the Secretary of the Treasury, shall be un- Provisions concerning the manner of importation, laden in the presence of and be inspected by a landing and unlading except in districts on the north- customs officer at the first port of entry at ern, northwestern and western boundaries, were contained in R.S. § 3095, as amended by act April 27, 1904, which the same shall arrive; and such officer ch. 1625, § 1, 33 Stat. 362. may require the owner, or his agent, or other Additional provisions concerning importations on the person having charge or possession of any trunk, northern and northwestern boundaries, reports, mani- traveling bag, sack, valise, or other container, fests, entries, etc., were contained in R.S. §§ 3096 and or of any closed vehicle, to open the same for in- 3097. spection, or to furnish a key or other means for Provisions for the delivery of a manifest by the mas- opening the same. ter of vessels, except registered vessels, and the person in charge of boats, vehicles, etc., coming from any for- (June 17, 1930, ch. 497, title IV, § 461, 46 Stat. 717.) § 1462 TITLE 19—CUSTOMS DUTIES Page 150

PRIOR PROVISIONS accordance with such regulations of the Sec- Provisions similar to those in this section were con- retary of the Treasury, or unlades such mer- tained in R.S. § 3100, as amended by act Feb. 18, 1875, ch. chandise or any part thereof at other than such 80, § 1, 18 Stat. 319, and act Feb. 27, 1877, ch. 69, § 1, 19 port of destination, or disposes of any such mer- Stat. 248, which was superseded by act Sept. 21, 1922, ch. chandise by sale or otherwise, he shall be guilty 356, title IV, § 461, 42 Stat. 956, and was repealed by sec- of a felony and upon conviction thereof shall be tion 642 thereof. Section 461 of the 1922 act was super- fined not more than $1,000 or imprisoned for not seded by section 461 of act June 17, 1930, comprising this more than five years, or both; and any such ves- section, and repealed by section 651(a)(1) of the 1930 act. sel or vehicle, with its contents, shall be subject § 1462. Forfeiture to forfeiture. If such owner, agent, or other person shall fail (June 17, 1930, ch. 497, title IV, § 464, 46 Stat. 718.) to comply with his demand, the officer shall re- PRIOR PROVISIONS tain such trunk, traveling bag, sack, valise, or Provisions somewhat similar to those in this section, other container or closed vehicle, and open the with a further provision for seizure of the vessel, car, same, and, as soon thereafter as may be prac- or vehicle with its contents, and a provision that noth- ticable, examine the contents, and if any article ing therein should prevent sales of cargo prior to arriv- subject to duty or any article the importation of al, to be delivered per manifest and after due inspec- which is prohibited is found therein, the whole tion, were contained in R.S. § 3104, which was super- contents and the container or vehicle shall be seded in part by act Sept. 21, 1922, ch. 356, title IV, § 464, subject to forfeiture. 42 Stat. 957, and was repealed by section 642 thereof. Section 464 of the 1922 act was superseded by section 464 (June 17, 1930, ch. 497, title IV, § 462, 46 Stat. 718.) of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. PRIOR PROVISIONS Provisions similar to those in this section were con- § 1465. Repealed. Pub. L. 103–182, title VI, tained in R.S. § 3101, which was superseded by act Sept. § 690(b)(7), Dec. 8, 1993, 107 Stat. 2223 21, 1922, ch. 356, title IV, § 462, 42 Stat. 956, and was re- Section, act June 17, 1930, ch. 497, title IV, § 465, 46 pealed by section 642 thereof. Section 462 of the 1922 act Stat. 718, required master of any vessel engaged in cer- was superseded by section 462 of act June 17, 1930, com- tain foreign and coasting trade and conductor of any prising this section, and repealed by section 651(a)(1) of railway car to file, upon arrival from foreign contig- the 1930 act. uous country, a list of all supplies or other merchan- § 1463. Sealed vessels and vehicles dise purchased in such foreign country. To avoid unnecessary inspection of merchan- § 1466. Equipment and repairs of vessels dise imported from a contiguous country at the (a) Vessels subject to duty; penalties first port of arrival, the master of the vessel or The equipments, or any part thereof, including the person in charge of the vehicle in which such boats, purchased for, or the repair parts or ma- merchandise is imported may apply to the cus- terials to be used, or the expenses of repairs toms officer of the United States stationed in made in a foreign country upon a vessel docu- the place from which such merchandise is mented under the laws of the United States to shipped, and such officer may seal such vessel or engage in the foreign or coasting trade, or a ves- vehicle. Any vessel or vehicle so sealed may pro- sel intended to be employed in such trade, shall, ceed with such merchandise to the port of des- on the first arrival of such vessel in any port of tination under such regulations as the Secretary the United States, be liable to entry and the of the Treasury may prescribe. payment of an ad valorem duty of 50 per centum (June 17, 1930, ch. 497, title IV, § 463, 46 Stat. 718.) on the cost thereof in such foreign country. If the owner or master willfully or knowingly ne- PRIOR PROVISIONS glects or fails to report, make entry, and pay du- Provisions similar to those in this section were con- ties as herein required, or if he makes any false tained in act Sept. 21, 1922, ch. 356, title IV, § 463, 42 statement in respect of such purchases or re- Stat. 957. That section was superseded by section 463 of pairs without reasonable cause to believe the act June 17, 1930, comprising this section, and repealed truth of such statements, or aids or procures the by section 651(a)(1) of the 1930 act. Provisions somewhat similar to those in this section, making of any false statement as to any matter and further provisions requiring the vessel, car, or ve- material thereto without reasonable cause to hicle sealed to proceed without unnecessary delay to believe the truth of such statement, such vessel, the port of destination and be there inspected, and pro- or a monetary amount up to the value thereof as viding that nothing contained therein should exempt determined by the Secretary, to be recovered the vessel, car, or vehicle from examinations to prevent from the owner, shall be subject to seizure and frauds, were contained in R.S. § 3102, and provisions au- forfeiture. For the purposes of this section, com- thorizing and requiring the Secretary of the Treasury pensation paid to members of the regular crew to make regulations for sealing vessels, cars, etc., were contained in section 3103, prior to repeal by act Sept. of such vessel in connection with the installa- 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. tion of any such equipments or any part thereof, or the making of repairs, in a foreign country, § 1464. Penalties in connection with sealed ves- shall not be included in the cost of such equip- sels and vehicles ment or part thereof, or of such repairs. If the master of such vessel or the person in (b) Notice charge of any such vehicle fails to proceed with If the appropriate customs officer has reason- reasonable promptness to the port of destination able cause to believe a violation has occurred and to deliver such vessel or vehicle to the prop- and determines that further proceedings are er officers of the customs, or fails to proceed in warranted, he shall issue to the person con- Page 151 TITLE 19—CUSTOMS DUTIES § 1466 cerned a written notice of his intention to issue cruing thereon duly paid; and if such owner or a penalty claim. Such notice shall— master shall refuse to take such oath, or take it (1) describe the circumstances of the alleged falsely, the vessel shall be seized and forfeited. violation; (e) Exclusions for arrivals two or more years (2) specify all laws and regulations allegedly after last departure violated; (3) disclose all the material facts which es- (1) In the case of any vessel referred to in sub- tablish the alleged violation; section (a) of this section that arrives in a port (4) state the estimated loss of lawful duties, of the United States two years or more after its if any, and taking into account all of the cir- last departure from a port in the United States, cumstances, the amount of the proposed pen- the duties imposed by this section shall apply alty; and only with respect to— (5) inform such person that he shall have a (A) fish nets and netting, and reasonable opportunity to make representa- (B) other equipments and parts thereof, re- tions, both oral and written, as to why such pair parts and materials purchased, or repairs penalty claim should not be issued. made, during the first six months after the last departure of such vessel from a port of the (c) Violation United States. After considering representations, if any, made by the person concerned pursuant to the (2) If such vessel is designed and used pri- notice issued under subsection (b) of this sec- marily for transporting passengers or property, tion, the appropriate customs officer shall deter- paragraph (1) shall not apply if the vessel de- mine whether any violation of subsection (a) of parted from the United States for the sole pur- this section, as alleged in the notice, has oc- pose of obtaining such equipments, parts, mate- curred. If such officer determines that there was rials, or repairs. no violation, he shall promptly notify, in writ- (f) Civil aircraft exception ing, the person to whom the notice was sent. If The duty imposed under subsection (a) of this such officer determines that there was a viola- section shall not apply to the cost of equip- tion, he shall issue a written penalty claim to ments, or any part thereof, purchased, of repair such person. The written penalty claim shall parts or materials used, or of repairs made in a specify all changes in the information provided foreign country with respect to a United States under paragraphs (1) through (4) of subsection civil aircraft, within the meaning of general (b) of this section. note 3(c)(iv) of the Harmonized Tariff Schedule (d) Remission for necessary repairs of the United States. If the owner or master of such vessel furnishes (g) Fish net and netting purchases and repairs good and sufficient evidence that— The duty imposed by subsection (a) of this sec- (1) such vessel, while in the regular course of tion shall not apply to entries on and after Octo- her voyage, was compelled, by stress of weath- ber 1, 1979, and before January 1, 1982, of— er or other casualty, to put into such foreign (1) tuna purse seine nets and netting which port and purchase such equipments, or make are equipments or parts thereof, such repairs, to secure the safety and sea- (2) repair parts for such nets and netting, or worthiness of the vessel to enable her to reach materials used in repairing such nets and net- her port of destination; ting, or (2) such equipments or parts thereof or re- (3) the expenses of repairs of such nets and pair parts or materials, were manufactured or netting, produced in the United States, and the labor necessary to install such equipments or to for any United States documented tuna purse make such repairs was performed by residents seine vessel of greater than 500 tons carrying ca- of the United States, or by members of the pacity or any United States tuna purse seine regular crew of such vessel; or vessel required to carry a certificate of inclusion (3) such equipments, or parts thereof, or ma- under the general permit issued to the American terials, or labor, were used as dunnage for Tunaboat Association pursuant to section 1374 cargo, or for the packing or shoring thereof, or of title 16. in the erection of temporary bulkheads or (h) Foreign repair of vessels other similar devices for the control of bulk The duty imposed by subsection (a) of this sec- cargo, or in the preparation (without perma- tion shall not apply to— nent repair or alteration) of tanks for the car- (1) the cost of any equipment, or any part of riage of liquid cargo; equipment, purchased for, or the repair parts then the Secretary of the Treasury is authorized or materials to be used, or the expense of re- to remit or refund such duties, and such vessel pairs made in a foreign country with respect shall not be liable to forfeiture, and no license to, LASH (Lighter Aboard Ship) barges docu- or enrollment and license, or renewal of either, mented under the laws of the United States shall hereafter be issued to any such vessel until and utilized as cargo containers; the collector to whom application is made for (2) the cost of spare repair parts or materials the same shall be satisfied, from the oath of the (other than nets or nettings) which the owner owner or master, that all such equipments or or master of the vessel certifies are intended parts thereof or materials and repairs made for use aboard a cargo vessel, documented within the year immediately preceding such ap- under the laws of the United States and en- plication have been duly accounted for under gaged in the foreign or coasting trade, for in- the provisions of this section, and the duties ac- stallation or use on such vessel, as needed, in § 1466 TITLE 19—CUSTOMS DUTIES Page 152

the United States, at sea, or in a foreign coun- 1984—Subsec. (e). Pub. L. 98–573 designated existing try, but only if duty is paid under appropriate provisions as par. (1), in par. (1) as so designated sub- commodity classifications of the Harmonized stituted reference to any vessel referred to in subsec. Tariff Schedule of the United States upon first (a) for reference to any vessel designed and used primarily for purposes other than transporting passengers entry into the United States of each such or property in the foreign or coasting trade, redesig- spare part purchased in, or imported from, a nated former cls. (1) and (2) as subpars. (A) and (B), re- foreign country; spectively, and added par. (2). (3) the cost of spare parts necessarily in- 1980—Subsec. (f). Pub. L. 96–467 substituted ‘‘of equip- stalled before the first entry into the United ments, or any part thereof, purchased, of repair parts States, but only if duty is paid under appro- or materials used, or of repairs made in a foreign coun- priate commodity classifications of the Har- try with respect to’’ for ‘‘of repair parts, materials, or monized Tariff Schedule of the United States expenses of repairs in a foreign country upon’’ and ‘‘schedule 6’’ for ‘‘Schedule 6’’. upon first entry into the United States of each Subsec. (g). Pub. L. 96–609 added subsec. (g). such spare part purchased in, or imported 1979—Subsec. (f). Pub. L. 96–39 added subsec. (f). from, a foreign country; or 1978—Subsec. (a). Pub. L. 95–410, § 206(1), incorporated (4) the cost of equipment, repair parts, and seizure and forfeiture provision formerly a part of first materials that are installed on a vessel docu- sentence in an inserted second sentence; substituted mented under the laws of the United States therein ‘‘willfully or knowingly’’ for ‘‘willfully and and engaged in the foreign or coasting trade, if knowingly’’ and ‘‘such vessel, or a monetary amount up the installation is done by members of the reg- to the value thereof as determined by the Secretary, to be recovered from the owner, shall be subject to seizure ular crew of such vessel while the vessel is on and forfeiture’’ for ‘‘such vessel, with her tackle, ap- the high seas, in foreign waters, or in a foreign parel, and furniture, shall be seized and forfeited’’; and port, and does not involve foreign shipyard re- authorized the seizure and forfeiture for making false pairs by foreign labor. statements in respect of purchases or repairs or aiding or procuring the making of false statements. Declaration and entry shall not be required with Subsecs. (b) to (e). Pub. L. 95–410, § 206(2), added sub- respect to the installation, equipment, parts, secs. (b) and (c) and redesignated former subsecs. (b) and materials described in paragraph (4). and (c) as (d) and (e), respectively. (June 17, 1930, ch. 497, title IV, § 466, 46 Stat. 719; 1971—Subsec. (c). Pub. L. 91–654 added subsec. (c). Pub. L. 91–654, § 1, Jan. 5, 1971, 84 Stat. 1944; Pub. EFFECTIVE DATE OF 2006 AMENDMENT L. 95–410, title II, § 206, Oct. 3, 1978, 92 Stat. 900; Pub. L. 109–280, title XIV, § 1631(c), Aug. 17, 2006, 120 Pub. L. 96–39, title VI, § 601(a)(3), July 26, 1979, 93 Stat. 1165, provided that: ‘‘The amendments made by Stat. 268; Pub. L. 96–467, § 14(a)(3)(B), Oct. 17, this section [amending this section] apply to vessel 1980, 94 Stat. 2225; Pub. L. 96–609, title I, § 115(a), equipment, repair parts, and materials installed on or Dec. 28, 1980, 94 Stat. 3558; Pub. L. 98–573, title II, after April 25, 2001.’’ § 208, Oct. 30, 1984, 98 Stat. 2976; Pub. L. 100–418, EFFECTIVE DATE OF 2004 AMENDMENT title I, § 1214(h)(4), Aug. 23, 1988, 102 Stat. 1157; Pub. L. 101–382, title III, § 484E(a), Aug. 20, 1990, Pub. L. 108–429, title I, § 1554(c), Dec. 3, 2004, 118 Stat. 2578, provided that: ‘‘The amendments made by this 104 Stat. 709; Pub. L. 103–465, title I, § 112(b), Dec. section [amending this section] apply to vessel equip- 8, 1994, 108 Stat. 4825; Pub. L. 108–429, title I, ment, repair parts, and materials installed on or after § 1554(a), Dec. 3, 2004, 118 Stat. 2578; Pub. L. April 25, 2001.’’ 109–280, title XIV, § 1631(a), Aug. 17, 2006, 120 Stat. 1164.) EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–465 effective on the date REFERENCES IN TEXT on which the WTO Agreement enters into force with re- The Harmonized Tariff Schedule of the United States, spect to the United States [Jan. 1, 1995], see section referred to in subsecs. (f) and (h)(2), (3), is not set out 116(a) of Pub. L. 103–465, set out as an Effective Date in the Code. See Publication of Harmonized Tariff note under section 3521 of this title. Schedule note set out under section 1202 of this title. EFFECTIVE DATE OF 1990 AMENDMENT PRIOR PROVISIONS Section 484E(b), (c) of Pub. L. 101–382, as amended by Provisions similar to those in subsecs. (a) and (b) of Pub. L. 103–465, title I, § 112(a), Dec. 8, 1994, 108 Stat. this section were contained respectively in R.S. §§ 3114 4825; Pub. L. 104–295, § 27, Oct. 11, 1996, 110 Stat. 3533, and 3115, as amended, which were formerly classified to provided that: sections 257 and 258 of this title prior to repeal by sec- ‘‘(b) EFFECTIVE DATE.—The amendment made by this tion 3 of Pub. L. 91–654. section [amending this section] shall apply to— ‘‘(1) any entry made before the date of enactment of AMENDMENTS this Act [Aug. 20, 1990] that is not liquidated on the 2006—Subsec. (h)(4). Pub. L. 109–280 added par. (4) and date of enactment of this Act, struck out former par. (4) which read as follows: ‘‘the ‘‘(2) any entry made— cost of equipment, repair parts, and materials that are ‘‘(A) on or after the date of enactment of this Act, installed on a vessel documented under the laws of the and United States and engaged in the foreign or coasting ‘‘(B) on or before December 31, 1992, trade, if the installation is done by members of the reg- ‘‘(3) any entry listed in subsection (c) that was ular crew of such vessel while the vessel is on the high made during the period beginning on January 1, 1993, seas.’’ and ending on December 31, 1994, to the extent such 2004—Subsec. (h). Pub. L. 108–429 added par. (4) and entry involves the purchase of equipment, the use of concluding provisions. materials, or the expense of repairs in a foreign coun- 1994—Subsec. (h)(3). Pub. L. 103–465 added par. (3). try for 66 LASH (Lighter Aboard Ship) barges docu- 1990—Subsec. (h). Pub. L. 101–382 added subsec. (h). mented under the laws of the United States if— 1988—Subsec. (f). Pub. L. 100–418 substituted ‘‘general ‘‘(A) such entry was not liquidated on January 1, note 3(c)(iv) of the Harmonized Tariff Schedule of the 1995; and United States’’ for ‘‘headnote 3 to schedule 6, part 6, ‘‘(B) such entry, had it been made on or after Jan- subpart C of the Tariff Schedules of the United States’’. uary 1, 1995, would otherwise be eligible for the ex- Page 153 TITLE 19—CUSTOMS DUTIES § 1466

emption provided in section 466(h)(1) of the Tariff available, if, within 60 days after the date of the en- Act of 1930 (19 U.S.C. 1466(h)(1)), and actment of this subsection [Oct. 11, 1996], a proper ‘‘(4) any entry made pursuant to section 466(h)(1) or entry is filed with the Customs Service.’’ (2) of the Tariff Act of 1930 (19 U.S.C. 1466(h)(1) or (2)), on or after the date of the entry into force of the EFFECTIVE DATE OF 1988 AMENDMENT WTO Agreement with respect to the United States Amendment by Pub. L. 100–418 effective Jan. 1, 1989, [Jan. 1, 1995]. and applicable with respect to articles entered on or ‘‘(c) ENTRIES.—The entries referred to in subsection after such date, see section 1217(b)(1) of Pub. L. 100–418, (b)(3) are the following: set out as an Effective Date note under section 3001 of ‘‘(1) NUMBERED ENTRIES.— this title.

Entry Number Date of Entry EFFECTIVE DATE OF 1984 AMENDMENT C14–0025455–8 ...... August 18, 1993 Amendment by Pub. L. 98–573 applicable with respect C14–0025456–6 ...... August 18, 1993 to entries made in connection with arrivals of vessels C14–0025457–4 ...... August 18, 1993 on or after the 15th day after Oct. 30, 1984, with certain C14–0025473–1 ...... August 27, 1993 exceptions for vessels transporting passengers or prop- C14–0025478–0 ...... September 13, 1993 erty, see section 214(a), (c)(3) of Pub. L. 98–573, set out C14–0025479–8 ...... September 13, 1993 as a note under section 1304 of this title. C14–0025480–6 ...... September 13, 1993 C14–0025481–4 ...... September 13, 1993 EFFECTIVE DATE OF 1980 AMENDMENT C14–0025511–8 ...... April 16, 1993 Section 14(b) of Pub. L. 96–467 provided in part that: C14–0025533–2 ...... April 30, 1993 ‘‘The amendment made by paragraph (3) of subsection C14–0025545–6 ...... May 21, 1993 (a) [amending this section] shall apply with respect to C14–0025546–4 ...... May 21, 1993 entries made under section 466 of the Tariff Act of 1930 C14–0025547–2 ...... May 21, 1993 [this section] on or after January 1, 1980.’’ C14–0025558–9 ...... June 15, 1993 C14–0025560–5 ...... June 15, 1993 EFFECTIVE DATE OF 1979 AMENDMENT C14–0025574–6 ...... July 21, 1993 C14–0025575–3 ...... July 21, 1993 Section 601(a) of Pub. L. 96–39 provided that the C14–0025603–3 ...... July 23, 1993 amendment made by that section is effective upon a C14–0025604–1 ...... July 23, 1993 Presidential proclamation authorized to be made after C14–0025605–8 ...... July 23, 1993 Sept. 30, 1979, when the conditions under section 2503(b) C14–0025623–1 ...... October 25, 1993 of this title on acceptance of the Agreement on Trade C14–0025624–9 ...... October 25, 1993 in Civil Aircraft are fulfilled. C14–0025625–6 ...... October 25, 1993 ENTRIES MADE IN CONNECTION WITH ARRIVAL OF VES- C14–0025635–5 ...... November 8, 1993 SELS ON OR AFTER OCTOBER 1, 1979, AND BEFORE DE- C14–0025636–3 ...... November 8, 1993 CEMBER 28, 1980 C14–0025637–1 ...... November 8, 1993 C14–0025653–8 ...... November 30, 1993 Section 115(b) of Pub. L. 96–609 provided that: ‘‘Upon C14–0025654–6 ...... November 30, 1993 request therefor filed with the customs officer con- C14–0025655–3 ...... November 30, 1993 cerned on or before the 90th day after the date of the C14–0025657–9 ...... November 30, 1993 enactment of this Act [Dec. 28, 1980], the entry of any C14–0025679–3 ...... January 3, 1994 article to which section 466(a) of the Tariff Act of 1930 C14–0025680–1 ...... January 3, 1994 [subsec. (a) of this section] applied and— C14–0025688–4 ...... February 14, 1994 ‘‘(1) that was made on or after October 1, 1979, and C14–0025689–2 ...... February 14, 1994 before the date of the enactment of this Act; and C14–0025690–0 ...... February 14, 1994 ‘‘(2) with respect to which there would have been no C14–0025691–8 ...... February 14, 1994 duty if the amendment made by subsection (a) [add- C14–0025692–6 ...... February 14, 1994 ing subsec. (g) of this section] applied to such entry C14–0026803–8 ...... January 24, 1994 or withdrawal; C14–0026804–6 ...... January 24, 1994 shall, notwithstanding the provisions of section 514 of C14–0026805–3 ...... January 24, 1994 the Tariff Act of 1930 [section 1514 of this title] or any C14–0026807–9 ...... January 24, 1994 other provision of law, be liquidated or reliquidated as C14–0026808–7 ...... January 24, 1994 though such entry or withdrawal had been made on the C14–0026809–5 ...... January 24, 1994 date of the enactment of this Act.’’ C14–0026810–3 ...... January 24, 1994 C14–0026811–1 ...... January 24, 1994 ENTRIES MADE IN CONNECTION WITH ARRIVALS OF VES- C14–0026826–9 ...... March 10, 1994 SELS ON OR AFTER JANUARY 5, 1971; ENTRIES IN CON- C14–0026827–7 ...... March 10, 1994 NECTION WITH THE ARRIVAL OF SHRIMP VESSELS C14–0026828–5 ...... March 10, 1994 AFTER JANUARY 1, 1969, AND BEFORE JANUARY 5, C14–0026829–3 ...... March 10, 1994 1971 C14–0026830–1 ...... March 10, 1994 Section 2 of Pub. L. 91–654 provided that: C14–0026831–9 ...... March 10, 1994 ‘‘(a) The amendment made by the first section of this C14–0026832–7 ...... March 10, 1994 Act [amending this section] shall apply with respect to C14–0026833–5 ...... March 10, 1994 entries made in connection with arrivals of vessels on C14–0026841–8 ...... March 31, 1994 or after the date of the enactment of this Act [Jan. 5, C14–0026843–4 ...... March 31, 1994 1971]. C14–0026852–5 ...... May 5, 1994 ‘‘(b) Upon request therefor filed with the customs of- C14–0026853–3 ...... May 5, 1994 ficer concerned on or before the ninetieth day after the C14–0026854–1 ...... May 5, 1994 date of the enactment of this Act, any entry in connec- C14–0026867–3 ...... May 18, 1994 tion with the arrival of a vessel used primarily for the C14–0026869–9 ...... May 18, 1994 catching of shrimp— C14–0026874–9 ...... June 8, 1994 ‘‘(1) which was made after January 1, 1969, and be- C14–0026875–6 ...... June 8, 1994 fore the date of the enactment of this Act, and C14–0026898–8 ...... August 2, 1994 ‘‘(2) with respect to which there would have been no C14–0026899–6 ...... August 2, 1994 duty if the amendment made by the first section of C14–0040625–7 ...... October 5, 1994. this Act applied to such entry, ‘‘(2) ADDITIONAL ENTRY.—The entry of a 66th LASH shall, notwithstanding the provisions of section 514 of barge (No. CG E69), for which no entry number is the Tariff Act of 1930 [section 1514 of this title] or any § 1467 TITLE 19—CUSTOMS DUTIES Page 154 other provision of law, be liquidated or reliquidated as alent thereof considered acceptable by the Sec- though such entry had been made on the day after the retary in regulations prescribed under this sec- date of the enactment of this Act.’’ tion shall set forth, in written, electronic, or § 1467. Special inspection, examination, and such other form as the Secretary shall prescribe, search the following: (1) The port of entry to which the merchan- Whenever a vessel from a foreign port or place dise is destined; or from a port or place in any Territory or pos- (2) The time when, the place where, and the session of the United States arrives at a port or person by whom and the person to whom the place in the United States or the Virgin Islands, merchandise is sold or agreed to be sold, or if whether directly or via another port or place in to be imported otherwise than in pursuance of the United States or the Virgin Islands, the ap- a purchase, the place from which shipped, the propriate customs officer for such port or place time when and the person to whom and the of arrival may, under such regulations as the person by whom it is shipped; Secretary of the Treasury may prescribe and for (3) A detailed description of the merchan- the purpose of assuring compliance with any dise, including the commercial name by which law, regulation, or instruction which the Sec- each item is known, the grade or quality, and retary of the Treasury or the Customs Service is the marks, numbers, or symbols under which authorized to enforce, cause inspection, exam- sold by the seller or manufacturer in the coun- ination, and search to be made of the persons, try of exportation, together with the marks baggage, and merchandise discharged or unladen and numbers of the packages in which the from such vessel, whether or not any or all such merchandise is packed; persons, baggage, or merchandise has previously (4) The quantities in the weights and meas- been inspected, examined, or searched by offi- ures of the country or place from which the cers of the customs. merchandise is shipped, or in the weights and (June 17, 1930, ch. 497, title IV, § 467, as added measures of the United States; June 25, 1938, ch. 679, § 11, 52 Stat. 1083; amended (5) The purchase price of each item in the Pub. L. 91–271, title III, § 301(g), June 2, 1970, 84 currency of the purchase, if the merchandise is Stat. 288.) shipped in pursuance of a purchase or an agreement to purchase; AMENDMENTS (6) If the merchandise is shipped otherwise 1970—Pub. L. 91–271 substituted reference to appro- than in pursuance of a purchase or an agree- priate customs officer for reference to collector of cus- ment to purchase, the value for each item, in toms. the currency in which the transactions are EFFECTIVE DATE OF 1970 AMENDMENT usually made, or, in the absence of such value, the price in such currency that the manufac- For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under turer, seller, shipper, or owner would have re- section 1500 of this title. ceived, or was willing to receive, for such merchandise if sold in the ordinary course of trade EFFECTIVE DATE and in the usual wholesale quantities in the This section effective on the thirtieth day following country of exportation; June 25, 1938, except as otherwise specifically provided, (7) The kind of currency, whether gold, sil- see section 37 of act June 25, 1938, set out as an Effec- ver, or paper; tive Date of 1938 Amendment note under section 1401 of (8) All charges upon the merchandise, item- this title. ized by name and amount when known to the TRANSFER OF FUNCTIONS seller or shipper; or all charges by name (in- For transfer of functions, personnel, assets, and li- cluding commissions, insurance, freight, cases, abilities of the United States Customs Service of the containers, coverings, and cost of packing) in- Department of the Treasury, including functions of the cluded in the invoice prices when the amounts Secretary of the Treasury relating thereto, to the Sec- for such charges are unknown to the seller or retary of Homeland Security, and for treatment of re- shipper; lated references, see sections 203(1), 551(d), 552(d), and (9) All rebates, drawbacks, and bounties, sep- 557 of Title 6, Domestic Security, and the Department arately itemized, allowed upon the expor- of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section tation of the merchandise; and 542 of Title 6. (10) Any other fact that the Secretary may Functions of all other officers of Department of the by regulation require as being necessary to a Treasury and functions of all agencies and employees of proper appraisement, examination and classi- such Department transferred, with certain exceptions, fication of the merchandise. to Secretary of the Treasury, with power vested in him (b) Shipments not purchased and not shipped by to authorize their performance or performance of any of his functions, by any of such officers, agencies, and manufacturer employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July If the merchandise is shipped to a person in 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the the United States by a person other than the Appendix to Title 5, Government Organization and Em- manufacturer, otherwise than by purchase, such ployees. person shall state on the invoice the time when, PART III—ASCERTAINMENT, COLLECTION, AND the place where, the person from whom such RECOVERY OF DUTIES merchandise was purchased, and the price paid therefor in the currency of the purchase, stating § 1481. Invoice; contents whether gold, silver, or paper. (a) In general (c) Importer provision of information All invoices of merchandise to be imported Any information required to be set forth on an into the United States and any electronic equiv- invoice may alternatively be provided by any of Page 155 TITLE 19—CUSTOMS DUTIES § 1484 the parties qualifying as an ‘‘importer of as follows: ‘‘Any other facts deemed necessary to a record’’ under section 1484(a)(2)(B) of this title proper appraisement, examination, and classification of by such means, in such form or manner, and the merchandise that the Secretary of the Treasury within such time as the Secretary shall by regu- may require.’’ Subsec. (c). Pub. L. 103–182, § 636(2), amended subsec. lation prescribe. (c) generally. Prior to amendment, subsec. (c) read as (d) Exceptions by regulations follows: ‘‘When the merchandise has been purchased in The Secretary of the Treasury may by regula- different consular districts for shipment to the United States and is assembled for shipment and embraced in tions provide for such exceptions from the re- a single invoice which is produced for certification quirements of this section as he deems advisable under the provisions of paragraph (2) of subdivision (a) and may allow for the submission or electronic of section 1482 of this title, the invoice shall have at- transmission of partial invoices, electronic tached thereto the original bills or invoices received by equivalents of invoices, bills, or other docu- the shipper, or extracts therefrom, showing the actual ments or parts thereof, required under this sec- prices paid or to be paid for such merchandise. The con- tion. sular officer to whom the invoice is so produced for certification may require that any such original bill or in- (June 17, 1930, ch. 497, title IV, § 481, 46 Stat. 719; voice be certified by the consular officer for the district Pub. L. 103–182, title VI, § 636, Dec. 8, 1993, 107 in which the merchandise was purchased.’’ Stat. 2200.) Subsec. (d). Pub. L. 103–182, § 636(3), inserted before period at end ‘‘and may allow for the submission or elec- PRIOR PROVISIONS tronic transmission of partial invoices, electronic Provisions similar to those in this section were con- equivalents of invoices, bills, or other documents or tained in act Sept. 21, 1922, ch. 356, title IV, § 481, 42 parts thereof, required under this section’’. Stat. 958. That section was superseded by section 481 of act June 17, 1930, comprising this section, and repealed § 1482. Repealed. Pub. L. 103–182, title VI, by section 651(a)(1) of the 1930 act. § 690(b)(8), Dec. 8, 1993, 107 Stat. 2223 Provisions as to the weights or measures, and cur- Section, acts June 17, 1930, ch. 497, title IV, § 482, 46 rency, in which invoices should be made out and the Stat. 720; Proc. No. 2695, July 4, 1946, 11 F.R. 7517, 60 contents of invoices, with additional provisions as to Stat. 1352; Oct. 25, 1951, ch. 562, § 4(4), 65 Stat. 640; Aug. invoices of merchandise intended for immediate trans- 8, 1953, ch. 397, § 16(a), 67 Stat. 517; June 2, 1970, Pub. L. portation without appraisement, and a provision as to 91–271, title III, § 301(h), 84 Stat. 288, set forth require- the signing of the invoice, were contained in R.S. § 2837 ments for certified invoices including time of certifi- and act Oct. 3, 1913, ch. 16, § III, C, 38 Stat. 181 (super- cation, declarations, number and destination of copies, seding Customs Administrative Act of June 10, 1890, ch. and certification by other than an American consulate 407, § 2, 26 Stat. 131, as amended by Payne-Aldrich Tariff in remote areas. Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 91), which were superseded by act Sept. 21, 1922, ch. 356, title IV, § 481, § 1483. Repealed. Pub. L. 97–446, title II, § 201(c), 42 Stat. 958, and repealed by sections 642 and 643 there- Jan. 12, 1983, 96 Stat. 2349 of. R.S. §§ 2838, 2853 (as amended by Act June 10, 1880, ch. Section, acts June 17, 1930, ch. 497, title IV, § 483, 46 190) and 2860, contained provisions concerning invoices Stat. 721; Oct. 3, 1978, Pub. L. 95–410, title II, § 207, 92 and their contents, prior to repeal by Customs Admin- Stat. 901, provided that for specified purposes the con- istrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141. signee of merchandise be deemed the owner. Act May 27, 1921, ch. 14, § 401, 42 Stat. 16, required invoices to contain, in addition to statements then re- EFFECTIVE DATE OF REPEAL quired by law, such other statements as the Secretary Repeal effective with respect to merchandise entered of the Treasury should prescribe, and a statement as to on and after 30th day after Jan. 12, 1983, see section the currency in which made out, and section 402 of that 201(g) of Pub. L. 97–446, set out as an Effective Date of Act required the owner, importer, etc., to set forth on 1983 Amendment note under section 1484 of this title. the invoice or statement in form of an invoice, and in the entry, in addition to statements then required by § 1484. Entry of merchandise law such statements, under oath if required, as the Sec- retary might prescribe. These provisions were omitted (a) Requirement and time from the Code as superseded by this section, and sec- (1) Except as provided in sections 1490, 1498, tion 1485(a) of this title. 1552, and 1553 of this title, one of the parties Provisions on the subject matter of subdivision (c) of qualifying as ‘‘importer of record’’ under para- this section were contained in act Oct. 3, 1913, ch. 16, § III, W, 38 Stat. 190, which was superseded by act Sept. graph (2)(B), either in person or by an agent au- 21, 1922, ch. 356, title IV, § 481, 42 Stat. 958, and repealed thorized by the party in writing, shall, using by section 643 thereof. reasonable care— (A) make entry therefor by filing with the AMENDMENTS Bureau of Customs and Border Protection such 1993—Subsec. (a). Pub. L. 103–182, § 636(1)(A), amended documentation or, pursuant to an authorized introductory provisions generally. Prior to amend- electronic data interchange system, such in- ment, introductory provisions read as follows: ‘‘All information as is necessary to enable the Bureau voices of merchandise to be imported into the United States shall set forth—’’. of Customs and Border Protection to deter- Subsec. (a)(3). Pub. L. 103–182, § 636(1)(B), amended mine whether the merchandise may be re- par. (3) generally. Prior to amendment, par. (3) read as leased from custody of the Bureau of Customs follows: ‘‘A detailed description of the merchandise, in- and Border Protection; 1 cluding the name by which each item is known, the (B) complete the entry, or substitute 1 or grade or quality, and the marks, numbers, or symbols more reconfigured entries on an import activ- under which sold by the seller or manufacturer to the ity summary statement, by filing with the trade in the country of exportation, together with the Customs Service the declared value, classifica- marks and numbers of the packages in which the merchandise is packed;’’. tion and rate of duty applicable to the mer- Subsec. (a)(10). Pub. L. 103–182, § 636(1)(C), amended par. (10) generally. Prior to amendment, par. (10) read 1 So in original. The word ‘‘and’’ probably should appear at end. § 1484 TITLE 19—CUSTOMS DUTIES Page 156

chandise, and such other documentation or, elects, the party shall declare that a reconcili- pursuant to an electronic data interchange ation will be filed. The declaration shall be system, such other information as is necessary made in such manner as the Secretary shall to enable the Customs Service to— prescribe and at the time the documentation (i) properly assess duties on the merchan- or information required by subsection (a)(1)(B) dise, of this section or the import activity sum- (ii) collect accurate statistics with respect mary statement is filed with, or transmitted to the merchandise, and to, the Customs Service, or at such later time (iii) determine whether any other applica- as the Customs Service may, in its discretion, ble requirement of law (other than a require- permit. The reconciliation shall be filed by the ment relating to release from customs cus- importer of record at such time and in such tody) is met. manner as the Secretary prescribes but not (2)(A) The documentation or information re- later than 21 months after the date the im- quired under paragraph (1) with respect to any porter declares his intent to file the reconcili- imported merchandise shall be filed or transmit- ation. In the case of reconciling issues relating to the assessment of antidumping and coun- ted in such manner and within such time periods tervailing duties, the reconciliation shall be as the Secretary shall by regulation prescribe. filed not later than 90 days after the date the Such regulations shall provide for the filing of Customs Service advises the importer that the import activity summary statements, and per- period of review for antidumping or counter- mit the filing of reconfigured entries, covering vailing duty purposes has been completed. Be- merchandise released under a special delivery fore filing a reconciliation, an importer of permit pursuant to section 1448(b) of this title record shall post bond or other security pursu- and entries or warehouse withdrawals made dur- ant to such regulations as the Secretary may ing a calendar month, within such time period prescribe. as is prescribed in regulations but not to exceed (2) Regulations regarding AD/CV duties the 20th day following such calendar month. En- tries filed under paragraph (1)(A) shall not be The Secretary shall prescribe, in consulta- liquidated if covered by an import activity sum- tion with the Secretary of Commerce, such mary statement, but instead each reconfigured regulations as are necessary to adapt the rec- entry in the import activity summary state- onciliation process for use in the collection of ment shall be subject to liquidation or reliquida- antidumping and countervailing duties. tion pursuant to section 1500, 1501, or 1504 of this (c) Release of merchandise title. The Customs Service may permit the entry (B) When an entry of merchandise is made and release of merchandise from customs cus- under this section, the required documentation tody in accordance with such regulations as the or information shall be filed or electronically Secretary may prescribe. No officer of the Cus- transmitted either by the owner or purchaser of toms Service shall be liable to any person with the merchandise or, when appropriately des- respect to the delivery of merchandise released ignated by the owner, purchaser, or consignee of from customs custody in accordance with such the merchandise, a person holding a valid li- regulations. cense under section 1641 of this title. When a (d) Signing and contents consignee declares on entry that he is the owner (1) Entries shall be signed by the importer of or purchaser of merchandise the Customs Serv- record, or his agent, unless filed pursuant to an ice may, without liability, accept the declara- electronic data interchange system. If electroni- tion. For the purposes of this chapter, the im- cally filed, each transmission of data shall be porter of record must be one of the parties who certified by an importer of record or his agent, is eligible to file the documentation or informa- one of whom shall be resident in the United tion required by this section. States for purposes of receiving service of proc- (C) The Secretary, in prescribing regulations ess, as being true and correct to the best of his to carry out this subsection, shall establish pro- knowledge and belief, and such transmission cedures which insure the accuracy and timeli- shall be binding in the same manner and to the ness of import statistics, particularly statistics same extent as a signed document. The entry relevant to the classification and valuation of shall set forth such facts in regard to the impor- imports. Corrections of errors in such statistical tation as the Secretary may require and shall be data shall be transmitted immediately to the accompanied by such invoices, bills of lading, Director of the Bureau of the Census, who shall certificates, and documents, or their electroni- make corrections in the statistics maintained cally submitted equivalents, as are required by by the Bureau. The Secretary shall also provide, regulation. to the maximum extent practicable, for the pro- (2) The Secretary, in prescribing regulations tection of the revenue, the enforcement of laws governing the content of entry documentation, governing the importation and exportation of shall require that entry documentation contain merchandise, the facilitation of the commerce such information as may be necessary to deter- of the United States, and the equal treatment of mine whether the imported merchandise bears all importers of record of imported merchandise. an infringing trademark in violation of section (b) Reconciliation 1124 of title 15 or any other applicable law, in- (1) In general cluding a trademark appearing on the goods or A party may elect to file a reconciliation packaging. with regard to such entry elements as are (e) Production of invoice identified by the party pursuant to regulations The Secretary may provide by regulation for prescribed by the Secretary. If the party so the production of an invoice, parts thereof, or Page 157 TITLE 19—CUSTOMS DUTIES § 1484 the electronic equivalents thereof, in such man- (i) to file the entries described in para- ner and form, and under such terms and condi- graph (1); and tions, as the Secretary considers necessary. (ii) to pay the applicable duties, fees, and (f) Statistical enumeration taxes with respect to the entries; and The Secretary, the Secretary of Commerce, (B) satisfy the Customs Service that ac- and the United States International Trade Com- counting, transportation, and other controls mission shall establish from time to time for over the merchandise are adequate to pro- statistical purposes an enumeration of articles tect the revenue and meet the requirements in such detail as in their judgment may be nec- of other Federal agencies. essary, comprehending all merchandise im- (3) Exception ported into the United States and exported from The provisions of paragraph (1) shall not the United States, and shall seek, in conjunc- apply to merchandise the entry of which is tion with statistical programs for domestic pro- prohibited by law or merchandise for which duction and programs for achieving inter- the filing of an entry summary is required be- national harmonization of trade statistics, to fore the merchandise is released from customs establish the comparability thereof with such custody. enumeration of articles. All import entries and export declarations shall include or have at- (4) Foreign trade zone; zone tached thereto an accurate statement specify- In this subsection, the terms ‘‘foreign trade ing, in terms of such detailed enumeration, the zone’’ and ‘‘zone’’ mean a zone established pur- kinds and quantities of all merchandise im- suant to the Act of June 18, 1934, commonly ported and exported and the value of the total known as the Foreign Trade Zones Act (19 quantity of each kind of article. U.S.C. 81a et seq.). (g) Statement of cost of production (j) Treatment of multiple entries of merchandise as single transaction Under such regulations as the Secretary may prescribe, the Customs Service may require a In the case of merchandise that is purchased verified statement from the manufacturer or and invoiced as a single entity but— producer showing the cost of producing the im- (1) is shipped in an unassembled or disassem- ported merchandise, if the Customs Service con- bled condition in separate shipments due to siders such verification necessary for the ap- the size or nature of the merchandise, or praisement of such merchandise. (2) is shipped in separate shipments due to the inability of the carrier to include all of the (h) Admissibility of data electronically transmit- merchandise in a single shipment (at the in- ted struction of the carrier), Any entry or other information transmitted by means of an authorized electronic data inter- the Customs Service may, upon application by change system shall be admissible in any and all an importer in advance, treat such separate administrative and judicial proceedings as evi- shipments for entry purposes as a single trans- dence of such entry or information. action. (i) Special rule for foreign trade zone operations (June 17, 1930, ch. 497, title IV, § 484, 46 Stat. 722; June 25, 1938, ch. 679, § 12, 52 Stat. 1083; Aug. 8, (1) In general 1953, ch. 397, §§ 3(b), 16(b), (c), 67 Stat. 509, 517; Notwithstanding any other provision of law Pub. L. 91–271, title III, § 301(i), June 2, 1970, 84 and except as provided in paragraph (3), all Stat. 288; Pub. L. 93–618, title VI, § 608(a), Jan. 3, merchandise (including merchandise of dif- 1975, 88 Stat. 2073; Pub. L. 95–106, § 4, Aug. 17, ferent classes, types, and categories), with- 1977, 91 Stat. 869; Pub. L. 95–410, title I, § 102(a), drawn from a foreign trade zone during any 7- Oct. 3, 1978, 92 Stat. 888; Pub. L. 97–446, title II, day period, shall, at the option of the operator § 201(d), Jan. 12, 1983, 96 Stat. 2349; Pub. L. or user of the zone, be the subject of a single 103–182, title VI, § 637(a), Dec. 8, 1993, 107 Stat. estimated entry or release filed on or before 2200; Pub. L. 104–153, § 12, July 2, 1996, 110 Stat. the first day of the 7-day period in which the 1389; Pub. L. 104–295, §§ 18(b), 21(e)(6), Oct. 11, merchandise is to be withdrawn from the zone. 1996, 110 Stat. 3524, 3531; Pub. L. 106–200, title IV, The estimated entry or release shall be treat- § 410(a), May 18, 2000, 114 Stat. 297; Pub. L. ed as a single entry and a single release of 106–476, title I, § 1460(a), Nov. 9, 2000, 114 Stat. merchandise for purposes of section 2171; Pub. L. 108–429, title II, § 2101, Dec. 3, 2004, 58c(a)(9)(A) of this title and all fee exclusions 118 Stat. 2597; Pub. L. 109–280, title XIV, § 1635(a), and limitations of such section 58c of this title Aug. 17, 2006, 120 Stat. 1170.) shall apply, including the maximum and mini- REFERENCES IN TEXT mum fee amounts provided for under subsection (b)(8)(A)(i) of such section. The entry The Foreign Trade Zones Act, referred to in subsec. summary for the estimated entry or release (i)(4), is act June 18, 1934, ch. 590, 48 Stat. 998, as amend- shall cover only the merchandise actually ed, which is classified generally to chapter 1A (§ 81a et seq.) of this title. For complete classification of this withdrawn from the foreign trade zone during Act to the Code, see Tables. the 7-day period. PRIOR PROVISIONS (2) Other requirements Provisions similar to those in this section were con- The Secretary of the Treasury may require tained in act Sept. 21, 1922, ch. 356, title IV, § 484, 42 that the operator or user of the zone— Stat. 960. That section was superseded by section 484 of (A) use an electronic data interchange ap- act June 17, 1930, comprising this section, and repealed proved by the Customs Service— by section 651(a)(1) of the 1930 act. § 1484 TITLE 19—CUSTOMS DUTIES Page 158

Provisions requiring entry of goods, and prescribing AMENDMENTS the manner of making it, the documents to be pro- 2006—Subsec. (a)(1)(A). Pub. L. 109–280, § 1635(a)(1), duced, etc., were contained in R.S. § 2785. Provision for amended subpar. (A) generally. Prior to amendment, entry when the particulars of the merchandise were un- subpar. (A) read as follows: ‘‘make entry therefor by fil- known was made by R.S. § 2788. A special provision re- ing with the Customs Service— garding entry of distilled spirits and wines was con- ‘‘(i) such documentation or, pursuant to an elec- tained in R.S. § 2794. All of these sections were repealed tronic data interchange system, such information as by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. Provisions relating to the production of certified in- is necessary to enable the Customs Service to deter- voices were contained in act Oct. 3, 1913, ch. 16, § III, E, mine whether the merchandise may be released from 38 Stat. 182, which reenacted the provisions of the customs custody, and Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 ‘‘(ii) notification whether an import activity sum- Stat. 92, which amended Customs Administrative Act mary statement will be filed; and’’. of June 10, 1890, ch. 407, § 4, 26 Stat. 131. Said section III, Subsec. (a)(2)(A). Pub. L. 109–280, § 1635(a)(2), inserted E, was repealed by act Sept. 21, 1922, ch. 356, title IV, ‘‘merchandise released under a special delivery permit § 643, 42 Stat. 989. Earlier provisions were contained in pursuant to section 1448(b) of this title and’’ after ‘‘cov- R.S. § 2860, and act June 22, 1874, ch. 391, §§ 9, 10, and 11, ering’’ in second sentence. 2004—Subsec. (a)(1)(B). Pub. L. 108–429, § 2101(a)(1), in- all repealed by act June 10, 1890, ch. 407, § 29, 26 Stat. serted ‘‘, or substitute 1 or more reconfigured entries 141. R.S. § 2842 required bond for the production of an in- on an import activity summary statement,’’ after voice duly certified by the oath of the owner or one of ‘‘entry’’ in introductory provisions. them, in the case of merchandise belonging to a resi- Subsec. (a)(2)(A). Pub. L. 108–429, § 2101(a)(2), in second dent of the United States absent from the place of sentence, inserted ‘‘and permit the filing of reconfig- entry. R.S. § 2852, provided that when merchandise was ured entries,’’ after ‘‘statements,’’ and, at end, inserted admitted to entry on invoice, the collector should cer- ‘‘Entries filed under paragraph (1)(A) shall not be liq- tify the same, and no other evidence of value should be uidated if covered by an import activity summary admitted on the part of the owner, except in corrobora- statement, but instead each reconfigured entry in the tion of the entry. R.S. § 2859, made special provision for import activity summary statement shall be subject to entry of merchandise from countries where there was liquidation or reliquidation pursuant to section 1500, no United States consul, etc. These sections were all 1501, or 1504 of this title.’’ repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Subsec. (b)(1). Pub. L. 108–429, § 2101(b), substituted Stat. 989. ‘‘21 months’’ for ‘‘15 months’’ in fourth sentence. R.S. §§ 2847 and 2848 authorized the Secretary of the 2000—Subsec. (i). Pub. L. 106–200 added subsec. (i). Treasury to admit to entry in certain cases merchan- Subsec. (j). Pub. L. 106–476 added subsec. (j). dise subject to ad valorem duty, belonging to a person 1996—Subsec. (a)(1). Pub. L. 104–295, § 21(e)(6), sub- not residing in the United States, not accompanied stituted ‘‘and 1553’’ for ‘‘1553, and 1336(j)’’. with an invoice verified and authenticated as required Subsec. (b)(1). Pub. L. 104–295, § 18(b), substituted ‘‘A by preceding section. They became inoperative by the party may elect to file a reconciliation with regard to repeal of R.S. §§ 2843, 2845, by the Customs Administra- such entry elements as are identified by the party pur- tive Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141, reen- suant to regulations prescribed by the Secretary. If the acted by the Payne-Aldrich Tariff Act of Aug. 5, 1909, party so elects, the party shall declare that a reconcili- ch. 6, § 28, 36 Stat. 104, and the enactment of provisions ation will be filed. The declaration shall be made in for entry of goods without invoice by section 4 of said such manner as the Secretary shall prescribe and at the Customs Administrative Act amended by the Payne-Al- time the documentation or information required by drich Tariff Act, and further amended by the Under- subsection (a)(1)(B) of this section or the import activ- wood Tariff Act of Oct. 3, 1913, ch. 16, § III, E, and were ity summary statement is filed with, or transmitted to, repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 the Customs Service, or at such later time as the Cus- Stat. 989. toms Service may, in its discretion, permit. The rec- R.S. § 2858, provided that the Secretary of the Treas- onciliation shall be filed by the importer of record at ury, whenever it had become impracticable for the per- such time and in such manner as the Secretary pre- son desiring to make entry of merchandise to produce scribes but not later than 15 months after the date the any invoice thereof, might authorize the entry thereof, importer declares his intent to file the reconciliation. and remit forfeitures in such cases, as in other cases In the case of reconciling issues relating to the assess- under the revenue laws. It was repealed by the Customs ment of antidumping and countervailing duties, the Administrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. reconciliation shall be filed not later than 90 days after 141, reenacted by the Payne-Aldrich Act of Aug. 5, 1909, the date the Customs Service advises the importer that ch. 6, § 28, 36 Stat. 104. the period of review for antidumping or countervailing A provision relating to statistical enumeration of duty purposes has been completed.’’ for ‘‘A party that merchandise, except that the ‘‘accurate statement’’ electronically transmits an entry summary or import was to be a part of the declaration therein provided for, activity summary statement may at the time of filing and a further provision making it the duty of the con- such summary or statement notify the Customs Serv- sular officer to whom the invoice should be produced to ice of his intention to file a reconciliation pursuant to require the information to be given, were contained in such regulations as the Secretary may prescribe. Such act Oct. 3, 1913, ch. 16, § III, F, 38 Stat. 182, amending reconciliation must be filed by the importer of record the Customs Administrative Act of June 10, 1890, ch. within such time period as is prescribed by regulation 407, § 5, 26 Stat. 132, as previously amended by Payne- but no later than 15 months following the filing of the Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 95. entry summary or import activity summary statement; Said section III, F, was repealed by act Sept. 21, 1922, except that the prescribed time period for reconcili- ch. 356, title IV, § 643, 42 Stat. 989. ation issues relating to the assessment of antidumping Prior provisions on the subject of subsequent entry of and countervailing duties shall require filing no later part of merchandise and separate entry of packages than 90 days after the Customs Service advises the im- contained in packages for delivery to others were con- porter that a period of review for antidumping or coun- tained in act May 1, 1876, ch. 89, § 1, 19 Stat. 49, which tervailing duty purposes has been completed.’’ was repealed by act Sept. 21, 1922, ch. 356, title IV, § 643, Subsec. (d). Pub. L. 104–153 designated existing provi- 42 Stat. 989; and in act Oct. 3, 1913, ch. 16, § III, F, 38 sions as par. (1) and added par. (2). Stat. 182, amending Customs Administrative Act of 1993—Pub. L. 103–182 amended section generally, sub- June 10, 1890, ch. 407, § 5, 26 Stat. 132, as previously stituting present provisions for provisions relating to amended by Payne-Aldrich Tariff Act of Aug. 5, 1909, entry of merchandise and providing specifically for re- ch. 6, § 28, 36 Stat. 95. Said section III, F, was repealed quirement and time, production of certified invoice, by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. production of bill of lading, signing and contents of Page 159 TITLE 19—CUSTOMS DUTIES § 1484 entry, statistical enumeration, packages included, Subsec. (g). Pub. L. 91–271, § 301(i)(4), substituted ref- statement of cost of production, certification of owner erence to appropriate customs officer for reference to by carrier, acceptance of duplicate bill of lading, and collector or appraiser. release of merchandise from customs custody. Subsec. (j). Pub. L. 91–271, § 301(i)(5), (6), substituted 1983—Subsec. (a)(1). Pub. L. 97–446, § 201(d)(1)(A), sub- references to customs officer or such customs officer stituted ‘‘one of the parties qualifying as ‘importer of for references to collector wherever appearing. record’ under paragraph (2)(C) of this subsection’’ for 1953—Subsec. (a). Act Aug. 8, 1953, § 16(b), substituted ‘‘the consignee of imported merchandise’’, and ‘‘author- ‘‘five days’’ for ‘‘forty-eight hours’’. ized by him’’ for ‘‘authorized by the consignee’’. Subsec. (b). Act Aug. 8, 1953, § 16(c), granted the Sec- Subsec. (a)(2)(C), (D). Pub. L. 97–446, § 201(d)(1)(B), (C), retary of the Treasury discretion to require certified added subpar. (C), redesignated former subpar. (C) as invoices with respect to merchandise entered as he (D), and in subpar. (D) as so redesignated substituted deems advisable and to establish terms under which ‘‘importers of record’’ for ‘‘consignees’’ after ‘‘treat- merchandise may be imported without a certified in- ment of all’’. voice, in lieu of former provision that all such mer- Subsec. (c). Pub. L. 97–446, § 201(d)(2), substituted ‘‘im- chandise should be accompanied by an invoice certified porter of record’’ for ‘‘consignee’’ before ‘‘shall by a United States consulate except in certain enumer- produce’’. ated situations, and of the former provision that the Subsec. (d). Pub. L. 97–446, § 201(d)(2), substituted ‘‘im- Secretary might grant certain other exceptions. porter of record’’ for ‘‘consignee’’ after ‘‘signed by the’’. Subsec. (f). Act Aug. 8, 1953, § 3(b), inserted provision Subsec. (h). Pub. L. 97–446, § 201(d)(3), substituted pro- relating to acceptance at port of entry designated by vision relating to authority of carrier of merchandise consignee or his agent in cases of articles not subject bringing it into the port to certify any person to re- to a quantitative or tariff-rate quota. ceive the merchandise if the carrier has actual knowl- 1938—Subsec. (f). Act June 25, 1938, inserted provision edge of the accuracy of the certification, for provision relating to authorization by the Secretary for inclusion that any person certified by the carrier bringing the of portions of merchandise in separate entries under merchandise to the port at which entry was to be made such rules and regulations as he may prescribe. to be the owner or consignee of the merchandise, or an EFFECTIVE DATE OF 2006 AMENDMENT agent of such owner or consignee, might make entry thereof, either in person or by an authorized agent, in Amendment by Pub. L. 109–280 applicable with re- the manner and subject to the requirements prescribed spect to goods entered, or withdrawn from warehouse in this section (or in regulations promulgated here- for consumption, on or after the 15th day after Aug. 17, under) in the case of a consignee within the meaning of 2006, see section 1641 of Pub. L. 109–280, set out as a note paragraph (1) of section 1483 of this title. under section 58c of this title. Subsec. (i). Pub. L. 97–446, § 201(d)(3), substituted pro- EFFECTIVE DATE OF 2004 AMENDMENT vision authorizing appropriate customs officer to accept a duplicate bill of lading, for provision that any Amendment by Pub. L. 108–429 applicable to merchan- person might, upon the production of a duplicate bill of dise entered, or withdrawn from warehouse for con- lading signed or certified to be genuine by the carrier sumption, on or after the 15th day after Dec. 3, 2004, see bringing the merchandise to the port at which entry section 2108 of Pub. L. 108–429, set out as a note under was to be made, make entry for the merchandise in re- section 1401 of this title. spect to which such bill of lading was issued, in the EFFECTIVE DATE OF 2000 AMENDMENTS manner and subject to the requirements prescribed in this section (or in regulations promulgated hereunder) Amendment by Pub. L. 106–476, except as otherwise in the case of a consignee within the meaning of para- provided, applicable with respect to goods entered, or graph (1) of section 1483 of this title, except that such withdrawn from warehouse, for consumption, on or person was to make such entry in his own name. after the 15th day after Nov. 9, 2000, see section 1471 of 1978—Subsec. (a). Pub. L. 95–410, § 102(a)(1), incor- Pub. L. 106–476, set out as a note under section 58c of porated first sentence in introductory text of par. des- this title. ignated (1), added subpars. (A) and (B) and par. (2), and Pub. L. 106–200, title IV, § 410(b), May 18, 2000, 114 Stat. struck out second sentence which required the entry to 298, provided that: ‘‘The amendment made by this sec- be made at the customhouse within five days, exclusive tion [amending this section] shall take effect on the of Sundays and holidays, after the entry of the import- date that is 60 days after the date of the enactment of ing vessel or report of the vehicle, or after the arrival this Act [May 18, 2000].’’ at the port of destination in the case of merchandise EFFECTIVE DATE OF 1983 AMENDMENT transported in bond, unless the appropriate customs officer authorized in writing a longer time. Section 201(g) of Pub. L. 97–446 provided that: ‘‘The Subsec. (c)(3). Pub. L. 95–410, § 102(a)(2), substituted amendments made by this section [amending the Gen- ‘‘subsection’’ for ‘‘subdivision’’. eral headnotes of the Tariff Schedules, this section, and Subsec. (j). Pub. L. 95–410, § 102(a)(3), struck out ‘‘The sections 1485, 1487, 1494, 1505, and 1557 of this title, and custom officer shall return to the person making entry repealing section 1483 of this title] shall apply with re- the bill of lading (if any is produced) with a notation spect to merchandise entered on and after the 30th day thereon to the effect that entry for such merchandise after the date of the enactment of this Act [Jan. 12, has been made.’’ 1983].’’ 1977—Subsec. (e). Pub. L. 95–106 substituted ‘‘produc- EFFECTIVE DATE OF 1978 AMENDMENT tion and programs for achieving international harmonization of trade statistics,’’ for ‘‘production,’’. Section 102(b) of Pub. L. 95–410 provided that: ‘‘The 1975—Subsec. (e). Pub. L. 93–618 substituted ‘‘United amendments made by this section [amending this sec- States International Trade Commission’’ for ‘‘United tion] shall take effect 60 days after the date of enact- States Tariff Commission’’ and inserted references to ment of this Act [Oct. 3, 1978].’’ an enumeration of articles exported from the United EFFECTIVE DATE OF 1975 AMENDMENT States and, in conjunction with statistical programs for domestic production, to the establishment of the Section 608(e) of Pub. L. 93–618 provided that: ‘‘The comparability thereof with the enumeration of articles. amendment made by subsection (a) [amending this sec- 1970—Subsec. (a). Pub. L. 91–271, § 301(i)(1), substituted tion] insofar as it related to export declarations shall reference to appropriate customs officer for reference take effect on January 1, 1976.’’ to collector. Subsec. (c). Pub. L. 91–271, § 301(i)(2), (3), substituted EFFECTIVE DATE OF 1970 AMENDMENT references to appropriate customs officer or such cus- For effective date of amendment by Pub. L. 91–271, toms officer for references to collector wherever ap- see section 203 of Pub. L. 91–271, set out as a note under pearing. section 1500 of this title. § 1484 TITLE 19—CUSTOMS DUTIES Page 160

EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS ‘‘(c) REPORT TO CONGRESS.— PROVISION ‘‘(1) IN GENERAL.—Not later than 90 days after the submission of the final report under subsection (b), Amendment by act Aug. 8, 1953, effective on and after the United States International Trade Commission thirtieth day following Aug. 8, 1953, and savings provi- shall submit to the appropriate congressional com- sion, see notes set out under section 1304 of this title. mittees a report on the information contained in all EFFECTIVE DATE OF 1938 AMENDMENT reports submitted under subsection (b). ‘‘(2) MATTERS TO BE INCLUDED.—The report required Amendment by act June 25, 1938, effective on thirti- under paragraph (1) shall include— eth day following June 25, 1938, except as otherwise spe- ‘‘(A) the aggregate number of importers that de- cifically provided, see section 37 of act June 25, 1938, set clare the transaction value of the imported mer- out as a note under section 1401 of this title. chandise is determined on the basis of the method described in subsection (a)(2), including a descrip- REGULATIONS tion of the frequency of the use of such method; Pub. L. 106–476, title I, § 1460(b), Nov. 9, 2000, 114 Stat. ‘‘(B) the tariff classification of such imported 2171, provided that: ‘‘Not later than 6 months after the merchandise under the Harmonized Tariff Schedule date of the enactment of this Act [Nov. 9, 2000], the of the United States on an aggregate basis, includ- Secretary of the Treasury shall issue regulations to ing an analysis of the tariff classification of such carry out section 484(j) of the Tariff Act of 1930 [19 imported merchandise on a sectoral basis; U.S.C. 1484(j)], as added by subsection (a).’’ ‘‘(C) the aggregate transaction value of such imported merchandise, including an analysis of the TRANSFER OF FUNCTIONS transaction value of such imported merchandise on a sectoral basis; and For transfer of functions, personnel, assets, and li- ‘‘(D) the aggregate transaction value of all mer- abilities of the United States Customs Service of the chandise imported into the United States during Department of the Treasury, including functions of the the 1-year period specified in subsection (a)(3). Secretary of the Treasury relating thereto, to the Sec- ‘‘(d) SENSE OF CONGRESS REGARDING PROHIBITION ON retary of Homeland Security, and for treatment of re- PROPOSED INTERPRETATION OF THE TERM ‘SOLD FOR EX- lated references, see sections 203(1), 551(d), 552(d), and PORTATION TO THE UNITED STATES’.— 557 of Title 6, Domestic Security, and the Department ‘‘(1) IN GENERAL.—It is the sense of Congress that of Homeland Security Reorganization Plan of Novem- the Commissioner responsible for U.S. Customs and ber 25, 2002, as modified, set out as a note under section Border Protection should not implement a change to 542 of Title 6. U.S. Customs and Border Protection’s interpretation (as such interpretation is in effect on the date of the REQUIREMENTS RELATING TO DETERMINATION OF enactment of this Act [June 18, 2008]) of the term TRANSACTION VALUE OF IMPORTED MERCHANDISE ‘sold for exportation to the United States’, as de- Pub. L. 110–234, title XV, § 15422, May 22, 2008, 122 Stat. scribed in section 402(b) of the Tariff Act of 1930 (19 1547, and Pub. L. 110–246, § 4(a), title XV, § 15422, June 18, U.S.C. 1401a(b)), for purposes of applying the trans- 2008, 122 Stat. 1664, 2309, provided that: action value of the imported merchandise in a series ‘‘(a) REQUIREMENT ON IMPORTERS.— of sales, before January 1, 2011. ‘‘(1) IN GENERAL.—Pursuant to sections 484 and 485 ‘‘(2) EXCEPTION.—It is the sense of Congress that be- of the Tariff Act of 1930 (19 U.S.C. 1484 and 1485), the ginning on January 1, 2011, the Commissioner respon- Commissioner responsible for U.S. Customs and Bor- sible for U.S. Customs and Border Protection may der Protection shall require each importer of mer- propose to change or change U.S. Customs and Border chandise to provide to U.S. Customs and Border Pro- Protection’s interpretation of the term ‘sold for ex- tection at the time of entry of the merchandise the portation to the United States’, as described in para- information described in paragraph (2). graph (1), only if U.S. Customs and Border Protec- ‘‘(2) INFORMATION REQUIRED.—The information re- tion— ferred to in paragraph (1) is a declaration as to ‘‘(A) consults with, and provides notice to, the ap- whether the transaction value of the imported mer- propriate congressional committees— chandise is determined on the basis of the price paid ‘‘(i) not less than 180 days prior to proposing a by the buyer in the first or earlier sale occurring change; and prior to introduction of the merchandise into the ‘‘(ii) not less than 90 days prior to publishing a United States. change; ‘‘(B) consults with, provides notice to, and takes ‘‘(3) EFFECTIVE DATE.—The requirement to provide into consideration views expressed by, the Commer- information under this subsection shall be effective cial Operations Advisory Committee— for the 1-year period beginning 90 days after the date ‘‘(i) not less than 120 days prior to proposing a of the enactment of this Act [June 18, 2008]. change; and ‘‘(b) REPORT TO INTERNATIONAL TRADE COMMISSION.— ‘‘(ii) not less than 60 days prior to publishing a ‘‘(1) IN GENERAL.—The Commissioner responsible for change; and U.S. Customs and Border Protection shall submit to ‘‘(C) receives the explicit approval of the Sec- the United States International Trade Commission retary of the Treasury prior to publishing a change. on a monthly basis for the 1-year period specified in ‘‘(3) CONSIDERATION OF INTERNATIONAL TRADE COM- subsection (a)(3) a report on the information provided MISSION REPORT.—It is the sense of Congress that by importers under subsection (a)(2) during the pre- prior to publishing a change to U.S. Customs and ceding month. The report required under this para- Border Protection’s interpretation (as such interpre- graph shall be submitted in a form agreed upon be- tation is in effect on the date of the enactment of tween U.S. Customs and Border Protection and the this Act [June 18, 2008]) of the term ‘sold for expor- United States International Trade Commission. tation to the United States’, as described in section ‘‘(2) MATTERS TO BE INCLUDED.—The report required 402(b) of the Tariff Act of 1930 (19 U.S.C. 1401a(b)), for under paragraph (1) shall include— purposes of applying the transaction value of the im- ‘‘(A) the number of importers that declare the ported merchandise in a series of sales, the Commis- transaction value of the imported merchandise is sioner responsible for U.S. Customs and Border Pro- determined on the basis of the method described in tection should take into consideration the matters subsection (a)(2); included in the report prepared by the United States ‘‘(B) the tariff classification of such imported International Trade Commission under subsection merchandise under the Harmonized Tariff Schedule (c). of the United States; and ‘‘(e) DEFINITIONS.—In this section: ‘‘(C) the transaction value of such imported mer- ‘‘(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The chandise. term ‘appropriate congressional committees’ means Page 161 TITLE 19—CUSTOMS DUTIES § 1484b

the Committee on Ways and Means of the House of and the United States International Trade Commission Representatives and the Committee on Finance of the in carrying out their responsibilities under subsections Senate. (a) [amending this section], (b), and (c) [see notes set ‘‘(2) COMMERCIAL OPERATIONS ADVISORY COMMIT- out above].’’ TEE.—The term ‘Commercial Operations Advisory Committee’ means the Advisory Committee estab- § 1484a. Articles returned from space not to be lished pursuant to section 9503(c) of the Omnibus construed as importation Budget Reconciliation Act of 1987 [Pub. L. 100–203] (19 U.S.C. 2071 note) or any successor committee. The return of articles from space shall not be ‘‘(3) IMPORTER.—The term ‘importer’ means one of considered an importation, and an entry of such the parties qualifying as an ‘importer of record’ articles shall not be required, if: under section 484(a)(2)(B) in the Tariff Act of 1930 (19 (1) such articles were previously launched U.S.C. 1484(a)(2)(B)). into space from the customs territory of the ‘‘(4) TRANSACTION VALUE OF THE IMPORTED MERCHAN- United States aboard a spacecraft operated by, DISE.—The term ‘transaction value of the imported merchandise’ has the meaning described in section or under the control of, United States persons 402(b) of the Tariff Act of 1930 (19 U.S.C. 1401a(b)).’’ and owned— [Pub. L. 110–234 and Pub. L. 110–246 enacted identical (A) wholly by United States persons, or provisions. Pub. L. 110–234 was repealed by section 4(a) (B) in substantial part by United States of Pub. L. 110–246, set out as a note under section 8701 persons, or of Title 7, Agriculture.] (C) by the United States; DRUG PARAPHERNALIA (2) such articles were maintained or utilized Pub. L. 101–382, title I, § 137, Aug. 20, 1990, 104 Stat. while in space solely on board such spacecraft 652, provided that: or aboard another spacecraft which meets the ‘‘(a) STATISTICAL ANNOTATIONS.—The Secretary of the requirements of paragraph (1)(A) through (C) Treasury, the Secretary of Commerce, and the United of this section; and States International Trade Commission shall take ac- (3) such articles were returned to the cus- tions under section 484(e) of the Tariff Act of 1930 (19 toms territory directly from space aboard U.S.C. 1484(e)) to implement the recommendations of the Commission regarding additional statistical anno- such spacecraft or aboard another spacecraft tations that were made in the report of the Commission which meets the requirements of paragraph on Investigation 332–277. (1)(A) through (C) of this section; ‘‘(b) REPORT.—By no later than the date that is 1 year without regard to whether such articles have after the date of enactment of this Act [Aug. 20, 1990], the Commissioner of Customs shall submit to the Com- been advanced in value or improved in condition mittee on Finance of the Senate and the Committee on by any process of manufacture or other means Ways and Means of the House of Representatives a re- while in space. port on the operational response of the United States (June 17, 1930, ch. 497, title IV, § 484a, as added Customs Service to the recommendations contained in the report of the United States Trade Commission de- Pub. L. 98–573, title II, § 209(a), Oct. 30, 1984, 98 scribed in subsection (a). The report submitted by the Stat. 2976.) Commissioner of Customs under this subsection shall EFFECTIVE DATE address the effectiveness of the United States Customs Service in monitoring and seizing drug paraphernalia, Section applicable with respect to articles launched including crack bags, vials, and pipes.’’ into space from the customs territory of the United States on or after Jan. 1, 1985, see section 214(c)(4) of STUDY OF COMMODITY CLASSIFICATION SYSTEMS Pub. L. 98–573, set out as an Effective Date of 1984 Section 608(b) of Pub. L. 93–618 mandated a joint Amendment note under section 1304 of this title. study by the Secretary of Commerce and the United States International Trade Commission with a view to- § 1484b. Deferral of duty on large yachts im- ward development of an enumeration of articles result- ported for sale at United States boat shows ing in comparability of import, production, and export data, with the submission of a report to both Houses of (a) In general Congress and to the President no later than Aug. 1, Notwithstanding any other provision of law, 1975. any vessel meeting the definition of a large INVESTIGATION BY UNITED STATES INTERNATIONAL yacht as provided in subsection (b) of this sec- TRADE COMMISSION; FORMULATION OF INTERNATIONAL tion and which is otherwise dutiable may be im- COMMODITY CODE ported without the payment of duty if imported Section 608(c) of Pub. L. 93–618 authorized an inves- with the intention to offer for sale at a boat tigation by the United States International Trade Com- show in the United States. Payment of duty mission to provide the basis for the formulation of an shall be deferred, in accordance with this sec- international commodity code (with a report to be sub- tion, until such large yacht is sold. mitted to both Houses of Congress and to the President no later than June 1, 1975) and to provide the basis for (b) Definition full and immediate participation by the Trade Commis- As used in this section, the term ‘‘large sion in the United States contribution to technical yacht’’ means a vessel that exceeds 79 feet in work of the Harmonized Systems Committee to assure length, is used primarily for recreation or pleas- recognition of the needs of the business community in ure, and has been previously sold by a manufac- the development of a harmonized code. turer or dealer to a retail consumer. COOPERATION OF GOVERNMENTAL AGENCIES WITH SEC- (c) Deferral of duty RETARY OF COMMERCE AND UNITED STATES INTER- NATIONAL TRADE COMMISSION IN STUDIES AND INVES- At the time of importation of any large yacht, TIGATIONS if such large yacht is imported for sale at a boat Section 608(d) of Pub. L. 93–618 provided that: ‘‘The show in the United States and is otherwise duti- President is requested to direct the appropriate agen- able, duties shall not be assessed and collected if cies to cooperate fully with the Secretary of Commerce the importer of record— § 1485 TITLE 19—CUSTOMS DUTIES Page 162

(1) certifies to the Customs Service that the not set out in the Code. See Publication of Harmonized large yacht is imported pursuant to this sec- Tariff Schedule note set out under section 1202 of this tion for sale at a boat show in the United title. States; and EFFECTIVE DATE (2) posts a bond, which shall have a duration of 6 months after the date of importation, in Pub. L. 106–36, title II, § 2406(b), June 25, 1999, 113 Stat. 171, provided that: ‘‘The amendment made by sub- an amount equal to twice the amount of duty section (a) [enacting this section] shall apply with re- on the large yacht that would otherwise be im- spect to any large yacht imported into the United posed under subheading 8903.91.00 or 8903.92.00 States after the date that is 15 days after the date of of the Harmonized Tariff Schedule of the the enactment of this Act [June 25, 1999].’’ United States. TRANSFER OF FUNCTIONS (d) Procedures upon sale For transfer of functions, personnel, assets, and li- (1) 1 Deposit of duty abilities of the United States Customs Service of the If any large yacht (which has been imported Department of the Treasury, including functions of the for sale at a boat show in the United States Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- with the deferral of duties as provided in this lated references, see sections 203(1), 551(d), 552(d), and section) is sold within the 6-month period 557 of Title 6, Domestic Security, and the Department after importation— of Homeland Security Reorganization Plan of Novem- (A) entry shall be completed and duty (cal- ber 25, 2002, as modified, set out as a note under section culated at the applicable rates provided for 542 of Title 6. under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the § 1485. Declaration United States and based upon the value of (a) Requirement; form and contents the large yacht at the time of importation) shall be deposited with the Customs Service; Every importer of record making an entry and under the provisions of section 1484 of this title (B) the bond posted as required by sub- shall make and file or transmit electronically section (c)(2) of this section shall be re- therewith, in a form and manner to be pre- turned to the importer. scribed by the Secretary of the Treasury, a declaration under oath, stating— (e) Procedures upon expiration of bond period (1) Whether the merchandise is imported in (1) In general pursuance of a purchase or an agreement to If the large yacht entered with deferral of purchase, or whether it is imported otherwise duties is neither sold nor exported within the than in pursuance of a purchase or agreement 6-month period after importation— to purchase; (A) entry shall be completed and duty (cal- (2) That the prices set forth in the invoice culated at the applicable rates provided for are true, in the case of merchandise purchased under subheading 8903.91.00 or 8903.92.00 of or agreed to be purchased; or in the case of the Harmonized Tariff Schedule of the merchandise secured otherwise than by pur- United States and based upon the value of chase or agreement to purchase, that the the large yacht at the time of importation) statements in such invoice as to value or price shall be deposited with the Customs Service; are true to the best of his knowledge and be- and lief; (B) the bond posted as required by sub- (3) That all other statements in the invoice section (c)(2) of this section shall be re- or other documents filed with the entry, or in turned to the importer. the entry itself, are true and correct; and (4) That he will produce at once to the ap- (2) Additional requirements propriate customs officer any invoice, paper, No extensions of the bond period shall be al- letter, document, or information received lowed. Any large yacht exported in compliance showing that any such prices or statements with the bond period may not be reentered for are not true or correct. purposes of sale at a boat show in the United (b) Books and periodicals States (in order to receive duty deferral benefits) for a period of 3 months after such expor- The Secretary of the Treasury is authorized to tation. prescribe regulations for one declaration in the case of books, magazines, newspapers, and peri- (f) Regulations odicals published and imported in successive The Secretary of the Treasury is authorized to parts, numbers, or volumes, and entitled to free make such rules and regulations as may be nec- entry. essary to carry out the provisions of this sec- (c) Agents tion. In the event that an entry is made by an agent (June 17, 1930, ch. 497, title IV, § 484b, as added under the provisions of section 1484 of this title Pub. L. 106–36, title II, § 2406(a), June 25, 1999, 113 and such agent is not in possession of such dec- Stat. 170.) laration of the importer of record, such agent REFERENCES IN TEXT shall give a bond to produce such declaration. The Harmonized Tariff Schedule of the United States, (d) Liability of importer of record for increased referred to in subsecs. (c)(2), (d)(1)(A), and (e)(1)(A), is duties An importer of record shall not be liable for 1 So in original. No par. (2) has been enacted. any additional or increased duties if (1) he de- Page 163 TITLE 19—CUSTOMS DUTIES § 1485 clares at the time of entry that he is not the ac- act June 17, 1930, comprising this section, and repealed tual owner of the merchandise, (2) he furnishes by section 651(a)(1) of the 1930 act. the name and address of such owner, and (3) Prior provisions for a declaration to be filed when merchandise was entered by invoice, were contained in within ninety days from the date of entry he the Customs Administrative Act of June 10, 1890, ch. produces a declaration of such owner condi- 407, § 5, 26 Stat. 132, as amended by the Payne-Aldrich tioned that he will pay all additional and in- Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 95, and by creased duties, under such regulations as the act Oct. 3, 1913, ch. 16, § III, F, 38 Stat. 182. The sections Secretary of the Treasury may prescribe. Such of the acts of 1890 and 1913, referred to, were repealed owner shall possess all the rights of an importer by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. of record. R.S. § 2786, requiring entries to be verified by oath, was superseded by the Customs Administrative Act of (e) Separate forms for purchase and nonpur- June 10, 1890, ch. 407, §§ 4, 5, 22, 26 Stat. 131, 132, 140, chase importations amended by the Payne-Aldrich Tariff Act of Aug. 5, The Secretary of the Treasury shall prescribe 1909, ch. 6, § 28, 36 Stat. 92, 102, and further amended by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, § III, E, separate forms for the declaration in the case of F, and section IV, S, of that act, prior to repeal by act merchandise which is imported in pursuance of Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. a purchase or agreement to purchase and mer- R.S. § 2841 prescribed the forms of oaths of which one, chandise which is imported otherwise than in according to the nature of the case, was required to be pursuance of a purchase or agreement to pur- administered by the collector at the time of the entry chase. of merchandise by invoice. It was modified by act May 1, 1876, ch. 89, § 2, 19 Stat. 49, and repealed by the Cus- (f) Deceased or insolvent persons; partnerships toms Administrative Act of June 10, 1890, ch. 407, § 29, and corporations 26 Stat. 141, amended and reenacted by the Payne-Al- Whenever such merchandise is consigned to a drich Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 104, and declarations in lieu of oaths were required to accompany deceased person, or to an insolvent person who the invoice by section 5 of the Customs Administrative has assigned the same for the benefit of his Act, amended by the Payne-Aldrich Act and further creditors, the executor or administrator, or the amended by the Underwood Tariff Act of Oct. 3, 1913, assignee of such person or trustee in a case ch. 16, § III, F. All oaths administered by officers of the under title 11, shall be considered as the im- customs, except as provided in the Customs Adminis- porter of record; when consigned to a partner- trative Act, were abolished by section 22 thereof ship the declaration of one of the partners only amended by section 28 of the Payne-Aldrich Act. shall be required, and when consigned to a cor- The provisions for the abolition of fees and oaths on entry of goods, made by the Customs Administrative poration such declaration may be made by any Act of June 10, 1890, ch. 407, § 22, 26 Stat. 140, as amend- officer of such corporation. Whether the im- ed by the Payne-Aldrich Act of Aug. 5, 1909, ch. 6, § 28, porter of record is an individual, a partnership, 36 Stat. 102, were superseded by a proviso annexed to or a corporation, the declaration may be made section IV, S, of the Underwood Tariff Act of Oct. 3, by any person who has knowledge of the facts 1913, which provided that ‘‘nothing in this act shall be and who is specifically authorized by such indi- construed to permit any oaths to be demanded or fees vidual, a member of such partnership, or an offi- to be charged except as provided in this act,’’ etc. Act May 1, 1876, ch. 89, § 2, 19 Stat. 49, modifying the cer of such corporation to make such declara- form of oath prescribed by R.S. § 2841, was repealed by tion. act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. (g) Exported merchandise returned as undeliver- R.S. § 2849, relative to oaths when merchandise be- able longed in part to a resident of the United States and in part to a non-resident was superseded in part by the With respect to any importation of merchan- Customs Administrative Act of June 10, 1890, ch. 407, dise to which General Headnote 4(e) of the Har- §§ 5, 22, 29, 26 Stat. 132, 140, 141, amended by the Payne- monized Tariff Schedule of the United States ap- Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 92, plies, any person who gained any benefit from, 102, 104, and further amended by the Underwood Tariff or met any obligation to, the United States as a Act of Oct. 3, 1913, ch. 16, § III, B–J, and was repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. result of the prior exportation of such merchan- Prior provisions requiring a bond to be taken when dise shall, in accordance with regulations pre- entry was made by an agent, factor, or person other scribed by the Secretary, within a reasonable than the owner or ultimate consignee, and prescribing time inform the Customs Service of the return the conditions, etc., of the bond, and the circumstances of the merchandise. under which it might be canceled with a proviso authorizing the taking of a general penal bond, were con- (June 17, 1930, ch. 497, title IV, § 485, 46 Stat. 724; tained in R.S. § 2787, as amended by act Mar. 2, 1905, ch. June 25, 1938, ch. 679, § 13, 52 Stat. 1083; Pub. L. 1306, 33 Stat. 826, which was repealed by act Sept. 21, 91–271, title III, § 301(b), June 2, 1970, 84 Stat. 287; 1922, ch. 356, title IV, § 642, 42 Stat. 989. Pub. L. 95–598, title III, § 315, Nov. 6, 1978, 92 Stat. Provisions concerning the statement to be presented 2678; Pub. L. 97–446, title II, § 201(e), Jan. 12, 1983, to the collector when merchandise entered for customs 96 Stat. 2350; Pub. L. 103–182, title VI, § 657, Dec. duty had been consigned for sale to a person, agent, 8, 1993, 107 Stat. 2212.) partner, or consignee, were contained in act Oct. 3, 1913, ch. 16, § III, J, 38 Stat. 185, which reenacted the REFERENCES IN TEXT provisions of the Customs Administrative Act of June 10, 1890, ch. 407, 26 Stat. 131, and the Payne-Aldrich Tar- The Harmonized Tariff Schedule of the United States, iff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 96, and which referred to in subsec. (g), is not set out in the Code. See was repealed by act Sept. 21, 1922, ch. 356, title IV, § 643, Publication of Harmonized Tariff Schedule note set out 42 Stat. 989. under section 1202 of this title. A prior provision relative to oaths to invoices when merchandise belonged to estates of deceased persons or PRIOR PROVISIONS of persons insolvent was contained in R.S. § 2846, which Provisions similar to those in this section were con- was superseded, in part, by the abolition of all oaths tained in act Sept. 21, 1922, ch. 356, title IV, § 485, 42 administered by officers of the customs, except as pro- Stat. 961. That section was superseded by section 485 of vided therein, by the Customs Administrative Act of § 1486 TITLE 19—CUSTOMS DUTIES Page 164

June 10, 1890, ch. 407, § 22, 26 Stat. 140, and by the repeal, law or regulations promulgated thereunder in by section 29 of that act, 26 Stat. 141, of R.S. §§ 2841, respect of any matter coming before such offi- 2843, 2845, which required oaths to accompany invoices cers or employees in the performance of their of- on entry of merchandise, and the substitution of declarations for such oaths, by sections 3–5 of said act, 26 ficial duties: (1) Any customs officer appointed Stat. 131, amended by the Payne-Aldrich Tariff Act of by the President; (2) the chief assistant of any Aug. 5, 1909, ch. 6, § 28, 36 Stat. 102, and further amended such officer, or any officer or employee of the by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, § III, customs field service designated for the purpose D, F, and § IV, S, 38 Stat. 181. by such officer or by the Secretary of the Treas- AMENDMENTS ury; and (3) any officer or employee of the United States Customs Service designated for 1993—Subsec. (a). Pub. L. 103–182, § 657(1), in introduc- the purpose by the Secretary of the Treasury. tory provisions, inserted ‘‘or transmit electronically’’ after ‘‘file’’ and ‘‘and manner’’ after ‘‘form’’. (b) Postmasters Subsec. (d). Pub. L. 103–182, § 657(2), substituted ‘‘An importer’’ for ‘‘A importer’’ and ‘‘an importer’’ for ‘‘a The postmaster or assistant postmaster of the importer’’. United States at any post office where customs Subsec. (g). Pub. L. 103–182, § 657(3), added subsec. (g). officers are not stationed, is authorized to ad- 1983—Subsec. (a). Pub. L. 97–446 substituted ‘‘importer minister any oaths required to be made to state- of record’’ for ‘‘consignee’’ before ‘‘making an entry’’. Subsec. (c). Pub. L. 97–446 substituted ‘‘importer of ments in customs documents by importers of record’’ for ‘‘consignee’’ after ‘‘declaration of the’’. merchandise, not exceeding $100 in value, Subsecs. (d), (f). Pub. L. 97–446 substituted ‘‘importer through the mails. of record’’ for ‘‘consignee’’ wherever appearing. 1978—Subsec. (f). Pub. L. 95–598 substituted ‘‘trustee (c) No compensation in a case under title 11’’ for ‘‘receiver or trustee in No compensation or fee shall be demanded or bankruptcy’’. accepted for administering any oath under the 1970—Subsec. (a). Pub. L. 91–271 substituted reference provisions of this section. to appropriate customs officer for reference to collector. (d) Verification in lieu of oath 1938—Subsec. (f). Act June 25, 1938, changed the comma to a period after ‘‘such declaration may be The Secretary of the Treasury may by regula- made by any officer of such corporation’’, struck out tion prescribe that any document required by ‘‘or by any other person specifically authorized by any any law administered by the Customs Service to officer of such corporation to make the same’’ after be under oath may be verified by a written dec- said comma, and inserted in lieu thereof a new sen- laration in such form as he shall prescribe, such tence providing that whether the consignee is an indi- declaration to be in lieu of the oath otherwise vidual, a partnership, or a corporation, the declaration required. may be made by any person having knowledge of the facts and authorized to make such declaration. (June 17, 1930, ch. 497, title IV, § 486, 46 Stat. 725; EFFECTIVE DATE OF 1983 AMENDMENT Aug. 8, 1953, ch. 397, § 17, 67 Stat. 517.)

Amendment by Pub. L. 97–446 applicable with respect AMENDMENTS to merchandise entered on and after 30th day after Jan. 12, 1983, see section 201(g) of Pub. L. 97–446, set out as 1953—Subsec. (d). Act Aug. 8, 1953, added subsec. (d). a note under section 1484 of this title. CHANGE OF NAME EFFECTIVE DATE OF 1978 AMENDMENT ‘‘United States Customs Service’’ substituted in text Amendment by Pub. L. 95–598 effective Oct. 1, 1979, for ‘‘Bureau of Customs’’ pursuant to Treasury Depart- see section 402(a) of Pub. L. 95–598, set out as an Effec- ment Order 165–23, Apr. 4, 1973, eff. Aug. 1, 1973, 38 F.R. tive Date note preceding section 101 of Title 11, Bank- 13037. See, also, section 308 of Title 31, Money and Fi- ruptcy. nance. FFECTIVE ATE OF MENDMENT E D 1970 A EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS For effective date of amendment by Pub. L. 91–271, PROVISION see section 203 of Pub. L. 91–271, set out as a note under Amendment by act Aug. 8, 1953, effective on and after section 1500 of this title. thirtieth day following Aug. 8, 1953, and savings provi- EFFECTIVE DATE OF 1938 AMENDMENT sion, see notes set out under section 1304 of this title.

Amendment by act June 25, 1938, effective on thirti- TRANSFER OF FUNCTIONS eth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set For transfer of functions, personnel, assets, and li- out as a note under section 1401 of this title. abilities of the United States Customs Service of the Department of the Treasury, including functions of the TRANSFER OF FUNCTIONS Secretary of the Treasury relating thereto, to the Sec- For transfer of functions, personnel, assets, and li- retary of Homeland Security, and for treatment of re- abilities of the United States Customs Service of the lated references, see sections 203(1), 551(d), 552(d), and Department of the Treasury, including functions of the 557 of Title 6, Domestic Security, and the Department Secretary of the Treasury relating thereto, to the Sec- of Homeland Security Reorganization Plan of Novem- retary of Homeland Security, and for treatment of re- ber 25, 2002, as modified, set out as a note under section lated references, see sections 203(1), 551(d), 552(d), and 542 of Title 6. 557 of Title 6, Domestic Security, and the Department Functions of all officers of Department of the Treas- of Homeland Security Reorganization Plan of Novem- ury and functions of all agencies and employees of such ber 25, 2002, as modified, set out as a note under section Department transferred, with certain exceptions, to 542 of Title 6. Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of § 1486. Administration of oaths his functions, by any of such officers, agencies, and em- (a) Customs officers ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the The following officers and employees may ad- Appendix to Title 5, Government Organization and Em- minister any oaths required or authorized by ployees. Page 165 TITLE 19—CUSTOMS DUTIES § 1490

§ 1487. Value in entry; amendment § 1490. General orders The importer of record or his agent may, (a) Incomplete entry under such regulations as the Secretary of the (1) Whenever— Treasury may prescribe, at the time entry is (A) the entry of any imported merchandise made, make in the entry such additions to or de- is not made within the time provided by law or ductions from the cost or value given in the in- by regulation prescribed by the Secretary; voice as, in his opinion, may raise or lower the (B) the entry of imported merchandise is in- same to the value of such merchandise. complete because of failure to pay the esti- (June 17, 1930, ch. 497, title IV, § 487, 46 Stat. 725; mated duties, fees, or interest; Aug. 8, 1953, ch. 397, § 18(a), 67 Stat. 517; Pub. L. (C) in the opinion of the Customs Service, 97–446, title II, § 201(e), Jan. 12, 1983, 96 Stat. the entry of imported merchandise cannot be 2350.) made for want of proper documents or other cause; or PRIOR PROVISIONS (D) the Customs Service believes that any Provisions somewhat similar to those in this section merchandise is not correctly and legally in- were contained in act Oct. 3, 1913, ch. 16, § III, I, 38 Stat. voiced; 184, which were substituted for provisions made by the the carrier (unless subject to subsection (c) of Customs Administrative Act of June 10, 1890, ch. 407, § 7, this section) shall notify the bonded warehouse 26 Stat. 134, as amended by act July 24, 1897, ch. 11, § 32, 30 Stat. 211, and as further amended by the Payne-Al- of such unentered merchandise. drich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 95. (2) After notification under paragraph (1), the Section III of the act of 1913 was superseded by act bonded warehouse shall arrange for the trans- Sept. 21, 1922, ch. 356, title IV, § 487, 42 Stat. 962, and was portation and storage of the merchandise at the repealed by section 643 thereof. Section 487 of the 1922 risk and expense of the consignee. The merchan- act was superseded by section 487 of act June 17, 1930, dise shall remain in the bonded warehouse comprising this section, and repealed by section until— 651(a)(1) of the 1930 act. (A) entry is made or completed and the prop- Provisions for addition to the invoice values made by er documents are produced; R.S. § 2900, were repealed by section 29 of the Customs Administrative Act. (B) the information and data necessary for entry are transmitted to the Customs Service AMENDMENTS pursuant to an authorized electronic data 1983—Pub. L. 97–446 substituted ‘‘importer of record’’ interchange system; or for ‘‘consignee’’ before ‘‘or his agent’’. (C) a bond is given for the production of doc- 1953—Act Aug. 8, 1953, struck out ‘‘or at any time be- uments or the transmittal of data. fore the invoice or the merchandise has come under the (b) Request for possession by Customs observation of the appraiser for the purpose of appraisement,’’ after ‘‘at the time entry is made,’’. At the request of the consignee of any merchandise, or of the owner or master of the vessel EFFECTIVE DATE OF 1983 AMENDMENT or the person in charge of the vehicle in which Amendment by Pub. L. 97–446 applicable with respect the same is imported, any merchandise may be to merchandise entered on and after 30th day after Jan. taken possession of by the Customs Service 12, 1983, see section 201(g) of Pub. L. 97–446, set out as after the expiration of one day after the entry of a note under section 1484 of this title. the vessel or report of the vehicle and may be unladen and held at the risk and expense of the EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS PROVISION consignee until entry thereof is made. (c) Government merchandise Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provi- Any imported merchandise that— sion, see notes set out under section 1304 of this title. (1) is described in any of subparagraphs (A) through (D) of subsection (a)(1) of this section; § 1488. Repealed. Pub. L. 91–271, title II, § 204(b), and June 2, 1970, 84 Stat. 283 (2) is consigned to, or owned by, the United Section, act June 17, 1930, ch. 497, title IV, § 488, 46 States Government; Stat. 725, authorized a collector to cause the appraisal shall be stored and disposed of in accordance of entered merchandise. with such rules and procedures as the Secretary

EFFECTIVE DATE OF REPEAL shall by regulation prescribe. For effective date of repeal, see section 203 of Pub. L. (June 17, 1930, ch. 497, title IV, § 490, 46 Stat. 726; 91–271, set out as an Effective Date of 1970 Amendment Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 note under section 1500 of this title. Stat. 287; Pub. L. 103–182, title VI, § 658, Dec. 8, 1993, 107 Stat. 2212; Pub. L. 104–295, § 21(e)(9), Oct. § 1489. Repealed. Pub. L. 87–456, title III, § 301(a), 11, 1996, 110 Stat. 3531.) May 24, 1962, 76 Stat. 75 PRIOR PROVISIONS Section, acts June 17, 1930, ch. 497, title IV, § 489, 46 Provisions similar to those in this section were con- Stat. 725; Aug. 8, 1953, ch. 397, § 18(b), 67 Stat. 517, relat- tained in act Sept. 21, 1922, ch. 356, title IV, § 490, 42 ed to entry of antique furniture at designated ports. Stat. 963. That section was superseded by section 490 of act June 17, 1930, comprising this section, and repealed EFFECTIVE DATE OF REPEAL by section 651(a)(1) of the 1930 act. For effective date of repeal, see section 501(a) of Pub. Prior provisions authorizing the collector to take L. 87–456, set out as an Effective Date of Tariff Classi- possession of, or store merchandise were contained in fication Act of 1962 note preceding section 1202 of this the following sections, all of which were repealed by title. act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989: § 1491 TITLE 19—CUSTOMS DUTIES Page 166

R.S. § 2789, authorizing the collector, when an entry TRANSFER OF FUNCTIONS was imperfect, to take the merchandise into his cus- For transfer of functions, personnel, assets, and li- tody until the quantity, quality, or value could be as- abilities of the United States Customs Service of the certained; Department of the Treasury, including functions of the R.S. § 2840, providing that when the collector should Secretary of the Treasury relating thereto, to the Sec- suspect that merchandise was not invoiced at a sum retary of Homeland Security, and for treatment of re- equal to that for which it had usually been sold, he lated references, see sections 203(1), 551(d), 552(d), and should take possession and retain the same until its 557 of Title 6, Domestic Security, and the Department value had been ascertained and the duties paid or se- of Homeland Security Reorganization Plan of Novem- cured; ber 25, 2002, as modified, set out as a note under section R.S. § 2926, providing that merchandise of which in- 542 of Title 6. complete entry had been made, or entry without speci- fication of particulars, should be conveyed to some § 1491. Unclaimed merchandise; disposition of warehouse or designated by the collector to remain forfeited distilled spirits, wines and malt liq- until the particulars, cost or value should have been as- uor certained, and the duties paid or secured, and a permit for delivery granted; (a) Appraisal and sale of unclaimed merchandise R.S. § 2963, providing that when merchandise had not Any entered or unentered merchandise (except been entered it should be deposited in a public ware- merchandise entered under section 1557 of this house, and there remain until an invoice was produced, title, but including merchandise entered for but that it should not be construed to prohibit sales of merchandise to discharge duties and charges; transportation in bond or for exportation) which R.S. § 2964, authorizing the collector to take posses- shall remain in a bonded warehouse pursuant to sion of merchandise, and deposit it in public stores, or section 1490 of this title for 6 months from the other stores to be agreed on, in case of failure or ne- date of importation thereof, without all esti- glect to pay duties, or when the owner, etc., should mated duties, taxes, fees, interest, storage, or make entry for warehousing; other charges thereon having been paid, shall be R.S. § 2965, providing for the storage in a public ware- considered unclaimed and abandoned to the Gov- house, or private bonded warehouse, of unclaimed mer- ernment and shall be appraised and sold by the chandise required to be taken possession of by collectors, and making provision for payment of charges and Customs Service at public auction under such expenses; regulations as the Secretary of the Treasury R.S. § 2966, as amended by act June 26, 1884, ch. 121, shall prescribe. All gunpowder and other explo- § 24, 23 Stat. 58, providing for the deposit in a bonded sive substances and merchandise liable to depre- warehouse of merchandise imported in vessels, when it ciation in value by damage, leakage, or other should appear by the bills of lading that it was to be de- cause to such extent that the proceeds of sale livered immediately after entry of the vessel, or on re- thereof may be insufficient to pay the duties, quest, when it did not so appear. taxes, fees, interest, storage, and other charges, A prior provision authorizing the collector to require 1 a bond for the production of proof to enable the collec- if permitted to remain in pursuant to section tor to ascertain the class or description of manufac- 1490 of this title in a bonded warehouse for 6 ture, or rate of duty to which merchandise was liable, months, may be sold forthwith, under such regu- was contained in R.S. § 2925, which was also repealed by lations as the Secretary of the Treasury may act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. prescribe. Merchandise subject to sale hereunder or under section 1559 of this title may be entered AMENDMENTS or withdrawn for consumption at any time prior 1996—Subsec. (c)(1). Pub. L. 104–295 substituted ‘‘sub- to such sale upon payment of all duties, taxes, paragraphs (A) through (D) of subsection (a)(1)’’ for fees, interest, storage, and other charges, and ‘‘paragraphs (1) through (4) of subsection (a)’’. expenses that may have accrued thereon, but 1993—Subsec. (a). Pub. L. 103–182, § 658(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) such merchandise after becoming subject to sale read as follows: ‘‘Whenever entry of any imported mer- may not be exported prior to sale without the chandise is not made within the time provided by law payment of such duties, taxes, fees, interest, or the regulations prescribed by the Secretary of the charges, and expenses nor may it be entered for Treasury, or whenever entry of such merchandise is in- warehouse. The computation of duties, taxes, incomplete because of failure to pay the estimated du- terest, and fees for the purposes of this section ties, or whenever, in the opinion of the appropriate cus- and sections 1493 and 1559 of this title shall be at toms officer, entry of such merchandise can not be the rate or rates applicable at the time the mer- made for want of proper documents or other cause, or whenever the appropriate customs officer believes that chandise becomes subject to sale. any merchandise is not correctly and legally invoiced, (b) Notice of title vesting in United States he shall take the merchandise into his custody and At the end of the 6-month period referred to in send it to a bonded warehouse or public store, to be subsection (a) of this section, the Customs Serv- held at the risk and expense of the consignee until entry is made or completed and the proper documents ice may, in lieu of sale of the merchandise, pro- are produced, or a bond given for their production.’’ vide notice to all known interested parties that Subsec. (b). Pub. L. 103–182, § 658(2), substituted head- the title to such merchandise shall be consid- ing for one which read ‘‘At request of consignee’’ and in ered to vest in the United States free and clear text substituted ‘‘Customs Service’’ for ‘‘appropriate of any liens or encumbrances, on the 30th day customs officer’’. after the date of the notice unless, before such Subsec. (c). Pub. L. 103–182, § 658(3), added subsec. (c). 30th day— 1970—Pub. L. 91–271 substituted references to appro- (1) the subject merchandise is entered or priate customs officer for references to collector wher- withdrawn for consumption; and ever appearing. (2) payment is made of all duties, taxes, fees, EFFECTIVE DATE OF 1970 AMENDMENT transfer and storage charges, and other ex- For effective date of amendment by Pub. L. 91–271, penses that may have accrued thereon. see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. 1 So in original. The word ‘‘in’’ probably should not appear. Page 167 TITLE 19—CUSTOMS DUTIES § 1491

(c) Retention, transfer, destruction, or other dis- PRIOR PROVISIONS position Provisions similar to those in this section were con- If title to any merchandise vests in the United tained in R.S. §§ 2973, 2975 and 2976, all of which were su- States by operation of subsection (b) of this sec- perseded by act Sept. 21, 1922, ch. 356, title IV, § 491, 42 tion, such merchandise may be retained by the Stat. 963, and repealed by section 642 thereof. Section 491 of the 1922 act was superseded by section 491 of act Customs Service for official use, transferred to June 17, 1930, comprising this section, and repealed by any other Federal agency or to any State or section 651(a)(1) of the 1930 act. local agency, destroyed, or otherwise disposed of in accordance with such regulations as the Sec- AMENDMENTS retary shall prescribe. All transfer and storage 1996—Subsec. (a). Pub. L. 104–295 substituted ‘‘in a charges or expenses accruing on retained or bonded warehouse pursuant to section 1490’’ for ‘‘in in transferred merchandise shall be paid by the re- a bonded warehouse pursuant to section 1490’’ and ceiving agency. ‘‘Customs Service’’ for ‘‘appropriate customs officer’’. 1993—Subsec. (a). Pub. L. 103–182, § 659(1), substituted (d) Petition ‘‘in a bonded warehouse pursuant to section 1490 of this Whenever any party, having lost a substantial title for 6 months’’ for ‘‘customs custody for one year’’, interest in merchandise by virtue of title vest- ‘‘estimated duties, taxes, fees, interest, storage,’’ for ‘‘estimated duties and storage’’, ‘‘duties, taxes, fees, in- ing in the United States under subsection (b) of terest, storage, and other charges, if permitted’’ for this section, can establish such title or interest ‘‘duties, storage, and other charges, if permitted’’, to the satisfaction of the Secretary within 30 ‘‘pursuant to section 1490 of this title in a bonded ware- days after the day on which title vests in the house for 6 months’’ for ‘‘public store or bonded ware- United States under subsection (b) of this sec- house for a period of one year’’, ‘‘duties, taxes, fees, in- tion, or can establish to the satisfaction of the terest, storage, and other charges’’ for ‘‘duties, storage, Secretary that the party did not receive notice and other charges’’, ‘‘duties, taxes, fees, interest, under subsection (b) of this section, the Sec- charges, and expenses’’ for ‘‘duties, charges, and expenses’’, and ‘‘computation of duties, taxes, interest, retary may, upon receipt of a timely and proper and fees for the purposes’’ for ‘‘computation of duties petition and upon finding that the facts and cir- for the purposes’’. cumstances warrant, pay such party out of the Subsecs. (b) to (d). Pub. L. 103–182, § 659(2), added sub- Treasury of the United States the amount the secs. (b) to (d). Former subsec. (b) redesignated (e). Secretary believes the party would have re- Subsec. (e). Pub. L. 103–182, § 659(2), (3), redesignated ceived under section 1493 of this title had the subsec. (b) as (e) and substituted ‘‘Customs Service’’ for merchandise been sold and a proper claim filed. ‘‘appropriate customs officer’’ in par. (3). The decision of the Secretary with respect to 1978—Pub. L. 95–410 amended section catchline, designated existing provisions as subsec. (a), and added any such petition is final and conclusive on all subsec. (b). parties. 1970—Pub. L. 91–271 substituted reference to appro- (e) Appraisal and sale or other disposition of for- priate customs officer for reference to collector, and struck out reference to appraiser of merchandise. feited distilled spirits, wines, and malt liquor 1938—Act June 25, 1938, amended generally so much of All distilled spirits, wines, and malt liquor for- this section as preceded ‘‘shall be considered unclaimed feited to the Government summarily or by order and abandoned’’. of court, under any provision of law adminis- EFFECTIVE DATE OF 1970 AMENDMENT tered by the United States Customs Service, shall be appraised and disposed of by— For effective date of amendment by Pub. L. 91–271, (1) delivery to such Government agencies, as see section 203 of Pub. L. 91–271, set out as a note under in the opinion of the Secretary have a need for section 1500 of this title. such distilled spirits, wines, and malt liquor EFFECTIVE DATE OF 1938 AMENDMENT for medical, scientific, or mechanical purposes, or for any other official purpose for Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise spe- which appropriated funds may be expended by cifically provided, see section 37 of act June 25, 1938, set a Government agency: out as a note under section 1401 of this title. (2) gifts to such eleemosynary institutions as, in the opinion of the Secretary, have a TRANSFER OF FUNCTIONS need for such distilled spirits, wines, and malt For transfer of functions, personnel, assets, and li- liquor for medical purposes; abilities of the United States Customs Service of the (3) sale by Customs Service at public auction Department of the Treasury, including functions of the under such regulations as the Secretary shall Secretary of the Treasury relating thereto, to the Sec- prescribe, except that before making any such retary of Homeland Security, and for treatment of resale the Secretary shall determine that no lated references, see sections 203(1), 551(d), 552(d), and Government agency or eleemosynary institu- 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- tion has established a need for such spirits, ber 25, 2002, as modified, set out as a note under section wines, and malt liquor under paragraph (1) or 542 of Title 6. (2); or (4) destruction. EXTENSION OF ONE-YEAR PERIOD (June 17, 1930, ch. 497, title IV, § 491, 46 Stat. 726; For extension of one year period prescribed in this June 25, 1938, ch. 679, § 14, 52 Stat. 1083; Pub. L. section, see Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 91–271, title III, § 301(j), June 2, 1970, 84 Stat. 289; Stat. c41, set out as a note under section 1318 of this title. Pub. L. 95–410, title II, § 208, Oct. 3, 1978, 92 Stat. Proc. No. 2599, Nov. 6, 1943, 8 F.R. 15359, 57 Stat. 758, 901; Pub. L. 103–182, title VI, § 659, Dec. 8, 1993, 107 as amended by Proc. No. 2712, Dec. 4, 1946, 11 F.R. 14133, Stat. 2213; Pub. L. 104–295, § 21(e)(8), Oct. 11, 1996, 61 Stat. 1947, was superseded by Proc. No. 2948, Oct. 12, 110 Stat. 3531.) 1951, 16 F.R. 10589, 65 Stat. c41. § 1492 TITLE 19—CUSTOMS DUTIES Page 168

§ 1492. Destruction of abandoned or forfeited and the satisfaction of any lien for freight, merchandise charges, or contribution in general average, shall be deposited in the Treasury of the United Except as provided in R.S. § 3369 (relating to States, if claim therefor shall not be filed with tobacco and snuff), and in section 901 of the Rev- the Customs Service within ten days from the enue Act of 1926 (relating to distilled spirits), date of sale, and the sale of such merchandise any merchandise abandoned or forfeited to the shall exonerate the master of any vessel in Government under the preceding or any other which the merchandise was imported from all provision of the customs laws, which is subject claims of the owner thereof, who shall, never- to internal revenue tax and which the Customs theless, on due proof of his interest, be entitled Service shall be satisfied will not sell for a suffi- to receive from the Treasury the amount of any cient amount to pay such taxes, shall be forth- surplus of the proceeds of sale. with destroyed, retained for official use, or otherwise disposed of under regulations to be (June 17, 1930, ch. 497, title IV, § 493, 46 Stat. 727; prescribed by the Secretary of the Treasury, in- Pub. L. 91–271, title III, § 301(e), June 2, 1970, 84 stead of being sold at auction. Stat. 288; Pub. L. 103–182, title VI, § 661, Dec. 8, 1993, 107 Stat. 2214.) (June 17, 1930, ch. 497, title IV, § 492, 46 Stat. 727; Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 PRIOR PROVISIONS Stat. 287; Pub. L. 103–182, title VI, § 660, Dec. 8, Provisions substantially similar in most respects to 1993, 107 Stat. 2214.) those in this section, with further provisions concerning the documents to be forwarded by the collector to REFERENCES IN TEXT the Treasury Department, were contained in R.S. § 2974, R.S. § 3369, referred to in text, is covered by sections which was superseded and more nearly assimilated to 5723(a) and 5753 of Title 26, Internal Revenue Code. the present section by act Sept. 21, 1922, ch. 356, title Section 901 of Revenue Act of 1926, referred to in text, IV, § 493, 42 Stat. 964, and repealed by section 642 there- is covered by section 5243 of Title 26. of. Section 493 of the 1922 act was superseded by section 493 of act June 17, 1930, comprising this section, and re- PRIOR PROVISIONS pealed by section 651(a)(1) of the 1930 act. Provisions similar to those in this section were con- AMENDMENTS tained in act Sept. 21, 1922, ch. 356, title IV, § 492, 42 Stat. 963. That section was superseded by section 492 of 1993—Pub. L. 103–182 inserted ‘‘taxes, and fees,’’ after act June 17, 1930, comprising this section, and repealed ‘‘duties,’’, struck out ‘‘by the appropriate customs offi- by section 651(a)(1) of the 1930 act. cer’’ after ‘‘shall be deposited’’, and substituted ‘‘the Prior to its incorporation into the Code, this section Customs Service’’ for ‘‘such customs officer’’. read: ‘‘Except as provided in section 3369 of the Revised 1970—Pub. L. 91–271 substituted references to appro- Statutes, as amended,’’ etc. R.S. § 3369, as amended by priate customs officer or such customs officer for ref- act Oct. 14, 1921, ch. 107, 42 Stat. 205, related in part to erences to collector wherever appearing. abandoned, condemned or forfeited tobacco, snuff, ci- EFFECTIVE DATE OF 1970 AMENDMENT gars, or cigarettes, which would not bring a price equal to the internal revenue tax thereon. So far as it related For effective date of amendment by Pub. L. 91–271, to tobacco and snuff, it was incorporated into the Code see section 203 of Pub. L. 91–271, set out as a note under as sections 702(a)(1), 803(a)(1), (c), (d), and 890, of Title section 1500 of this title. 26, Internal Revenue Code, and so far as it applied to cigars and cigarettes, it was incorporated into the Code TRANSFER OF FUNCTIONS as sections 812(d)(2) and 890, of Title 26. For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the AMENDMENTS Department of the Treasury, including functions of the 1993—Pub. L. 103–182 substituted ‘‘Customs Service’’ Secretary of the Treasury relating thereto, to the Sec- for ‘‘appropriate customs officer’’ and inserted retary of Homeland Security, and for treatment of re- ‘‘, retained for official use, or otherwise disposed of’’ lated references, see sections 203(1), 551(d), 552(d), and after ‘‘destroyed’’. 557 of Title 6, Domestic Security, and the Department 1970—Pub. L. 91–271 substituted reference to appro- of Homeland Security Reorganization Plan of Novem- priate customs officer for reference to collector. ber 25, 2002, as modified, set out as a note under section 542 of Title 6. EFFECTIVE DATE OF 1970 AMENDMENT APPROPRIATIONS For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under Section 2 of act June 26, 1934, ch. 756, 48 Stat. 1225, section 1500 of this title. which was classified to section 725a of former Title 31, Money and Finance, repealed the permanent appropria- TRANSFER OF FUNCTIONS tion under the title ‘‘Refunding proceeds of unclaimed For transfer of functions, personnel, assets, and li- merchandise (Customs) (2x326)’’ effective July 1, 1935, abilities of the United States Customs Service of the and provided that such portions of any Acts as make Department of the Treasury, including functions of the permanent appropriations to be expended under such Secretary of the Treasury relating thereto, to the Sec- account are amended so as to authorize, in lieu thereof, retary of Homeland Security, and for treatment of re- annual appropriations from the general fund of the lated references, see sections 203(1), 551(d), 552(d), and Treasury in identical terms and in such amounts as 557 of Title 6, Domestic Security, and the Department now provided by the laws providing such permanent ap- of Homeland Security Reorganization Plan of Novem- propriations. ber 25, 2002, as modified, set out as a note under section 542 of Title 6. § 1494. Expense of weighing and measuring In all cases in which the invoice or entry does § 1493. Proceeds of sale not state the weight, quantity, or measure of The surplus of the proceeds of sales under sec- the merchandise, the expense of ascertaining the tion 1491 of this title, after the payment of stor- same shall be collected from the importer of age charges, expenses, duties, taxes, and fees, record before its release from customs custody. Page 169 TITLE 19—CUSTOMS DUTIES § 1497

(June 17, 1930, ch. 497, title IV, § 494, 46 Stat. 727; AMENDMENTS Pub. L. 97–446, title II, § 201(e), Jan. 12, 1983, 96 1970—Pub. L. 91–271 substituted reference to appro- Stat. 2350.) priate customs officer for reference to collector.

PRIOR PROVISIONS EFFECTIVE DATE OF 1970 AMENDMENT Provisions similar to those in this section were con- For effective date of amendment by Pub. L. 91–271, tained in act Sept. 21, 1922, ch. 356, title IV, § 494, 42 see section 203 of Pub. L. 91–271, set out as a note under Stat. 964. That section was superseded by section 494 of section 1500 of this title. act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. § 1496a. Clearance restrictions of individuals re- A prior provision requiring merchandise to be turning from abroad; special circumstances; weighed, gauged or measured at the expense of the ‘‘baggage and effects’’ defined owner, agent or consignee, in cases in which the invoice or entry did not contain the weight, quantity or meas- Except as otherwise provided by law, no indi- ure was contained in R.S. § 2920, prior to repeal by act vidual returning to the United States from Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. abroad shall be— (1) entitled to the admission of his or her AMENDMENTS baggage and effects free of duty without entry; 1983—Pub. L. 97–446 substituted ‘‘importer of record’’ or for ‘‘consignee’’ after ‘‘collected from the’’. (2) entitled to expedited customs examina- EFFECTIVE DATE OF 1983 AMENDMENT tion and clearance of his or her baggage and effects. Amendment by Pub. L. 97–446 applicable with respect to merchandise entered on and after 30th day after Jan. Paragraph (2) shall not apply to individuals in 12, 1983, see section 201(g) of Pub. L. 97–446, set out as special circumstances (including being seriously a note under section 1484 of this title. ill or infirm, having been summoned by news of affliction or disaster, and accompanying the § 1495. Partnership bond body of a deceased relative). For purposes of this When any bond is required by law or regula- section, the term ‘‘baggage and effects’’ means tions to be executed by any partnership for any any article which was in the possession of the purpose connected with the transaction of busi- individual while abroad and is being imported in ness at any customhouse, the execution of such connection with his or her arrival and is in- bond by any member of such partnership shall tended for his or her bona fide personal or bind the other partners in like manner and to household use. Such term does not include any the same extent as if such other partners had article imported as an accommodation to others personally joined in the execution, and an ac- or for sale or other commercial use. tion or suit may be instituted on such bond (Pub. L. 95–410, title II, § 215, Oct. 3, 1978, 92 Stat. against all partners as if all had executed the 904.) same. CODIFICATION (June 17, 1930, ch. 497, title IV, § 495, 46 Stat. 727.) Section was enacted as part of Customs Procedural PRIOR PROVISIONS Reform and Simplification Act of 1978, and not as part Provisions similar to those in this section were con- of Tariff Act of 1930 which comprises this chapter. tained in act Sept. 21, 1922, ch. 356, title IV, § 495, 42 CLEARANCE PROCEDURES STUDY; REPORT TO Stat. 964. That section was superseded by section 495 of CONGRESSIONAL COMMITTEES act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. Section 216 of Pub. L. 95–410 provided that the Comp- Provisions substantially similar to those in this sec- troller General, in cooperation with the Customs Serv- tion, except that they applied to bonds for the payment ice of the Department of the Treasury and the Immi- of duties or for any other purpose connected with the gration and Naturalization Service of the Department general transaction of business at any customs house, of Justice, study clearance procedures for individuals were contained in act June 20, 1876, ch. 136, 19 Stat. 60, entering or reentering the United States, and to report as amended by act Aug. 27, 1894, ch. 349, § 70, 28 Stat. the results of his study and any recommendations for 569, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, expediting the clearance process to specific committees § 643, 42 Stat. 989. of the United States Senate and the House of Rep- resentatives not later than Sept. 1, 1979. § 1496. Examination of baggage § 1497. Penalties for failure to declare The appropriate customs officer may cause an (a) In general examination to be made of the baggage of any person arriving in the United States in order to (1) Any article which— ascertain what articles are contained therein (A) is not included in the declaration and and whether subject to duty, free of duty, or entry as made or transmitted; and (B) is not mentioned before examination of prohibited notwithstanding a declaration and the baggage begins— entry therefor has been made. (i) in writing by such person, if written (June 17, 1930, ch. 497, title IV, § 496, 46 Stat. 727; declaration and entry was required, or Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 (ii) orally, if written declaration and entry Stat. 287.) was not required;

PRIOR PROVISIONS shall be subject to forfeiture and such person Provisions similar to those in this section were con- shall be liable for a penalty determined under tained in act Sept. 21, 1922, ch. 356, title IV, § 496, 42 paragraph (2) with respect to such article. Stat. 964. That section was superseded by section 496 of (2) The amount of the penalty imposed under act June 17, 1930, comprising this section, and repealed paragraph (1) with respect to any article is equal by section 651(a)(1) of the 1930 act. to— § 1498 TITLE 19—CUSTOMS DUTIES Page 170

(A) if the article is a controlled substance, (2) Products of the United States, when the either $500 or an amount equal to 1,000 percent aggregate value of the shipment does not ex- of the value of the article, whichever amount ceed such amounts as the Secretary may pre- is greater; and scribe and the products are imported. (B) if the article is not a controlled sub- (A) for the purposes of repair or alteration stance, the value of the article. prior to reexportation, or (b) Value of controlled substances (B) after having been either rejected or returned by the foreign purchaser to the (1) Notwithstanding any other provision of United States for credit; this chapter, the value of any controlled substance shall, for purposes of this section, be (3) Merchandise damaged on the voyage of equal to the amount determined by the Sec- importation, by fire or through marine cas- retary in consultation with the Attorney Gen- ualty or any other cause, without fault on the eral of the United States, to be equal to the part of the shipper; price at which such controlled substance is like- (4) Merchandise recovered from a wrecked or ly to be illegally sold to the consumer of such stranded vessel; controlled substance. (5) Household effects used abroad and per- (2) The Secretary and the Attorney General of sonal effects, not imported in pursuance of a the United States shall establish a method of de- purchase or agreement for purchase and not termining the price at which each controlled intended for sale; substance is likely to be illegally sold to the (6) Articles sent by persons in foreign coun- consumer of such controlled substance. tries as gifts to persons in the United States; (7) Articles carried on the person or con- (June 17, 1930, ch. 497, title IV, § 497, 46 Stat. 728; tained in the baggage of a person arriving in Pub. L. 99–570, title III, § 3116, Oct. 27, 1986, 100 the United States; Stat. 3207–83; Pub. L. 100–690, title VII, § 7367(a), (8) Tools of trade of a person arriving in the Nov. 18, 1988, 102 Stat. 4479; Pub. L. 103–182, title United States; VI, § 612, Dec. 8, 1993, 107 Stat. 2170.) (9) Personal effects of citizens of the United PRIOR PROVISIONS States who have died in a foreign country; (10) Merchandise within the provisions of Provisions similar to those in this section were con- sections 1465 1 and 1466 of this title (relating to tained in act Sept. 21, 1922, ch. 356, title IV, § 497, 42 Stat. 964. That section was superseded by section 497 of supplies, repairs, and equipment on vessels act June 17, 1930, comprising this section, and repealed and railway cars) at the first port of arrival; by section 651(a)(1) of the 1930 act. (11) Merchandise when in the opinion of the A prior provision for forfeiture of any article subject Secretary of the Treasury the value thereof to duty found in baggage, and not mentioned to the col- cannot be declared; and lector before whom entry was made, and for a penalty (12) Merchandise within the provisions of of treble the value of the article, was contained in R.S. paragraph 1631 of section 1201 of this title. § 2802, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. (b) Application of general provisions The Secretary of the Treasury is authorized to AMENDMENTS include in such rules and regulations any of the 1993—Subsec. (a)(1)(A). Pub. L. 103–182, § 612(1), in- provisions of section 1484 or 1485 of this title (re- serted ‘‘or transmitted’’ after ‘‘made’’. lating, respectively, to entry and to declaration Subsec. (a)(2)(A). Pub. L. 103–182, § 612(2), amended of merchandise generally). subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘if the article is a controlled sub- (June 17, 1930, ch. 497, title IV, § 498, 46 Stat. 728; stance, 1,000 percent of the value of the article; and’’. Aug. 8, 1953, ch. 397, § 16(d), (e), 67 Stat. 517; Pub. 1988—Subsec. (a)(2)(A). Pub. L. 100–690 substituted L. 96–609, title II, § 202, Dec. 28, 1980, 94 Stat. 3561; ‘‘1,000 percent’’ for ‘‘200 percent’’. Pub. L. 98–573, title II, § 206, Oct. 30, 1984, 98 Stat. 1986—Pub. L. 99–570 amended section generally. Prior to amendment, section read as follows: ‘‘Any article 2975; Pub. L. 100–418, title I, § 1214(h)(5), Aug. 23, not included in the declaration and entry as made, and, 1988, 102 Stat. 1157; Pub. L. 103–182, title VI, § 662, before examination of the baggage was begun, not men- Dec. 8, 1993, 107 Stat. 2214.) tioned in writing by such person, if written declaration REFERENCES IN TEXT and entry was required, or orally if written declaration and entry was not required, shall be subject to forfeit- Section 1465 of this title, referred to in subsec. (a)(10), ure and such person shall be liable to a penalty equal was repealed by Pub. L. 103–182, title VI, § 690(b)(7), Dec. to the value of such article.’’ 8, 1993, 107 Stat. 2223. Section 1201 of this title, referred to in subsec. (a)(12), § 1498. Entry under regulations which comprised the free list for articles imported into the United States, was repealed by Pub. L. 87–456, title (a) Authorized for certain merchandise I, § 101(a), May 24, 1962, 76 Stat. 72, which act also re- The Secretary of the Treasury is authorized to vised the Tariff Schedules of the United States. See prescribe rules and regulations for the declara- notes under section 1202 of this title. tion and entry of— PRIOR PROVISIONS (1) Merchandise, when— (A) the aggregate value of the shipment Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 498, 42 does not exceed an amount specified by the Stat. 964. That section was superseded by section 498 of Secretary by regulation, but not more than act June 17, 1930, comprising this section, and repealed $2,500; or by section 651(a)(1) of the 1930 act. (B) different commercial facilitation and Provision for an entry, separate from that of other risk considerations that may vary for dif- merchandise, of wearing apparel, personal baggage, and ferent classes or kinds of merchandise or different classes of transactions may dictate; 1 See References in Text note below. Page 171 TITLE 19—CUSTOMS DUTIES § 1499 tools and implements of a mechanical trade, was made none of the funds appropriated or otherwise made avail- by R.S. § 2799, which also prescribed the contents of able to the Department of Homeland Security may be such entry, and of the accompanying oath. R.S. § 2800 used for the production of customs declarations that do provided for a bond when the person making entry was not inquire whether the passenger had been in the prox- not the owner. R.S. § 2801 provided for a landing permit, imity of livestock.’’ and for an examination of baggage when deemed proper by the collector and naval officer, and for entry of arti- § 1499. Examination of merchandise cles not exempt from duty. All of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 (a) Entry examination Stat. 989. (1) In general AMENDMENTS Imported merchandise that is required by 1993—Subsec. (a)(1). Pub. L. 103–182, § 662(1), amended law or regulation to be inspected, examined, par. (1) generally. Prior to amendment, par. (1) read as or appraised shall not be delivered from cus- follows: ‘‘Merchandise, imported in the mails or other- toms custody (except under such bond or other wise, when the aggregate value of the shipment does security as may be prescribed by the Sec- not exceed such amount, not greater than $1,250 as the retary to assure compliance with all applica- Secretary of the Treasury shall specify in the regula- ble laws, regulations, and instructions which tions, and the specified amount may vary for different the Secretary or the Customs Service is au- classes or kinds of merchandise or different classes of transactions, except that this paragraph does not apply thorized to enforce) until the merchandise has to articles valued in excess of $250 classified in— been inspected, appraised, or examined and is ‘‘(A) chapters 50 through 63; reported by the Customs Service to have been ‘‘(B) chapters 39 through 43, 61 through 65, 67 and 95; truly and correctly invoiced and found to com- and ply with the requirements of the laws of the ‘‘(C) subchapters III and IV of chapter 99; of the Harmonized Tariff Schedule of the United States, United States. or to any other article for which formal entry is re- (2) Examination quired without regard to value.;’’. Subsec. (a)(2). Pub. L. 103–182, § 662(2), substituted The Customs Service— ‘‘such amounts as the Secretary may prescribe’’ for (A) shall designate the packages or quan- ‘‘$10,000’’ in introductory provisions. tities of merchandise covered by any invoice 1988—Subsec. (a)(1). Pub. L. 100–418, substituted ‘‘the or entry which are to be opened and exam- Harmonized Tariff Schedule of the United States’’ for ined for the purpose of appraisement or ‘‘the Tariff Schedules of the United States’’ in closing otherwise; provisions, added subpars. (A) to (C), and struck out (B) shall order such packages or quantities former subpars. (A) to (C) which read as follows: ‘‘(A) schedule 3, to be sent to such place as is designated by ‘‘(B) parts 1, 4A, 7B, 12A, 12D, and 13B of schedule 7, the Secretary by regulation for such pur- and pose; ‘‘(C) parts 2 and 3 of the Appendix,’’. (C) may require such additional packages 1984—Subsec. (a)(1). Pub. L. 98–573 substituted or quantities as the Secretary considers nec- ‘‘$1,250’’ for ‘‘$250’’ and inserted provision that this paragraph does not apply to articles valued in excess of essary for such purpose; and $250 classified in schedule 3, parts 1, 4A, 7B, 12A, 12D, (D) shall inspect a sufficient number of and 13B of schedule 7, and parts 2 and 3 of the Appendix, shipments, and shall examine a sufficient of the Tariff Schedules, or to any other article for number of entries, to ensure compliance which formal entry is required without regard to value. with the laws enforced by the Customs Serv- 1980—Subsec. (a). Pub. L. 96–609 added par. (2) and re- ice. designated former pars. (2) to (11) as (3) to (12), respectively. (3) Unspecified articles 1953—Subsec. (a)(1). Act Aug. 8, 1953, § 16(d), increased If any package contains any article not spec- valuation figure with respect to informal entries from ified in the invoice or entry and, in the opin- $100 to $250, and inserted provisions with respect to possible variation for different classes or kinds of mer- ion of the Customs Service, the article was chandise and different classes of transactions. omitted from the invoice or entry— Subsec. (a)(11). Act Aug. 8, 1953, § 16(e), substituted (A) with fraudulent intent on the part of ‘‘paragraph 1631 of section 1201 of this title’’ for ‘‘sec- the seller, shipper, owner, agent, importer of tions 472 to 574 of this title’’. record, or entry filer, the contents of the en- EFFECTIVE DATE OF 1988 AMENDMENT tire package in which such article is found shall be subject to seizure; or Amendment by Pub. L. 100–418 effective Jan. 1, 1989, and applicable with respect to articles entered on or (B) without fraudulent intent, the value of after such date, see section 1217(b)(1) of Pub. L. 100–418, the article shall be added to the entry and set out as an Effective Date note under section 3001 of the duties, fees, and taxes thereon paid ac- this title. cordingly.

EFFECTIVE DATE OF 1984 AMENDMENT (4) Deficiency Amendment by Pub. L. 98–573 effective on 15th day If a deficiency is found in quantity, weight, after Oct. 30, 1984, see section 214(a), (b) of Pub. L. or measure in the examination of any pack- 98–573, set out as a note under section 1304 of this title. age, the person finding the deficiency shall EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS make a report thereof to the Customs Service. PROVISION The Customs Service shall make allowance for Amendment by act Aug. 8, 1953, effective on and after the deficiency in the liquidation of duties. thirtieth day following Aug. 8, 1953, and savings provi- (5) Information required for release sion, see notes set out under section 1304 of this title. If an examination is conducted, any infor- CUSTOMS DECLARATIONS; PROXIMITY OF LIVESTOCK mation required for release shall be provided, Pub. L. 108–90, title V, § 513, Oct. 1, 2003, 117 Stat. 1154, either electronically or in paper form, to the provided that: ‘‘For fiscal year 2004 and thereafter, Customs Service at the port of examination. § 1499 TITLE 19—CUSTOMS DUTIES Page 172

The absence of such information does not authority of the Customs Service to test or limit the authority of the Customs Service to analyze any sample or merchandise independ- conduct an examination. ently. (b) Testing laboratories (4) Availability of testing procedure, meth- (1) Accreditation of private testing laboratories odologies, and information The Customs Service shall establish and im- Testing procedures and methodologies used plement a procedure, under regulations pro- by the Customs Service, and information re- mulgated by the Secretary, for accrediting sulting from any testing conducted by the private laboratories within the United States Customs Service, shall be made available as which may be used to perform tests (that follows: would otherwise be performed by Customs (A) Testing procedures and methodologies Service laboratories) to establish the charac- shall be made available upon request to any teristics, quantities, or composition of im- person unless the procedures or methodolo- ported merchandise. Such regulations— gies are— (A) shall establish the conditions required (i) proprietary to the holder of a copy- for the laboratories to receive and maintain right or patent related to such procedures accreditation for purposes of this subsection; or methodologies, or (B) shall establish the conditions regard- (ii) developed by the Customs Service for ing the suspension and revocation of accredi- enforcement purposes. tation, which may include the imposition of (B) Information resulting from testing a monetary penalty not to exceed $100,000 shall be made available upon request to the and such penalty is in addition to the recov- importer of record and any agent thereof un- ery, from a gauger or laboratory accredited less the information reveals information under paragraph (1), of any loss of revenue which is— that may have occurred, but the Customs (i) proprietary to the holder of a copy- Service— right or patent; or (i) may seek to recover lost revenue only (ii) developed by the Customs Service for in cases where the gauger or laboratory in- enforcement purposes. tentionally falsified the analysis or gaug- ing report in collusion with the importer; (5) Miscellaneous provisions and For purposes of this subsection— (ii) shall neither assess penalties nor (A) any reference to a private laboratory seek to recover lost revenue because of a includes a reference to a private gauger; and good faith difference of professional opin- (B) accreditation of private laboratories ion; and extends only to the performance of functions (C) may provide for the imposition of a by such laboratories that are within the reasonable charge for accreditation and peri- scope of those responsibilities for determina- odic reaccreditation. tions of the elements relating to admissibility, quantity, composition, or characteris- The collection of any charge for accreditation tics of imported merchandise that are vested and reaccreditation under this section is not in, or delegated to, the Customs Service. prohibited by section 58c(e)(6) of this title. (c) Detentions (2) Appeal of adverse accreditation decisions Except in the case of merchandise with respect A laboratory applying for accreditation, or to which the determination of admissibility is that is accredited, under this section may con- vested in an agency other than the Customs test any decision or order of the Customs Service, the following apply: Service denying, suspending, or revoking accreditation, or imposing a monetary penalty, (1) In general by commencing an action in accordance with Within the 5-day period (excluding weekends chapter 169 of title 28 in the Court of Inter- and holidays) following the date on which national Trade within 60 days after issuance of merchandise is presented for customs exam- the decision or order. ination, the Customs Service shall decide (3) Testing by accredited laboratories whether to release or detain the merchandise. Merchandise which is not released within such When requested by an importer of record of 5-day period shall be considered to be detained merchandise, the Customs Service shall au- merchandise. thorize the release to the importer of a representative sample of the merchandise for (2) Notice of detention testing, at the expense of the importer, by a The Customs Service shall issue a notice to laboratory accredited under paragraph (1). The the importer or other party having an interest testing results from a laboratory accredited in detained merchandise no later than 5 days, under paragraph (1) that are submitted by an excluding weekends and holidays, after the de- importer of record with respect to merchan- cision to detain the merchandise is made. The dise in an entry shall, in the absence of testing notice shall advise the importer or other in- results obtained from a Customs Service lab- terested party of— oratory, be accepted by the Customs Service if (A) the initiation of the detention; the importer of record certifies that the sam- (B) the specific reason for the detention; ple tested was taken from the merchandise in (C) the anticipated length of the detention; the entry. Nothing in this subsection shall be (D) the nature of the tests or inquiries to construed to limit in any way or preclude the be conducted; and Page 173 TITLE 19—CUSTOMS DUTIES § 1499

(E) the nature of any information which, if number by the Secretary of the Treasury) and concern- supplied to the Customs Service, may accel- ing packages found to contain articles not specified in erate the disposition of the detention. the invoice, with a further provision for remission of the forfeiture, were contained in R.S. § 2901. (3) Testing results A prior provision, concerning deficiencies somewhat Upon request by the importer or other party similar to that in this section, was contained in R.S. having an interest in detained merchandise, § 2921. A special provision concerning the number of pack- the Customs Service shall provide the party ages to be examined and appraised at the port of New with copies of the results of any testing con- York was contained in R.S. § 2939. ducted by the Customs Service on the mer- A provision concerning returns by weighers, gaugers, chandise and a description of the testing pro- and measurers, was contained in R.S. § 2890. cedures and methodologies (unless such proce- All of the foregoing sections of the Revised Statutes dures or methodologies are proprietary to the were repealed by act Sept. 21, 1922, ch. 356, title IV, holder of a copyright or patent or were devel- § 642, 42 Stat. 989. oped by the Customs Service for enforcement AMENDMENTS purposes). The results and test description shall be in sufficient detail to permit the du- 1993—Pub. L. 103–182 amended section generally, sub- plication and analysis of the testing and the stituting present provisions for provisions which re- results. quired imported merchandise to be inspected, examined, appraised, and reported by appropriate customs (4) Seizure and forfeiture officer to have been truly and correctly invoiced and If otherwise provided by law, detained mer- found to comply with requirements of laws of the United States prior to release of such merchandise chandise may be seized and forfeited. from customs custody. (5) Effect of failure to make determination 1970—Pub. L. 91–271 substituted references to appropriate customs officer or such officer for references to (A) The failure by the Customs Service to collector or appraiser wherever appearing, and struck make a final determination with respect to out references to duties of appraiser. the admissibility of detained merchandise 1938—Act June 25, 1938, amended section generally within 30 days after the merchandise has been and among other changes inserted provision relating to presented for customs examination, or such invalidity of appraisements made after effective date of longer period if specifically authorized by law, Customs Administrative Act of 1938. shall be treated as a decision of the Customs Service to exclude the merchandise for pur- EFFECTIVE DATE OF 1970 AMENDMENT poses of section 1514(a)(4) of this title. For effective date of amendment by Pub. L. 91–271, (B) For purposes of section 1581 of title 28, a see section 203 of Pub. L. 91–271, set out as a note under protest against the decision to exclude the section 1500 of this title. merchandise which has not been allowed or de- EFFECTIVE DATE OF 1938 AMENDMENT nied in whole or in part before the 30th day after the day on which the protest was filed Amendment by act June 25, 1938, effective on thirti- shall be treated as having been denied on such eth day following June 25, 1938, except as otherwise spe- 30th day. cifically provided, see section 37 of act June 25, 1938, set out as a note under section 1401 of this title. (C) Notwithstanding section 2639 of title 28, once an action respecting a detention is com- TRANSFER OF FUNCTIONS menced, unless the Customs Service establishes by a preponderance of the evidence that For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the an admissibility decision has not been reached Department of the Treasury, including functions of the for good cause, the court shall grant the ap- Secretary of the Treasury relating thereto, to the Sec- propriate relief which may include, but is not retary of Homeland Security, and for treatment of re- limited to, an order to cancel the detention lated references, see sections 203(1), 551(d), 552(d), and and release the merchandise. 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- (June 17, 1930, ch. 497, title IV, § 499, 46 Stat. 728; ber 25, 2002, as modified, set out as a note under section June 25, 1938, ch. 679, §§ 15, 16(a), 52 Stat. 1084; 542 of Title 6. Pub. L. 91–271, title III, § 301(k), June 2, 1970, 84 Functions of all other officers of Department of the Stat. 289; Pub. L. 103–182, title VI, § 613(a), Dec. Treasury and functions of all agencies and employees of 8, 1993, 107 Stat. 2171.) such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him PRIOR PROVISIONS to authorize their performance or performance of any of his functions, by any of such officers, agencies, and Provisions similar to those in this section were con- employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July tained in act Sept. 21, 1922, ch. 356, title IV, § 499, 42 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Stat. 965. That section was superseded by section 499 of Appendix to Title 5, Government Organization and Em- act June 17, 1930, comprising this section, and repealed ployees. by section 651(a)(1) of the 1930 act. A prior provision prohibiting delivery of merchandise EXISTING LABORATORIES liable to be inspected or appraised, until it had been inspected or appraised, or until the packages sent to be Section § 613(b) of Pub. L. 103–182 provided that: ‘‘Ac- inspected or appraised, should be found correctly in- creditation under section 499(b) of the Tariff Act of 1930 voiced, and be so reported, with a further provision as [19 U.S.C. 1499(b)] (as added by subsection (a)) is not re- to the taking of bonds conditioned for delivery of the quired for any private laboratory (including any gaug- merchandise, and the forfeiture of such bonds, was con- er) that was accredited or approved by the Customs tained in R.S. § 2899. Service as of the day before the date of the enactment Provisions substantially similar to those in this sec- of this Act [Dec. 8, 1993]; but any such laboratory is tion concerning the number of packages to be examined subject to reaccreditation under the provisions of such (not including the provision for designation of a less section and the regulations promulgated thereunder.’’ § 1500 TITLE 19—CUSTOMS DUTIES Page 174

§ 1500. Appraisement, classification, and liquida- such appraisement. This section was repealed by the tion procedure Customs Administrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141, and was again repealed by act Sept. 21, The Customs Service shall, under rules and 1922, ch. 356, title IV, § 642, 42 Stat. 989. regulations prescribed by the Secretary— R.S. § 2946 related to the ascertainment of value at (a) fix the final appraisement of merchandise ports where there were no appraisers, prior to repeal by section 642 of the act of Sept. 21, 1922, ch. 356. by ascertaining or estimating the value there- A prior provision similar to subdivision (b) was con- of, under section 1401a of this title, by all rea- tained in act Oct. 3, 1913, ch. 16, § III, M, 38 Stat. 186, the sonable ways and means in his power, any provisions of which were substitutes for those of the statement of cost or costs of production in any Customs Administrative Act of June 10, 1890, ch. 407, invoice, affidavit, declaration, other document § 13, 26 Stat. 136, as amended by the Payne-Aldrich Tar- to the contrary notwithstanding; iff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 99. Section III, (b) fix the final classification and rate of M, was repealed by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. duty applicable to such merchandise; An earlier provision on the subject was contained in (c) fix the final amount of duty to be paid on R.S. § 2929, prior to repeal by Customs Administrative such merchandise and determine any in- Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141. creased or additional duties, taxes, and fees Somewhat similar to subdivision (d), R.S. § 2943 pro- due or any excess of duties, taxes, and fees de- vided that one of the assistant appraisers at the port of posited; New York should be detailed for the supervision of examination of merchandise damaged on the voyage of (d) liquidate the entry and reconciliation, if importation, and to make examinations and appraisals any, of such merchandise; and and to report, etc. It was repealed, with R.S. § 2927, (e) give or transmit, pursuant to an elec- which provided for appraisal of such goods, and other tronic data interchange system, notice of such sections, by the Customs Administrative Act of June liquidation to the importer, his consignee, or 10, 1890, ch. 407, § 29, 26 Stat. 141, reenacted and des- agent in such form and manner as the Sec- ignated as section 28 by the Payne-Aldrich Tariff Act of retary shall by regulation prescribe. Aug. 5, 1909, ch. 6, § 28, 36 Stat. 104. (June 17, 1930, ch. 497, title IV, § 500, 46 Stat. 729; AMENDMENTS Aug. 2, 1956, ch. 887, § 4(b), 70 Stat. 948; Pub. L. 1993—Pub. L. 103–182, § 638(1), substituted ‘‘The Cus- 91–271, title II, § 204(a), June 2, 1970, 84 Stat. 283; toms Service’’ for ‘‘The appropriate customs officer’’ in introductory provisions. Pub. L. 96–39, title II, § 202(a)(4), July 26, 1979, 93 Subd. (a). Pub. L. 103–182, § 638(2), substituted ‘‘fix the Stat. 202; Pub. L. 103–182, title VI, § 638, Dec. 8, final appraisement of’’ for ‘‘appraise’’. 1993, 107 Stat. 2203.) Subd. (b). Pub. L. 103–182, § 638(3), substituted ‘‘fix the final’’ for ‘‘ascertain the’’. PRIOR PROVISIONS Subd. (c). Pub. L. 103–182, § 638(4), inserted ‘‘final’’ Provisions similar to those in this section were con- after ‘‘fix the’’ and ‘‘, taxes, and fees’’ after ‘‘duties’’ in tained in act Sept. 21, 1922, ch. 356, title IV, § 500, 42 two places. Stat. 965. That section was superseded by section 500 of Subds. (d) and (e). Pub. L. 103–182, § 638(5), amended act June 17, 1930, comprising this section, and repealed subds. (d) and (e) generally. Prior to amendment, subds. by section 651(a)(1) of the 1930 act. (d) and (e) read as follows: Provisions dealing with the subject matter of subdivi- ‘‘(d) liquidate the entry of such merchandise; and sion (a) of this section were contained in act Oct. 3, ‘‘(e) give notice of such liquidation to the importer, his consignee, or agent in such form and manner as the 1913, ch. 16, § III, K, 38 Stat. 185, reenacting without Secretary shall prescribe in such regulations.’’ change the provisions of the Customs Administrative 1979—Subd. (a). Pub. L. 96–39 substituted ‘‘by ascer- Act of June 10, 1890, ch. 407, § 10, 26 Stat. 136, as reen- taining or estimating the value thereof, under section acted by the Payne-Aldrich Tariff Act of Aug. 5, 1909, 1401a of this title, by all reasonable ways and means in ch. 6, § 28, 36 Stat. 97. A provision somewhat similar to his power, any statement of cost or costs of production subdivision (a)(5) of this section was contained in sec- in any invoice, affidavit, declaration, or other docu- tion III, M, of the 1913 act, the provisions of which were ment’’ for ‘‘in the unit of quantity in which the mer- substituted for provisions of the same nature contained chandise is usually bought and sold by ascertaining or in section 13 of the Customs Administrative Act of estimating the value thereof by all reasonable ways June 10, 1890, as amended by the Payne-Aldrich Tariff and means in his power, any statement of cost or costs Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 99. Said section of production in any invoice, affidavit, declaration, or III of the 1913 act was repealed by act Sept. 21, 1922, ch. other document’’. 356, title IV, § 643, 42 Stat. 989. 1970—Pub. L. 91–271 struck out ‘‘(a)’’ preceding first R.S. §§ 2609, 2610, relative to merchant appraisers, sentence and, in such provisions, as so redesignated, were superseded by the provisions relating to apprais- substituted provisions which set forth the customs ers and appraisements in the Customs Administrative functions to be performed by the appropriate customs Act of June 10, 1890, ch. 407, 26 Stat. 131, and later acts, officer for provisions which set forth the customs func- and were repealed by act Sept. 21, 1922, ch. 356, title IV, tions to be performed by the appraiser, and struck out § 642, 42 Stat. 989. subds. (b) to (f), which allocated specific customs func- R.S. § 2902 prescribed the mode of appraisal of mer- tions to appraisers, assistant and deputy appraisers, chandise, prior to repeal by the Customs Administra- and examiners, and authorized the designation of act- tive Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141. ing appraisers where necessary. R.S. § 2911 required appraisers to adopt the value of 1956—Subd. (f). Act Aug. 2, 1956, struck out ‘‘take the the best article in a package containing articles wholly oath,’’ before ‘‘perform all the duties’’ in second sen- or in part of wool or cotton of similar kind but dif- tence, and struck out comma after ‘‘perform all du- ferent quality, charged at an average price, and R.S. ties’’. § 2912 related to appraisal of wool of different qualities when imported in the same bale, bag, or package, and EFFECTIVE DATE OF 1979 AMENDMENT of bales of different qualities when embraced in the Amendment by Pub. L. 96–39 effective July 1, 1980, see same invoice, prior to repeal by act Sept. 21, 1922, ch. section 204(a) of Pub. L. 96–39, set out as a note under 356, title IV, § 642, 42 Stat. 989. section 1401a of this title. R.S. § 2945 imposed a penalty on any merchant chosen by the collector to make any appraisement required EFFECTIVE DATE OF 1970 AMENDMENT under any act respecting imports and tonnage, who Section 203 of Pub. L. 91–271 provided that: ‘‘Titles II should, after due notice, decline or neglect to assess at and III of this Act [see Short Title of 1970 Amendment Page 175 TITLE 19—CUSTOMS DUTIES § 1501 note set out under section 1654 of this title] shall take Provisions similar to some extent to those in section effect with respect to articles entered, or withdrawn, 13 of the Customs Administrative Act of 1890 were con- from warehouse for consumption, on or after October 1, tained in R.S. §§ 2929, 2930, prior to repeal by section 29 1970, and such other articles entered or withdrawn from of that Act. warehouse for consumption prior to such date, the ap- R.S. § 2950 provided that the certificate of the appraisement of which has not become final before Octo- praiser should be deemed to be the appraisement. It ber 1, 1970, and for which an appeal for reappraisement was superseded by the provisions relating to appraisers has not been timely filed with the Bureau of Customs made by the Customs Administrative Act of June 10, [now the United States Customs Service] before Octo- 1890, ch. 407, § 13, amended by the Payne-Aldrich Tariff ber 1, 1970, or with respect to which a protest has not Act of Aug. 5, 1909, ch. 6, § 28, and the Underwood Tariff been disallowed in whole or in part before October 1, Act of Oct. 3, 1913, ch. 16, § III, M, 38 Stat. 186, and was 1970.’’ repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- AMENDMENTS abilities of the United States Customs Service of the 2004—Pub. L. 108–429 inserted ‘‘or 1504’’ after ‘‘section Department of the Treasury, including functions of the 1500’’ in first sentence. Secretary of the Treasury relating thereto, to the Sec- 1993—Pub. L. 103–182 amended section catchline gen- retary of Homeland Security, and for treatment of re- erally, substituting ‘‘Customs Service’’ for ‘‘appro- lated references, see sections 203(1), 551(d), 552(d), and priate customs officer; notice’’, and in text substituted 557 of Title 6, Domestic Security, and the Department ‘‘the Customs Service’’ for ‘‘the appropriate customs of Homeland Security Reorganization Plan of Novem- officer on his own initiative’’ and inserted ‘‘or trans- ber 25, 2002, as modified, set out as a note under section mitted’’ after ‘‘given’’ in two places. 542 of Title 6. 1970—Pub. L. 91–271 struck out ‘‘(a)’’ preceding first Functions of all officers of Department of the Treas- sentence and, in such provisions, as so redesignated, ury and functions of all agencies and employees of such substituted provisions authorizing a reliquidation in Department transferred, with certain exceptions, to any respect by the appropriate customs officer on his Secretary of the Treasury, with power vested in him to own initiative for a liquidation made in accordance authorize their performance or performance of any of with section 1500 of this title or any reliquidation his functions, by any of such officers, agencies, and em- thereof made in accordance with this section for provi- ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July sions setting forth the procedure for an appeal for a re- 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the appraisement by the collector or the consignee. Appendix to Title 5, Government Organization and Em- 1953—Subsec. (a). Act. Aug. 8, 1953, inserted cl. (3) and ployees. ‘‘including all determinations entering into the same,’’ in second sentence, and struck out third sentence § 1501. Voluntary reliquidations by Customs which provided that ‘‘No such appeal filed by the con- Service signee or his agent shall be deemed valid, unless he has A liquidation made in accordance with section complied with all the provisions of this chapter relat- 1500 or 1504 of this title or any reliquidation ing to the entry and appraisement of such merchandise’’. thereof made in accordance with this section 1948—Subsec. (a). Act June 25, 1948, struck out fourth may be reliquidated in any respect by the Cus- sentence and substituted new fourth sentence, and re- toms Service, notwithstanding the filing of a pealed the fifth, sixth, seventh, and eighth sentences protest, within ninety days from the date on dealing with review by Customs Court of which notice of the original liquidation is given Reappraisements of this material. See section 1582 of or transmitted to the importer, his consignee or Title 28, Judiciary and Judicial Procedure. agent. Notice of such reliquidation shall be Subsecs. (b) and (c), relating to practice and proce- given or transmitted in the manner prescribed dure in Customs Court, were repealed by Act June 25, 1948. See sections 2631 to 2637 of Title 28, Judiciary and with respect to original liquidations under sec- Judicial Procedure. tion 1500(e) of this title. 1938—Act June 25, 1938, designated paragraphs as sub- (June 17, 1930, ch. 497, title IV, § 501, 46 Stat. 730; secs. (a) and (b) and added subsec. (c). June 25, 1938, ch. 679, § 16(b), 52 Stat. 1084; June EFFECTIVE DATE OF 2004 AMENDMENT 25, 1948, ch. 646, §§ 25, 39, 62 Stat. 990, 992; Aug. 8, 1953, ch. 397, § 18(c), 67 Stat. 517; Pub. L. 91–271, Amendment by Pub. L. 108–429 applicable to merchandise entered, or withdrawn from warehouse for con- title II, § 205, June 2, 1970, 84 Stat. 283; Pub. L. sumption, on or after the 15th day after Dec. 3, 2004, see 103–182, title VI, § 639, Dec. 8, 1993, 107 Stat. 2203; section 2108 of Pub. L. 108–429, set out as a note under Pub. L. 108–429, title II, § 2107, Dec. 3, 2004, 118 section 1401 of this title. Stat. 2598.) EFFECTIVE DATE OF 1970 AMENDMENT PRIOR PROVISIONS For effective date of amendment by Pub. L. 91–271, Provisions similar to those in this section were con- see section 203 of Pub. L. 91–271, set out as a note under tained in act Sept. 21, 1922, ch. 356, title IV, § 501, 42 section 1500 of this title. Stat. 966. That section was superseded by section 501 of act June 17, 1930, comprising this section, and repealed EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS by section 651(a)(1) of the 1930 act. PROVISION Prior provisions for appeals to reappraisement and Amendment by act Aug. 8, 1953, effective on and after for a further appeal to be assigned to a board of general thirtieth day following Aug. 8, 1953, and savings provi- appraisers, with further provisions as to the fee to be sion, see notes set out under section 1304 of this title. paid, the proceedings on appeal, and the conclusiveness of decisions, were contained in act Oct. 3, 1913, ch. 16, EFFECTIVE DATE OF 1948 AMENDMENT § III, M, 38 Stat. 186, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. Section 38 of act June 25, 1948, provided that the The provisions of section III, M, of the 1913 act, were amendment made by that act is effective Sept. 1, 1948. substituted for provisions of the same nature made by EFFECTIVE DATE OF 1938 AMENDMENT the Customs Administrative Act of June 10, 1890, ch. 407, § 13, 26 Stat. 136, amended by the Payne-Aldrich Amendment by act June 25, 1938, effective on thirti- Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 99. eth day following June 25, 1938, except as otherwise spe- § 1502 TITLE 19—CUSTOMS DUTIES Page 176 cially provided, see section 37 of act June 25, 1938, set just, faithful, and impartial appraisal, just and proper out as a note under section 1401 of this title. entries, and to report such rules and regulations to the next session of Congress, were contained in R.S. § 2949. TRANSFER OF FUNCTIONS Both of these sections were repealed by act Sept. 21, For transfer of functions, personnel, assets, and li- 1922, ch. 356, title IV, § 642, 42 Stat. 989. abilities of the United States Customs Service of the Provisions similar to those in subsec. (b) of this sec- Department of the Treasury, including functions of the tion, except that reversal or modification was per- Secretary of the Treasury relating thereto, to the Sec- mitted in concurrence with a judicial decision of a cir- retary of Homeland Security, and for treatment of re- cuit or district court, instead of a final decision of the lated references, see sections 203(1), 551(d), 552(d), and Board of General Appraisers, were contained in act 557 of Title 6, Domestic Security, and the Department Mar. 3, 1875, ch. 136, § 2, 18 Stat. 469, prior to repeal by of Homeland Security Reorganization Plan of Novem- act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. ber 25, 2002, as modified, set out as a note under section Provisions almost identical with those in subsec. (c) of this section were contained in R.S. § 2652, prior to re- 542 of Title 6. peal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. Functions of all officers of Department of the Treas- 989. ury and functions of all agencies and employees of such Department transferred, with certain exceptions, to AMENDMENTS Secretary of the Treasury, with power vested in him to 1993—Subsec. (a). Pub. L. 103–182, § 640(1), inserted authorize their performance or performance of any of ‘‘(including regulations establishing procedures for the his functions, by any of such officers, agencies, and em- issuance of binding rulings prior to the entry of the ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July merchandise concerned)’’ after ‘‘law’’, substituted 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the ‘‘ports of entry. The Secretary’’ for ‘‘ports of entry, Appendix to Title 5, Government Organization and Em- and’’, inserted ‘‘or classifying’’ after ‘‘appraising’’ in ployees. two places, and substituted ‘‘any port, and may direct § 1502. Regulations for appraisement and classi- any customs officer at any port to review entries of merchandise filed at any other port’’ for ‘‘such port’’. fication Subsec. (b). Pub. L. 103–182, § 640(2), redesignated sub- (a) Powers of Secretary of the Treasury sec. (c) as (b) and struck out former subsec. (b) which read as follows: ‘‘No ruling or decision once made by The Secretary of the Treasury shall establish the Secretary of the Treasury, giving construction to and promulgate such rules and regulations not any law imposing customs duties, shall be reversed or inconsistent with the law (including regulations modified adversely to the United States, by the same or establishing procedures for the issuance of bind- a succeeding Secretary, except in concurrence with an ing rulings prior to the entry of the merchandise opinion of the Attorney General recommending the concerned), and may disseminate such informa- same, a final decision of the United States Court of International Trade, or a final decision of a binational tion as may be necessary to secure a just, im- panel pursuant to article 1904 of the United States-Can- partial, and uniform appraisement of imported ada Free-Trade Agreement.’’ merchandise and the classification and assess- Pub. L. 103–182, § 412(a), which directed the insertion ment of duties thereon at the various ports of of ‘‘the North American Free Trade Agreement or’’ be- entry. The Secretary may direct any customs fore ‘‘the United States-Canada Free-Trade Agree- officer to go from one port of entry to another ment’’, could not be executed because the words ‘‘the United States-Canada Free-Trade Agreement’’ did not for the purpose of appraising or classifying or appear in subsec. (b) subsequent to amendment by Pub. assisting in appraising or classifying merchan- L. 103–182, § 640(2), effective Dec. 8, 1993. See above. dise imported at any port, and may direct any Subsec. (c). Pub. L. 103–182, § 640(2), redesignated sub- customs officer at any port to review entries of sec. (c) as (b). merchandise filed at any other port. 1988—Subsec. (b). Pub. L. 100–449 substituted ‘‘a final decision of the United States Court of International (b) Duties of customs officers Trade, or a final decision of a binational panel pursuant It shall be the duty of all officers of the cus- to article 1904 of the United States-Canada Free-Trade toms to execute and carry into effect all in- Agreement’’ for ‘‘or a final decision of the United States Court of International Trade’’. structions of the Secretary of the Treasury rel- 1980—Subsec. (b). Pub. L. 96–417 redesignated the ative to the execution of the revenue laws; and United States Customs Court as the United States in case any difficulty arises as to the true con- Court of International Trade. struction or meaning of any part of the revenue 1970—Subsec. (a). Pub. L. 91–271 substituted ‘‘customs laws, the decision of the Secretary shall be bind- officer’’ for ‘‘appraiser, deputy appraiser, assistant ap- ing upon all officers of the customs. praiser, or examiner of merchandise’’. (June 17, 1930, ch. 497, title IV, § 502, 46 Stat. 731; EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 91–271, title III, § 301(l), June 2, 1970, 84 Amendment by section 412(a) of Pub. L. 103–182 effec- Stat. 289; Pub. L. 96–417, title VI, § 601(3), Oct. 10, tive on the date the North American Free Trade Agree- 1980, 94 Stat. 1744; Pub. L. 100–449, title IV, ment enters into force with respect to the United States [Jan. 1, 1994], but not applicable to any final de- § 403(a), Sept. 28, 1988, 102 Stat. 1884; Pub. L. termination described in section 1516a(a)(1)(B) or 103–182, title IV, § 412(a), title VI, § 640, Dec. 8, (2)(B)(i), (ii), or (iii) of this title, notice of which is pub- 1993, 107 Stat. 2146, 2203.) lished in the Federal Register before such date, or to a determination described in section 1516a(a)(2)(B)(vi) of PRIOR PROVISIONS this title, notice of which is received by the Govern- Provisions similar to those in this section were con- ment of Canada or Mexico before such date, or to any tained in act Sept. 21, 1922, ch. 356, title IV, § 502, 42 binational panel review under the United States-Can- Stat. 967. That section was superseded by section 502 of ada Free-Trade Agreement, or to any extraordinary act June 17, 1930, comprising this section, and repealed challenge arising out of any such review, that was com- by section 651(a)(1) of the 1930 act. menced before such date, see section 416 of Pub. L. A prior provision, authorizing the Secretary of the 103–182, set out as an Effective Date note under section Treasury to direct appraisers for any collection dis- 3431 of this title. trict, to attend in any other collection district, was Amendment by section 640 of Pub. L. 103–182 effective contained in R.S. § 2947. Prior provisions requiring the Dec. 8, 1993, see section 692 of Pub. L. 103–182, set out as Secretary to establish rules and regulations to secure a a note under section 58c of this title. Page 177 TITLE 19—CUSTOMS DUTIES § 1503

EFFECTIVE AND TERMINATION DATES OF 1988 which includes a reappraisement of imported AMENDMENT merchandise, the basis for such assessment shall Amendment by Pub. L. 100–449 effective on date the be the final appraised value determined by such United States-Canada Free-Trade Agreement enters court. into force (Jan. 1, 1989), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (June 17, 1930, ch. 497, title IV, § 503, 46 Stat. 731; (c) of Pub. L. 100–449, set out in a note under section Aug. 8, 1953, ch. 397, § 18(d), 67 Stat. 518; Pub. L. 2112 of this title. 91–271, title II, § 206, June 2, 1970, 84 Stat. 284; Pub. L. 96–417, title VI, § 601(4), Oct. 10, 1980, 94 EFFECTIVE DATE OF 1980 AMENDMENT Stat. 1744.) Amendment by Pub. L. 96–417 effective Nov. 1, 1980, REFERENCES IN TEXT and applicable with respect to civil actions pending on or commenced on or after such date, see section 701(a) Section 1520(c) of this title, referred to in text, was of Pub. L. 96–417, set out as a note under section 251 of repealed by Pub. L. 108–429, title II, § 2105, Dec. 3, 2004, Title 28, Judiciary and Judicial Procedure. 118 Stat. 2598. PRIOR PROVISIONS EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91–271, Provisions somewhat similar to those in subsecs. (a) see section 203 of Pub. L. 91–271, set out as a note under and (b) were contained in act Sept. 21, 1922, ch. 356, title section 1500 of this title. IV, § 503, 42 Stat. 967. Provisions similar to former subsec. (b) relating to entries pending reappraisement were TRANSFER OF FUNCTIONS contained in act Sept. 21, 1922, ch. 356, title IV, § 489, 42 Stat. 962. Both of the acts of 1922 were in part super- Functions of Secretary of the Treasury under subsec. seded by act June 17, 1930, comprising this section, and (a) of this section, insofar as subsec. (a) of this section repealed by section 651(a)(1) of the 1930 act. provides authority to issue regulations and disseminate A provision for assessment of duty on merchandise of information and insofar as Secretary of the Treasury different values when invoiced at an average price, was had responsibility under sections 1303 and 1671 et seq. of contained in R.S. § 2910, prior to repeal by act Sept. 21, this title for functions transferred to Secretary of Com- 1922, ch. 356, title IV, § 642, 42 Stat. 989. merce by section 5(a)(1)(C) of Reorg. Plan No. 3 of 1979, transferred to Secretary of Commerce pursuant to AMENDMENTS Reorg. Plan No. 3 of 1979, § 5(a)(1)(F), 44 F.R. 69275, 93 1980—Pub. L. 96–417 redesignated the United States Stat. 1381, eff. Jan. 2, 1980, as provided by section Customs Court as the United States Court of Inter- 1–107(a) of Ex. Ord. No. 12188, Jan. 2, 1980, 45 F.R. 993, set national Trade. out as notes under section 2171 of this title, to be exer- 1970—Pub. L. 91–271 substituted provisions that, ex- cised in consultation with Secretary of the Treasury. cept as provided in section 1520(c) or 1562 of this title, Functions of Secretary of the Treasury under subsec. the basis for the assessment of duties on imported mer- (b) of this section, with respect to functions transferred chandise be the appraised value determined upon liq- to Secretary of Commerce in section 1303 and 1671 et uidation, in accordance with section 1500 of this title or seq. of this title by section 5(a)(1)(C) of Reorg. Plan No. any adjustment thereof pursuant to section 1501 of this 3 of 1979, transferred to Secretary of Commerce pursu- title, and be the final appraised value where reliquida- ant to section 5(a)(1)(F) of Reorg. Plan No. 3 of 1979. tion is required pursuant to a final judgment or order Functions of all officers of Department of the Treas- of the United States Customs Court, for provisions ury and functions of all agencies and employees of such that, except as provided in section 1562 of this title, the Department transferred, with certain exceptions, to basis for the assessment of duties on imported mer- Secretary of the Treasury, with power vested in him to chandise subject to ad valorem rates of duty be the authorize their performance or performance of any of final appraised value, and provisions that for the pur- his functions, by any of such officers, agencies, and em- pose of determining the rate of duty assessed upon any ployees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July merchandise when the rate is based upon or regulated 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the in any manner by the value of the merchandise, the Appendix to Title 5, Government Organization and Em- final appraised value, except as provided in section 1562 ployees. of this title, be taken as the value of merchandise. 1953—Subsec. (a). Act Aug. 8, 1953, struck out ‘‘and in EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS subdivision (b) of this section’’ after reference to sec- For provisions relating to effect of termination of tion 1562 of this title, ‘‘the entered value or’’ after NAFTA country status on the provisions of sections 401 ‘‘shall be’’, and ‘‘whichever is higher’’ at the end. to 416 of Pub. L. 103–182, see section 3451 of this title. Subsecs. (b), (c). Act Aug. 8, 1953, redesignated subsec. (c) as (b). Former subsec. (b), which related to entries § 1503. Dutiable value pending reappraisement, was repealed by act Aug. 8, 1953. Except as provided in section 1520(c) 1 of this title (relating to reliquidations on the basis of EFFECTIVE DATE OF 1980 AMENDMENT authorized corrections of errors) or section 1562 Amendment by Pub. L. 96–417 effective Nov. 1, 1980, of this title (relating to withdrawal from manip- and applicable with respect to civil actions pending on ulating warehouses), the basis for the assess- or commenced on or after such date, see section 701(a) ment of duties on imported merchandise subject of Pub. L. 96–417, set out as a note under section 251 of Title 28, Judiciary and Judicial Procedure. to ad valorem rates of duty or rates based upon or regulated in any manner by the value of the EFFECTIVE DATE OF 1970 AMENDMENT merchandise, shall be the appraised value deter- For effective date of amendment by Pub. L. 91–271, mined upon liquidation, in accordance with sec- see section 203 of Pub. L. 91–271, set out as a note under tion 1500 of this title or any adjustment thereof section 1500 of this title. made pursuant to section 1501 of this title. Pro- EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS vided, however, That if reliquidation is required PROVISION pursuant to a final judgment or order of the Amendment by act Aug. 8, 1953, effective on and after United States Court of International Trade the thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under section 1304 of this 1 See References in Text note below. title. § 1503a TITLE 19—CUSTOMS DUTIES Page 178

§ 1503a. Repealed. Aug. 8, 1953, ch. 397, § 18(e), 67 1-year period described in subparagraph (A), Stat. 518 or within the 1-year period described in subparagraph (C), shall be deemed liquidated Section, act July 12, 1932, ch. 473, 47 Stat. 657, related upon the deposit of estimated duties on the to the construction of former subsection (b) of section 1503 of this title, which was omitted by section 18(d) of unliquidated imported merchandise, and act Aug. 8, 1953. upon the filing with the Customs Service of a written request for the liquidation of the EFFECTIVE DATE OF REPEAL; SAVINGS PROVISION drawback entry or claim. Such a request Repeal effective on and after thirtieth day following must include a waiver of any right to pay- Aug. 8, 1953, and savings provision, see notes set out ment or refund under other provisions of under section 1304 of this title. law. The Secretary of the Treasury shall prescribe any necessary regulations for the pur- § 1504. Limitation on liquidation pose of administering this subparagraph. (a) Liquidation (C) Exception (1) Entries for consumption An entry or claim for drawback filed be- Unless an entry of merchandise for consump- fore December 3, 2004, the liquidation of tion is extended under subsection (b) of this which is not final as of December 3, 2004, section or suspended as required by statute or shall be deemed liquidated on the date that court order, except as provided in section is 1 year after December 3, 2004, at the draw- 1675(a)(3) of this title, an entry of merchandise back amount asserted by the claimant at the for consumption not liquidated within 1 year time of the entry or claim. from— (3) Payments or refunds (A) the date of entry of such merchandise, (B) the date of the final withdrawal of all Payment or refund of duties owed pursuant such merchandise covered by a warehouse to paragraph (1) or (2) shall be made to the im- entry, porter of record or drawback claimant, as the (C) the date of withdrawal from warehouse case may be, not later than 90 days after liq- of such merchandise for consumption if, pur- uidation. suant to regulations issued under section (b) Extension 1505(a) of this title, duties may be deposited The Secretary of the Treasury may extend the after the filing of any entry or withdrawal period in which to liquidate an entry if— from warehouse, (1) the information needed for the proper ap- (D) if a reconciliation is filed, or should praisement or classification of the imported or have been filed, the date of the filing under withdrawn merchandise, or for determining section 1484 of this title or the date the rec- the correct drawback amount, or for ensuring onciliation should have been filed, whichever compliance with applicable law, is not avail- is earlier; or able to the Customs Service; or 1 (E) if a reconfigured entry is filed under (2) the importer of record or drawback an import activity summary statement, the claimant, as the case may be, requests such date the import activity summary state- extension and shows good cause therefor. ment is filed or should have been filed, whichever is earlier; The Secretary shall give notice of an extension under this subsection to the importer of record shall be deemed liquidated at the rate of duty, or drawback claimant, as the case may be, and value, quantity, and amount of duties asserted the surety of such importer of record or draw- by the importer of record. Notwithstanding back claimant. Notice shall be in such form and section 1500(e) of this title, notice of liquida- manner (which may include electronic transmit- tion need not be given of an entry deemed liq- tal) as the Secretary shall by regulation pre- uidated. scribe. Any entry the liquidation of which is ex- (2) Entries or claims for drawback tended under this subsection shall be treated as (A) In general having been liquidated at the rate of duty, value, quantity, and amount of duty asserted by Except as provided in subparagraph (B) or the importer of record, or the drawback amount (C), unless an entry or claim for drawback is asserted by the drawback claimant, at the expi- extended under subsection (b) of this section ration of 4 years from the applicable date speci- or suspended as required by statute or court fied in subsection (a) of this section. order, an entry or claim for drawback not liquidated within 1 year from the date of (c) Notice of suspension entry or claim shall be deemed liquidated at If the liquidation of any entry is suspended, the drawback amount asserted by the claim- the Secretary shall by regulation require that ant or claim. Notwithstanding section notice of the suspension be provided, in such 1500(e) of this title, notice of liquidation manner as the Secretary considers appropriate, need not be given of an entry deemed liq- to the importer of record or drawback claimant, uidated. as the case may be, and to any authorized agent (B) Unliquidated imports and surety of such importer of record or drawback claimant. An entry or claim for drawback whose designated or identified import entries have not (d) Removal of suspension been liquidated and become final within the Except as provided in section 1675(a)(3) of this title, when a suspension required by statute or 1 See 2004 Amendment notes below. court order is removed, the Customs Service Page 179 TITLE 19—CUSTOMS DUTIES § 1504 shall liquidate the entry, unless liquidation is (b). Text read as follows: ‘‘The Secretary may extend extended under subsection (b) of this section, the period in which to liquidate an entry if— within 6 months after receiving notice of the re- ‘‘(1) the information needed for the proper appraise- moval from the Department of Commerce, other ment or classification of the merchandise, or for insuring compliance with applicable law, is not avail- agency, or a court with jurisdiction over the able to the Customs Service; or entry. Any entry (other than an entry with re- ‘‘(2) the importer of record requests such extension spect to which liquidation has been extended and shows good cause therefor. under subsection (b) of this section) not liq- The Secretary shall give notice of an extension under uidated by the Customs Service within 6 months this subsection to the importer of record and the surety after receiving such notice shall be treated as of such importer of record. Notice shall be in such form having been liquidated at the rate of duty, and manner (which may include electronic transmittal) value, quantity, and amount of duty asserted by as the Secretary shall by regulation prescribe. Any entry the liquidation of which is extended under this the importer of record or (in the case of a draw- subsection shall be treated as having been liquidated at back entry or claim) at the drawback amount the rate of duty, value, quantity, and amount of duty asserted by the drawback claimant. asserted at the time of entry by the importer of record (June 17, 1930, ch. 497, title IV, § 504, as added at the expiration of 4 years from the applicable date specified in subsection (a) of this section.’’ Pub. L. 95–410, title II, § 209(a), Oct. 3, 1978, 92 Subsec. (c). Pub. L. 108–429, § 1563(e)(2), inserted ‘‘or Stat. 902; amended Pub. L. 98–573, title I, § 191(d), drawback claimant, as the case may be,’’ after ‘‘to the Oct. 30, 1984, 98 Stat. 2971; Pub. L. 103–182, title importer of record’’ and ‘‘or drawback claimant’’ after VI, § 641, Dec. 8, 1993, 107 Stat. 2204; Pub. L. ‘‘of such importer of record’’. 103–465, title II, § 220(c), Dec. 8, 1994, 108 Stat. Subsec. (d). Pub. L. 108–429, § 1563(e)(3), inserted ‘‘or 4865; Pub. L. 104–295, § 3(a)(7), Oct. 11, 1996, 110 (in the case of a drawback entry or claim) at the draw- Stat. 3516; Pub. L. 108–429, title I, § 1563(e), title back amount asserted at the time of entry by the draw- II, § 2102, Dec. 3, 2004, 118 Stat. 2585, 2597.) back claimant’’ before period at end. 1996—Subsec. (d). Pub. L. 104–295 inserted ‘‘, unless PRIOR PROVISIONS liquidation is extended under subsection (b) of this section,’’ after ‘‘shall liquidate the entry’’ in first sen- A prior section 1504, act June 17, 1930, ch. 497, title IV, tence, and ‘‘(other than an entry with respect to which § 504, 46 Stat. 732, related to duties on coverings and liquidation has been extended under subsection (b) of containers, prior to repeal by Pub. L. 87–456, title III, this section)’’ after ‘‘Any entry’’ in second sentence. § 301(a), May 24, 1962, 76 Stat. 75, effective, pursuant to 1994—Subsec. (a). Pub. L. 103–465, § 220(c)(1), inserted section 501(a) of Pub. L. 87–456, with respect to articles ‘‘except as provided in section 1675(a)(3) of this title,’’ entered, or withdrawn from warehouse, for consump- before ‘‘an entry of merchandise not liquidated’’ in in- tion on or after Aug. 31, 1963. troductory provisions. AMENDMENTS Subsec. (d). Pub. L. 103–465, § 220(c)(2), substituted ‘‘Except as provided in section 1675(a)(3) of this title, 2004—Pub. L. 108–429, § 2102(2), struck out ‘‘at the time when a suspension’’ for ‘‘When a suspension’’. of entry’’ after ‘‘duties asserted’’ in subsec. (a)(1) (con- 1993—Subsec. (a). Pub. L. 103–182, § 641(1)(A), sub- cluding provisions), after ‘‘asserted by the claimant’’ in stituted ‘‘Unless an entry is extended under subsection subsec. (a)(2)(A), and after ‘‘of duty asserted’’ and (b) or suspended as required by statute or court order’’ ‘‘drawback amount asserted’’ in subsecs. (b) (conclud- for ‘‘Except as provided in subsection (b) of this sec- ing provisions) and (d). Subsec. (a). Pub. L. 108–429, § 2102(1), which directed tion’’ in introductory provisions. Subsec. (a)(4). Pub. L. 103–182, § 641(1)(B)–(D), added striking ‘‘or’’ at end of par. (3), substituting ‘‘filed, par. (4). whichever is earlier; or’’ for ‘‘filed;’’ in par. (4), and Subsec. (b). Pub. L. 103–182, § 641(2), amended subsec. adding par. (5) after par. (4), was executed by striking (b) generally. Prior to amendment, subsec. (b) read as ‘‘or’’ at end of par. (1)(C), substituting ‘‘filed, whichever follows: ‘‘The Secretary may extend the period in is earlier; or’’ for ‘‘filed,’’ in par. (1)(D), and adding the which to liquidate an entry by giving notice of such ex- text of par. (5) after par. (1)(D) and editorially redesig- tension to the importer of record in such form and nating it as par. (1)(E). Pub. L. 108–429, § 2102(1), was manner as the Secretary shall prescribe in regulations, technically incapable of execution subsequent to the if— amendments by Pub. L. 108–429, § 1563(e)(1). See below. ‘‘(1) information needed for the proper appraise- Pub. L. 108–429, § 1563(e)(1), added subsec. (a) and ment or classification of the merchandise is not struck out heading and text of former subsec. (a). Text available to the appropriate customs officer; read as follows: ‘‘Unless an entry is extended under sub- ‘‘(2) liquidation is suspended as required by statute section (b) of this section or suspended as required by or court order; or statute or court order, except as provided in section ‘‘(3) the importer of record requests such extension 1675(a)(3) of this title, an entry of merchandise not liq- and shows good cause therefor.’’ uidated within one year from: Subsec. (c). Pub. L. 103–182, § 641(2), amended subsec. ‘‘(1) the date of entry of such merchandise; ‘‘(2) the date of the final withdrawal of all such (c) generally. Prior to amendment, subsec. (c) read as merchandise covered by a warehouse entry; follows: ‘‘If the liquidation of any entry is suspended, ‘‘(3) the date of withdrawal from warehouse of such the Secretary shall, by regulation, require that notice merchandise for consumption where, pursuant to reg- of such suspension be provided to the importer of ulations issued under section 1505(a) of this title, du- record concerned and to any authorized agent and sur- ties may be deposited after the filing of an entry or ety of such importer of record.’’ withdrawal from warehouse; or Subsec. (d). Pub. L. 103–182, § 641(2), amended subsec. ‘‘(4) if a reconciliation is filed, or should have been (d) generally. Prior to amendment, subsec. (d) ‘‘Limita- filed, the date of the filing under section 1484 of this tion’’ read as follows: ‘‘Any entry of merchandise not title or the date the reconciliation should have been liquidated at the expiration of four years from the ap- filed; plicable date specified in subsection (a) of this section, shall be deemed liquidated at the rate of duty, value, shall be deemed liquidated at the rate of duty, value, quantity, and amount of duties asserted at the time of quantity, and amount of duty asserted at the time of entry by the importer of record. Notwithstanding sec- entry by the importer of record, unless liquidation con- tion 1500(e) of this title, notice of liquidation need not tinues to be suspended as required by statute or court be given of an entry deemed liquidated.’’ order. When such a suspension of liquidation is re- Subsec. (b). Pub. L. 108–429, § 1563(e)(1), added subsec. moved, the entry shall be liquidated within 90 days (b) and struck out heading and text of former subsec. therefrom.’’ § 1505 TITLE 19—CUSTOMS DUTIES Page 180

1984—Subsec. (a). Pub. L. 98–573, § 191(d)(1), sub- chandise is entered for warehouse or transpor- stituted ‘‘importer of record’’ for ‘‘importer, his con- tation, or under bond, the importer of record signee, or agent’’ in provisions following par. (3). shall deposit with the Customs Service at the Subsec. (b). Pub. L. 98–573, § 191(d)(2), substituted ‘‘im- time of entry, or at such later time as the Sec- porter of record’’ for ‘‘importer, his consignee, or agent’’ in provisions preceding par. (1), and substituted retary may prescribe by regulation (but not ‘‘importer of record’’ for ‘‘importer, consignee, or his later than 12 working days after entry or re- agent’’ in par. (3). lease) the amount of duties and fees estimated Subsec. (c). Pub. L. 98–573, § 191(d)(3), substituted ‘‘im- to be payable on such merchandise. As soon as a porter of record’’ for ‘‘importer or consignee’’ in two periodic payment module of the Automated places. Commercial Environment is developed, but no Subsec. (d). Pub. L. 98–573, § 191(d)(4), substituted ‘‘im- later than October 1, 2004, the Secretary shall porter of record’’ for ‘‘importer, his consignee, or promulgate regulations, after testing the mod- agent’’. ule, permitting a participating importer of EFFECTIVE DATE OF 2004 AMENDMENT record to deposit estimated duties and fees for Pub. L. 108–429, title I, § 1563(g)(2), Dec. 3, 2004, 118 entries of merchandise, other than merchandise Stat. 2587, provided that: ‘‘The amendments made by entered for warehouse, transportation, or under subsection (e) [amending this section] shall take effect bond, no later than the 15 working days follow- on the date of the enactment of this Act [Dec. 3, 2004], ing the month in which the merchandise is en- and shall apply to— tered or released, whichever comes first. ‘‘(A) any entry of merchandise for consumption or (b) Collection or refund of duties, fees, and inter- entry or claim for drawback filed on and after such date of enactment; and est due upon liquidation or reliquidation ‘‘(B) any entry or claim for drawback filed before The Customs Service shall collect any in- such date of enactment if the liquidation of the entry creased or additional duties and fees due, to- or claim is not final on such date of enactment.’’ gether with interest thereon, or refund any ex- Amendment by section 2102 of Pub. L. 108–429 applica- cess moneys deposited, together with interest ble to merchandise entered, or withdrawn from ware- thereon, as determined on a liquidation or re- house for consumption, on or after the 15th day after Dec. 3, 2004, see section 2108 of Pub. L. 108–429, set out liquidation. Duties, fees, and interest deter- as a note under section 1401 of this title. mined to be due upon liquidation or reliquidation are due 30 days after issuance of the bill for EFFECTIVE DATE OF 1996 AMENDMENT such payment. Refunds of excess moneys depos- Amendment by Pub. L. 104–295 applicable as of Dec. 8, ited, together with interest thereon, shall be 1993, see section 3(b) of Pub. L. 104–295, set out as a note paid within 30 days of liquidation or reliquida- under section 1321 of this title. tion. EFFECTIVE DATE OF 1994 AMENDMENT (c) Interest Amendment by Pub. L. 103–465 effective, except as Interest assessed due to an underpayment of otherwise provided, on the date on which the WTO duties, fees, or interest shall accrue, at a rate Agreement enters into force with respect to the United determined by the Secretary, from the date the States [Jan. 1, 1995], and applicable with respect to in- importer of record is required to deposit esti- vestigations, reviews, and inquiries initiated and peti- mated duties, fees, and interest to the date of tions filed under specified provisions of this chapter liquidation or reliquidation of the applicable after such date, see section 291 of Pub. L. 103–465, set entry or reconciliation. Interest on excess mon- out as a note under section 1671 of this title. eys deposited shall accrue, at a rate determined EFFECTIVE DATE OF 1984 AMENDMENT by the Secretary, from the date the importer of Amendment by Pub. L. 98–573 applicable with respect record deposits estimated duties, fees, and inter- to articles entered on or after 15th day after Oct. 30, est or, in a case in which a claim is made under 1984, see section 195(a) of Pub. L. 98–573, set out as a section 1520(d) of this title, from the date on note under section 1322 of this title. which such claim is made, to the date of liquidation or reliquidation of the applicable entry or EFFECTIVE DATE reconciliation. The Secretary may prescribe an Section 209(b) of Pub. L. 95–410 provided that: ‘‘The alternative mid-point interest accounting meth- amendment made by this section [enacting this sec- odology, which may be employed by the im- tion] applies to the entry or withdrawal of merchandise porter, based upon aggregate data in lieu of ac- for consumption on or after 180 days after the enactment of this Act [Oct. 3, 1978].’’ counting for such interest from each deposit data provided in this subsection. TRANSFER OF FUNCTIONS (d) Delinquency For transfer of functions, personnel, assets, and li- If duties, fees, and interest determined to be abilities of the United States Customs Service of the due or refunded are not paid in full within the Department of the Treasury, including functions of the 30-day period specified in subsection (b) of this Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- section, any unpaid balance shall be considered lated references, see sections 203(1), 551(d), 552(d), and delinquent and bear interest by 30-day periods, 557 of Title 6, Domestic Security, and the Department at a rate determined by the Secretary, from the of Homeland Security Reorganization Plan of Novem- date of liquidation or reliquidation until the full ber 25, 2002, as modified, set out as a note under section balance is paid. No interest shall accrue during 542 of Title 6. the 30-day period in which payment is actually made. § 1505. Payment of duties and fees (June 17, 1930, ch. 497, title IV, § 505, 46 Stat. 732; (a) Deposit of estimated duties and fees Pub. L. 91–271, title II, § 204(c), June 2, 1970, 84 Unless the entry is subject to a periodic pay- Stat. 283; Pub. L. 95–410, title I, § 103, Oct. 3, 1978, ment referred to in this subsection or the mer- 92 Stat. 889; Pub. L. 97–446, title II, § 201(e), Jan. Page 181 TITLE 19—CUSTOMS DUTIES § 1505

12, 1983, 96 Stat. 2350; Pub. L. 98–573, title II, 1996—Subsec. (c). Pub. L. 104–295 inserted ‘‘or, in a § 210(a), Oct. 30, 1984, 98 Stat. 2977; Pub. L. case in which a claim is made under section 1520(d) of 103–182, title VI, § 642(a), Dec. 8, 1993, 107 Stat. this title, from the date on which such claim is made,’’ 2205; Pub. L. 104–295, § 2(a), Oct. 11, 1996, 110 Stat. after ‘‘deposits estimated duties, fees, and interest’’. 1993—Pub. L. 103–182 amended section generally, sub- 3515; Pub. L. 106–36, title II, § 2418(e), June 25, stituting provisions relating to deposit, collection or 1999, 113 Stat. 177; Pub. L. 106–476, title I, § 1451, refund of duties, fees, and interest for provisions relat- Nov. 9, 2000, 114 Stat. 2167; Pub. L. 107–210, div. A, ing to deposit, collection, or refund of duties and inter- title III, § 383, Aug. 6, 2002, 116 Stat. 992; Pub. L. est. 108–429, title II, § 2004(c), Dec. 3, 2004, 118 Stat. 1984—Subsec. (c). Pub. L. 98–573 added subsec. (c). 2592.) 1983—Subsec. (a). Pub. L. 97–446 substituted ‘‘importer of record’’ for ‘‘consignee’’ before ‘‘shall deposit’’. PRIOR PROVISIONS 1978—Subsec. (a). Pub. L. 95–410 authorized deposit of Provisions similar to those in this section were con- estimated duties to be made as prescribed by regula- tained in act Sept. 21, 1922, ch. 356, title IV, § 504, 42 tions after time of making entry but not later than Stat. 967. That section was superseded by section 505 of thirty days after date of entry. act June 17, 1930, comprising this section, and repealed 1970—Pub. L. 91–271 reorganized existing provisions by section 651(a)(1) of the 1930 act. into subsecs. (a) and (b), and struck out provisions au- A prior provision that the collector or person acting thorizing receipt by a collector of various reports and as such should ascertain, fix, and liquidate the rate and the performance of certain functions in connection amount of duties, and the dutiable costs and charges, with the liquidation of an entry. was contained in act Oct. 3, 1913, ch. 16, § III, M, 38 Stat. 186, the provisions of which were substituted for provi- EFFECTIVE DATE OF 2002 AMENDMENT sions of the same nature contained in the Customs Ad- Amendment by Pub. L. 107–210 applicable to petitions ministrative Act of June 10, 1890, ch. 407, § 13, 26 Stat. for certification filed under part 2 or 3 of subchapter II 136, as amended by the Payne-Aldrich Tariff Act of of chapter 12 of this title on or after the date that is 90 Aug. 5, 1909, ch. 6, § 28, 36 Stat. 99. days after Aug. 6, 2002, except as otherwise provided, AMENDMENTS see section 151 of Pub. L. 107–210, set out as a note preceding section 2271 of this title. 2004—Subsec. (a). Pub. L. 108–429, in first sentence, inserted ‘‘referred to in this subsection’’ after ‘‘subject to EFFECTIVE DATE OF 2000 AMENDMENT a periodic payment’’ and substituted ‘‘12 working days’’ for ‘‘10 working days’’ and, in second sentence, sub- Amendment by Pub. L. 106–476, except as otherwise stituted ‘‘the Secretary shall promulgate regulations, provided, applicable with respect to goods entered, or after testing the module, permitting a participating withdrawn from warehouse, for consumption, on or importer of record to deposit estimated duties and fees after the 15th day after Nov. 9, 2000, see section 1471 of for entries of merchandise, other than merchandise en- Pub. L. 106–476, set out as a note under section 58c of tered for warehouse, transportation, or under bond, no this title. later than the 15 working days following the month in which the merchandise is entered or released, which- EFFECTIVE DATE OF 1999 AMENDMENT ever comes first’’ for ‘‘a participating importer of Amendment by Pub. L. 106–36 effective 30 days after record, or the importer’s filer, may deposit estimated June 25, 1999, see section 2418(f) of Pub. L. 106–36, set duties and fees for entries of merchandise no later than out as a note under section 58c of this title. the 15th day of the month following the month in which the merchandise is entered or released, whichever EFFECTIVE DATE OF 1996 AMENDMENT comes first’’. 2002—Subsec. (a). Pub. L. 107–210 amended heading Section 2(b) of Pub. L. 104–295 provided that: ‘‘The and text of subsec. (a) generally. Prior to amendment, amendment made by subsection (a) [amending this sec- text read as follows: ‘‘Unless merchandise is entered for tion] shall apply to claims made pursuant to section warehouse or transportation, or under bond, the im- 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d)) on or porter of record shall deposit with the Customs Service after June 7, 1996.’’ at the time of making entry, or at such later time as EFFECTIVE DATE OF 1984 AMENDMENT the Secretary may prescribe by regulation, the amount of duties and fees estimated to be payable thereon. Amendment by Pub. L. 98–573 effective on 30th day Such regulations may provide that estimated duties after Oct. 30, 1984, see section 214(c)(5)(A) of Pub. L. and fees shall be deposited before or at the time an im- 98–573, set out as a note under section 1304 of this title. port activity summary statement is filed. If an import activity summary statement is filed, the estimated du- EFFECTIVE DATE OF 1983 AMENDMENT ties and fees shall be deposited together with interest, Amendment by Pub. L. 97–446 applicable with respect at a rate determined by the Secretary, accruing from to merchandise entered on and after 30th day after Jan. the first date of the month the statement is required to 12, 1983, see section 201(g) of Pub. L. 97–446, set out as be filed until the date such statement is actually a note under section 1484 of this title. filed.’’ 2000—Subsec. (c). Pub. L. 106–476 substituted ‘‘The EFFECTIVE DATE OF 1970 AMENDMENT Secretary may prescribe’’ for ‘‘For the period beginning on October 1, 1998, and ending on the date on which the For effective date of amendment by Pub. L. 91–271, ‘Revised National Customs Automation Test Regarding see section 203 of Pub. L. 91–271, set out as a note under Reconciliation’ of the Customs Service is terminated, section 1500 of this title. or October 1, 2000, whichever occurs earlier, the Sec- TRANSFER OF FUNCTIONS retary may prescribe’’ in last sentence. 1999—Subsec. (c). Pub. L. 106–36 inserted at end ‘‘For For transfer of functions, personnel, assets, and li- the period beginning on October 1, 1998, and ending on abilities of the United States Customs Service of the the date on which the ‘Revised National Customs Auto- Department of the Treasury, including functions of the mation Test Regarding Reconciliation’ of the Customs Secretary of the Treasury relating thereto, to the Sec- Service is terminated, or October 1, 2000, whichever oc- retary of Homeland Security, and for treatment of re- curs earlier, the Secretary may prescribe an alter- lated references, see sections 203(1), 551(d), 552(d), and native mid-point interest accounting methodology, 557 of Title 6, Domestic Security, and the Department which may be employed by the importer, based upon of Homeland Security Reorganization Plan of Novem- aggregate data in lieu of accounting for such interest ber 25, 2002, as modified, set out as a note under section from each deposit data provided in this subsection.’’ 542 of Title 6. § 1506 TITLE 19—CUSTOMS DUTIES Page 182

§ 1506. Allowance for abandonment and damage place as the appropriate customs officer’’ and ‘‘unless the Customs Service’’ for ‘‘unless such customs offi- Allowance shall be made in the estimation and cer’’. liquidation of duties under regulations pre- Par. (2). Pub. L. 103–182, § 643(1), (3), inserted scribed by the Secretary of the Treasury in the ‘‘, electronically or otherwise,’’ after ‘‘files’’ and sub- following cases: stituted ‘‘the Customs Service notice’’ for ‘‘the appropriate customs officer written notice’’. (1) Abandonment within thirty days 1970—Par. (1). Pub. L. 91–271, § 301(m)(1), substituted Where the importer abandons to the United references to appropriate customs officer or such cus- States, within thirty days after entry in the toms officer for references to collector wherever ap- case of merchandise released without an exam- pearing. Par. (2). Pub. L. 91–271, § 301(m)(2), substituted ref- ination, or within thirty days after the release erence to appropriate customs officer for reference to in the case of merchandise sent to the Cus- collector. toms Service for examination, any imported merchandise representing 5 per centum or EFFECTIVE DATE OF 1970 AMENDMENT more of the total value of all the merchandise For effective date of amendment by Pub. L. 91–271, of the same class or kind entered in the in- see section 203 of Pub. L. 91–271, set out as a note under voice or entry in which the item appears, and section 1500 of this title.

delivers, within the applicable thirty-day pe- TRANSFER OF FUNCTIONS riod, the portion so abandoned to such place as the Customs Service directs unless the Cus- For transfer of functions, personnel, assets, and li- toms Service is satisfied that the merchandise abilities of the United States Customs Service of the Department of the Treasury, including functions of the is so far destroyed as to be nondeliverable; Secretary of the Treasury relating thereto, to the Sec- (2) Perishable merchandise, condemned retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and Where fruit or other perishable merchandise 557 of Title 6, Domestic Security, and the Department has been condemned at the port of entry, with- of Homeland Security Reorganization Plan of Novem- in ten days after landing, by the health offi- ber 25, 2002, as modified, set out as a note under section cers or other legally constituted authorities, 542 of Title 6. and the consignee, within five days after such condemnation, files, electronically or other- § 1507. Tare and draft wise, with the Customs Service notice thereof, (a) In general an invoiced description and the location thereof, and the name of the vessel or vehicle in The Secretary of the Treasury is authorized to which imported. prescribe and issue regulations for the ascertainment of tare upon imported merchandise, (June 17, 1930, ch. 497, title IV, § 506, 46 Stat. 732; including the establishment of reasonable and Pub. L. 91–271, title III, § 301(m), June 2, 1970, 84 just schedule tares therefor, but (except as Stat. 289; Pub. L. 103–182, title VI, § 643, Dec. 8, otherwise provided in this section) there shall 1993, 107 Stat. 2205.) not be any allowance for draft or for impurities,

PRIOR PROVISIONS other than excessive moisture and impurities not usually found in or upon such or similar Provisions similar to those in this section were con- merchandise. tained in act Oct. 3, 1913, ch. 16, § III, X, 38 Stat. 190, reenacting the provisions of the Customs Administrative (b) Crude oil and petroleum products Act of June 10, 1890, ch. 407, § 23, 26 Stat. 140, as amend- In ascertaining tare on imports of crude oil, ed by Act May 17, 1898, ch. 341, 30 Stat. 417, and further and on imports of petroleum products, allow- amended by the Payne-Aldrich Tariff Act of Aug. 5, ance shall be made for all detectable moisture 1909, ch. 6, § 28, 36 Stat. 103. Section III of the 1913 act was superseded by act Sept. 21, 1922, ch. 356, title IV, and impurities present in, or upon, the imported § 505, 42 Stat. 967, and repealed by section 643 thereof. crude oil or petroleum products. Section 505 of the 1922 act was superseded by section 506 (June 17, 1930, ch. 497, title IV, § 507, 46 Stat. 732; of act June 17, 1930, comprising this section, and re- Pub. L. 100–418, title I, § 1902(a), Aug. 23, 1988, 102 pealed by section 651(a)(1) of the 1930 act. R.S. § 2927 provided for the appraisal of articles dam- Stat. 1312.) aged during the voyage, and for the allowances for such PRIOR PROVISIONS damages in estimating duties, prior to repeal by the Customs Administrative Act of June 10, 1890, ch. 407, Provisions similar to those in this section were con- § 29, 26 Stat. 141. tained in act Sept. 21, 1922, ch. 356, title IV, § 506, 42 R.S. § 2928, providing for appraisement of merchandise Stat. 968. That section was superseded by section 507 of taken from any wreck and of damages sustained during act June 17, 1930, comprising this section, and repealed the course of the voyage, was superseded by the provi- by section 651(a)(1) of the 1930 act. sions of the Customs Administrative Act of June 10, A prior provision relative to the allowance of tare, 1890, ch. 407, § 23, 26 Stat. 140, and repealed by act Sept. prohibiting any allowance for draught, was contained 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. in R.S. § 2898, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. AMENDMENTS AMENDMENTS 1993—Par. (1). Pub. L. 103–182, § 643(1), (2), substituted ‘‘merchandise released without an examination’’ for 1988—Pub. L. 100–418 designated existing provision as ‘‘merchandise not sent to the appraiser’s stores for ex- subsec. (a), substituted ‘‘(except as otherwise provided amination’’, struck out ‘‘of the examination packages in this section) there shall not be’’ for ‘‘in no case shall or quantities of merchandise’’ after ‘‘thirty days after there be’’, and added subsec. (b). the release’’, substituted ‘‘merchandise sent to the Cus- EFFECTIVE DATE OF 1988 AMENDMENT toms Service’’ for ‘‘merchandise sent to the appraiser’s stores’’, inserted ‘‘or entry’’ after ‘‘invoice’’, and sub- Section 1902(b) of Pub. L. 100–418, as amended by Pub. stituted ‘‘such place as the Customs Service’’ for ‘‘such L. 100–647, title IX, § 9001(a)(18), Nov. 10, 1988, 102 Stat. Page 183 TITLE 19—CUSTOMS DUTIES § 1508

3808, provided that: ‘‘The amendment made by this sec- Certificate or copies thereof) and the associ- tion [amending this section] shall apply with respect to ated records. articles entered, or withdrawn from warehouse for consumption, after October 1, 1988.’’ (B) Claims for certain waivers, reductions, or refunds of duties or for credit against § 1508. Recordkeeping bonds (a) Requirements (i) In general Any— Any person that claims with respect to (1) owner, importer, consignee, importer of an article— record, entry filer, or other party who— (I) a waiver or reduction of duty under (A) imports merchandise into the customs the eleventh paragraph of section 1311 of territory of the United States, files a draw- this title, section 1312(b)(1) or (4) of this back claim, or transports or stores merchan- title, section 1562(2) of this title, or the dise carried or held under bond, or proviso preceding the last proviso to sec- (B) knowingly causes the importation or tion 81c(a) of this title; transportation or storage of merchandise (II) a credit against a bond under sec- carried or held under bond into or from the tion 1312(d) of this title; or customs territory of the United States; (III) a refund, waiver, or reduction of duty under section 1313(n)(2) or (o)(1) of (2) agent of any party described in paragraph this title; (1); or (3) person whose activities require the filing must disclose to the Customs Service the of a declaration or entry, or both; information described in clause (ii). shall make, keep, and render for examination (ii) Information required and inspection records (which for purposes of Within 30 days after making a claim de- this section include, but are not limited to, scribed in clause (i) with respect to an ar- statements, declarations, documents and elec- ticle, the person making the claim must tronically generated or machine readable data) disclose to the Customs Service whether which— that person has prepared, or has knowl- (A) pertain to any such activity, or to the edge that another person has prepared, a information contained in the records required NAFTA Certificate of Origin for the arti- by this chapter in connection with any such cle. If after such 30-day period the person activity; and making the claim either— (B) are normally kept in the ordinary course (I) prepares a NAFTA Certificate of Or- of business. igin for the article; or (b) Exportations to NAFTA countries (II) learns of the existence of such a Certificate for the article; (1) Definitions that person, within 30 days after the occur- As used in this subsection— rence described in subclause (I) or (II), (A) The term ‘‘associated records’’ means, must disclose the occurrence to the Cus- in regard to an exported good under para- toms Service. graph (2), records associated with— (i) the purchase of, cost of, value of, and (iii) Action on claim payment for, the good; If the Customs Service determines that a (ii) the purchase of, cost of, value of, and NAFTA Certificate of Origin has been pre- payment for, all material, including indi- pared with respect to an article for which rect materials, used in the production of a claim described in clause (i) is made, the the good; and Customs Service may make such adjust- (iii) the production of the good. ments regarding the previous customs For purposes of this subparagraph, the terms treatment of the article as may be war- ‘‘indirect material’’, ‘‘material’’, ‘‘pref- ranted. erential tariff treatment’’, ‘‘used’’, and (3) Exports under the Canadian agreement ‘‘value’’ have the respective meanings given Any person who exports, or who knowingly them in articles 415 and 514 of the North causes to be exported, any merchandise to American Free Trade Agreement. Canada during such time as the United States- (B) The term ‘‘NAFTA Certificate of Ori- Canada Free-Trade Agreement is in force with gin’’ means the certification, established respect to, and the United States applies that under article 501 of the North American Free Agreement to, Canada shall make, keep, and Trade Agreement, that a good qualifies as an render for examination and inspection such originating good under such Agreement. records (including certifications of origin or (2) Exports to NAFTA countries copies thereof) which pertain to the expor- (A) In general tations. Any person who completes and signs a (c) Period of time NAFTA Certificate of Origin for a good for The records required by subsections (a) and (b) which preferential treatment under the of this section shall be kept for such periods of North American Free Trade Agreement is time as the Secretary shall prescribe; except claimed shall make, keep, and render for ex- that— amination and inspection all records relat- (1) no period of time for the retention of the ing to the origin of the good (including the records required under subsection (a) or (b)(3) § 1508 TITLE 19—CUSTOMS DUTIES Page 184

of this section may exceed 5 years from the as an originating good under such Agree- date of entry, filing of a reconciliation, or ex- ment. portation, as appropriate; (2) Exports to Chile (2) the period of time for the retention of the Any person who completes and issues a Chile records required under subsection (b)(2) of this FTA Certificate of Origin for a good exported section shall be at least 5 years from the date from the United States shall make, keep, and, of signature of the NAFTA Certificate of Ori- pursuant to rules and regulations promulgated gin; and by the Secretary of the Treasury, render for (3) records for any drawback claim shall be examination and inspection all records and kept until the 3rd anniversary of the date of supporting documents related to the origin of payment of the claim. the good (including the Certificate or copies (d) Limitation thereof). For the purposes of this section and section (3) Retention period 1509 of this title, a person ordering merchandise Records and supporting documents shall be from an importer in a domestic transaction does kept by the person who issued a Chile FTA not knowingly cause merchandise to be im- Certificate of Origin for at least 5 years after ported unless— the date on which the certificate was issued. (1) the terms and conditions of the importa- (g) Certifications of origin for goods exported tion are controlled by the person placing the under the Dominican Republic-Central order; or America-United States Free Trade Agree- (2) technical data, molds, equipment, other ment production assistance, material, components, (1) Definitions or parts are furnished by the person placing the order with knowledge that they will be In this subsection: used in the manufacture or production of the (A) Records and supporting documents imported merchandise. The term ‘‘records and supporting docu- (e) Subsection (b) penalties ments’’ means, with respect to an exported good under paragraph (2), records and docu- (1) Relating to NAFTA exports ments related to the origin of the good, in- Any person who fails to retain records re- cluding— quired by paragraph (2) of subsection (b) of (i) the purchase, cost, and value of, and this section or the regulations issued to imple- payment for, the good; ment that paragraph shall be liable for— (ii) the purchase, cost, and value of, and (A) a civil penalty not to exceed $10,000; or payment for, all materials, including indi- (B) the general recordkeeping penalty that rect materials, used in the production of applies under the customs laws; the good; and (iii) the production of the good in the whichever penalty is higher. form in which it was exported. (2) Relating to Canadian agreement exports (B) CAFTA–DR certification of origin Any person who fails to retain the records The term ‘‘CAFTA–DR certification of ori- required by paragraph (3) of subsection (b) of gin’’ means the certification established this section or the regulations issued to imple- under article 4.16 of the Dominican Repub- ment that paragraph shall be liable for a civil lic-Central America-United States Free penalty not to exceed $10,000. Trade Agreement that a good qualifies as an (f) Certificates of Origin for goods exported originating good under such Agreement. under the United States-Chile Free Trade (2) Exports to CAFTA–DR countries Agreement Any person who completes and issues a (1) Definitions CAFTA–DR certification of origin for a good In this subsection: exported from the United States shall make, keep, and, pursuant to rules and regulations (A) Records and supporting documents promulgated by the Secretary of the Treasury, The term ‘‘records and supporting docu- render for examination and inspection all ments’’ means, with respect to an exported records and supporting documents related to good under paragraph (2), records and docu- the origin of the good (including the certifi- ments related to the origin of the good, in- cation or copies thereof). cluding— (3) Retention period (i) the purchase, cost, and value of, and payment for, the good; Records and supporting documents shall be (ii) if applicable, the purchase, cost, and kept by the person who issued a CAFTA–DR value of, and payment for, all materials, certification of origin for at least 5 years after including recovered goods, used in the pro- the date on which the certification was issued. duction of the good; and (h) Certifications of origin for goods exported (iii) if applicable, the production of the under the United States-Peru Trade Pro- good in the form in which it was exported. motion Agreement (B) Chile FTA Certificate of Origin (1) Definitions The term ‘‘Chile FTA Certificate of Ori- In this subsection: gin’’ means the certification, established (A) Records and supporting documents under article 4.13 of the United States-Chile The term ‘‘records and supporting docu- Free Trade Agreement, that a good qualifies ments’’ means, with respect to an exported Page 185 TITLE 19—CUSTOMS DUTIES § 1508

good under paragraph (2), records and docu- 518, related to commingling of goods, prior to repeal by ments related to the origin of the good, in- Pub. L. 87–456, title III, § 301(a), May 24, 1962, 76 Stat. 75, cluding— effective, pursuant to section 501(a) of Pub. L. 87–456, (i) the purchase, cost, and value of, and with respect to articles entered, or withdrawn from warehouse, for consumption on or after Aug. 31, 1963. payment for, the good; (ii) the purchase, cost, and value of, and AMENDMENTS payment for, all materials, including indi- 2007—Subsec. (h). Pub. L. 110–138, §§ 107(c), 207(2), tem- rect materials, used in the production of porarily added subsec. (h). Former subsec. (h) redesig- the good; and nated (i). See Effective and Termination Dates of 2007 (iii) the production of the good in the Amendment note below. form in which it was exported. Subsec. (i). Pub. L. 110–138, §§ 107(c), 207(1), (3), temporarily redesignated subsec. (h) as (i) and, in introduc- (B) PTPA certification of origin tory provisions, substituted ‘‘(f), (g), or (h)’’ for ‘‘(f) or The term ‘‘PTPA certification of origin’’ (g)’’ and ‘‘any such subsection’’ for ‘‘either such sub- means the certification established under ar- section’’. See Effective and Termination Dates of 2007 ticle 4.15 of the United States-Peru Trade Amendment note below. 2005—Subsec. (g). Pub. L. 109–53, §§ 107(d), 208(2), tem- Promotion Agreement that a good qualifies porarily added subsec. (g). Former subsec. (g) redesig- as an originating good under such Agree- nated (h). See Effective and Termination Dates of 2005 ment. Amendment note below. (2) Exports to Peru Subsec. (h). Pub. L. 109–53, §§ 107(d), 208(1), (3), temporarily redesignated subsec. (g) as (h) and, in introduc- Any person who completes and issues a tory provisions, inserted ‘‘or (g)’’ after ‘‘(f)’’ and sub- PTPA certification of origin for a good ex- stituted ‘‘either such subsection’’ for ‘‘that sub- ported from the United States shall make, section’’. See Effective and Termination Dates of 2005 keep, and, pursuant to rules and regulations Amendment note below. promulgated by the Secretary of the Treasury, 2003—Subsec. (b). Pub. L. 108–77, §§ 107(c), 207(1), tem- render for examination and inspection all porarily substituted ‘‘Exportations to NAFTA coun- records and supporting documents related to tries’’ for ‘‘Exportations to free trade countries’’ in heading. See Effective and Termination Dates of 2003 the origin of the good (including the certifi- Amendment note below. cation or copies thereof). Subsec. (b)(2)(B)(i)(I). Pub. L. 108–77, §§ 107(c), 209, (3) Retention period temporarily substituted ‘‘the eleventh paragraph of section 1311 of this title’’ for ‘‘the last paragraph of sec- The person who issues a PTPA certification tion 1311 of this title’’ and ‘‘the proviso preceding the of origin shall keep the records and supporting last proviso to section 81c(a) of this title’’ for ‘‘the last documents relating to that certification of or- proviso to section 81c(a) of this title’’. See Effective igin for a period of at least 5 years after the and Termination Dates of 2003 Amendment note below. date on which the certification is issued. Subsecs. (f), (g). Pub. L. 108–77, §§ 107(c), 207(2), tempo- (i) Penalties rarily added subsecs. (f) and (g). See Effective and Ter- mination Dates of 2003 Amendment note below. Any person who fails to retain records and 1996—Subsec. (c)(1). Pub. L. 104–295 inserted ‘‘, filing supporting documents required by subsection (f), of a reconciliation,’’ after ‘‘entry’’. (g), or (h) of this section or the regulations is- 1993—Subsec. (a). Pub. L. 103–182, § 614(1), amended sued to implement any such subsection shall be subsec. (a) generally. Prior to amendment, subsec. (a) liable for the greater of— read as follows: ‘‘Any owner, importer, consignee, or agent thereof who imports, or who knowingly causes to (1) a civil penalty not to exceed $10,000; or be imported, any merchandise into the customs terri- (2) the general record keeping penalty that tory of the United States shall make, keep, and render applies under the customs laws of the United for examination and inspection such records (including States. statements, declarations, and other documents) which— (June 17, 1930, ch. 497, title IV, § 508, as added ‘‘(1) pertain to any such importation, or to the in- Pub. L. 95–410, title I, § 104, Oct. 3, 1978, 92 Stat. formation contained in the documents required by 889; amended Pub. L. 100–449, title II, § 205(b), this chapter in connection with the entry of mer- Sept. 28, 1988, 102 Stat. 1864; Pub. L. 103–182, title chandise; and II, § 205(a), title VI, § 614, Dec. 8, 1993, 107 Stat. ‘‘(2) are normally kept in the ordinary course of 2093, 2174; Pub. L. 104–295, § 3(a)(6)(B), Oct. 11, business.’’ 1996, 110 Stat. 3515; Pub. L. 108–77, title II, §§ 207, Subsec. (b). Pub. L. 103–182, § 205(a)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) read 209, Sept. 3, 2003, 117 Stat. 931, 933; Pub. L. 109–53, as follows: ‘‘Any person who exports, or who knowingly title II, § 208, Aug. 2, 2005, 119 Stat. 485; Pub. L. causes to be exported, any merchandise to Canada shall 110–138, title II, § 207, Dec. 14, 2007, 121 Stat. 1476.) make, keep, and render for examination and inspection such records (including certifications of origin or cop- AMENDMENT OF SECTION ies thereof) which pertain to such exportations.’’ For termination of amendment by section Subsec. (c). Pub. L. 103–182, § 205(a)(2), amended gener- 107(c) of Pub. L. 110–138, see Effective and Ter- ally subsec. (c), as amended by Pub. L. 103–182, § 614(2) mination Dates of 2007 Amendment note below. (see below). Prior to amendment, subsec. (c) read as fol- For termination of amendment by section lows: ‘‘The records required by subsections (a) and (b) 107(d) of Pub. L. 109–53, see Effective and Ter- of this section shall be kept for such period of time, not to exceed 5 years from the date of entry or exportation, mination Dates of 2005 Amendment note below. as appropriate, as the Secretary shall prescribe; except For termination of amendment by section that records for any drawback claim shall be kept until 107(c) of Pub. L. 108–77, see Effective and Ter- the 3rd anniversary of the date of payment of the mination Dates of 2003 Amendment note below. claim.’’ See Construction of 1993 Amendment note below. PRIOR PROVISIONS Pub. L. 103–182, § 614(2), amended subsec. (c) generally. A prior section 1508, acts June 17, 1930, ch. 497, title Prior to amendment, subsec. (c) read as follows: ‘‘The IV, § 508, 46 Stat. 732; Aug. 8, 1953, ch. 397, § 19, 67 Stat. records required by subsection (a) and (b) of this sec- § 1509 TITLE 19—CUSTOMS DUTIES Page 186 tion shall be kept for such periods of time, not to ex- Secretary of the Treasury relating thereto, to the Sec- ceed 5 years from the date of entry, as the Secretary retary of Homeland Security, and for treatment of re- shall prescribe.’’ See Construction of 1993 Amendment lated references, see sections 203(1), 551(d), 552(d), and note below. 557 of Title 6, Domestic Security, and the Department Subsec. (e). Pub. L. 103–182, § 205(a)(3), amended sub- of Homeland Security Reorganization Plan of Novem- sec. (e) generally. Prior to amendment, subsec. (e) read ber 25, 2002, as modified, set out as a note under section as follows: ‘‘Any person who fails to retain records re- 542 of Title 6. quired by subsection (b) of this section or the regulations issued to implement that subsection shall be lia- § 1509. Examination of books and witnesses ble to a civil penalty not to exceed $10,000.’’ (a) Authority 1988—Subsecs. (b) to (e). Pub. L. 100–449 added subsec. (b), redesignated former subsec. (b) as (c) and inserted In any investigation or inquiry conducted for ‘‘and (b)’’ after ‘‘subsection (a)’’, redesignated former the purpose of ascertaining the correctness of subsec. (c) as (d), and added subsec. (e). any entry, for determining the liability of any person for duty, fees and taxes due or duties, EFFECTIVE AND TERMINATION DATES OF 2007 fees and taxes which may be due the United AMENDMENT States, for determining liability for fines and Amendment by Pub. L. 110–138 effective on the date penalties, or for insuring compliance with the the United States-Peru Trade Promotion Agreement laws of the United States administered by the enters into force (Feb. 1, 2009) and to cease to be effec- United States Customs Service, the Secretary tive on the date the Agreement ceases to be in force, see section 107(a), (c) of Pub. L. 110–138, set out in a (but no delegate of the Secretary below the rank note under section 3805 of this title. of district director or special agent in charge) may— EFFECTIVE AND TERMINATION DATES OF 2005 (1) examine, or cause to be examined, upon AMENDMENT reasonable notice, any record (which for pur- Amendment by Pub. L. 109–53 effective on the date poses of this section, includes, but is not lim- the Dominican Republic-Central America-United ited to, any statement, declaration, document, States Free Trade Agreement enters into force (Mar. 1, or electronically generated or machine read- 2006) and to cease to have effect on date Agreement able data) described in the notice with reason- ceases to be in force with respect to the United States, able specificity, which may be relevant to and, during any period in which a country ceases to be a CAFTA–DR country, to cease to have effect with re- such investigation or inquiry, except that— spect to such country, see section 107 of Pub. L. 109–53, (A) if such record is required by law or reg- set out as an Effective and Termination Dates note ulation for the entry of the merchandise under section 4001 of this title. (whether or not the Customs Service required its presentation at the time of entry) EFFECTIVE AND TERMINATION DATES OF 2003 it shall be provided to the Customs Service AMENDMENT within a reasonable time after demand for Amendment by Pub. L. 108–77 effective on the date its production is made, taking into consider- the United States-Chile Free Trade Agreement enters ation the number, type, and age of the item into force (Jan. 1, 2004), and to cease to be effective on demanded; and the date the Agreement ceases to be in force, see sec- (B) if a person of whom demand is made tion 107(a), (c) of Pub. L. 108–77, set out in a note under section 3805 of this title. under subparagraph (A) fails to comply with the demand, the person may be subject to EFFECTIVE DATE OF 1996 AMENDMENT penalty under subsection (g) of this section; Amendment by Pub. L. 104–295 applicable as of Dec. 8, (2) summon, upon reasonable notice— 1993, see section 3(b) of Pub. L. 104–295, set out as a note (A) the person who— under section 1321 of this title. (i) imported, or knowingly caused to be EFFECTIVE DATE OF 1993 AMENDMENT imported, merchandise into the customs territory of the United States, Amendment by section 205(a) of Pub. L. 103–182 effec- (ii) exported merchandise, or knowingly tive on the date the North American Free Trade Agree- caused merchandise to be exported, to a ment enters into force with respect to the United States [Jan. 1, 1994], see section 213(b) of Pub. L. NAFTA country (as defined in section 103–182, set out as an Effective Date note under section 3301(4) of this title) or to Canada during 3331 of this title. such time as the United States-Canada Free-Trade Agreement is in force with re- EFFECTIVE AND TERMINATION DATES OF 1988 spect to, and the United States applies AMENDMENT that Agreement to, Canada, Amendment by Pub. L. 100–449 effective on date (iii) transported or stored merchandise United States-Canada Free-Trade Agreement enters that was or is carried or held under cus- into force (Jan. 1, 1989), and to cease to have effect on toms bond, or knowingly caused such date Agreement ceases to be in force, see section 501(a), transportation or storage, or (c) of Pub. L. 100–449, set out in a note under section (iv) filed a declaration, entry, or draw- 2112 of this title. back claim with the Customs Service; CONSTRUCTION OF 1993 AMENDMENT (B) any officer, employee, or agent of any Amendment by section 205(a) of Pub. L. 103–182 to be person described in subparagraph (A); made after amendment by section 614 of Pub. L. 103–182 (C) any person having possession, custody is executed, see section 212 of Pub. L. 103–182, set out as or care of records relating to the importa- a note under section 58c of this title. tion or other activity described in subpara- TRANSFER OF FUNCTIONS graph (A); or (D) any other person he may deem proper; For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the to appear before the appropriate customs offi- Department of the Treasury, including functions of the cer at the time and place within the customs Page 187 TITLE 19—CUSTOMS DUTIES § 1509

territory of the United States specified in the underdeclarations also identified on finally liq- summons (except that no witness may be re- uidated entries, if such overpayments or over- quired to appear at any place more than one declarations were not made by the person being hundred miles distant from the place where he audited for the purpose of violating any provi- was served with the summons), to produce sion of law. records, as defined in subsection (d)(1)(A) of (B) Nothing in this paragraph shall be con- this section, and to give such testimony, under strued to authorize a refund not otherwise au- oath, as may be relevant to such investigation thorized under section 1520 of this title. or inquiry; and (c) Service of summons (3) take, or cause to be taken, such testimony of the person concerned, under oath, as A summons issued pursuant to this section may be relevant to such investigation or in- may be served by any person designated in the quiry. summons to serve it. Service upon a natural person may be made by personal delivery of the (b) Regulatory audit procedures summons to him. Service may be made upon a (1) In conducting a regulatory audit under this domestic or foreign corporation or upon a part- section (which does not include a quantity ver- nership or other unincorporated association ification for a customs bonded warehouse or which is subject to suit under a common name, general purpose foreign trade zone), the Customs by delivering the summons to an officer, or Service auditor shall provide the person being managing or general agent, or to any other audited, in advance of the audit, with a reason- agent authorized by appointment or by law to able estimate of the time to be required for the receive service of process. The certificate of audit. If in the course of an audit it becomes ap- service signed by the person serving the sum- parent that additional time will be required, the mons is prima facie evidence of the facts it Customs Service auditor shall immediately pro- states on the hearing of an application for the vide a further estimate of such additional time. enforcement of the summons. When the sum- (2) Before commencing an audit, the Customs mons requires the production of records, such Service auditor shall inform the party to be au- records shall be described in the summons with dited of his right to an entry conference at reasonable specificity. which time the purpose will be explained and an (d) Special procedures for third-party sum- estimated termination date set. Upon comple- monses tion of on-site audit activities, the Customs Service auditor shall schedule a closing con- (1) For purposes of this subsection— ference to explain the preliminary results of the (A) The term ‘‘records’’ includes those— audit. (i) required to be kept under section 1508 of (3) Except as provided in paragraph (5), if the this title; or estimated or actual termination date for an (ii) regarding which there is probable audit passes without the Customs Service audi- cause to believe that they pertain to mer- tor providing a closing conference to explain the chandise the importation of which into the results of the audit, the person being audited United States is prohibited. may petition in writing for such a conference to (B) The term ‘‘summons’’ means any sum- the officer designated pursuant to regulations, mons issued under subsection (a) of this sec- who, upon receipt of such a request, shall pro- tion which requires the production of records vide for such a conference to be held within 15 or the giving of testimony relating to records. days after the date of receipt. Such term does not mean any summons issued (4) Except as provided in paragraph (5), the to aid in the collection of the liability of any Customs Service auditor shall complete the for- person against whom an assessment has been mal written audit report within 90 days follow- made or judgment rendered. ing the closing conference unless the officer des- (C) The term ‘‘third-party recordkeeper’’ ignated pursuant to regulations provides written means— notice to the person being audited of the reason (i) any customhouse broker, unless such for any delay and the anticipated completion customhouse broker is the importer of date. After application of any exemption con- record on an entry; tained in section 552 of title 5, a copy of the for- (ii) any attorney; and mal written audit report shall be sent to the (iii) any accountant. person audited no later than 30 days following completion of the report. (2) If— (5) Paragraphs (3) and (4) shall not apply after (A) any summons is served on any person the Customs Service commences a formal inves- who is a third-party recordkeeper; and tigation with respect to the issue involved. (B) the summons requires the production of, (6)(A) If during the course of any audit con- or the giving of testimony relating to, any cluded under this subsection, the Customs Serv- portion of records made or kept of the trans- ice identifies overpayments of duties or fees or actions described in section 1508 of this title of over-declarations of quantities or values that any person (other than the person summoned) are within the time period and scope of the who is identified in the description of the audit that the Customs Service has defined, records contained in such summons; then in calculating the loss of revenue or mone- then notice of such summons shall be given to tary penalties under section 1592 of this title, any persons so identified within a reasonable the Customs Service shall treat the overpay- time before the day fixed in the summons as the ments or over-declarations on finally liquidated day upon which such records are to be examined entries as an offset to any underpayments or or testimony given. Such notice shall be accom- § 1509 TITLE 19—CUSTOMS DUTIES Page 188 panied by a copy of the summons which has been (f) Recordkeeping compliance program served and shall contain directions for staying (1) In general compliance with the summons under paragraph After consultation with the importing com- (5)(B) of this subsection. munity, the Customs Service shall by regula- (3) Any notice required under paragraph (2) of tion establish a recordkeeping compliance pro- this subsection shall be sufficient if such notice gram which the parties listed in section 1508(a) is served in the manner provided in subsection of this title may participate in after being cer- (b) of this section upon the person entitled to tified by the Customs Service under paragraph notice, or is mailed by certified or registered (2). Participation in the recordkeeping compli- mail to the last known address of such person. (4) Paragraph (2) of this subsection shall not ance program by recordkeepers is voluntary. apply to any summons— (2) Certification (A) served on the person with respect to A recordkeeper may be certified as a partici- whose liability for duties, fees, or taxes the pant in the recordkeeping compliance program summons is issued, or any officer or employee after meeting the general recordkeeping re- of such person; or quirements established under the program or (B) to determine whether or not records of after negotiating an alternative program suit- the transactions described in section 1508 of ed to the needs of the recordkeeper and the this title of an identified person have been Customs Service. Certification requirements made or kept. shall take into account the size and nature of (5) Notwithstanding any other law or rule of the importing business and the volume of im- law, any person who is entitled to notice of a ports. In order to be certified, the record- summons under paragraph (2) of this subsection keeper must be able to demonstrate that it— shall have the right— (A) understands the legal requirements for (A) to intervene in any proceeding with re- recordkeeping, including the nature of the spect to the enforcement of such summons records required to be maintained and pro- under section 1510 of this title; and duced and the time periods involved; (B) to stay compliance with the summons if, (B) has in place procedures to explain the not later than the day before the day fixed in recordkeeping requirements to those em- the summons as the day upon which the rec- ployees who are involved in the preparation, ords are to be examined or testimony given— maintenance, and production of required (i) notice in writing is given to the person records; summoned not to comply with the summons; (C) has in place procedures regarding the and preparation and maintenance of required (ii) a copy of such notice not to comply records, and the production of such records with the summons is mailed by registered or to the Customs Service; certified mail to such person and to such of- (D) has designated a dependable individual fice as the Secretary may direct in the no- or individuals to be responsible for record- tice referred to in paragraph (2) of this sub- keeping compliance under the program and section. whose duties include maintaining famili- (6) No examination of any records required to arity with the recordkeeping requirements be produced under a summons as to which notice of the Customs Service; is required under paragraph (2) of this sub- (E) has a record maintenance procedure section may be made— approved by the Customs Service for origi- (A) before the expiration of the period al- nal records, or, if approved by the Customs lowed for the notice not to comply under para- Service, for alternative records or record- graph (5)(B) of this subsection, or keeping formats other than the original (B) if the requirements of such paragraph records; and (5)(B) have been met, except in accordance (F) has procedures for notifying the Cus- with an order issued by a court of competent toms Service of occurrences of variances to, jurisdiction authorizing examination of such and violations of, the requirements of the records or with the consent of the person stay- recordkeeping compliance program or the ing compliance. negotiated alternative programs, and for taking corrective action when notified by (7) The provisions of paragraphs (2) and (5) of the Customs Service of violations or prob- this subsection shall not apply with respect to lems regarding such program. any summons if, upon petition by the Secretary, the court determines, on the basis of the facts (g) Penalties and circumstances alleged, that there is reason- (1) ‘‘Information’’ defined able cause to believe the giving of notice may For purposes of this subsection, the term lead to attempts to conceal, destroy, or alter ‘‘information’’ means any record, statement, records relevant to the examination, to prevent declaration, document, or electronically the communication of information from other stored or transmitted information or data re- persons through intimidation, bribery, or collu- ferred to in subsection (a)(1)(A) of this section. sion, or to flee to avoid prosecution, testifying, (2) Effects of failure to comply with demand or production of records. Except as provided in paragraph (4), if a per- (e) List of records and information son fails to comply with a lawful demand for The Customs Service shall identify and pub- information under subsection (a)(1)(A) of this lish a list of the records or entry information section the following provisions apply: that is required to be maintained and produced (A) If the failure to comply is a result of under subsection (a)(1)(A) of this section. the willful failure of the person to maintain, Page 189 TITLE 19—CUSTOMS DUTIES § 1509

store, or retrieve the demanded information, (i) has been certified as a participant in such person shall be subject to a penalty, for the recordkeeping compliance program each release of merchandise, not to exceed under subsection (f) of this section; and $100,000, or an amount equal to 75 percent of (ii) is generally in compliance with the the appraised value of the merchandise, appropriate procedures and requirements whichever amount is less. of the program; (B) If the failure to comply is a result of does not produce a demanded record or infor- the negligence of the person in maintaining, mation for a specific release or provide the storing, or retrieving the demanded informa- information by acceptable alternative tion, such person shall be subject to a pen- means, the Customs Service, in the absence alty, for each release of merchandise, not to of willfulness or repeated violations, shall exceed $10,000, or an amount equal to 40 percent of the appraised value of the merchan- issue a written notice of the violation to the dise, whichever amount is less. recordkeeper in lieu of a monetary penalty. (C) In addition to any penalty imposed Repeated violations by the recordkeeper under subparagraph (A) or (B) regarding de- may result in the issuance of penalties and manded information, if such information re- removal of certification under the program lated to the eligibility of merchandise for a until corrective action, satisfactory to the column 1 special rate of duty under title I, Customs Service, is taken. the entry of such merchandise— (B) Contents of notice (i) if unliquidated, shall be liquidated at A notice of violation issued under subpara- the applicable column 1 general rate of graph (A) shall— duty; or (i) state that the recordkeeper has vio- (ii) if liquidated within the 2-year period lated the recordkeeping requirements; preceding the date of the demand, shall be (ii) indicate the record or information reliquidated, notwithstanding the time which was demanded; and limitation in section 1514 or 1520 of this (iii) warn the recordkeeper that future title, at the applicable column 1 general failures to produce demanded records or rate of duty; information may result in the imposition except that any liquidation or reliquidation of monetary penalties. under clause (i) or (ii) shall be at the appli- (C) Response to notice cable column 2 rate of duty if the Customs Within a reasonable time after receiving Service demonstrates that the merchandise written notice under subparagraph (A), the should be dutiable at such rate. recordkeeper shall notify the Customs Serv- (3) Avoidance of penalty ice of the steps it has taken to prevent a re- No penalty may be assessed under this sub- currence of the violation. section if the person can show— (D) Regulations (A) that the loss of the demanded informa- The Secretary shall promulgate regulation was the result of an act of God or other tions to implement this paragraph. Such natural casualty or disaster beyond the fault regulations may specify the time periods for of such person or an agent of the person; compliance with a demand for information (B) on the basis of other evidence satisfac- and provide guidelines which define repeated tory to the Customs Service, that the de- violations for purposes of this paragraph. mand was substantially complied with; or (C) the information demanded was pre- Any penalty issued for a recordkeeping vio- sented to and retained by the Customs Serv- lation shall take into account the degree of ice at the time of entry or submitted in re- compliance compared to the total number of sponse to an earlier demand. importations, the nature of the demanded records and the recordkeeper’s cooperation. (4) Penalties not exclusive Any penalty imposed under this subsection (June 17, 1930, ch. 497, title IV, § 509, 46 Stat. 733; shall be in addition to any other penalty pro- June 25, 1948, ch. 646, § 26, 62 Stat. 990; Pub. L. vided by law except for— 91–271, title III, § 301(n), June 2, 1970, 84 Stat. 289; (A) a penalty imposed under section 1592 of Pub. L. 95–410, title I, § 105, Oct. 3, 1978, 92 Stat. this title for a material omission of the de- 889; Pub. L. 99–570, title III, § 3117, Oct. 27, 1986, manded information, or 100 Stat. 3207–84; Pub. L. 103–182, title II, § 205(b), (B) disciplinary action taken under section title VI, § 615, Dec. 8, 1993, 107 Stat. 2094, 2175; 1641 of this title. Pub. L. 104–295, § 3(a)(1), (10), Oct. 11, 1996, 110 (5) Remission or mitigation Stat. 3515, 3516; Pub. L. 107–210, div. A, title III, § 382, Aug. 6, 2002, 116 Stat. 992.) A penalty imposed under this section may be remitted or mitigated under section 1618 of REFERENCES IN TEXT this title. Title I, referred to in subsec. (g)(2)(C), means title I (6) Customs summons of act June 17, 1930, ch. 497, as amended, which contains the Harmonized Tariff Schedule of the United States Nothing in this subsection shall limit or pre- and which is not set out in the Code. See notes preced- clude the Customs Service from issuing, or ing section 1202 of this title and Publication of Har- seeking the enforcement of, a customs sum- monized Tariff Schedule note set out under section 1202 mons. of this title.

(7) Alternatives to penalties PRIOR PROVISIONS (A) In general Provisions substantially the same, in most respects, When a recordkeeper who— as those in this section, were contained in act Oct. 3, § 1510 TITLE 19—CUSTOMS DUTIES Page 190

1913, ch. 16, § III, O, 38 Stat. 188, which substantially re- read as follows: ‘‘The term ‘records’ includes state- enacted the provisions of Customs Administrative Act ments, declarations, or documents required to be kept of June 10, 1890, ch. 407, § 16, 26 Stat. 138, as renumbered under section 1508 of this title.’’ and reenacted without other change by the Payne-Al- 1978—Pub. L. 95–410 substituted subsec. (a) to (c) pro- drich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 100. visions for examination of books and witnesses for Section III of the 1913 act was superseded and more prior provisions for examination of importer and oth- closely assimilated to this section by act Sept. 21, 1922, ers, which authorized appropriate customs officers to ch. 356, title IV, § 508, 42 Stat. 968, and repealed by sec- issue citations for examination under oath of any tion 643 thereof. Section 508 of the 1922 act was super- owner, importer, consignee, agent, or other person seded by section 509 of act June 17, 1930, comprising this upon any material matter or thing respecting any im- section, and repealed by section 651(a)(1) of the 1930 act. ported merchandise then under consideration or pre- Prior provisions similar to those in this section and viously imported within one year, in ascertaining the section 1510 of this title were made by R.S. §§ 2922–2924, classification or the value thereof or the rate or repealed by section 29 of the Customs Administrative amount of duty and to require production of any let- Act of 1890, 26 Stat. 141. ters, accounts, contracts, invoices, or other documents relating to the merchandise, and the reduction of the AMENDMENTS testimony to writing, required the testimony to be 2002—Subsec. (b)(6). Pub. L. 107–210 added par. (6). filed and preserved under Customs Court rules, and au- 1996—Subsec. (a)(2). Pub. L. 104–295, § 3(a)(1), sub- thorized consideration of the evidence in subsequent stituted ‘‘(d)(1)(A)’’ for ‘‘(c)(1)(A)’’ in concluding provi- proceedings relating to the merchandise. sions. 1970—Pub. L. 91–271 substituted ‘‘Appropriate customs Subsec. (b)(3), (4). Pub. L. 104–295, § 3(a)(10), sub- officer’’ for ‘‘Collectors and appraisers’’. stituted ‘‘officer designated pursuant to regulations’’ 1948—Act June 25, 1948, struck out ‘‘and judges and di- for ‘‘appropriate regional commissioner’’. visions of the United States Customs Court’’ after 1993—Subsec. (a). Pub. L. 103–182, § 615(1)(A), sub- ‘‘Collectors and appraisers’’ in first sentence. stituted ‘‘, fees and taxes’’ for ‘‘and taxes’’ in two places in introductory provisions. EFFECTIVE DATE OF 2002 AMENDMENT Subsec. (a)(1). Pub. L. 103–182, § 615(1)(B), amended Amendment by Pub. L. 107–210 applicable to petitions par. (1) generally. Prior to amendment, par. (1) read as for certification filed under part 2 or 3 of subchapter II follows: ‘‘examine, or cause to be examined, upon rea- of chapter 12 of this title on or after the date that is 90 sonable notice, any record, statement, declaration or days after Aug. 6, 2002, except as otherwise provided, other document, described in the notice with reason- see section 151 of Pub. L. 107–210, set out as a note pre- able specificity, which may be relevant to such inves- ceding section 2271 of this title. tigation or inquiry;’’. Subsec. (a)(2)(A). Pub. L. 103–182, § 615(1)(C), amended EFFECTIVE DATE OF 1996 AMENDMENT subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘the person who imported, or know- Amendment by Pub. L. 104–295 applicable as of Dec. 8, ingly caused to be imported, merchandise into the cus- 1993, see section 3(b) of Pub. L. 104–295, set out as a note toms territory of the United States,’’. See Construction under section 1321 of this title. of 1993 Amendment note below. EFFECTIVE DATE OF 1993 AMENDMENT Subsec. (a)(2)(A)(ii). Pub. L. 103–182, § 205(b), amended generally cl. (ii), as amended by Pub. L. 103–182, Amendment by section 205(b) of Pub. L. 103–182 effec- § 615(1)(C). Prior to amendment, cl. (ii) read as follows: tive on the date the North American Free Trade Agree- ‘‘exported merchandise, or knowingly caused merchan- ment enters into force with respect to the United dise to be exported, to Canada,’’. See Construction of States [Jan. 1, 1994], see section 213(b) of Pub. L. 1993 Amendment note below. 103–182, set out as an Effective Date note under section Subsec. (a)(2)(B), (C). Pub. L. 103–182, § 615(1)(C), 3331 of this title. amended subpars. (B) and (C) generally. Prior to EFFECTIVE DATE OF 1970 AMENDMENT amendment, subpars. (B) and (C) read as follows: ‘‘(B) any officer, employee, or agent of such person, For effective date of amendment by Pub. L. 91–271, ‘‘(C) any person having possession, custody, or care of see section 203 of Pub. L. 91–271, set out as a note under records relating to such importation, or’’. section 1500 of this title. Subsec. (a)(2)(D). Pub. L. 103–182, § 615(1)(D), substituted a semicolon for comma at end. EFFECTIVE DATE OF 1948 AMENDMENT Subsecs. (b), (c). Pub. L. 103–182, § 615(2), (3), added Section 38 of act June 25, 1948, provided that the subsec. (b) and redesignated former subsec. (b) as (c). amendment made by that act is effective Sept. 1, 1948. Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 103–182, § 615(2), redesignated sub- CONSTRUCTION OF 1993 AMENDMENT sec. (c) as (d). Amendment by section 205(b) of Pub. L. 103–182 to be Subsec. (d)(1)(A). Pub. L. 103–182, § 615(4)(A), sub- made after amendment by section 615 of Pub. L. 103–182 stituted ‘‘those’’ for ‘‘statements, declarations, or doc- is executed, see section 212 of Pub. L. 103–182, set out as uments’’ in introductory provisions. a note under section 58c of this title. Subsec. (d)(1)(C)(i). Pub. L. 103–182, § 615(4)(B), inserted ‘‘, unless such customhouse broker is the im- TRANSFER OF FUNCTIONS porter of record on an entry’’ after ‘‘broker’’. Subsec. (d)(2)(B). Pub. L. 103–182, § 615(4)(C), (D), sub- For transfer of functions, personnel, assets, and li- stituted ‘‘the transactions described in section 1508 of abilities of the United States Customs Service of the this title’’ for ‘‘the import transactions’’. Department of the Treasury, including functions of the Subsec. (d)(4)(A). Pub. L. 103–182, § 615(4)(E), inserted Secretary of the Treasury relating thereto, to the Sec- ‘‘, fees,’’ after ‘‘duties’’. retary of Homeland Security, and for treatment of re- Subsec. (d)(4)(B). Pub. L. 103–182, § 615(4)(C), (D), sub- lated references, see sections 203(1), 551(d), 552(d), and stituted ‘‘the transactions described in section 1508 of 557 of Title 6, Domestic Security, and the Department this title’’ for ‘‘the import transactions’’. of Homeland Security Reorganization Plan of Novem- Subsecs. (e) to (g). Pub. L. 103–182, § 615(5), added sub- ber 25, 2002, as modified, set out as a note under section secs. (e) to (g). 542 of Title 6. 1986—Subsec. (a)(2). Pub. L. 99–570, § 3117(1), substituted ‘‘as defined in subsection (c)(1)(A) of this sec- § 1510. Judicial enforcement tion’’ for ‘‘required to be kept under section 1508 of this (a) Order of court title’’ in concluding provisions. Subsec. (c)(1)(A). Pub. L. 99–570, § 3117(2), amended If any person summoned under section 1509 of subpar. (A) generally. Prior to amendment, subpar. (A) this title does not comply with the summons, Page 191 TITLE 19—CUSTOMS DUTIES § 1513 the district court of the United States for any swer interrogatories; deeming the last made appraise- district in which such person is found or resides ment of the merchandise as final where an owner, im- or is doing business, upon application and after porter, or consignee failed to comply with the examina- notice to any such person and hearing, shall tion provisions; deeming the person falsely swearing on an examination guilty of perjury; and forfeiture of the have jurisdiction to issue an order requiring merchandise where the person was an owner, importer, such person to comply with the summons. Fail- or consignee, or the recovery of its value from him. ure to obey such order of the court may be pun- 1970—Pub. L. 91–271 substituted references to appro- ished by such court as a contempt thereof and priate customs officer for references to collector or ap- such court may assess a monetary penalty. praiser wherever appearing, and struck out references to divisions of United States Customs Court. (b) Sanctions EFFECTIVE DATE OF 1970 AMENDMENT (1) For so long as any person, after being ad- judged guilty of contempt for neglecting or re- For effective date of amendment by Pub. L. 91–271, fusing to obey a lawful summons issued under see section 203 of Pub. L. 91–271, set out as a note under section 1509 of this title and for refusing to obey section 1500 of this title. the order of the court, remains in contempt, the § 1511. Repealed. Pub. L. 95–410, title I, § 107, Oct. Secretary may— 3, 1978, 92 Stat. 892 (A) prohibit that person from importing merchandise into the customs territory of the Section, acts June 17, 1930, ch. 497, title IV, § 511, 46 United States directly or indirectly or for his Stat. 733; June 2, 1970, Pub. L. 91–271, title III, § 301(p), account, and 84 Stat. 290, provided for inspection of importer’s books. See sections 1508–1510 of this title. (B) instruct the appropriate customs officers Provisions similar to those in this section were con- to withhold delivery of merchandise imported tained in act May 27, 1921, ch. 14, § 405, 42 Stat. 18, which directly or indirectly by that person or for his was superseded by act Sept. 21, 1922, ch. 356, title IV, account. § 511, 42 Stat. 969. Section 511 of the 1922 act was superseded by section 511 of act June 17, 1930, comprising this (2) If any person remains in contempt for more section, and repealed by section 651(a)(1) of the 1930 act. than one year after the date on which the Sec- Earlier provisions for assessment of additional duty retary issues instructions under paragraph (1)(B) for failure or refusal of persons importing merchandise with respect to that person, the appropriate cus- or dealing in imported merchandise to submit their toms officers shall cause all merchandise held in books, records, etc., to inspection, were contained in customs custody pursuant to such instructions act Oct. 3, 1913, ch. 16, § III, V, 38 Stat. 190, prior to re- to be sold at public auction or otherwise dis- peal by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. posed of under the customs laws. 989. (3) The sanctions which may be imposed under § 1512. Deposit of duty receipts paragraphs (1) and (2) are in addition to any pun- ishment which may be imposed by the court for All moneys paid to any customs officer for un- contempt. ascertained duties or for duties paid under protest against the rate or amount of duties (June 17, 1930, ch. 497, title IV, § 510, 46 Stat. 733; charged shall be deposited to the credit of the Pub. L. 91–271, title III, § 301(o), June 2, 1970, 84 Treasurer of the United States and shall not be Stat. 290; Pub. L. 95–410, title I, § 106, Oct. 3, 1978, held by the customs officers to await any ascer- 92 Stat. 891; Pub. L. 103–182, title VI, § 616, Dec. tainment of duties or the result of any litigation 8, 1993, 107 Stat. 2179.) in relation to the rate or amount of duties le- PRIOR PROVISIONS gally chargeable and collectible in any case where money is so paid. Provisions substantially the same as those in this section were contained in act Oct. 3, 1913, ch. 16, § III, (June 17, 1930, ch. 497, title IV, § 512, 46 Stat. 734; P, 38 Stat. 188, which substantially reenacted the provi- Pub. L. 91–271, title III, § 301(q), June 2, 1970, 84 sions of the Customs Administrative Act of June 10, Stat. 290.) 1890, ch. 407, § 17, 26 Stat. 139, as renumbered and reenacted without other change by the Payne-Aldrich Tar- PRIOR PROVISIONS iff Act of Aug. 5, 1909, ch. 6, § 23, 36 Stat. 100. Section III, Provisions similar to those in this section were con- P, of the 1913 act was superseded by act Sept. 21, 1922, tained in R.S. § 3010, which was superseded by act Sept. ch. 356, title IV, § 509, 42 Stat. 968, and repealed by sec- 21, 1922, ch. 356, title IV, § 512, 42 Stat. 969, and was re- tion 643 thereof. Section 509 of the 1922 act was super- pealed by section 642 thereof. Section 512 of the 1922 act seded by section 510 of act June 17, 1930, comprising this was superseded by section 512 of act June 17, 1930, com- section, and repealed by section 651(a)(1) of the 1930 act. prising this section, and repealed by section 651(a)(1) of Prior provisions similar to those in this section were the 1930 act. contained in R.S. §§ 2923, 2924, prior to repeal by section 29 of the Customs Administrative Act of June 10, 1890, AMENDMENTS 26 Stat. 141. 1970—Pub. L. 91–271 substituted references to customs officers for references to collectors wherever appearing. AMENDMENTS 1993—Subsec. (a). Pub. L. 103–182 inserted before pe- EFFECTIVE DATE OF 1970 AMENDMENT riod at end ‘‘and such court may assess a monetary For effective date of amendment by Pub. L. 91–271, penalty’’. see section 203 of Pub. L. 91–271, set out as a note under 1978—Pub. L. 95–410 substituted judicial enforcement section 1500 of this title. provisions covering court order for compliance with administrative summonses and imposition of specified § 1513. Customs officer’s immunity sanctions for prior provisions covering imposition of penalties for refusal to give testimony, including provi- No customs officer shall be liable in any way sion for a penalty of not less than $20 nor more than to any person for or on account of— $500 for refusing to appear or to produce documents or (1) any ruling or decision regarding the ap- to subscribe his name to a deposition or refusing to an- praisement or the classification of any im- § 1514 TITLE 19—CUSTOMS DUTIES Page 192

ported merchandise or regarding the duties, (3) all charges or exactions of whatever char- fees, and taxes charged thereon, acter within the jurisdiction of the Secretary (2) the collection of any dues, charges, du- of the Treasury; ties, fees, and taxes on or on account of any (4) the exclusion of merchandise from entry imported merchandise, or or delivery or a demand for redelivery to cus- (3) any other matter or thing as to which toms custody under any provision of the cus- any person might under this chapter be enti- toms laws, except a determination appealable tled to protest or appeal from the decision of under section 1337 of this title; such officer. (5) the liquidation or reliquidation of an entry, or reconciliation as to the issues con- (June 17, 1930, ch. 497, title IV, § 513, 46 Stat. 734; tained therein, or any modification thereof, Pub. L. 91–271, title III, § 301(r), June 2, 1970, 84 including the liquidation of an entry, pursuant Stat. 290; Pub. L. 103–182, title VI, § 644, Dec. 8, to either section 1500 of this title or section 1993, 107 Stat. 2206.) 1504 of this title; (6) the refusal to pay a claim for drawback; PRIOR PROVISIONS or Provisions substantially the same as those in this (7) the refusal to reliquidate an entry under section, except that they did not specifically refer to subsection (d) of section 1520 of this title; rulings or decisions as to appraisement, were contained in act Oct. 3, 1913, ch. 16, § III, Z, 38 Stat. 191, which re- shall be final and conclusive upon all persons enacted without change the provisions of the Customs (including the United States and any officer Administrative Act of June 10, 1890, ch. 407, § 25, 26 Stat. thereof) unless a protest is filed in accordance 141, as reenacted by the Payne-Aldrich Tariff Act of with this section, or unless a civil action con- Aug. 5, 1909, ch. 6, § 28, 36 Stat. 103. Section III, Z, of the testing the denial of a protest, in whole or in 1913 act was superseded and more closely assimilated to part, is commenced in the United States Court this section by act Sept. 21, 1922, ch. 356, title IV, § 513, of International Trade in accordance with chap- 42 Stat. 969, and repealed by section 643 thereof. Section 513 of the 1922 act was superseded by section 513 of act ter 169 of title 28 within the time prescribed by June 17, 1930, comprising this section, and repealed by section 2636 of that title. When a judgment or section 651(a)(1) of the 1930 act. order of the United States Court of Inter- national Trade has become final, the papers AMENDMENTS transmitted shall be returned, together with a 1993—Pub. L. 103–182 amended section generally. Prior copy of the judgment or order to the Customs to amendment, section read as follows: ‘‘No customs of- Service, which shall take action accordingly. ficer shall be in any way liable to any owner, importer, (b) Finality of determinations consignee, or agent or any other person for or on account of any rulings or decisions as to the appraise- With respect to determinations made under ment or the classification of any imported merchandise section 1303 1 of this title or subtitle IV of this or the duties charged thereon, or the collection of any chapter which are reviewable under section dues, charges, or duties on or on account of said mer- 1516a of this title, determinations of the Cus- chandise, or any other matter or thing as to which said toms Service are final and conclusive upon all owner, importer, consignee, or agent might under this persons (including the United States and any of- chapter be entitled to protest or appeal from the deci- ficer thereof) unless a civil action contesting a sion of such officer.’’ determination listed in section 1516a of this title 1970—Pub. L. 91–271 substituted ‘‘customs officer’’ for ‘‘collector or other customs officer’’ and ‘‘such officer’’ is commenced in the United States Court of for ‘‘such collector or other officer’’. International Trade, or review by a binational panel of a determination to which section EFFECTIVE DATE OF 1970 AMENDMENT 1516a(g)(2) of this title applies is commenced For effective date of amendment by Pub. L. 91–271, pursuant to section 1516a(g) of this title and ar- see section 203 of Pub. L. 91–271, set out as a note under ticle 1904 of the North American Free Trade section 1500 of this title. Agreement or the United States-Canada Free- Trade Agreement. § 1514. Protest against decisions of Customs Serv- (c) Form, number, and amendment of protest; fil- ice ing of protest (a) Finality of decisions; return of papers (1) A protest of a decision made under sub- Except as provided in subsection (b) of this section (a) of this section shall be filed in writ- section, section 1501 of this title (relating to vol- ing, or transmitted electronically pursuant to untary reliquidations), section 1516 of this title an electronic data interchange system, in ac- (relating to petitions by domestic interested cordance with regulations prescribed by the Sec- parties), section 1520 of this title (relating to re- retary. A protest must set forth distinctly and funds), and section 6501 of title 26 (but only with specifically— respect to taxes imposed under chapters 51 and (A) each decision described in subsection (a) 52 of such title), any clerical error, mistake of of this section as to which protest is made; fact, or other inadvertence, whether or not re- (B) each category of merchandise affected by sulting from or contained in an electronic trans- each decision set forth under paragraph (1); mission, adverse to the importer, in any entry, (C) the nature of each objection and the rea- liquidation, or reliquidation, and, decisions of sons therefor; and (D) any other matter required by the Sec- the Customs Service, including the legality of retary by regulation. all orders and findings entering into the same, as to— Only one protest may be filed for each entry of (1) the appraised value of merchandise; merchandise, except that where the entry covers (2) the classification and rate and amount of duties chargeable; 1 See References in Text note below. Page 193 TITLE 19—CUSTOMS DUTIES § 1514 merchandise of different categories, a separate origin under section 3332 of this title. The Sec- protest may be filed for each category. In addi- retary may, by regulations, prescribe the time tion, separate protests filed by different author- period in which such advance notice shall be is- ized persons with respect to any one category of sued and authorize the Customs Service to pro- merchandise, or with respect to a determination vide in the notice the entry number and any of origin under section 3332 of this title, that is other entry information considered necessary to the subject of a protest are deemed to be part of allow the exporter or producer to exercise the a single protest. Unless a request for accelerated rights provided by this section. disposition is filed under section 1515(b) of this (f) Denial of preferential treatment title, a protest may be amended, under regula- If the Customs Service finds indications of a tions prescribed by the Secretary, to set forth pattern of conduct by an exporter or producer of objections as to a decision or decisions described false or unsupported representations that goods in subsection (a) of this section which were not qualify under the rules of origin set out in sec- the subject of the original protest, in the form tion 3332 of this title— and manner prescribed for a protest, any time (1) the Customs Service, in accordance with prior to the expiration of the time in which such regulations issued by the Secretary, may deny protest could have been filed under this section. preferential tariff treatment to entries of New grounds in support of objections raised by a identical goods exported or produced by that valid protest or amendment thereto may be pre- person; and sented for consideration in connection with the (2) the advance notice requirement in sub- review of such protest pursuant to section 1515 section (e) of this section shall not apply to of this title at any time prior to the disposition that person; of the protest in accordance with that section. until the person establishes to the satisfaction (2) Except as provided in sections 1485(d) and of the Customs Service that its representations 1557(b) of this title, protests may be filed with are in conformity with section 3332 of this title. respect to merchandise which is the subject of a (g) Denial of preferential tariff treatment under decision specified in subsection (a) of this sec- United States-Chile Free Trade Agreement tion by— (A) the importers or consignees shown on If the Bureau of Customs and Border Protec- the entry papers, or their sureties; tion or the Bureau of Immigration and Customs (B) any person paying any charge or exac- Enforcement finds indications of a pattern of tion; conduct by an importer of false or unsupported (C) any person seeking entry or delivery; representations that goods qualify under the (D) any person filing a claim for drawback; rules of origin set out in section 202 of the (E) with respect to a determination of origin United States-Chile Free Trade Agreement Im- plementation Act, the Bureau of Customs and under section 3332 of this title, any exporter or Border Protection, in accordance with regula- producer of the merchandise subject to that tions issued by the Secretary of the Treasury, determination, if the exporter or producer may deny preferential tariff treatment under completed and signed a NAFTA Certificate of the United States-Chile Free Trade Agreement Origin covering the merchandise; or to entries of identical goods imported by that (F) any authorized agent of any of the per- person until the person establishes to the satis- sons described in clauses (A) through (E). faction of the Bureau of Customs and Border (3) A protest of a decision, order, or finding de- Protection that representations of that person scribed in subsection (a) of this section shall be are in conformity with such section 202. filed with the Customs Service within 180 days (h) Denial of preferential tariff treatment under after but not before— the Dominican Republic-Central America- (A) date of liquidation or reliquidation, or United States Free Trade Agreement (B) in circumstances where subparagraph (A) If the Bureau of Customs and Border Protec- is inapplicable, the date of the decision as to tion or the Bureau of Immigration and Customs which protest is made. Enforcement finds indications of a pattern of A protest by a surety which has an unsatisfied conduct by an importer, exporter, or producer of legal claim under its bond may be filed within false or unsupported representations that goods 180 days from the date of mailing of notice of de- qualify under the rules of origin set out in sec- mand for payment against its bond. If another tion 4033 of this title, the Bureau of Customs and party has not filed a timely protest, the surety’s Border Protection, in accordance with regula- protest shall certify that it is not being filed tions issued by the Secretary of the Treasury, collusively to extend another authorized per- may suspend preferential tariff treatment under son’s time to protest as specified in this sub- the Dominican Republic-Central America- section. United States Free Trade Agreement to entries of identical goods covered by subsequent rep- (d) Limitation on protest of reliquidation resentations by that importer, exporter, or pro- The reliquidation of an entry shall not open ducer until the Bureau of Customs and Border such entry so that a protest may be filed against Protection determines that representations of the decision of the Customs Service upon any that person are in conformity with such section question not involved in such reliquidation. 4033 of this title. (e) Advance notice of certain determinations (i) Denial of preferential tariff treatment under Except as provided in subsection (f) of this sec- the United States-Peru Trade Promotion tion, an exporter or producer referred to in sub- Agreement section (c)(2)(E) of this section shall be provided If U.S. Customs and Border Protection or U.S. notice in advance of an adverse determination of Immigration and Customs Enforcement of the § 1514 TITLE 19—CUSTOMS DUTIES Page 194

Department of Homeland Security finds indica- Stat. 969. That section was superseded by section 514 of tions of a pattern of conduct by an importer, exact June 17, 1930, comprising this section, and repealed porter, or producer of false or unsupported rep- by section 651(a)(1) of the 1930 act. Provisions that the decision of the collector as to du- resentations that goods qualify under the rules ties, including dutiable costs and charges, and as to all of origin provided for in section 203 of the fees and exactions, should be final and conclusive un- United States-Peru Trade Promotion Agreement less a protest was filed within 30 days after ascertain- Implementation Act, U.S. Customs and Border ment and liquidation of duties, or within 15 days after Protection, in accordance with regulations is- payment of fees, charges and exactions, with further sued by the Secretary of the Treasury, may sus- provisions as to fees, transmission of the papers to the pend preferential tariff treatment under the Board of General Appraisers, etc., were contained in act United States-Peru Trade Promotion Agreement Oct. 3, 1913, ch. 16, § III, N, 38 Stat. 187, the provisions of which were substituted for provisions of a similar to entries of identical goods covered by subse- nature in the Customs Administrative Act of June 10, quent representations by that importer, ex- 1890, ch. 407, § 14, 26 Stat. 137, as amended by the Payne- porter, or producer until U.S. Customs and Bor- Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 100. der Protection determines that representations Section III, N, of the 1913 act was repealed by act Sept. of that person are in conformity with such sec- 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. tion 203. Provisions relating to decisions of the collector, and appeals therefrom to the Secretary of the Treasury (June 17, 1930, ch. 497, title IV, § 514, 46 Stat. 734; were contained in R.S. §§ 2931, 2932, prior to repeal by Pub. L. 91–271, title II, § 207, June 2, 1970, 84 Stat. section 29 of the Customs Administrative Act, 26 Stat. 284; Pub. L. 96–39, title X, § 1001(b)(3), July 26, 141. 1979, 93 Stat. 305; Pub. L. 96–417, title VI, §§ 601(5), AMENDMENTS 605, Oct. 10, 1980, 94 Stat. 1744; Pub. L. 98–573, title VI, § 612(b)(1), Oct. 30, 1984, 98 Stat. 3034; 2009—Subsec. (a). Pub. L. 111–3, in introductory provisions, substituted ‘‘section 1520 of this title (relating to Pub. L. 99–514, title XVIII, § 1888(4), Oct. 22, 1986, refunds), and section 6501 of title 26 (but only with re- 100 Stat. 2924; Pub. L. 100–449, title IV, § 403(b), spect to taxes imposed under chapters 51 and 52 of such Sept. 28, 1988, 102 Stat. 1884; Pub. L. 103–182, title title)’’ for ‘‘and section 1520 of this title (relating to re- II, § 208, title IV, § 412(a), title VI, § 645, Dec. 8, funds)’’. 1993, 107 Stat. 2097, 2146, 2206; Pub. L. 104–295, 2007—Subsec. (i). Pub. L. 110–138, §§ 107(c), 205(b), tem- § 21(e)(7), Oct. 11, 1996, 110 Stat. 3531; Pub. L. porarily added subsec. (i). See Effective and Termi- 106–36, title II, § 2408(b), June 25, 1999, 113 Stat. nation Dates of 2007 Amendment note below. 171; Pub. L. 108–77, title II, § 205(b), Sept. 3, 2003, 2006—Subsec. (c)(3). Pub. L. 109–280 realigned margins of concluding provisions. 117 Stat. 931; Pub. L. 108–429, title II, § 2103, Dec. 2005—Subsec. (h). Pub. L. 109–53, §§ 107(d), 206(b), tem- 3, 2004, 118 Stat. 2597; Pub. L. 109–53, title II, porarily added subsec. (h). See Effective and Termi- § 206(b), Aug. 2, 2005, 119 Stat. 484; Pub. L. 109–280, nation Dates of 2005 Amendment note below. title XIV, § 1635(f)(7), Aug. 17, 2006, 120 Stat. 1171; 2004—Subsec. (a). Pub. L. 108–429, § 2103(1)(A), sub- Pub. L. 110–138, title II, § 205(b), Dec. 14, 2007, 121 stituted ‘‘(relating to refunds), any clerical error, mis- Stat. 1476; Pub. L. 111–3, title VII, § 702(c)(1), Feb. take of fact, or other inadvertence, whether or not re- 4, 2009, 123 Stat. 110.) sulting from or contained in an electronic transmission, adverse to the importer, in any entry, liquida- AMENDMENT OF SECTION tion, or reliquidation, and’’ for ‘‘(relating to refunds and errors)’’ in introductory provisions. For termination of amendment by section Subsec. (a)(5). Pub. L. 108–429, § 2103(1)(B), inserted 107(c) of Pub. L. 110–138, see Effective and Ter- ‘‘, including the liquidation of an entry, pursuant to ei- mination Dates of 2007 Amendment note below. ther section 1500 of this title or section 1504 of this For termination of amendment by section title’’ after ‘‘thereof’’. 107(d) of Pub. L. 109–53, see Effective and Ter- Subsec. (a)(7). Pub. L. 108–429, § 2103(1)(C), struck out mination Dates of 2005 Amendment note below. ‘‘(c) or’’ after ‘‘subsection’’. For termination of amendment by section Subsec. (c)(1). Pub. L. 108–429, § 2103(2)(A), which di- 107(c) of Pub. L. 108–77, see Effective and Ter- rected substitution of ‘‘Unless a request for accelerated disposition is filed under section 1515(b) of this title, a mination Dates of 2003 Amendment note below. protest may be amended,’’ for ‘‘A protest may be REFERENCES IN TEXT amended,’’ in the sixth sentence, was executed by making the substitution in the fifth sentence, to reflect the Section 1303 of this title, referred to in subsec. (b), is probable intent of Congress. defined in section 1677(26) of this title to mean section Subsec. (c)(3). Pub. L. 108–429, § 2103(2)(B)(i), (iii), sub- 1303 as in effect on the day before Jan. 1, 1995. stituted ‘‘180 days’’ for ‘‘ninety days’’ in introductory Section 202 of the United States-Chile Free Trade provisions and ‘‘180 days’’ for ‘‘90 days’’ in concluding Agreement Implementation Act, referred to in subsec. provisions. (g), is section 202 of Pub. L. 108–77, which is set out in Subsec. (c)(3)(A). Pub. L. 108–429, § 2103(2)(B)(ii), sub- a note under section 3805 of this title. stituted ‘‘date of’’ for ‘‘notice of’’. Section 203 of the United States-Peru Trade Pro- 2003—Subsec. (g). Pub. L. 108–77, §§ 107(c), 205(b), tem- motion Agreement Implementation Act, referred to in porarily added subsec. (g). See Effective and Termi- subsec. (i), is section 203 of Pub. L. 110–138, which is set nation Dates of 2003 Amendment note below. out in a note under section 3805 of this title. 1999—Subsec. (a)(7). Pub. L. 106–36 substituted ‘‘sub- CODIFICATION section (c) or (d) of section 1520’’ for ‘‘section 1520(c)’’. 1996—Subsec. (a). Pub. L. 104–295 substituted ‘‘and Section was formerly classified to former section 579 section 1520 of this title (relating to refunds and er- of this title subsequent to its classification to section rors)’’ for ‘‘section 1520 of this title (relating to refunds 784 of title 28 prior to the general revision and enact- and errors), and section 1521 of this title (relating to re- ment of Title 28, Judiciary and Judicial Procedure, by liquidations on account of fraud)’’. act June 25, 1948, ch. 464, § 1, 62 Stat. 869. 1993—Pub. L. 103–182, § 645(7), amended section catchline generally. PRIOR PROVISIONS Subsec. (a). Pub. L. 103–182, § 645(1), in introductory Provisions similar to those in this section were con- provisions, substituted ‘‘Customs Service’’ for ‘‘appro- tained in act Sept. 21, 1922, ch. 356, title IV, § 514, 42 priate customs officer’’, in par. (5), inserted ‘‘or rec- Page 195 TITLE 19—CUSTOMS DUTIES § 1514 onciliation as to the issues contained therein,’’ after Subsec. (c)(1). Pub. L. 96–39, § 1001(b)(3)(C), (E), redes- ‘‘entry,’’, in par. (6), substituted ‘‘or’’ for ‘‘and’’ at end, ignated former subsec. (b)(1) as (c)(1) and substituted in par. (7), substituted a semicolon for the comma at provisions that, except as provided in sections 1485(d) end, and in concluding provisions, substituted ‘‘Cus- and 1557(b) of this title, protests may be filed by im- toms Service, which’’ for ‘‘appropriate customs officer, porters or consignees or their sureties, persons paying who’’. a charge or exaction, persons seeking entry or delivery, Subsec. (b). Pub. L. 103–182, § 645(2), substituted ‘‘Cus- persons filing a claim for drawback, and authorized toms Service’’ for ‘‘appropriate customs officer’’. agents of such persons for provisions that, except as Pub. L. 103–182, § 412(a), inserted ‘‘the North American otherwise provided in section 1557(b) of this title, pro- Free Trade Agreement or’’ before ‘‘the United States- tests could be filed only by importers, consignees, or Canada Free-Trade Agreement’’. the authorized agents of persons paying any charges, or Subsec. (c)(1). Pub. L. 103–182, § 208(1), inserted in exactions, persons filing claims for drawback, or per- fourth sentence ‘‘, or with respect to a determination sons seeking entry or delivery. of origin under section 3332 of this title,’’ after ‘‘with Subsec. (c)(2). Pub. L. 96–39, § 1001(b)(3)(C), (F), redes- respect to any one category of merchandise’’. See Con- ignated former subsec. (b)(2) as (c)(2) and inserted pro- struction of 1993 Amendment note below. vision that a protest by a surety which has an unsatis- Pub. L. 103–182, § 645(3), substituted first two sen- fied legal claim under its bond may be filed within 90 tences, including subpars. (A) to (D), for former first days from the date of mailing of notice of demand for sentence which read as follows: ‘‘A protest of a decision payment against its bond and that, if another party has under subsection (a) of this section shall be filed in not filed a timely protest, the surety’s protest shall writing with the appropriate customs officer des- certify that it is not being filed collusively to extend ignated in regulations prescribed by the Secretary, set- another authorized person’s time to protest as specified ting forth distinctly and specifically each decision de- in this subsection. scribed in subsection (a) of this section as to which pro- Subsec. (d). Pub. L. 96–39, § 1001(b)(3)(C), redesignated test is made; each category of merchandise affected by former subsec. (c) as (d). each such decision as to which protest is made; and the 1970—Pub. L. 91–271 designated existing provisions as nature of each objection and reasons therefor.’’ See subsec. (a), expanded references to sections excepted Construction of 1993 Amendment note below. from application of this section, substituted decisions Subsec. (c)(2). Pub. L. 103–182, § 208(2), added subpar. of the appropriate customs officer for all decisions of (E) and redesignated former subpar. (E) as (F) and sub- the collector as deemed to be final and conclusive, reor- stituted ‘‘clauses (A) through (E)’’ for ‘‘clauses (A) ganized the categories of decisions and findings subject through (D)’’. See Construction of 1993 Amendment to such finality and conclusiveness, and revised the note below. Pub. L. 103–182, § 645(5), designated last sentence of procedures for filing of protests, and added subsecs. (b) par. (1) as par. (2). Former par. (2) redesignated (3). See and (c). Construction of 1993 Amendment note below. EFFECTIVE DATE OF 2009 AMENDMENT Subsec. (c)(3). Pub. L. 103–182, § 645(4), redesignated par. (2) as (3) and substituted ‘‘the Customs Service’’ Except as otherwise provided, amendment by Pub. L. for ‘‘such customs officer’’ in introductory provisions. 111–3 effective Apr. 1, 2009, see section 3 of Pub. L. 111–3, Subsec. (d). Pub. L. 103–182, § 645(6), substituted ‘‘Cus- set out as an Effective Date note under section 1396 of toms Service’’ for ‘‘customs officer’’. Title 42, The Public Health and Welfare. Subsecs. (e), (f). Pub. L. 103–182, § 208(3), added sub- Pub. L. 111–3, title VII, § 702(c)(2), Feb. 4, 2009, 123 secs. (e) and (f). Stat. 110, provided that: ‘‘The amendment made by this 1988—Subsec. (b). Pub. L. 100–449 inserted ‘‘, or review subsection [amending this section] shall apply to arti- by a binational panel of a determination to which sec- cles imported after the date of the enactment of this tion 1516a(g)(2) of this title applies is commenced pur- Act [Feb. 4, 2009].’’ suant to section 1516a(g) of this title and article 1904 of the United States-Canada Free-Trade Agreement’’ be- EFFECTIVE AND TERMINATION DATES OF 2007 fore period at end. AMENDMENT 1986—Subsec. (a). Pub. L. 99–514 struck out ‘‘as de- Amendment by Pub. L. 110–138 effective on the date fined in section 1677(9)(C), (D), (E), and (F) of this title’’ the United States-Peru Trade Promotion Agreement after ‘‘domestic interested parties’’. enters into force (Feb. 1, 2009) and to cease to be effec- 1984—Subsec. (a). Pub. L. 98–573 substituted ‘‘section tive on the date the Agreement ceases to be in force, 1677(9)(C), (D), (E), and (F) of this title’’ for ‘‘section see section 107(a), (c) of Pub. L. 110–138, set out in a 1677(9)(C), (D), and (E) of this title’’ in provisions pre- note under section 3805 of this title. ceding par. (1). 1980—Subsec. (a). Pub. L. 96–417, §§ 601(5), 605, redesig- EFFECTIVE DATE OF 2006 AMENDMENT nated the United States Customs Court as the United Amendment by Pub. L. 109–280 applicable with re- States Court of International Trade, inserted in item spect to goods entered, or withdrawn from warehouse (4) provision for decisions as to a demand for redelivery for consumption, on or after the 15th day after Aug. 17, to customs custody and the phrase ‘‘, except a deter- 2006, see section 1641 of Pub. L. 109–280, set out as a note mination appealable under section 1337 of this title’’ under section 58c of this title. and substituted provision for contesting denial of a protest in accordance with chapter 169 of title 28 within EFFECTIVE AND TERMINATION DATES OF 2005 the time prescribed by section 2636 of that title for pro- AMENDMENT vision for such contest in accordance with section 2632 of title 28 within the time prescribed by section 2631 of Amendment by Pub. L. 109–53 effective on the date that title. the Dominican Republic-Central America-United Subsec. (b). Pub. L. 96–417, § 601(5), redesignated the States Free Trade Agreement enters into force (Mar. 1, United States Customs Court as the United States 2006) and to cease to have effect on date Agreement Court of International Trade. ceases to be in force with respect to the United States, 1979—Subsec. (a). Pub. L. 96–39, § 1001(b)(3)(A), (B), in- and, during any period in which a country ceases to be serted reference to subsection (b) of this section and a CAFTA–DR country, to cease to have effect with re- substituted ‘‘section 1516 of this title (relating to peti- spect to such country, see section 107 of Pub. L. 109–53, tions by domestic interested parties as defined in sec- set out as an Effective and Termination Dates note tion 1677(9)(C), (D), and (E) of this title)’’ for ‘‘section under section 4001 of this title. 1516 of this title (relating to petitions by American EFFECTIVE DATE OF 2004 AMENDMENT manufacturers, producers, and wholesalers)’’ in provisions preceding par. (1). Amendment by Pub. L. 108–429 applicable to merchan- Subsec. (b). Pub. L. 96–39, § 1001(b)(3)(D), added subsec. dise entered, or withdrawn from warehouse for con- (b). Former subsec. (b) redesignated (c). sumption, on or after the 15th day after Dec. 3, 2004, see § 1514 TITLE 19—CUSTOMS DUTIES Page 196 section 2108 of Pub. L. 108–429, set out as a note under CONSTRUCTION OF 1993 AMENDMENT section 1401 of this title. Amendment by section 208 of Pub. L. 103–182 to be EFFECTIVE AND TERMINATION DATES OF 2003 made after amendment by section 645 of Pub. L. 103–182 AMENDMENT is executed, see section 212 of Pub. L. 103–182, set out as Amendment by Pub. L. 108–77 effective on the date a note under section 58c of this title. the United States-Chile Free Trade Agreement enters TRANSFER OF FUNCTIONS into force (Jan. 1, 2004), and to cease to be effective on the date the Agreement ceases to be in force, see sec- For transfer of functions, personnel, assets, and li- tion 107(a), (c) of Pub. L. 108–77, set out in a note under abilities of the United States Customs Service of the section 3805 of this title. Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- EFFECTIVE DATE OF 1999 AMENDMENT retary of Homeland Security, and for treatment of re- Pub. L. 106–36, title II, § 2408(c), June 25, 1999, 113 Stat. lated references, see sections 203(1), 551(d), 552(d), and 171, provided that: ‘‘The amendments made by this sec- 557 of Title 6, Domestic Security, and the Department tion [amending this section and section 1520 of this of Homeland Security Reorganization Plan of Novem- title] apply with respect to goods entered, or with- ber 25, 2002, as modified, set out as a note under section drawn from warehouse for consumption, on or after the 542 of Title 6. 15th day after the date of the enactment of this Act Functions of Secretary of the Treasury under this [June 25, 1999].’’ section insofar as they relate to any protest, petition, or notice of desire to contest described in section EFFECTIVE DATE OF 1993 AMENDMENT 1002(b)(1) of the Trade Agreements Act of 1979, set out Amendment by section 208 of Pub. L. 103–182 effective as a note under section 1516a of this title, transferred on the date the North American Free Trade Agreement to Secretary of Commerce pursuant to Reorg. Plan No. enters into force with respect to the United States 3 of 1979, § 5(a)(1)(D), 44 F.R. 69275, 93 Stat. 1381, eff. Jan. [Jan. 1, 1994], see section 213(b) of Pub. L. 103–182, set 2, 1980, as provided by section 1–107(a) of Ex. Ord. No. out as an Effective Date note under section 3331 of this 12188, Jan. 2, 1980, 45 F.R. 993, set out as notes under title. section 2171 of this title. Amendment by section 412(a) of Pub. L. 103–182 effective on the date the North American Free Trade Agree- EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS ment enters into force with respect to the United For provisions relating to effect of termination of States [Jan. 1, 1994], but not applicable to any final de- NAFTA country status on the provisions of sections 401 termination described in section 1516a(a)(1)(B) or to 416 of Pub. L. 103–182, see section 3451 of this title. (2)(B)(i), (ii), or (iii) of this title, notice of which is published in the Federal Register before such date, or to a INCONSISTENT DECISIONS OF CUSTOMS OFFICERS determination described in section 1516a(a)(2)(B)(vi) of Pub. L. 100–690, title VII, § 7361(c), Nov. 18, 1988, 102 this title, notice of which is received by the Govern- Stat. 4474, provided that: ment of Canada or Mexico before such date, or to any ‘‘(1) The Secretary of the Treasury shall prescribe binational panel review under the United States-Can- regulations that— ada Free-Trade Agreement, or to any extraordinary ‘‘(A) effect uniformity in— challenge arising out of any such review, that was com- ‘‘(i) decisions described in section 514(a) of the menced before such date, see section 416 of Pub. L. Tariff Act of 1930 (19 U.S.C. 1514(a)) that are made 103–182, set out as an Effective Date note under section by customs officers with respect to the same, or 3431 of this title. substantially similar, merchandise, and EFFECTIVE AND TERMINATION DATES OF 1988 ‘‘(ii) decisions to conduct intensified inspections AMENDMENT or examinations of merchandise at ports of entry, Amendment by Pub. L. 100–449 effective on date the and United States-Canada Free-Trade Agreement enters ‘‘(B) establish procedures that allow individuals de- into force (Jan. 1, 1989), and to cease to have effect on scribed in section 514(c)(1) of the Tariff Act of 1930 (19 date Agreement ceases to be in force, see section 501(a), U.S.C. 1514(c)(1)), any port authority, and any other (c) of Pub. L. 100–449, set out in a note under section interested party (within the meaning of section 2112 of this title. 516(a)(2) of the Tariff Act of 1930 (19 U.S.C. 1516(a)(2))) to petition the Secretary to obtain such uniformity EFFECTIVE DATE OF 1984 AMENDMENT in an expedited and timely fashion. Amendment by Pub. L. 98–573 applicable with respect ‘‘(2) The Secretary of the Treasury shall publish in to investigations initiated by petition or by the admin- the Federal Register and submit to the Committee on istering authority under parts I and II of subtitle IV of Finance of the Senate and the Committee on Ways and this chapter, and to reviews begun under section 1675 of Means of the House of Representatives the proposed this title, on or after Oct. 30, 1984, see section 626(b)(1) and final form of the regulations prescribed under para- of Pub. L. 98–573, as amended, set out as a note under graph (1) and shall receive and consider comments from section 1671 of this title. the public regarding the proposed form of such regulations during the 60-day period beginning on the date EFFECTIVE DATE OF 1980 AMENDMENT the proposed form of such regulations are published in Amendment by Pub. L. 96–417 effective Nov. 1, 1980, the Federal Register. and applicable with respect to civil actions pending on ‘‘(3) The regulations prescribed under paragraph (1) or commenced on or after such date, see section 701(a) shall take effect by no later than April 1, 1989. of Pub. L. 96–417, set out as a note under section 251 of ‘‘(4) By no later than September 1, 1989, the Secretary Title 28, Judiciary and Judicial Procedure. of the Treasury shall submit to the Committee on Fi- nance of the Senate and the Committee on Ways and EFFECTIVE DATE OF 1979 AMENDMENT Means of the House of Representatives a report on the Amendment by Pub. L. 96–39 effective Jan. 1, 1980, see effectiveness of the regulations prescribed under para- sections 1002 and 107 of Pub. L. 96–39, set out as Effec- graph (1) and recommendations for permanent legisla- tive Date notes under sections 1516a and 1671 of this tion addressing uniformity.’’ title, respectively. PLAN AMENDMENTS NOT REQUIRED UNTIL EFFECTIVE DATE OF 1970 AMENDMENT JANUARY 1, 1989 For effective date of amendment by Pub. L. 91–271, For provisions directing that if any amendments see section 203 of Pub. L. 91–271, set out as a note under made by subtitle A or subtitle C of title XI [§§ 1101–1147 section 1500 of this title. and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. Page 197 TITLE 19—CUSTOMS DUTIES § 1515

99–514 require an amendment to any plan, such plan priate. If the Commissioner of Customs fails to amendment shall not be required to be made before the act within 60 days after the date of the request, first plan year beginning on or after Jan. 1, 1989, see the request shall be considered denied. All deni- section 1140 of Pub. L. 99–514, set out as a note under als of protests are effective from the date of section 401 of Title 26, Internal Revenue Code. original denial for purposes of section 2636 of § 1515. Review of protests title 28. If an action is commenced in the Court of International Trade that arises out of a pro- (a) Administrative review and modification of test or an application for further review, all ad- decisions ministrative action pertaining to such protest Unless a request for an accelerated disposition or application shall terminate and any adminis- of a protest is filed in accordance with sub- trative action taken subsequent to the com- section (b) of this section the appropriate cus- mencement of the action is null and void. toms officer, within two years from the date a (d) Voiding denial of protest protest was filed in accordance with section 1514 of this title, shall review the protest and shall If a protest is timely and properly filed, but is allow or deny such protest in whole or in part. denied contrary to proper instructions, the Cus- Thereafter, any duties, charge, or exaction toms Service may on its own initiative, or pur- found to have been assessed or collected in ex- suant to a written request by the protesting party filed with the appropriate port director cess shall be remitted or refunded and any draw- within 90 days after the date of the protest de- back found due shall be paid. Upon the request nial, void the denial of the protest. of the protesting party, filed within the time allowed for the filing of a protest under section (June 17, 1930, ch. 497, title IV, § 515, 46 Stat. 734; 1514 of this title, a protest may be subject to fur- Pub. L. 91–271, title II, § 208, June 2, 1970, 84 Stat. ther review by another appropriate customs offi- 285; Pub. L. 96–39, title X, § 1001(b)(2), July 26, cer, under the circumstances and in the form 1979, 93 Stat. 304; Pub. L. 96–417, title VI, § 606, and manner that may be prescribed by the Sec- Oct. 10, 1980, 94 Stat. 1745; Pub. L. 103–182, title retary in regulations, but subject to the two- VI, § 617, Dec. 8, 1993, 107 Stat. 2179; Pub. L. year limitation prescribed in the first sentence 104–295, § 3(a)(11), Oct. 11, 1996, 110 Stat. 3516; Pub. of this subsection. Within 30 days from the date L. 106–36, title II, § 2407, June 25, 1999, 113 Stat. an application for further review is filed, the ap- 171; Pub. L. 108–429, title II, § 2104, Dec. 3, 2004, propriate customs officer shall allow or deny the 118 Stat. 2598.) application and, if allowed, the protest shall be PRIOR PROVISIONS forwarded to the customs officer who will be Provisions similar to those in this section were con- conducting the further review. Notice of the detained in act Sept. 21, 1922, ch. 356, title IV, § 515, 42 nial of any protest shall be mailed in the form Stat. 970. That section was superseded by section 515 of and manner prescribed by the Secretary. Such act June 17, 1930, comprising this section, and repealed notice shall include a statement of the reasons by section 651(a)(1) of the 1930 act. for the denial, as well as a statement informing Provisions for transmission of the invoice, papers, the protesting party of his right to file a civil and exhibits to the board of general appraisers in case of protest, and provisions concerning the conclusive- action contesting the denial of a protest under ness of its determination, were contained in act Oct. 3, section 1514 of this title. 1913, ch. 16, § III, N, 38 Stat. 187, the provisions of which (b) Request for accelerated disposition of protest were substituted for provisions of a similar nature in A request for accelerated disposition of a pro- Customs Administrative Act of June 10, 1890, ch. 407, § 14, 26 Stat. 137, as amended by Payne-Aldrich Tariff test filed in accordance with section 1514 of this Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 100. title may be mailed by certified or registered mail to the appropriate customs officer any AMENDMENTS time concurrent with or following the filing of 2004—Subsec. (b). Pub. L. 108–429 substituted ‘‘concur- such protest. For purposes of section 1581 of title rent with or’’ for ‘‘after ninety days’’ in first sentence. 28, a protest which has not been allowed or de- 1999—Subsec. (a). Pub. L. 106–36 inserted after third nied in whole or in part within thirty days fol- sentence ‘‘Within 30 days from the date an application for further review is filed, the appropriate customs offi- lowing the date of mailing by certified or reg- cer shall allow or deny the application and, if allowed, istered mail of a request for accelerated disposi- the protest shall be forwarded to the customs officer tion shall be deemed denied on the thirtieth day who will be conducting the further review.’’ following mailing of such request. 1996—Subsec. (d). Pub. L. 104–295 substituted ‘‘port di- (c) Request for set aside of denial of further re- rector’’ for ‘‘district director’’. 1993—Subsecs. (c) and (d). Pub. L. 103–182 added sub- view secs. (c) and (d). If a protesting party believes that an applica- 1980—Subsec. (b). Pub. L. 96–417 substituted reference tion for further review was erroneously or im- to section ‘‘1581’’ for ‘‘1582’’ of title 28. properly denied or was denied without authority 1979—Subsec. (a). Pub. L. 96–39 required that notice of denial include a statement of reasons for denial, as well for such action, it may file with the Commis- as a statement informing protesting party of his right sioner of Customs a written request that the de- to file a civil action contesting denial of a protest nial of the application for further review be set under section 1514 of this title. aside. Such request must be filed within 60 days 1970—Pub. L. 91–271 designating existing provisions as after the date of the notice of the denial. The subsec. (a), substituted provisions authorizing review Commissioner of Customs may review such re- by appropriate customs officer for provisions authoriz- quest and, based solely on the information being review by collector and revised such review procedures, and added subsec. (b). fore the Customs Service at the time the application for further review was denied, may set EFFECTIVE DATE OF 2004 AMENDMENT aside the denial of the application for further re- Amendment by Pub. L. 108–429 applicable to merchan- view and void the denial of protest, if appro- dise entered, or withdrawn from warehouse for con- § 1516 TITLE 19—CUSTOMS DUTIES Page 198 sumption, on or after the 15th day after Dec. 3, 2004, see (B) the appraised value, the classification, or section 2108 of Pub. L. 108–429, set out as a note under the rate of duty that it believes proper, and section 1401 of this title. (C) the reasons for its belief. EFFECTIVE DATE OF 1996 AMENDMENT (2) As used in this section, the term ‘‘inter- Amendment by Pub. L. 104–295 applicable as of Dec. 8, ested party’’ means a person who is— 1993, see section 3(b) of Pub. L. 104–295, set out as a note (A) a manufacturer, producer, or wholesaler under section 1321 of this title. in the United States; (B) a certified union or recognized union or EFFECTIVE DATE OF 1980 AMENDMENT group of workers which is representative of an Amendment by Pub. L. 96–417 effective Nov. 1, 1980, industry engaged in the manufacture, produc- and applicable with respect to civil actions pending on tion, or wholesale in the United States; or or commenced on or after such date, see section 701(a) (C) a trade or business association a major- of Pub. L. 96–417, set out as a note under section 251 of Title 28, Judiciary and Judicial Procedure. ity of whose members are manufacturers, producers, or wholesalers in the United States, EFFECTIVE DATE OF 1979 AMENDMENT of goods of the same class or kind as the des- Amendment by Pub. L. 96–39 effective Jan. 1, 1980, see ignated imported merchandise. Such term in- sections 1002 and 107 of Pub. L. 96–39, set out as Effec- cludes an association, a majority of whose mem- tive Date notes under sections 1516a and 1671 of this bers is composed of persons described in subtitle, respectively. paragraph (A), (B), or (C). EFFECTIVE DATE OF 1970 AMENDMENT (3) Any producer of a raw agricultural product For effective date of amendment by Pub. L. 91–271, who is considered under section 1677(4)(E) of this see section 203 of Pub. L. 91–271, set out as a note under title to be part of the industry producing a proc- section 1500 of this title. essed agricultural product of the same class or kind as the designated imported merchandise TRANSFER OF FUNCTIONS shall, for purposes of this section, be treated as For transfer of functions, personnel, assets, and li- an interested party producing such processed ag- abilities of the United States Customs Service of the ricultural product. Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- (b) Determination on petition retary of Homeland Security, and for treatment of re- If, after receipt and consideration of a petition lated references, see sections 203(1), 551(d), 552(d), and filed by such an interested party, the Secretary 557 of Title 6, Domestic Security, and the Department determines that the appraised value, the classi- of Homeland Security Reorganization Plan of Novem- fication, or rate of duty is not correct, he shall ber 25, 2002, as modified, set out as a note under section determine the proper appraised value, classifica- 542 of Title 6. Functions of Secretary of the Treasury under this tion, or rate of duty and shall notify the peti- section insofar as they relate to any protest, petition, tioner of his determination. All such merchan- or notice of desire to contest described in section dise entered for consumption or withdrawn from 1002(b)(1) of the Trade Agreements Act of 1979, set out warehouse for consumption more than thirty as a note under section 1516a of this title, transferred days after the date such notice to the petitioner to Secretary of Commerce pursuant to Reorg. Plan No. is published in the weekly Customs Bulletin 3 of 1979, § 5(a)(1)(D), 44 F.R. 69275, 93 Stat. 1381, eff. Jan. shall be appraised, classified, or assessed as to 2, 1980, as provided by section 1–107(a) of Ex. Ord. No. the rate of duty in accordance with the Sec- 12188, Jan. 2, 1980, 45 F.R. 993, set out as notes under section 2171 of this title. retary’s determination. (c) Contest by petitioner of appraised value, clas- REVIEW OF PROTESTS IN IMPORT SURCHARGE CASES sification, or rate of duty Pub. L. 93–618, title VI, § 611, Jan. 3, 1975, 88 Stat. 2075, If the Secretary determines that the appraised provided that: ‘‘Notwithstanding the provisions of sec- value, classification, or rate of duty with re- tion 515(a) of the Tariff Act of 1930 (19 U.S.C. 1515(a)), in the case of any protest under section 514 of such Act spect to which a petition was filed pursuant to [section 1514 of this title] involving the imposition of subsection (a) of this section is correct, he shall an import surcharge in the form of a supplemental duty notify the petitioner. If dissatisfied with the de- pursuant to Presidential Proclamation 4074, dated Au- termination of the Secretary, the petitioner gust 17, 1971 [set out as a note preceding section 1202 of may file with the Secretary, not later than thir- this title], the time for review and allowing or denying ty days after the date of the notification, notice the protest shall not expire until five years from the that it desires to contest the appraised value, date the protest was filed in accordance with such sec- classification, or rate of duty. Upon receipt of tion 514 [section 1514 of this title].’’ notice from the petitioner, the Secretary shall § 1516. Petitions by domestic interested parties cause publication to be made of his determination as to the proper appraised value, classifica- (a) Request for classification and rate of duty; tion, or rate of duty and of the petitioner’s de- petition sire to contest, and shall thereafter furnish the (1) The Secretary shall, upon written request petitioner with such information as to the en- by an interested party furnish the classification tries and consignees of such merchandise, en- and the rate of duty imposed upon designated tered after the publication of the determination imported merchandise of a class or kind manu- of the Secretary, at such ports of entry des- factured, produced, or sold at wholesale by such ignated by the petitioner in his notice of desire interested party. If the interested party believes to contest, as will enable the petitioner to con- that the appraised value, the classification, or test the appraised value, classification, or rate rate of duty is not correct, it may file a petition of duty imposed upon such merchandise in the with the Secretary setting forth— liquidation of one such entry at such port. The (A) a description of the merchandise, Secretary shall direct the appropriate customs Page 199 TITLE 19—CUSTOMS DUTIES § 1516 officer at such ports to immediately notify the July 26, 1979, 93 Stat. 303; Pub. L. 96–417, title VI, petitioner by mail when the first of such entries §§ 601(6), 607, Oct. 10, 1980, 94 Stat. 1744, 1745; Pub. is liquidated. L. 97–164, title I, § 163(a)(1), Apr. 2, 1982, 96 Stat. (d) Appraisal, classification, and liquidation of 49; Pub. L. 99–514, title XVIII, § 1888(5), Oct. 22, entries of merchandise covered by published 1986, 100 Stat. 2925; Pub. L. 100–418, title I, decisions of Secretary § 1326(d)(3), Aug. 23, 1988, 102 Stat. 1204.) Notwithstanding the filing of an action pursu- PRIOR PROVISIONS ant to chapter 169 of title 28, merchandise of the Provisions similar to those in this section were con- character covered by the published decision of tained in act Sept. 21, 1922, ch. 356, title IV, § 516, 42 the Secretary (when entered for consumption or Stat. 970. That section was superseded by section 516 of withdrawn from warehouse for consumption on act June 17, 1930, comprising this section, and repealed or before the date of publication of a decision of by section 651(a)(1) of the 1930 act. the United States Court of International Trade Application of subsection (b) of this section to complaints. Section 17(b) of act June 25, 1938, provided that: or of the United States Court of Appeals for the ‘‘(b) The provisions of subsection (b) of section 516 of Federal Circuit, not in harmony with the pub- the Tariff Act of 1930 [this section], as amended by this lished decision of the Secretary) shall be ap- Act, shall apply only in the case of complaints filed praised or classified, or both, and the entries liq- after the effective date of this Act [see section 1653a of uidated, in accordance with the decision of the this title]. The provisions of subsection (b) of section Secretary and, except as otherwise provided in 516 of the Tariff Act of 1930, as in force prior to the ef- this chapter, the final liquidations of these en- fective date of this Act, shall continue in force with re- tries shall be conclusive upon all parties. spect to any proceedings commenced by the filing of a complaint thereunder, except that upon the expiration (e) Consignee or his agent as party in interest of thirty days after the effective date of this Act, or before the Court of International Trade upon the expiration of thirty days after the date of a The consignee or his agent shall have the right decision of the Secretary adverse to the complainant, whichever is the later, any such proceedings in which to appear and to be heard as a party in interest a protest has not been duly filed shall be deemed to before the United States Court of International have been terminated unless the complainant shall Trade. have filed with the Secretary after the effective date of (f) Appraisement, classification, and assessment this Act a notice that he desires to protest the classi- of duty of merchandise covered by published fication of, or rate of duty assessed upon, the merchan- decision of Secretary in accordance with dise.’’ final judicial decision of Court of Inter- AMENDMENTS national Trade or Court of Appeals for the 1988—Subsec. (a)(3). Pub. L. 100–418 added par. (3). Federal Circuit sustaining cause of action in 1986—Subsec. (a)(2). Pub. L. 99–514 inserted ‘‘Such whole or in part; suspension of liquidation of term includes an association, a majority of whose entries; publication members is composed of persons described in subparagraph (A), (B), or (C).’’ If the cause of action is sustained in whole or 1982—Subsecs. (d), (f). Pub. L. 97–164 substituted in part by a decision of the United States Court ‘‘Court of Appeals for the Federal Circuit’’ for ‘‘Court of International Trade or of the United States of Customs and Patent Appeals’’. Court of Appeals for the Federal Circuit, mer- 1980—Subsec. (a). Pub. L. 96–417, § 607(a), designated chandise of the character covered by the pub- existing provisions as par. (1), redesignated as subpars. lished decision of the Secretary, which is en- (A), (B), and (C), former pars. (1), (2), and (3), struck out tered for consumption or withdrawn from ware- ‘‘(as defined in section 1677(9)(C), (D), and (E) of this title)’’ after ‘‘interested party’’, covered in par. (2), and house for consumption after the date of publica- added par. (2). tion in the Federal Register by the Secretary or Subsec. (d). Pub. L. 96–417, §§ 601(6), 607(b), redesig- the administering authority of a notice of the nated the United States Customs Court as the United court decision, shall be subject to appraisement, States Court of International Trade and substituted classification, and assessment of duty in accord- reference to chapter 169 for section 2632 of title 28. ance with the final judicial decision in the ac- Subsecs. (e), (f). Pub. L. 96–417, § 601(6), redesignated tion, and the liquidation of entries covering the the United States Customs Court as the United States merchandise so entered or withdrawn shall be Court of International Trade. 1979—Pub. L. 96–39 completely revised the section to suspended until final disposition is made of the provide an expedited process for judicial review of an action, whereupon the entries shall be liq- appealable determination, expanded the size of the uidated, or if necessary, reliquidated in accord- group of parties having standing to obtain review of an ance with the final decision. Such notice of the appealable determination, and, in the process, revised court decision shall be published within ten days subsecs. (a), (b), and (c), redesignated former subsecs. from the date of the issuance of the court deci- (e), (f), (g), and (h) as (d), (e), (f), and (g), and struck out sion. former subsec. (d) relating to the contest of the Sec- retary’s determination that foreign merchandise was (g) Regulations implementing required proce- not being sold in the United States at less than fair dures value or that bounty or grant was not being paid. Regulations shall be prescribed by the Sec- 1975—Subsec. (a). Pub. L. 93–618, § 331(b), inserted provisions relating to additional duty described in section retary to implement the procedures required 1303 of this title (to be known as ‘‘countervailing du- under this section. ties’’) and to special duty described in section 161 of (June 17, 1930, ch. 497, title IV, § 516, 46 Stat. 735; this title (to be known as ‘‘antidumping duties’’). June 25, 1938, ch. 679, § 17(a), 52 Stat. 1084; June Subsecs. (b), (c). Pub. L. 93–618, § 331(b), inserted provisions relating to countervailing duties and antidump- 25, 1948, ch. 646, § 39, 62 Stat. 992; Pub. L. 91–271, ing duties. title II, § 209, June 2, 1970, 84 Stat. 286; Pub. L. Subsecs. (d) to (h). Pub. L. 93–618, § 321(f)(1), added 93–618, title III, §§ 321(f)(1), 331(b), Jan. 3, 1975, 88 subsec. (d) and redesignated subsecs. (d) to (g) as (e) to Stat. 2048, 2052; Pub. L. 96–39, title X, § 1001(b)(1), (h), respectively. § 1516 TITLE 19—CUSTOMS DUTIES Page 200

1970—Subsec. (a). Pub. L. 91–271 substituted provi- Judicial Procedure] shall apply with respect to deter- sions requiring the Secretary to furnish to the Amer- minations under section 201 of the Antidumping Act, ican manufacturer, producer, or wholesaler the classi- 1921 [section 160 of this title], resulting from questions fication, and the rate of duty, if any, imposed upon des- of dumping raised or presented on or after the date of ignated imported merchandise, and provisions author- the enactment of this Act [Jan. 3, 1975].’’ izing the American manufacturer, etc., to file a protest Amendment by section 331(b) of Pub. L. 93–618 effec- with the Secretary if the appraised value is too low, the tive Jan. 3, 1975, see section 331(d)(1) of Pub. L. 93–618, classification is not correct, or the proper rate of duty set out as a note under section 1315 of this title. is not being assessed, for provisions setting forth the procedure for the determination of a protest by an EFFECTIVE DATE OF 1970 AMENDMENT American manufacturer, producer, or wholesaler that the appraised value of any imported merchandise of a For effective date of amendment by Pub. L. 91–271, class or kind manufactured, produced, or sold at whole- see section 203 of Pub. L. 91–271, set out as a note under sale by him is too low. section 1500 of this title. Subsec. (b). Pub. L. 91–271 substituted provisions authorizing the Secretary to determine the proper ap- EFFECTIVE DATE OF 1948 AMENDMENT praised value, classification, or rate of duty of the imported merchandise, and to notify the American manu- Section 38 of act June 25, 1948, provided that the facturer, producer, or wholesaler of his determination, amendment made by that act is effective Sept. 1, 1948. for provision setting forth the procedure for the determination of a protest by an American manufacturer, EFFECTIVE DATE OF 1938 AMENDMENT producer, or wholesaler that the classification of, and the rate of duty, if any, is not proper. Amendment by act June 25, 1938, effective on thirti- Subsec. (c). Pub. L. 91–271 substituted provisions set- eth day following June 25, 1938, except as otherwise spe- ting forth the procedure for the petitioner to contest cifically provided, see section 37 of act June 25, 1938, set the decisions of the Secretary with respect to a peti- out as a note under section 1401 of this title. tion filed pursuant to subsec. (a) of this section, for provisions requiring the collector to mail to the con- TRANSFER OF FUNCTIONS signee or his agent a copy of every appeal and every protest filed by an American manufacturer, producer, Functions of Secretary of the Treasury under this or wholesaler, and authorizing such consignee or his section insofar as they relate to any protest, petition, agent to appear and be heard as a party in interest be- or notice of desire to contest described in section fore the Customs Court. 1002(b)(1) of the Trade Agreements Act of 1979, set out Subsecs. (d) to (g). Pub. L. 91–271 added subsecs. (d) to as a note under section 1516a of this title, transferred (g). to Secretary of Commerce pursuant to Reorg. Plan No. 1948—Subsec. (b). Act June 25, 1948, repealed last sen- 3 of 1979, § 5(a)(1)(D), 44 F.R. 69275, 93 Stat. 1381, eff. Jan. tence relating to procedure of proceeding over all other 2, 1980, as provided by section 1–107(a) of Ex. Ord. No. cases on Customs Court docket. See sections 2602 and 11288, Jan. 2, 1980, 45 F.R. 993, set out as notes under 2638 of Title 28, Judiciary and Judicial Procedure. section 2171 of this title. Subsec. (c). Act June 25, 1948, repealed last sentence relating to finality of Customs Court’s decision. See PLAN AMENDMENTS NOT REQUIRED UNTIL section 2637 of Title 28. JANUARY 1, 1989 Subsec. (d). Act June 25, 1948, repealed subsec. (d) re- For provisions directing that if any amendments lating to inspection of documents. See section 2634 of made by subtitle A or subtitle C of title XI [§§ 1101–1147 Title 28. and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. 1938—Subsec. (b). Act June 25, 1938, amended subsec. 99–514 require an amendment to any plan, such plan (b) generally. amendment shall not be required to be made before the EFFECTIVE DATE OF 1988 AMENDMENT first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a Amendment by Pub. L. 100–418 applicable with re- note under section 401 of Title 26, Internal Revenue spect to investigations initiated after Aug. 23, 1988, and Code. to reviews initiated under section 1673e(c) or 1675 of this title after Aug. 23, 1988, see section 1337(b) of Pub. L. 100–418, set out as a note under section 1671 of this APPLICATION OF SUBSECTION (b) TO COMPLAINTS title. Section 17(b), (c) of act of June 25, 1938, as amended EFFECTIVE DATE OF 1982 AMENDMENT by act June 16, 1951, ch. 141, § 9(b), 65 Stat. 75, provided that: Amendment by Pub. L. 97–164 effective Oct. 1, 1982, ‘‘(b) The provisions of subsection (b) of section 516 of see section 402 of Pub. L. 97–164, set out as a note under the Tariff Act of 1930 [this section], as amended by this section 171 of Title 28, Judiciary and Judicial Proce- act, shall apply only in the case of complaints filed dure. after the effective date of this act [see Effective Date EFFECTIVE DATE OF 1980 AMENDMENT of 1938 Amendment note set out under section 1401 of this title]. The provisions of subsection (b) of section Amendment by Pub. L. 96–417 effective Nov. 1, 1980, 516 of the Tariff Act of 1930, as in force prior to the ef- and applicable with respect to civil actions pending on fective date of this act, shall continue in force with re- or commenced on or after such date, see section 701(a) spect to any proceedings commenced by the filing of a of Pub. L. 96–417, set out as a note under section 251 of complaint thereunder, except that upon the expiration Title 28, Judiciary and Judicial Procedure. of thirty days after the effective date of this act, or upon the expiration of thirty days after the date of a EFFECTIVE DATE OF 1979 AMENDMENT decision of the Secretary adverse to the complainant, Amendment by Pub. L. 96–39 effective Jan. 1, 1980, see whichever is the later, any such proceedings in which sections 1002 and 107 of Pub. L. 96–39, set out as Effec- a protest has not been duly filed shall be deemed to tive Date notes under sections 1516a and 1671 of this have been terminated unless the complainant shall title, respectively. have filed with the Secretary after the effective date of this act a notice that he desires to protest the classi- EFFECTIVE DATE OF 1975 AMENDMENT fication of, or rate of duty assessed upon, the merchan- Section 321(g)(3) of Pub. L. 93–618 provided that: ‘‘The dise. amendment made by subsection (f) [amending this sec- ‘‘(c) [Repealed. June 16, 1951, ch. 141, § 9(b), 65 Stat. tion and sections 2631 and 2632 of Title 28, Judiciary and 75.]’’ Page 201 TITLE 19—CUSTOMS DUTIES § 1516a

§ 1516a. Judicial review in countervailing duty Commission under section 1671d or 1673d of and antidumping duty proceedings this title, including any negative part of (a) Review of determination such a determination (other than a part referred to in clause (ii)). (1) Review of certain determinations (ii) A final negative determination by Within 30 days after the date of publication the administering authority or the Com- in the Federal Register of— mission under section 1671d or 1673d of this (A) a determination by the administering title, including, at the option of the appel- authority, under 1671a(c) 1 or 1673a(c) of this lant, any part of a final affirmative deter- title, not to initiate an investigation, mination which specifically excludes any (B) a determination by the Commission, company or product. under section 1675(b) of this title, not to re- (iii) A final determination, other than a view a determination based upon changed determination reviewable under paragraph circumstances, (1), by the administering authority or the (C) a negative determination by the Com- Commission under section 1675 of this mission, under section 1671b(a) or 1673b(a) of title. this title, as to whether there is reasonable (iv) A determination by the administer- indication of material injury, threat of ma- ing authority, under section 1671c or 1673c terial injury, or material retardation, or of this title, to suspend an antidumping (D) a final determination by the admin- duty or a countervailing duty investiga- istering authority or the Commission under tion, including any final determination re- section 1675(c)(3) of this title, sulting from a continued investigation an interested party who is a party to the pro- which changes the size of the dumping ceeding in connection with which the matter margin or net countervailable subsidy cal- arises may commence an action in the United culated, or the reasoning underlying such States Court of International Trade by filing calculations, at the time the suspension concurrently a summons and complaint, each agreement was concluded. with the content and in the form, manner, and (v) An injurious effect determination by style prescribed by the rules of that court, the Commission under section 1671c(h) or contesting any factual findings or legal con- 1673c(h) of this title. clusions upon which the determination is (vi) A determination by the administer- based. ing authority as to whether a particular type of merchandise is within the class or (2) Review of determinations on record kind of merchandise described in an exist- (A) In general ing finding of dumping or antidumping or Within thirty days after— countervailing duty order. (i) the date of publication in the Federal (vii) A determination by the administer- Register of— ing authority or the Commission under (I) notice of any determination de- section 3538 of this title concerning a described in clause (ii), (iii), (iv), (v), or termination under subtitle IV of this chap- (viii) of subparagraph (B), ter. (II) an antidumping or countervailing (viii) A determination by the Commis- duty order based upon any determina- sion under section 1675b(a)(1) of this title. tion described in clause (i) of subpara- (3) Exception graph (B), or Notwithstanding the limitation imposed by (III) notice of the implementation of paragraph (2)(A)(i)(II) of this subsection, a any determination described in clause final affirmative determination by the admin- (vii) of subparagraph (B), or istering authority under section 1671d or 1673d (ii) the date of mailing of a determina- of this title may be contested by commencing tion described in clause (vi) of subpara- an action, in accordance with the provisions of graph (B), paragraph (2)(A), within thirty days after the an interested party who is a party to the date of publication in the Federal Register of proceeding in connection with which the a final negative determination by the Commis- matter arises may commence an action in sion under section 1671d or 1673d of this title. the United States Court of International (4) Procedures and fees Trade by filing a summons, and within thir- The procedures and fees set forth in chapter ty days thereafter a complaint, each with 169 of title 28 apply to an action under this the content and in the form, manner, and section. style prescribed by the rules of that court, (5) Time limits in cases involving merchandise contesting any factual findings or legal con- from free trade area countries clusions upon which the determination is based. Notwithstanding any other provision of this subsection, in the case of a determination to (B) Reviewable determinations which the provisions of subsection (g) of this The determinations which may be con- section apply, an action under this subsection tested under subparagraph (A) are as follows: may not be commenced, and the time limits (i) Final affirmative determinations by for commencing an action under this sub- the administering authority and by the section shall not begin to run, until the day specified in whichever of the following sub- 1 So in original. Probably should be preceded by ‘‘section’’. paragraphs applies: § 1516a TITLE 19—CUSTOMS DUTIES Page 202

(A) For a determination described in para- arbitrary, capricious, an abuse of discretion, graph (1)(B) or clause (i), (ii) or (iii) of para- or otherwise not in accordance with law. graph (2)(B), the 31st day after the date on (2) Record for review which notice of the determination is published in the Federal Register. (A) In general (B) For a determination described in For the purposes of this subsection, the clause (vi) of paragraph (2)(B), the 31st day record, unless otherwise stipulated by the after the date on which the government of parties, shall consist of— the relevant FTA country receives notice of (i) a copy of all information presented to the determination. or obtained by the Secretary, the admin- (C) For a determination with respect to istering authority, or the Commission dur- which binational panel review has coming the course of the administrative pro- menced in accordance with subsection (g)(8) ceeding, including all governmental of this section, the day after the date as of memoranda pertaining to the case and the which— record of ex parte meetings required to be (i) the binational panel has dismissed bi- kept by section 1677f(a)(3) of this title; and national panel review of the determination (ii) a copy of the determination, all tran- for lack of jurisdiction, and scripts or records of conferences or hear- (ii) any interested party seeking review ings, and all notices published in the Fed- of the determination under paragraph (1), eral Register. (2), or (3) of this subsection has provided (B) Confidential or privileged material timely notice under subsection (g)(3)(B) of this section. The confidential or privileged status accorded to any documents, comments, or in- If such an interested party files a summons formation shall be preserved in any action and complaint under this subsection after under this section. Notwithstanding the pre- dismissal by the binational panel, and if a ceding sentence, the court may examine, in request for an extraordinary challenge com- camera, the confidential or privileged mate- mittee is made with respect to the decision rial, and may disclose such material under by the binational panel to dismiss— such terms and conditions as it may order. (I) judicial review under this subsection (3) Effect of decisions by NAFTA or United shall be stayed during consideration by the States-Canada binational panels committee of the request, and (II) the United States Court of Inter- In making a decision in any action brought national Trade shall dismiss the action if under subsection (a) of this section, a court of the committee vacates or remands the bi- the United States is not bound by, but may national panel decision to dismiss. take into consideration, a final decision of a binational panel or extraordinary challenge (D) For a determination for which review committee convened pursuant to article 1904 by the United States Court of International of the NAFTA or of the Agreement. Trade is provided for— (i) under subsection (g)(12)(B) of this sec- (c) Liquidation of entries tion, the day after the date of publication (1) Liquidation in accordance with determina- in the Federal Register of notice that arti- tion cle 1904 of the NAFTA has been suspended, Unless such liquidation is enjoined by the or court under paragraph (2) of this subsection, (ii) under subsection (g)(12)(D) of this entries of merchandise of the character cov- section, the day after the date that notice ered by a determination of the Secretary, the of settlement is published in the Federal administering authority, or the Commission Register. contested under subsection (a) of this section (E) For a determination described in shall be liquidated in accordance with the de- clause (vii) of paragraph (2)(B), the 31st day termination of the Secretary, the administer- after the date on which notice of the imple- ing authority, or the Commission, if they are mentation of the determination is published entered, or withdrawn from warehouse, for in the Federal Register. consumption on or before the date of publica- (b) Standards of review tion in the Federal Register by the Secretary or the administering authority of a notice of a (1) Remedy decision of the United States Court of Inter- The court shall hold unlawful any deter- national Trade, or of the United States Court mination, finding, or conclusion found— of Appeals for the Federal Circuit, not in har- (A) in an action brought under subpara- mony with that determination. Such notice of graph (A), (B), or (C) of subsection (a)(1) of a decision shall be published within ten days this section, to be arbitrary, capricious, an from the date of the issuance of the court deci- abuse of discretion, or otherwise not in ac- sion. cordance with law, or (B)(i) in an action brought under para- (2) Injunctive relief graph (2) of subsection (a) of this section, to In the case of a determination described in be unsupported by substantial evidence on paragraph (2) of subsection (a) of this section the record, or otherwise not in accordance by the Secretary, the administering authority, with law, or or the Commission, the United States Court of (ii) in an action brought under paragraph International Trade may enjoin the liquida- (1)(D) of subsection (a) of this section, to be tion of some or all entries of merchandise cov- Page 203 TITLE 19—CUSTOMS DUTIES § 1516a

ered by a determination of the Secretary, the (6) United States Secretary administering authority, or the Commission, The term ‘‘United States Secretary’’ upon a request by an interested party for such means— relief and a proper showing that the requested (A) the secretary for the United States relief should be granted under the circum- Section referred to in article 1908 of the stances. NAFTA, and (3) Remand for final disposition (B) the secretary of the United States Sec- If the final disposition of an action brought tion provided for in article 1909 of the Agree- under this section is not in harmony with the ment. published determination of the Secretary, the (7) Relevant FTA Secretary administering authority, or the Commission, the matter shall be remanded to the Sec- The term ‘‘relevant FTA Secretary’’ means retary, the administering authority, or the the Secretary— Commission, as appropriate, for disposition (A) referred to in article 1908 of the consistent with the final disposition of the NAFTA, or court. (B) provided for in paragraph 5 of article 1909 of the Agreement, (d) Standing Any interested party who was a party to the of the relevant FTA country. proceeding under section 1303 2 of this title or (8) NAFTA subtitle IV of this chapter shall have the right The term ‘‘NAFTA’’ means the North Amer- to appear and be heard as a party in interest be- ican Free Trade Agreement. fore the United States Court of International Trade. The party filing the action shall notify (9) Relevant FTA country all such interested parties of the filing of an ac- The term ‘‘relevant FTA country’’ means tion under this section, in the form, manner, the free trade area country to which an anti- style, and within the time prescribed by rules of dumping or countervailing duty proceeding the court. pertains. (e) Liquidation in accordance with final decision (10) Free trade area country If the cause of action is sustained in whole or The term ‘‘free trade area country’’ means in part by a decision of the United States Court the following: of International Trade or of the United States (A) Canada for such time as the NAFTA is Court of Appeals for the Federal Circuit— (1) entries of merchandise of the character in force with respect to, and the United covered by the published determination of the States applies the NAFTA to, Canada. Secretary, the administering authority, or the (B) Mexico for such time as the NAFTA is Commission, which is entered, or withdrawn in force with respect to, and the United from warehouse, for consumption after the States applies the NAFTA to, Mexico. date of publication in the Federal Register by (C) Canada for such time as— the Secretary or the administering authority (i) it is not a free trade area country of a notice of the court decision, and under subparagraph (A); and (2) entries, the liquidation of which was en- (ii) the Agreement is in force with re- joined under subsection (c)(2) of this section, spect to, and the United States applies the Agreement to, Canada. shall be liquidated in accordance with the final court decision in the action. Such notice of the (g) Review of countervailing duty and antidump- court decision shall be published within ten days ing duty determinations involving free trade from the date of the issuance of the court deci- area country merchandise sion. (1) ‘‘Determination’’ defined (f) Definitions For purposes of this subsection, the term For purposes of this section— ‘‘determination’’ means a determination de- (1) Administering authority scribed in— The term ‘‘administering authority’’ means (A) paragraph (1)(B) of subsection (a) of the administering authority described in sec- this section, or tion 1677(1) of this title. (B) clause (i), (ii), (iii), (vi), or (vii) of paragraph (2)(B) of subsection (a) of this section, (2) Commission The term ‘‘Commission’’ means the United if made in connection with a proceeding re- States International Trade Commission. garding a class or kind of free trade area country merchandise, as determined by the admin- (3) Interested party istering authority. The term ‘‘interested party’’ means any person described in section 1677(9) of this title. (2) Exclusive review of determination by binational panels (4) Secretary The term ‘‘Secretary’’ means the Secretary If binational panel review of a determination of the Treasury. is requested pursuant to article 1904 of the NAFTA or of the Agreement, then, except as (5) Agreement provided in paragraphs (3) and (4)— The term ‘‘Agreement’’ means the United (A) the determination is not reviewable States-Canada Free-Trade Agreement. under subsection (a) of this section, and (B) no court of the United States has 2 See References in Text note below. power or jurisdiction to review the deter- § 1516a TITLE 19—CUSTOMS DUTIES Page 204

mination on any question of law or fact by (4) Exception to exclusive binational panel re- an action in the nature of mandamus or view for constitutional issues otherwise. (A) Constitutionality of binational panel review system (3) Exception to exclusive binational panel re- An action for declaratory judgment or in- view junctive relief, or both, regarding a determination on the grounds that any provision (A) In general of, or amendment made by, the North Amer- A determination is reviewable under sub- ican Free Trade Agreement Implementation section (a) of this section if the determina- Act implementing the binational dispute tion sought to be reviewed is— settlement system under chapter 19 of the (i) a determination as to which neither NAFTA, or the United States-Canada Free- the United States nor the relevant FTA Trade Agreement Implementation Act of country requested review by a binational 1988 implementing the binational panel dis- panel pursuant to article 1904 of the pute settlement system under chapter 19 of NAFTA or of the Agreement, the Agreement, violates the Constitution (ii) a revised determination issued as a may be brought only in the United States direct result of judicial review, com- Court of Appeals for the District of Colum- menced pursuant to subsection (a) of this bia Circuit, which shall have jurisdiction of section, if neither the United States nor such action. the relevant FTA country requested re- (B) Other constitutional review view of the original determination, Review is available under subsection (a) of (iii) a determination issued as a direct this section with respect to a determination result of judicial review that was com- solely concerning a constitutional issue menced pursuant to subsection (a) of this (other than an issue to which subparagraph section prior to the entry into force of the (A) applies) arising under any law of the NAFTA or of the Agreement, United States as enacted or applied. An ac- (iv) a determination which a binational tion for review under this subparagraph panel has determined is not reviewable by shall be assigned to a 3-judge panel of the the binational panel, United States Court of International Trade. (v) a determination as to which bina- (C) Commencement of review tional panel review has terminated pursuant to paragraph 12 of article 1905 of the Notwithstanding the time limits in sub- NAFTA, or section (a) of this section, within 30 days (vi) a determination as to which extraor- after the date of publication in the Federal dinary challenge committee review has Register of notice that binational panel re- terminated pursuant to paragraph 12 of ar- view has been completed, an interested ticle 1905 of the NAFTA. party who is a party to the proceeding in connection with which the matter arises (B) Special rule may commence an action under subparagraph (A) or (B) by filing an action in ac- A determination described in subpara- cordance with the rules of the court. graph (A)(i) or (iv) is reviewable under subsection (a) of this section only if the party (D) Transfer of actions to appropriate court seeking to commence review has provided Whenever an action is filed in a court timely notice of its intent to commence under subparagraph (A) or (B) and that court such review to— finds that the action should have been filed (i) the United States Secretary and the in the other court, the court in which the ac- relevant FTA Secretary; tion was filed shall transfer the action to the (ii) all interested parties who were par- other court and the action shall proceed as if ties to the proceeding in connection with it had been filed in the court to which it is which the matter arises; and transferred on the date upon which it was (iii) the administering authority or the actually filed in the court from which it is Commission, as appropriate. transferred. Such notice is timely provided if the notice (E) Frivolous claims is delivered no later than the date that is 20 Frivolous claims brought under subpara- days after the date described in subparagraph (A) or (B) are subject to dismissal and graph (A) or (B) of subsection (a)(5) of this sanctions as provided under section 1927 of section that is applicable to such determina- title 28 and the Federal Rules of Civil Proce- tion, except that, if the time for requesting dure. binational panel review is suspended under (F) Security paragraph (8)(A)(ii) of this subsection, any (i) Subparagraph (A) actions unexpired time for providing notice of intent The security requirements of rule 65(c) to commence judicial review shall, during of the Federal Rules of Civil Procedure the pendency of any such suspension, also be apply with respect to actions commenced suspended. Such notice shall contain such under subparagraph (A). information, and be in such form, manner, and style, as the administering authority, in (ii) Subparagraph (B) actions consultation with the Commission, shall No claim shall be heard, and no tem- prescribe by regulations. porary restraining order or temporary or Page 205 TITLE 19—CUSTOMS DUTIES § 1516a

permanent injunction shall be issued, tion described in clause (iii) or (vi) of sub- under an action commenced under subsection (a)(2)(B) of this section for which paragraph (B), unless the party seeking re- binational panel review is requested pursu- view first files an undertaking with ade- ant to article 1904 of the NAFTA or of the quate security in an amount to be fixed by Agreement, the administering authority, the court sufficient to recompense parties upon request of an interested party who affected for any loss, expense, or damage was a party to the proceeding in connec- caused by the improvident or erroneous is- tion with which the matter arises and who suance of such order or injunction. If a is a participant in the binational panel re- court upholds the constitutionality of the view, shall order the continued suspension determination in question in such action, of liquidation of those entries of merchan- the court shall award to a prevailing party dise covered by the determination that are fees and expenses, in addition to any costs involved in the review pending the final incurred by that party, unless the court disposition of the review. finds that the position of the other party was substantially justified or that special (ii) Notice circumstances make an award unjust. At the same time as the interested party (G) Panel record makes its request to the administering authority under clause (i), that party shall The record of proceedings before the binational panel shall not be considered part of serve a copy of its request on the United the record for review pursuant to subpara- States Secretary, the relevant FTA Sec- graph (A) or (B). retary, and all interested parties who were parties to the proceeding in connection (H) Appeal to Supreme Court of court orders with which the matter arises. issued in subparagraph (A) actions (iii) Application of suspension Notwithstanding any other provision of law, any final judgment of the United States If the interested party requesting con- Court of Appeals for the District of Colum- tinued suspension of liquidation under bia Circuit which is issued pursuant to an clause (i) is a foreign manufacturer, pro- action brought under subparagraph (A) shall ducer, or exporter, or a United States im- be reviewable by appeal directly to the Su- porter, the continued suspension of liq- preme Court of the United States. Any such uidation shall apply only to entries of appeal shall be taken by a notice of appeal merchandise manufactured, produced, ex- filed within 10 days after such order is en- ported, or imported by that particular tered; and the jurisdictional statement shall manufacturer, producer, exporter, or im- be filed within 30 days after such order is en- porter. If the interested party requesting tered. No stay of an order issued pursuant to the continued suspension of liquidation an action brought under subparagraph (A) under clause (i) is an interested party de- may be issued by a single Justice of the Su- scribed in subparagraph (C), (D), (E), or (F) preme Court. of section 1677(9) of this title, the con- (5) Liquidation of entries tinued suspension of liquidation shall (A) Application apply only to entries which could be affected by a decision of the binational panel In the case of a determination for which convened under chapter 19 of the NAFTA binational panel review is requested pursu- or of the Agreement. ant to article 1904 of the NAFTA or of the Agreement, the rules provided in this para- (iv) Judicial review graph shall apply, notwithstanding the pro- Any action taken by the administering visions of subsection (c) of this section. authority or the United States Customs (B) General rule Service under this subparagraph shall not In the case of a determination for which be subject to judicial review, and no court binational panel review is requested pursu- of the United States shall have power or ant to article 1904 of the NAFTA or of the jurisdiction to review such action on any Agreement, entries of merchandise covered question of law or fact by an action in the by such determination shall be liquidated in nature of mandamus or otherwise. accordance with the determination of the (6) Injunctive relief administering authority or the Commission, Except for cases under paragraph (4)(B), in if they are entered, or withdrawn from ware- the case of a determination for which bina- house, for consumption on or before the date tional panel review is requested pursuant to of publication in the Federal Register by the article 1904 of the NAFTA or of the Agree- administering authority of notice of a final ment, the provisions of subsection (c)(2) of this decision of a binational panel, or of an ex- section shall not apply. traordinary challenge committee, not in harmony with that determination. Such no- (7) Implementation of international obligations tice of a decision shall be published within 10 under article 1904 of the NAFTA or the days of the date of the issuance of the panel Agreement or committee decision. (A) Action upon remand (C) Suspension of liquidation If a determination is referred to a bina- (i) In general tional panel or extraordinary challenge com- Notwithstanding the provisions of sub- mittee under the NAFTA or the Agreement paragraph (B), in the case of a determina- and the panel or committee makes a deci- § 1516a TITLE 19—CUSTOMS DUTIES Page 206

sion remanding the determination to the ad- suspended during the pendency of any stay ministering authority or the Commission, of binational panel review that is issued the administering authority or the Commis- pursuant to paragraph 11(a) of article 1905 sion shall, within the period specified by the of the NAFTA. panel or committee, take action not incon- (B) Service of request for binational panel re- sistent with the decision of the panel or view committee. Any action taken by the administering authority or the Commission under (i) Service by interested party this paragraph shall not be subject to judi- If a request for binational panel review cial review, and no court of the United of a determination is filed under subpara- States shall have power or jurisdiction to re- graph (A), the party making the request view such action on any question of law or shall serve a copy, by mail or personal fact by an action in the nature of mandamus service, on any other interested party who or otherwise. was a party to the proceeding in connec- (B) Application if subparagraph (A) held un- tion with which the matter arises, and on constitutional the administering authority or the Com- mission, as appropriate. In the event that the provisions of subparagraph (A) are held unconstitutional (ii) Service by United States Secretary under the provisions of subparagraphs (A) If an interested party to the proceeding and (H) of paragraph (4), the provisions of requests binational panel review of a de- this subparagraph shall take effect. In such termination by filing a request with the event, the President is authorized on behalf relevant FTA Secretary, the United States of the United States to accept, as a whole, Secretary shall serve a copy of the request the decision of a binational panel or extraor- by mail on any other interested party who dinary challenge committee remanding the was a party to the proceeding in connec- determination to the administering author- tion with which the matter arises, and on ity or the Commission within the period the administering authority or the Com- specified by the panel or committee. Upon mission, as appropriate. acceptance by the President of such a deci- (C) Limitation on request for binational sion, the administering authority or the panel review Commission shall, within the period specified by the panel or committee, take action Absent a request by an interested party not inconsistent with such decision. Any ac- under subparagraph (A), the United States tion taken by the President, the administer- may not request binational panel review of a ing authority, or the Commission under this determination under article 1904 of the subparagraph shall not be subject to judicial NAFTA or the Agreement. review, and no court of the United States (9) Representation in panel proceedings shall have power or jurisdiction to review In the case of binational panel proceedings such action on any question of law or fact by convened under chapter 19 of the NAFTA or of an action in the nature of mandamus or the Agreement, the administering authority otherwise. and the Commission shall be represented by (8) Requests for binational panel review attorneys who are employees of the admin- (A) Interested party requests for binational istering authority or the Commission, respec- panel review tively. Interested parties who were parties to the proceeding in connection with which the (i) General rule matter arises shall have the right to appear An interested party who was a party to and be represented by counsel before the bina- the proceeding in which a determination is tional panel. made may request binational panel review (10) Notification of class or kind rulings of such determination by filing a request with the United States Secretary by no In the case of a determination which is de- later than the date that is 30 days after scribed in paragraph (2)(B)(vi) of subsection (a) the date described in subparagraph (A), of this section and which is subject to the pro- (B), or (E) of subsection (a)(5) of this sec- visions of paragraph (2), the administering au- tion that is applicable to such determina- thority, upon request, shall inform any inter- tion. Receipt of such request by the United ested person of the date on which the Govern- States Secretary shall be deemed to be a ment of the relevant FTA country received no- request for binational panel review within tice of the determination under paragraph 4 of the meaning of article 1904(4) of the article 1904 of the NAFTA or the Agreement. NAFTA or of the Agreement. Such request (11) Suspension and termination of suspension shall contain such information and be in of article 1904 of the NAFTA such form, manner, and style as the ad- (A) Suspension of article 1904 ministering authority, in consultation with the Commission, shall prescribe by If a special committee established under regulations. article 1905 of the NAFTA issues an affirmative finding, the Trade Representative may, (ii) Suspension of time to request bina- in accordance with paragraph 8(a) or 9, as tional panel review under the NAFTA appropriate, of article 1905 of the NAFTA, Notwithstanding clause (i), the time for suspend the operation of article 1904 of the requesting binational panel review shall be NAFTA. Page 207 TITLE 19—CUSTOMS DUTIES § 1516a

(B) Termination of suspension of article 1904 (i) if the United States made an allega- If a special committee is reconvened and tion under paragraph 1 of article 1905 of makes an affirmative determination de- the NAFTA and the operation of article scribed in paragraph 10(b) of article 1905 of 1904 of the NAFTA was suspended pursuant the NAFTA, any suspension of the operation to paragraph 8(a) of article 1905 of the of article 1904 of the NAFTA shall terminate. NAFTA— (12) Judicial review upon termination of bina- (I) the government of the relevant tional panel or committee review under the country described in subsection (f)(10)(A) NAFTA or (B) of this section, (II) an interested party that was a (A) Notice of suspension or termination of party to the panel or committee review, suspension of article 1904 or (i) Upon notification by the Trade Rep- (III) an interested party that was a resentative or the Government of a country party to the proceeding in connection described in subsection (f)(10)(A) or (B) of with which panel review was requested, this section that the operation of article 1904 but only if the time period for filing no- of the NAFTA has been suspended in accord- tices of appearance in the panel review ance with paragraph 8(a) or 9 of article 1905 has not expired, or of the NAFTA, the United States Secretary shall publish in the Federal Register a no- (ii) if a country described in subsection tice of suspension of article 1904 of the (f)(10)(A) or (B) of this section made an al- NAFTA. legation under paragraph 1 of article 1905 (ii) Upon notification by the Trade Rep- of the NAFTA and the operation of article resentative or the Government of a country 1904 of the NAFTA was suspended pursuant described in subsection (f)(10)(A) or (B) of to paragraph 9 of article 1905 of the this section that the suspension of the oper- NAFTA— ation of article 1904 of the NAFTA is termi- (I) the government of that country, nated in accordance with paragraph 10 of ar- (II) an interested party that is a person ticle 1905 of the NAFTA, the United States of that country and that was a party to Secretary shall publish in the Federal Reg- the panel or committee review, or ister a notice of termination of suspension of (III) an interested party that is a per- article 1904 of the NAFTA. son of that country and that was a party to the proceeding in connection with (B) Transfer of final determinations for judi- which panel review was requested, but cial review upon suspension of article only if the time period for filing notices 1904 of appearance in the panel review has If the operation of article 1904 of the not expired. NAFTA is suspended in accordance with paragraph 8(a) or 9 of article 1905 of the (D) Transfer for judicial review upon settle- NAFTA— ment (i) upon the request of an authorized per- (i) If the Trade Representative achieves a son described in subparagraph (C), any settlement with the government of a coun- final determination that is the subject of a try described in subsection (f)(10)(A) or (B) of binational panel review or an extraor- this section pursuant to paragraph 7 of arti- dinary challenge committee review shall cle 1905 of the NAFTA, and referral for judi- be transferred to the United States Court cial review is among the terms of such set- of International Trade (in accordance with tlement, any final determination that is the rules issued by the Court) for review under subject of a binational panel review or an ex- subsection (a) of this section; or traordinary challenge committee review (ii) in a case in which— shall, upon a request described in clause (ii), (I) a binational panel review was com- be transferred to the United States Court of pleted fewer than 30 days before the sus- International Trade (in accordance with pension, and rules issued by the Court) for review under (II) extraordinary challenge committee subsection (a) of this section. review has not been requested, (ii) A request referred to in clause (i) is a upon the request of an authorized person request made by— described in subparagraph (C) which is (I) the country referred to in clause (i), made within 60 days after the completion (II) an interested party that was a party of the binational panel review, the final to the panel or committee review, or determination that was the subject of the (III) an interested party that was a party binational panel review shall be trans- to the proceeding in connection with ferred to the United States Court of Inter- which panel review was requested, but national Trade (in accordance with rules only if the time for filing notices of ap- issued by the Court) for review under sub- pearance in the panel review has not ex- section (a) of this section. pired. (C) Persons authorized to request transfer of (June 17, 1930, ch. 497, title IV, § 516A, as added final determinations for judicial review Pub. L. 96–39, title X, § 1001(a), July 26, 1979, 93 A request that a final determination be Stat. 300; amended Pub. L. 96–417, title VI, transferred to the Court of International §§ 601(7), 608, Oct. 10, 1980, 94 Stat. 1744, 1745; Pub. Trade under subparagraph (B) may be made L. 96–542, § 2, Dec. 17, 1980, 94 Stat. 3210; Pub. L. by— 97–164, title I, § 163(a)(2), Apr. 2, 1982, 96 Stat. 49; § 1516a TITLE 19—CUSTOMS DUTIES Page 208

Pub. L. 98–573, title VI, § 623(a), Oct. 30, 1984, 98 provisions relating to time limits for commencing re- Stat. 3040; Pub. L. 99–514, title XVIII, § 1888(6), view in cases involving Canadian merchandise. Oct. 22, 1986, 100 Stat. 2925; Pub. L. 100–449, title Subsec. (b)(3). Pub. L. 103–182, § 411(2), inserted ‘‘NAFTA or’’ after ‘‘decisions by’’ in heading and ‘‘of IV, § 401, Sept. 28, 1988, 102 Stat. 1878; Pub. L. the NAFTA or’’ after ‘‘article 1904’’ in text. 101–382, title I, § 134(a)(3), Aug. 20, 1990, 104 Stat. Subsec. (f)(6), (7). Pub. L. 103–182, § 411(3)(A), amended 649; Pub. L. 103–182, title IV, § 411, Dec. 8, 1993, 107 pars. (6) and (7) generally, substituting present provi- Stat. 2140; Pub. L. 103–465, title I, § 129(e), title II, sions for provisions which, in par. (6) defined ‘‘United §§ 220(b), 270(a)(1)(N), 271(b), Dec. 8, 1994, 108 Stat. States Secretary’’ as the secretary provided for in para- 4838, 4864, 4917, 4921; Pub. L. 104–295, §§ 20(a)(1), graph 4 of article 1909 of the United States-Canada 21(c)(3), 22, Oct. 11, 1996, 110 Stat. 3526, 3530, 3531; Free-Trade Agreement, and in par. (7), defined ‘‘Cana- dian Secretary’’ as the secretary provided for in para- Pub. L. 109–432, div. D, title III, § 3002, Dec. 20, graph 5 of article 1909 of the Agreement. 2006, 120 Stat. 3173.) Subsec. (f)(8) to (10). Pub. L. 103–182, § 411(3)(B), added pars. (8) to (10). REFERENCES IN TEXT Subsec. (g). Pub. L. 103–182, § 411(4)(A), substituted Section 1303 of this title, referred to in subsec. (d), is ‘‘free trade area country merchandise’’ for ‘‘Canadian defined in section 1677(26) of this title to mean section merchandise’’ in heading. 1330 as in effect on the day before Jan. 1, 1995. Subsec. (g)(1). Pub. L. 103–182, § 411(4)(B), substituted The North American Free Trade Agreement Imple- ‘‘free trade area country merchandise’’ for ‘‘Canadian mentation Act, referred to in subsec. (g)(4)(A), is Pub. merchandise’’ in concluding provisions. L. 103–182, Dec. 8, 1993, 107 Stat. 2057, as amended. For Subsec. (g)(2). Pub. L. 103–182, § 411(4)(C), inserted ‘‘of complete classification of this Act to the Code, see the NAFTA or’’ after ‘‘article 1904’’ in introductory Short Title note set out under section 3301 of this title provisions. and Tables. Subsec. (g)(3)(A). Pub. L. 103–182, § 411(4)(D), in cl. (i), The United States-Canada Free-Trade Agreement Im- substituted ‘‘nor the relevant FTA country’’ for ‘‘nor plementation Act of 1988, referred to in subsec. Canada’’ and inserted ‘‘of the NAFTA or’’ before ‘‘of the (g)(4)(A), is Pub. L. 100–449, Sept. 28, 1988, 102 Stat. 1851, Agreement’’, in cl. (ii), substituted ‘‘nor the relevant which is set out as a note under section 2112 of this FTA country’’ for ‘‘nor Canada’’, in cl. (iii), inserted title. For complete classification of this Act to the ‘‘of the NAFTA or’’ before ‘‘of the Agreement’’ and Code, see Tables. struck out ‘‘or’’ at end, in cl. (iv), struck out ‘‘under The Federal Rules of Civil Procedure, referred to in paragraph (2)(A)’’ before ‘‘is not reviewable’’ and sub- subsec. (g)(4)(E), (F), are set out in the Appendix to stituted a comma for period at end, and added cls. (v) Title 28, Judiciary and Judicial Procedure. and (vi). Subsec. (g)(3)(B). Pub. L. 103–182, § 411(4)(E), sub- CODIFICATION stituted first two sentences for former sentences which In the original, section 1001(a) of Pub. L. 96–39 di- read as follows: ‘‘A determination described in subpara- rected that this section, designated as section 516A, be graph (A)(i) or (iv) is reviewable under subsection (a) of added to title V of the Tariff Act of 1930, however, since this section only if the party seeking to commence re- a title V of the Tariff Act of 1930 has not been enacted, view has provided timely notice of its intent to com- this section was added to title IV of the Tariff Act of mence such review to the United States Secretary, the 1930 to reflect the probable intent of Congress. Canadian Secretary, all interested parties who were parties to the proceeding in connection with which the AMENDMENTS matter arises, and the administering authority or the 2006—Subsec. (g)(1)(B). Pub. L. 109–432 substituted Commission, as appropriate. Such notice is provided ‘‘(vi), or (vii)’’ for ‘‘or (vi)’’. timely if the notice is delivered by no later than the 1996—Subsec. (a)(2)(A)(i)(I). Pub. L. 104–295, § 20(a)(1), date that is 20 days after the date described in subpara- inserted comma after ‘‘subparagraph (B)’’. graph (A) or (B) of subsection (a)(5) of this section that Subsec. (g)(4)(A). Pub. L. 104–295, § 22, substituted is applicable to such determination.’’ ‘‘Agreement Implementation Act of 1988’’ for ‘‘Imple- Subsec. (g)(4)(A). Pub. L. 103–182, § 411(4)(F), inserted mentation Agreement Act of 1988’’. ‘‘the North American Free Trade Agreement Imple- Subsec. (g)(12)(D). Pub. L. 104–295, § 21(c)(3), trans- mentation Act implementing the binational dispute ferred designation ‘‘(i)’’ from heading to before sen- settlement system under chapter 19 of the NAFTA, or’’ tence beginning ‘‘If the Trade Representative’’. after ‘‘or amendment made by,’’, a comma before ‘‘vio- 1994—Subsec. (a)(1)(D). Pub. L. 103–465, § 220(b)(1), lates’’, ‘‘only’’ after ‘‘may be brought’’, and ‘‘, which added subpar. (D). shall have jurisdiction of such action’’ after ‘‘Circuit’’ Subsec. (a)(2)(A)(i)(I). Pub. L. 103–465, § 271(b)(1), sub- and struck out at end ‘‘Any action brought under this stituted ‘‘(v), or (viii)’’ for ‘‘or (v)’’. subparagraph shall be heard and determined by a 3- Pub. L. 103–465, § 129(e)(1)(A)(i), struck out ‘‘, or’’ judge court in accordance with section 2284 of title 28.’’ after ‘‘(B)’’. Subsec. (g)(5). Pub. L. 103–182, § 411(4)(G), inserted ‘‘of Subsec. (a)(2)(A)(i)(III). Pub. L. 103–465, the NAFTA or’’ after ‘‘article 1904’’ in subpars. (A), (B), § 129(e)(1)(A)(ii), added subcl. (III). and (C)(i), substituted ‘‘, the relevant FTA Secretary,’’ Subsec. (a)(2)(B)(iv). Pub. L. 103–465, § 270(a)(1)(N), infor ‘‘, the Canadian Secretary,’’ in subpar. (C)(ii), and serted ‘‘countervailable’’ before ‘‘subsidy’’. inserted ‘‘of the NAFTA or’’ after ‘‘chapter 19’’ in sub- Subsec. (a)(2)(B)(vii). Pub. L. 103–465, § 129(e)(1)(B), par. (C)(iii). added cl. (vii). Subsec. (g)(6). Pub. L. 103–182, § 411(4)(H), inserted ‘‘of Subsec. (a)(2)(B)(viii). Pub. L. 103–465, § 271(b)(2), the NAFTA or’’ after ‘‘article 1904’’. added cl. (viii). Subsec. (g)(7). Pub. L. 103–182, § 411(4)(I)(i), inserted Subsec. (a)(5)(E). Pub. L. 103–465, § 129(e)(2), added sub- ‘‘of the NAFTA or the Agreement’’ in heading. par. (E). Subsec. (g)(7)(A). Pub. L. 103–182, § 411(4)(I)(ii), (iii), Subsec. (b)(1)(A). Pub. L. 103–465, § 220(b)(2)(A), sub- substituted heading for one which read ‘‘In general’’ stituted ‘‘under subparagraph (A), (B), or (C) of sub- and inserted ‘‘the NAFTA or’’ before ‘‘the Agreement’’. section (a)(1) of this section’’ for ‘‘under paragraph (1) Subsec. (g)(8)(A). Pub. L. 103–182, § 411(4)(J), des- of subsection (a) of this section’’. ignated existing provisions as cl. (i), inserted cl. head- Subsec. (b)(1)(B). Pub. L. 103–465, § 220(b)(2)(B), des- ing, realigned margin, inserted ‘‘of the NAFTA or’’ ignated existing provisions as cl. (i), substituted ‘‘, or’’ after ‘‘article 1904(4)’’, and added cl. (ii). for period at end, and added cl. (ii). Subsec. (g)(8)(B)(ii). Pub. L. 103–182, § 411(4)(K), sub- Subsec. (g)(8)(A)(i). Pub. L. 103–465, § 129(e)(3), substituted ‘‘relevant FTA Secretary’’ for ‘‘Canadian Sec- stituted ‘‘(A), (B), or (E)’’ for ‘‘(A) or (B)’’. retary’’. 1993—Subsec. (a)(5). Pub. L. 103–182, § 411(1), amended Subsec. (g)(8)(C). Pub. L. 103–182, § 411(4)(L), subpar. (5) generally, substituting present provisions for stituted ‘‘of a determination under article 1904 of the Page 209 TITLE 19—CUSTOMS DUTIES § 1516a

NAFTA or the Agreement’’ for ‘‘under article 1904 of Subsec. (a)(3), (4). Pub. L. 98–573, § 623(a)(4), added par. the Agreement of a determination’’. (3) and redesignated former par. (3) as (4). Subsec. (g)(9). Pub. L. 103–182, § 411(4)(M), inserted ‘‘of 1982—Subsecs. (c)(1), (e). Pub. L. 97–164 substituted the NAFTA or’’ after ‘‘chapter 19’’. ‘‘Court of Appeals for the Federal Circuit’’ for ‘‘Court Subsec. (g)(10). Pub. L. 103–182, § 411(4)(N), substituted of Customs and Patent Appeals’’. ‘‘Government of the relevant FTA country received no- 1980—Subsec. (a)(1). Pub. L. 96–417, § 608(a), inserted tice of the determination under paragraph 4 of article subpar. ‘‘(A) Thirty-day review’’ heading; redesignated 1904 of the NAFTA or the Agreement’’ for ‘‘Government as cls. (i), (ii), and (iii) of subpar. (A) provisions for- of Canada received notice of the determination under merly designated as subpars. (A), (C), and (D) of par. (1); article 1904(4) of the Agreement’’. inserted subpar. ‘‘(B) Ten-day review’’ heading and its Subsec. (g)(11), (12). Pub. L. 103–182, § 411(4)(O), added introductory text; redesignated as cls. (i) and (ii) of pars. (11) and (12). subpar. (B) provisions formerly designated as subpars. 1990—Subsec. (a)(5)(A). Pub. L. 101–382, § 134(a)(3)(A)(i), (B) and (E) of par. (1), thus substituting ten-day for added subpar. (A) and struck out former subpar. (A) thirty-day review for such clauses; enacted provision which read as follows: ‘‘the date of publication in the respecting commencement of action by an interested Federal Register of— party following subpars. (A) and (B), formerly enacted ‘‘(i) notice of any determination described in para- following only par. (1); and redesignated the United graph (1)(B) or a determination described in clause States Customs Court as the United States Court of (ii) or (iii) of paragraph (2)(B), or International Trade in the latter provisions. ‘‘(ii) an antidumping or countervailing duty order Subsec. (a)(2)(A). Pub. L. 96–417, § 601(7), redesignated based upon any determination described in clause (i) the United States Customs Court as the United States of paragraph (2)(B), or’’. Court of International Trade. Subsec. (a)(5)(C). Pub. L. 101–382, § 134(a)(3)(A)(ii), Subsec. (a)(3). Pub. L. 96–542 substituted ‘‘chapter 169 added subpar. (C). of title 28’’ for ‘‘subsections (b), (c), and (e) of chapter Subsec. (g)(3)(A)(iv). Pub. L. 101–382, § 134(a)(3)(B)(i), 169 of title 28’’. added cl. (iv). Pub. L. 96–417, § 608(b), substituted ‘‘chapter 169 of Subsec. (g)(3)(B). Pub. L. 101–382, § 134(a)(3)(B)(ii), in- title 28’’ for ‘‘section 2632 of title 28’’. serted ‘‘or (iv)’’ after ‘‘subparagraph (A)(i)’’. Subsec. (c)(1), (2). Pub. L. 96–417, §§ 601(7), 608(c), redes- 1988—Subsec. (a)(5). Pub. L. 100–449, § 401(a), added ignated in pars. (1) and (2) the United States Customs par. (5). Court as the United States Court of International Subsec. (b)(3). Pub. L. 100–449, § 401(d), added par. (3). Trade and deleted from par. (2) the criteria to be con- Subsec. (f)(5) to (7). Pub. L. 100–449, § 401(b), added sidered in ruling on an injunction, namely, the party pars. (5) to (7). likely to prevail, irreparable harm, public interest, and Subsec. (g). Pub. L. 100–449, § 401(c), added subsec. (g). greater harm. 1986—Subsec. (a)(3). Pub. L. 99–514 substituted Subsec. (d). Pub. L. 96–417, §§ 601(7), 608(d), redesig- ‘‘(2)(A)(i)(II)’’ for ‘‘(2)(A)(ii)’’. nated the United States Customs Court as the United 1984—Subsec. (a)(1). Pub. L. 98–573, § 623(a)(1), amend- States Court of International Trade and substituted re- ed par. (1) generally, and thereby struck out the des- quirement for notification of ‘‘all such interested par- ignation ‘‘(A)’’ before ‘‘Within 30 days’’, redesignated ties of the filing of an action under this section, in the former cls. (i) to (iii) as subpars. (A) to (C), respec- form, manner, style, and within the time prescribed by tively, in subpar. (A) as so redesignated struck out ref- rules of the court’’ for prior notice requirement to ‘‘all erences to the Secretary and to section 1303(a)(3) of this interested parties of the filing of an action pursuant to title, in subpar. (B) as so redesignated struck out ref- this section’’. erence to the administering authority and to review of Subsec. (e). Pub. L. 96–417, § 601(7), redesignated the agreements based on changed circumstances, and United States Customs Court as the United States struck out former subpar. (B), relating to a right of ju- Court of International Trade. dicial review of certain determinations of the administering authority within 10 days after publication of EFFECTIVE DATE OF 1994 AMENDMENT notice of the determination in the Federal Register. Subsec. (a)(2)(A). Pub. L. 98–573, § 623(a)(2), inserted Amendment by section 129(e) of Pub. L. 103–465 effec- the designation ‘‘(i)’’ before ‘‘the date of publication in tive on the date on which the WTO Agreement enters the Federal Register of’’, redesignated cls. (i) and (ii) as into force with respect to the United States [Jan. 1, subcls. (I) and (II), respectively, and added cl. (ii). 1995], see section 130 of Pub. L. 103–465, set out as an Ef- Subsec. (a)(2)(B)(i). Pub. L. 98–573, § 623(a)(3), amended fective Date note under section 3531 of this title. cl. (i) generally and thereby struck out provisions re- Amendment by sections 220(b), 270(a)(1)(N), and 271(b) ferring to final affirmative determinations by the Sec- of Pub. L. 103–465 effective, except as otherwise pro- retary and by the Commission under section 1303 of this vided, on the date on which the WTO Agreement enters title, and inserted reference to any negative part of de- into force with respect to the United States [Jan. 1, cisions under section 1671d or 1673d of this title. 1995], and applicable with respect to investigations, re- Subsec. (a)(2)(B)(ii). Pub. L. 98–573, § 623(a)(3), amend- views, and inquiries initiated and petitions filed under ed cl. (ii) generally and thereby struck out references specified provisions of this chapter after such date, see to the Secretary and to section 1303 of this title and in- section 291 of Pub. L. 103–465, set out as a note under serted provision relating to any part of a final affirma- section 1671 of this title. tive determination which specifically excludes any EFFECTIVE DATE OF 1993 AMENDMENT company or product. Subsec. (a)(2)(B)(iii). Pub. L. 98–573, § 623(a)(3), amend- Amendment by Pub. L. 103–182 effective on the date ed cl. (iii) generally and thereby substituted provisions the North American Free Trade Agreement enters into relating to final determinations by the administering force with respect to the United States [Jan. 1, 1994], authority or the Commission for provisions relating to but not applicable to any final determination described determinations by the Secretary, the administering au- in section 1516a(a)(1)(B) or (2)(B)(i), (ii), or (iii) of this thority, or the Commission. title, notice of which is published in the Federal Reg- Subsec. (a)(2)(B)(iv). Pub. L. 98–573, § 623(a)(3), amend- ister before such date, or to a determination described ed cl. (iv) generally and thereby inserted provision re- in section 1516a(a)(2)(B)(vi) of this title, notice of which lating to any final determination resulting from a con- is received by the Government of Canada or Mexico be- tinued investigation which changes the size of the fore such date, or to any binational panel review under dumping margin or net subsidy calculated, or the rea- the United States-Canada Free-Trade Agreement, or to soning underlying such calculations, at the time the any extraordinary challenge arising out of any such re- suspension agreement was concluded. view, that was commenced before such date, see section Subsec. (a)(2)(B)(vi). Pub. L. 98–573, § 623(a)(3), added 416 of Pub. L. 103–182, set out as an Effective Date note cl. (vi). under section 3431 of this title. § 1516a TITLE 19—CUSTOMS DUTIES Page 210

EFFECTIVE AND TERMINATION DATES OF 1988 of paragraph (1) shall be applied for purposes of that AMENDMENT action. ‘‘(3) CERTAIN COUNTERVAILING AND ANTIDUMPING Amendment by Pub. L. 100–449 effective on date DUTY ASSESSMENTS.—The amendments made by this United States-Canada Free-Trade Agreement enters title [enacting this section and amending sections into force (Jan. 1, 1989), and to cease to have effect on 1514, 1515, and 1516 of this title and sections 1541, 1582, date Agreement ceases to be in force, see section 501(a), 2632, 2633, and 2637 of Title 28, Judiciary and Judicial (c) of Pub. L. 100–449, set out in a note under section Procedure] shall apply with respect to the review of 2112 of this title. the assessment of, or failure to assess, any counter- EFFECTIVE DATE OF 1984 AMENDMENT vailing duty or antidumping duty on entries subject to a countervailing duty order or antidumping find- Amendment by Pub. L. 98–573 applicable with respect ing if the assessment is made after the effective date. to civil actions pending on, or filed on or after, Oct. 30, If no assessment of such duty had been made before 1984, see section 626(b)(2) of Pub. L. 98–573, set out as a the effective date that could serve the party seeking note under section 1671 of this title. review as the basis of a review of the underlying determination, made by the Secretary of the Treasury EFFECTIVE DATE OF 1982 AMENDMENT or the International Trade Commission before the ef- Amendment by Pub. L. 97–164 effective Oct. 1, 1982, fective date, on which such order, finding, or lack see section 402 of Pub. L. 97–164, set out as a note under thereof is based, then the underlying determination section 171 of Title 28, Judiciary and Judicial Proce- shall be subject to review in accordance with the law dure. in effect on the day before the effective date. ‘‘(4) CERTAIN COUNTERVAILING AND ANTIDUMPING EFFECTIVE DATE OF 1980 AMENDMENTS DUTY DETERMINATIONS.—With respect to any prelimi- Section 3 of Pub. L. 96–542 provided that: ‘‘The nary determination or final determination of the Sec- amendments made by this Act [amending this section retary of the Treasury under section 303 of the Tariff and provisions set out as a note under section 251 of Act of 1930 [section 1303 of this title] or the Anti- Title 28, Judiciary and Judicial Procedure] shall be ef- dumping Act, 1921 [sections 160 to 171 of this title], fective as of November 1, 1980.’’ which is treated under section 102 of this Act [set out Amendment by Pub. L. 96–417 effective Nov. 1, 1980, as a note under section 1671 of this title] as if made and applicable with respect to civil actions pending on under section 703(b), 705(a), 733(b), or 735(a) of the Tar- or commenced on or after such date, see section 701(a) iff Act of 1930 [section 1671b(b), 1671d(a), 1673b(b), or of Pub. L. 96–417, set out as a note under section 251 of 1673d(a) of this title] (as added by title I of this Act) title 28. such determinations shall be subject to judicial review in the same manner and to the same extent as EFFECTIVE DATE; TRANSITIONAL RULES if made on the day before the effective date.’’

Section 1002 of title X of Pub. L. 96–39 provided that: TRANSFER OF FUNCTIONS ‘‘(a) EFFECTIVE DATE.—The amendments made by this title [enacting this section and amending sections 1514, For transfer of functions, personnel, assets, and li- 1515, and 1516 of this title and sections 1541, 1582, 2632, abilities of the United States Customs Service of the 2633, and 2637 of Title 28, Judiciary and Judicial Proce- Department of the Treasury, including functions of the dure] shall take effect on that date (hereinafter in this Secretary of the Treasury relating thereto, to the Sec- section referred to as the ‘effective date’) on which retary of Homeland Security, and for treatment of re- title VII of the Tariff Act of 1930 [subtitle IV of this lated references, see sections 203(1), 551(d), 552(d), and chapter] (as added by title I of this Act) takes effect 557 of Title 6, Domestic Security, and the Department [Jan. 1, 1980]; and section 515(a) of such Act of 1930 [sec- of Homeland Security Reorganization Plan of Novem- tion 1515(a) of this title] (as amended by section ber 25, 2002, as modified, set out as a note under section 1001(b)(2)) shall apply with respect to any denial, in 542 of Title 6. whole or in part, of a protest filed under section 514 of EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS such Act of 1930 [section 1514 of this title] on or after the effective date. For provisions relating to effect of termination of ‘‘(b) TRANSITIONAL RULES.— NAFTA country status on the provisions of sections 401 ‘‘(1) CERTAIN PROTESTS, PETITIONS, ACTIONS, ETC.— to 416 of Pub. L. 103–182, see section 3451 of this title. The amendments made by this title [enacting this PLAN AMENDMENTS NOT REQUIRED UNTIL section and amending sections 1514, 1515, and 1516 of JANUARY 1, 1989 this title and sections 1541, 1582, 2632, 2633, and 2637 of Title 28, Judiciary and Judicial Procedure] shall not For provisions directing that if any amendments apply with respect to— made by subtitle A or subtitle C of title XI [§§ 1101–1147 ‘‘(A) any protest, petition, or notice of desire to and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. contest filed before the effective date [Jan. 1, 1980] 99–514 require an amendment to any plan, such plan under section 514, 516(a), or 516(d), respectively, of amendment shall not be required to be made before the the Tariff Act of 1930 [section 1514, 1516(a), or 1516(d) first plan year beginning on or after Jan. 1, 1989, see of this title]; section 1140 of Pub. L. 99–514, as amended, set out as a ‘‘(B) any civil action commenced before the effec- note under section 401 of Title 26, Internal Revenue tive date [Jan. 1, 1980] under section 2632 of title 28 Code. of the United States Code; or ACCEPTANCE BY PRESIDENT OF PANEL AND COMMITTEE ‘‘(C) any civil action commenced after the effec- DECISIONS tive date [Jan. 1, 1980] under such section 2632 if the protest, petition, or notice of desire to contest For acceptance by President of decisions of bina- (under section 514, 516(a), or 516(d), respectively, of tional panels and extraordinary challenge committees the Tariff Act of 1930) on which such action is based in event that subsec. (b)(7)(B) of this section takes ef- was filed before such effective date. fect, see section 2 of Ex. Ord. No. 12889, Dec. 27, 1993, 58 ‘‘(2) LAW TO BE APPLIED FOR PURPOSES OF SUCH AC- F.R. 69681, set out as a note under section 3311 of this TIONS.—Notwithstanding the repeal of the Antidump- title. ing Act, 1921 [sections 160 to 171 of this title], by sec- For provision that in the event that subsec. (g)(7)(B) tion 106(a) of this Act, and the amendment of section of this section takes effect, the President accepts, as a 303 of the Tariff Act of 1930 [section 1303 of this title] whole, all decisions of binational panels and extraor- by section 103 of this Act, the law in effect on the dinary challenge committees, see section 3 of Ex. Ord. date of any finding or determination contested in a No. 12662, Dec. 31, 1988, 54 F.R. 785, set out as a note civil action described in subparagraph (A), (B), or (C) under section 2112 of this title. Page 211 TITLE 19—CUSTOMS DUTIES § 1520

§§ 1517 to 1519. Repealed. June 25, 1948, ch. 646, section 203 of the United States-Peru Trade Pro- § 39, 62 Stat. 992, eff. Sept. 1, 1948 motion Agreement Implementation Act for which no claim for preferential tariff treatment Section 1517, act June 17, 1930, ch. 497, title IV, § 517, was made at the time of importation if the im- 46 Stat. 737, related to frivolous protest or appeal. See porter, within 1 year after the date of importa- section 2641 of Title 28, Judiciary and Judicial Proce- dure. tion, files, in accordance with those regulations, Section 1518, acts June 10, 1890, ch. 407, § 12, 26 Stat. a claim that includes— 136; May 27, 1908, ch. 205, § 3, 35 Stat. 406; Aug. 5, 1909, (1) a written declaration that the good quali- ch. 6, § 28, 36 Stat. 98; May 28, 1926, ch. 411, § 1, 44 Stat. fied under the applicable rules at the time of 669; June 17, 1930, ch. 497, title IV, § 518, 46 Stat. 737, reimportation; lated to the judges of the United States Customs Court: (2) copies of all applicable NAFTA Certifi- their appointment, salary, retirement, vacancies, and cates of Origin (as defined in section 1508(b)(1) powers; the control of the fiscal affairs and of the cleri- of this title), or other certificates or certifi- cal force of the court; and the division of the court. See cations of origin, as the case may be; and sections 251 to 254, 456, 1581, 2071, 2639, and 2640 of Title (3) such other documentation and informa- 28, Judiciary and Judicial Procedure. Last sentence of tion relating to the importation of the goods section, relating to the transfer of unexpended appro- as the Customs Service may require. priations for salaries to be available for expenditures for the same purposes, was omitted as executed. (June 17, 1930, ch. 497, title IV, § 520, 46 Stat. 739; Section 1519, act June 17, 1930, ch. 497, title IV, § 519, June 26, 1934, ch. 756, § 2, 48 Stat. 1225; June 25, 46 Stat. 739, related to publication of Customs Court’s 1938, ch. 679, § 18, 52 Stat. 1086; Aug. 8, 1953, ch. decisions. See section 255 of Title 28, Judiciary and Ju- 397, § 20, 67 Stat. 519; Pub. L. 91–271, title II, § 210, dicial Procedure. June 2, 1970, 84 Stat. 287; Pub. L. 95–410, title II, § 1520. Refunds and errors § 210, Oct. 3, 1978, 92 Stat. 903; Pub. L. 98–573, title II, §§ 210(b), 212(c)(B), formerly § 212(b)(7)(B), Oct. (a) Cases in which refunds authorized 30, 1984, 98 Stat. 2977, 2984, renumbered Pub. L. The Secretary of the Treasury is authorized to 99–514, title XVIII, § 1889(3), Oct. 22, 1986, 100 refund duties or other receipts in the following Stat. 2925; Pub. L. 103–182, title II, § 206, title VI, cases: §§ 642(b), 646, Dec. 8, 1993, 107 Stat. 2095, 2205, 2207; (1) Excess deposits.—Whenever it is ascer- Pub. L. 106–36, title II, § 2408(a), June 25, 1999, 113 tained on liquidation or reliquidation of an Stat. 171; Pub. L. 108–77, title II, § 206, Sept. 3, entry or reconciliation that more money has 2003, 117 Stat. 931; Pub. L. 108–429, title II, § 2105, been deposited or paid as duties than was re- Dec. 3, 2004, 118 Stat. 2598; Pub. L. 109–53, title II, quired by law to be so deposited or paid. § 207, Aug. 2, 2005, 119 Stat. 485; Pub. L. 109–280, (2) Fees, charges, and exactions.—Whenever it title XIV, § 1635(b), Aug. 17, 2006, 120 Stat. 1170; is determined in the manner required by law Pub. L. 109–283, title II, § 205, Sept. 26, 2006, 120 that any fees, charges, or exactions, other Stat. 1203; Pub. L. 110–138, title II, § 206, Dec. 14, than duties and taxes, have been erroneously 2007, 121 Stat. 1476.) or excessively collected. AMENDMENT OF SECTION (3) Fines, penalties, and forfeitures.—Whenever For termination of amendment by section money has been deposited in the Treasury on 107(c) of Pub. L. 110–138, see Effective and Ter- account of a fine, penalty, or forfeiture which mination Dates of 2007 Amendment note below. did not accrue, or which is finally determined For termination of amendment by section to have accrued in an amount less than that so 107(c) of Pub. L. 109–283, see Effective and Ter- deposited, or which is mitigated to an amount mination Dates of 2006 Amendment note below. less than that so deposited or is remitted. For termination of amendment by section (4) Prior to liquidation.—Prior to the liquida- 107(d) of Pub. L. 109–53, see Effective and Ter- tion of an entry or reconciliation, whenever an mination Dates of 2005 Amendment note below. importer of record declares or it is ascertained For termination of amendment by section that excess duties, fees, charges, or exactions 107(c) of Pub. L. 108–77, see Effective and Ter- have been deposited or paid. mination Dates of 2003 Amendment note below. (b) Authorization of appropriations REFERENCES IN TEXT The necessary moneys to make such refunds Section 202 of the United States-Chile Free Trade are authorized to be appropriated annually from Agreement Implementation Act, referred to in subsec. the general fund of the Treasury. (d), is section 202 of Pub. L. 108–77, which is set out in a note under section 3805 of this title. (c) Repealed. Pub. L. 108–429, title II, § 2105, Dec. Section 202 of the United States-Oman Free Trade 3, 2004, 118 Stat. 2598 Agreement Implementation Act, referred to in subsec. (d), is section 202 of Pub. L. 109–283, which is set out in (d) Goods qualifying under free trade agreement a note under section 3805 of this title. rules of origin Section 203 of the United States-Peru Trade Pro- motion Agreement Implementation Act, referred to in Notwithstanding the fact that a valid protest subsec. (d), is section 203 of Pub. L. 110–138, which is set was not filed, the Customs Service may, in ac- out in a note under section 3805 of this title. cordance with regulations prescribed by the Sec- retary, reliquidate an entry to refund any excess CODIFICATION duties (including any merchandise processing Act June 26, 1934, effective July 1, 1935, provided for fees) paid on a good qualifying under the rules of repeal of certain permanent appropriations authoriz- origin set out in section 3332 of this title, sec- ing, in lieu thereof, an annual appropriation from the general fund of the Treasury. tion 202 of the United States-Chile Free Trade Agreement Implementation Act, section 4033 of PRIOR PROVISIONS this title, section 202 of the United States-Oman This section, as originally enacted, contained a para- Free Trade Agreement Implementation Act, or graph (b) making a permanent appropriation of the § 1520 TITLE 19—CUSTOMS DUTIES Page 212 moneys necessary to make refunds. Effective July 1, 202 of the United States-Chile Free Trade Agreement 1935, paragraph (b) was repealed by act June 26, 1934, ch. Implementation Act’’ after ‘‘title’’ in introductory pro- 756, § 2, 48 Stat. 1225, such act authorizing, in lieu there- visions. See Effective and Termination Dates of 2003 of, an annual appropriation from the general fund of Amendment note below. the Treasury. Subsec. (d)(1). Pub. L. 108–77, §§ 107(c), 206(3), tempo- Provisions similar to those in this section were con- rarily substituted ‘‘the applicable’’ for ‘‘those’’. See Ef- tained in act Sept. 21, 1922, ch. 356, title IV, § 520, 42 fective and Termination Dates of 2003 Amendment note Stat. 973. That section was superseded by section 520 of below. act June 17, 1930, comprising this section, and repealed Subsec. (d)(2). Pub. L. 108–77, §§ 107(c), 206(4), tempo- by section 651(a)(1) of the 1930 act. rarily inserted ‘‘, or other certificates of origin, as the Prior provisions somewhat similar to those in sub- case may be’’ before semicolon. See Effective and Ter- divisions (1) and (3) of paragraph (a) for refund of mon- mination Dates of 2003 Amendment note below. eys paid on account of unascertained or estimated du- 1999—Subsec. (d). Pub. L. 106–36 inserted ‘‘(including ties or payments on appeal, and for correction of cleri- any merchandise processing fees)’’ after ‘‘excess du- cal errors within one year, with further provisions ties’’ in introductory provisions. making an appropriation and requiring reports to Con- 1993—Subsec. (a)(1), (4). Pub. L. 103–182, § 646(1), in- gress of moneys refunded, were contained in act Oct. 3, serted ‘‘or reconciliation’’ after ‘‘entry’’. 1913, ch. 16, § III, Y, 38 Stat. 191, which reenacted the Subsec. (c). Pub. L. 103–182, § 646(2)(A), (B), sub- provisions of Customs Administrative Act June 10, 1890, stituted ‘‘Customs Service’’ for ‘‘appropriate customs ch. 407, § 24, 26 Stat. 140, as renumbered and reenacted officer’’ and inserted ‘‘or reconciliation’’ after ‘‘entry’’ by Payne-Aldrich Tariff Act of August 5, 1909, ch. 6, § 28, in introductory provisions. 36 Stat. 103. Said section III, Y, of the 1913 act was re- Subsec. (c)(1). Pub. L. 103–182, § 646(2)(A), (C), inserted pealed by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 ‘‘, whether or not resulting from or contained in elec- Stat. 989. tronic transmission,’’ before ‘‘not amounting to’’, and Provisions concerning the refund of moneys collected substituted ‘‘Customs Service’’ for ‘‘appropriate cus- as duties in accordance with any decision, etc., of the toms officer’’. Secretary of the Treasury, with provisos concerning re- Subsec. (d). Pub. L. 103–182, § 206, added subsec. (d). liquidations, correction of errors, household effects and See Construction of 1993 Amendment note below. other articles exempt from duty, were contained in act Pub. L. 103–182, § 642(b), struck out subsec. (d) which March 3, 1875, ch. 136, 18 Stat. 469, which was also re- read as follows: ‘‘If a determination is made to reliq- pealed by section 643 of the act of Sept. 21, 1922. uidate an entry as a result of a protest filed under sec- R.S. § 3011 (as amended by act Feb. 27, 1877, ch. 69, § 1, tion 1514 of this title or an application for relief made 19 Stat. 247, and act Feb. 1, 1888, ch. 4, 25 Stat. 6) and under subsection (c)(1) of this section, or if reliquida- section 3012, relative to actions to recover duties paid tion is ordered by an appropriate court, interest shall 1 under protest, and sections 3012 ⁄2 and 3013, relative to be allowed on any amount paid as increased or addi- refunds, were repealed by the Customs Administrative tional duties under section 1505(c) of this title at the Act of June 10, 1890, ch. 407, § 29. 26 Stat. 141. annual rate established pursuant to that section and Act June 7, 1924, ch. 357, 43 Stat. 660, authorizing the determined as of the 15th day after the date of liquida- remission of unpaid customs duties on material belong- tion or reliquidation. The interest shall be calculated ing to the United States and theretofore imported by the War Department, was omitted from the Code as from the date of payment to the date of (1) the refund, temporary. or (2) the filing of a summons under section 2632 of title 28, whichever occurs first.’’ See Construction of 1993 AMENDMENTS Amendment note below. 2007—Subsec. (d). Pub. L. 110–138, §§ 107(c), 206, in in- 1984—Subsec. (a)(4). Pub. L. 98–573, § 212(b)(7)(B), added troductory provisions, temporarily struck out ‘‘or’’ be- par. (4). fore ‘‘section 202 of the United States-Oman’’ and sub- Subsec. (d). Pub. L. 98–573, § 210(b), added subsec. (d). 1978—Subsec. (c)(1). Pub. L. 95–410 substituted ‘‘appro- stituted ‘‘, or section 203 of the United States-Peru priate customs officer within one year after the date of Trade Promotion Agreement Implementation Act for liquidation or exaction’’ for ‘‘customs service within which’’ for ‘‘for which’’. See Effective and Termination one year after the date of entry, or transaction, or Dates of 2007 Amendment note below. 2006—Subsec. (a). Pub. L. 109–280, in par. (1), sub- within ninety days after liquidation or exaction when stituted period for semicolon at end, in par. (2), sub- the liquidation or exaction is made more than nine stituted period for ‘‘; and’’ at end, and, in par. (4), in- months after the date of the entry, or transaction’’. serted ‘‘an importer of record declares or’’ after ‘‘when- 1970—Subsec. (c). Pub. L. 91–271 in introductory mate- ever’’ and struck out ‘‘by reason of clerical error’’ be- rial substituted ‘‘the appropriate customs officer may, fore period at end. in accordance with regulations prescribed by the Sec- Subsec. (d). Pub. L. 109–283, §§ 107(c), 205(1), in intro- retary,’’ for ‘‘the Secretary of the Treasury may au- ductory provisions, temporarily struck out ‘‘or’’ before thorize a collector to’’, and in par. (1) struck out ‘‘ap- ‘‘section 4033’’ and substituted ‘‘, or section 202 of the praisement’’ wherever appearing and substituted ‘‘nine- United States-Oman Free Trade Agreement Implemen- ty’’ and ‘‘nine’’ for ‘‘sixty’’ and ‘‘ten’’, respectively. tation Act for which’’ for ‘‘for which’’. See Effective 1953—Subsec. (c)(1). Act Aug. 8, 1953, extended the re- and Termination Dates of 2006 Amendment note below. lief provision to situations involving clerical errors, Subsec. (d)(3). Pub. L. 109–283, §§ 107(c), 205(2), tempo- mistakes of fact, or any other inadvertence not rarily inserted ‘‘and information’’ after ‘‘documenta- amounting to an error in the construction of a law, in tion’’. See Effective and Termination Dates of 2006 any entry, liquidation, appraisement or other customs Amendment note below. transaction, when such error, mistake or other inad- 2005—Subsec. (d). Pub. L. 109–53, §§ 107(d), 207, tempo- vertence is adverse to the record or established by writ- rarily substituted ‘‘, section 202 of the United States- ten evidence. Chile Free Trade Agreement Implementation Act, or Subsec. (c)(2). Act Aug. 8, 1953, permitted correction section 4033 of this title’’ for ‘‘or section 202 of the of assessments of duty on household or personal effects United States-Chile Free Trade Agreement Implemen- which are subject to duty. tation Act’’ in introductory provisions and inserted ‘‘or 1938—Subsecs. (b), (c). Act June 25, 1938, added sub- certifications’’ after ‘‘other certificates’’ in par. (2). See secs. (b) and (c). Effective and Termination Dates of 2005 Amendment EFFECTIVE AND TERMINATION DATES OF 2007 note below. AMENDMENT 2004—Subsec. (c). Pub. L. 108–429 struck out subsec. (c) which related to reliquidation of entry or reconcili- Amendment by Pub. L. 110–138 effective on the date ation. the United States-Peru Trade Promotion Agreement 2003—Subsec. (d). Pub. L. 108–77, §§ 107(c), 206(1), (2), enters into force (Feb. 1, 2009) and to cease to be effec- temporarily inserted heading and inserted ‘‘or section tive on the date the Agreement ceases to be in force, Page 213 TITLE 19—CUSTOMS DUTIES § 1523 see section 107(a), (c) of Pub. L. 110–138, set out in a EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS note under section 3805 of this title. PROVISION Amendment by act Aug. 8, 1953, effective on and after EFFECTIVE AND TERMINATION DATES OF 2006 thirtieth day following Aug. 8, 1953, and savings provi- AMENDMENT sion, see notes set out under section 1304 of this title. Amendment by Pub. L. 109–283 effective on the date on which the United States-Oman Free Trade Agree- EFFECTIVE DATE OF 1938 AMENDMENT ment enters into force (Jan. 1, 2009) and to cease to be Amendment by act June 25, 1938, effective on thirti- effective on the date on which the Agreement termi- eth day following June 25, 1938, except as otherwise spe- nates, see section 107(a), (c) of Pub. L. 109–283, set out cifically provided, see section 37 of act June 25, 1938, set in a note under section 3805 of this title. out as a note under section 1401 of this title. Amendment by Pub. L. 109–280 applicable with respect to goods entered, or withdrawn from warehouse CONSTRUCTION OF 1993 AMENDMENT for consumption, on or after the 15th day after Aug. 17, Amendment by section 206 of Pub. L. 103–182 to be 2006, see section 1641 of Pub. L. 109–280, set out as a note made after amendment by section 642(b) of Pub. L. under section 58c of this title. 103–182 is executed, see section 212 of Pub. L. 103–182, set out as a note under section 58c of this title. EFFECTIVE AND TERMINATION DATES OF 2005 AMENDMENT TRANSFER OF FUNCTIONS Amendment by Pub. L. 109–53 effective on the date For transfer of functions, personnel, assets, and li- the Dominican Republic-Central America-United abilities of the United States Customs Service of the States Free Trade Agreement enters into force (Mar. 1, Department of the Treasury, including functions of the 2006) and to cease to have effect on date Agreement Secretary of the Treasury relating thereto, to the Sec- ceases to be in force with respect to the United States, retary of Homeland Security, and for treatment of re- and, during any period in which a country ceases to be lated references, see sections 203(1), 551(d), 552(d), and a CAFTA–DR country, to cease to have effect with re- 557 of Title 6, Domestic Security, and the Department spect to such country, see section 107 of Pub. L. 109–53, of Homeland Security Reorganization Plan of Novem- set out as an Effective and Termination Dates note ber 25, 2002, as modified, set out as a note under section under section 4001 of this title. 542 of Title 6.

EFFECTIVE DATE OF 2004 AMENDMENT PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 Amendment by Pub. L. 108–429 applicable to merchandise entered, or withdrawn from warehouse for con- For provisions directing that if any amendments sumption, on or after the 15th day after Dec. 3, 2004, see made by subtitle A or subtitle C of title XI [§§ 1101–1147 section 2108 of Pub. L. 108–429, set out as a note under and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. section 1401 of this title. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the EFFECTIVE AND TERMINATION DATES OF 2003 first plan year beginning on or after Jan. 1, 1989, see AMENDMENT section 1140 of Pub. L. 99–514, as amended, set out as a Amendment by Pub. L. 108–77 effective on the date note under section 401 of Title 26, Internal Revenue the United States-Chile Free Trade Agreement enters Code. into force (Jan. 1, 2004), and to cease to be effective on AVAILABILITY OF TRANSPORTATION AND STORAGE the date the Agreement ceases to be in force, see sec- FACILITIES FOR MILITARY PURPOSES tion 107(a), (c) of Pub. L. 108–77, set out in a note under section 3805 of this title. Act Sept. 29, 1942, ch. 567, 56 Stat. 761, authorized removal of merchandise in bond or customs custody from EFFECTIVE DATE OF 1999 AMENDMENT transportation and storage facilities needed for military purposes, prior to repeal by act July 25, 1947, ch. Amendment by Pub. L. 106–36 applicable with respect 327, § 1, 61 Stat. 449. to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after June 25, 1999, § 1521. Repealed. Pub. L. 103–182, title VI, § 618, see section 2408(c) of Pub. L. 106–36, set out as a note Dec. 8, 1993, 107 Stat. 2180 under section 1514 of this title. Section, acts June 17, 1930, ch. 497, title IV, § 521, 46 EFFECTIVE DATE OF 1993 AMENDMENT Stat. 739; June 2, 1970, Pub. L. 91–271, title III, § 301(b), Amendment by section 206 of Pub. L. 103–182 effective 84 Stat. 287, provided for reliquidation of entry on ac- on the date the North American Free Trade Agreement count of fraud. enters into force with respect to the United States [Jan. 1, 1994], see section 213(b) of Pub. L. 103–182, set § 1522. Omitted out as an Effective Date note under section 3331 of this CODIFICATION title. Section, act June 17, 1930, ch. 497, title IV, § 522, 46 EFFECTIVE DATE OF 1984 AMENDMENT Stat. 739, amended section 372 of former Title 31. See Amendment by section 210(b) of Pub. L. 98–573 appli- section 5151 of Title 31, Money and Finance. cable with respect to determinations made or ordered on or after Oct. 30, 1984, see section 214(c)(5)(B) of Pub. § 1523. Examination of accounts L. 98–573, set out as a note under section 1304 of this The Secretary of the Treasury or such officer title. or employee as he shall designate, shall, under Amendment by section 212 of Pub. L. 98–573 effective regulations and instructions prescribed by the on close of 180th day after Oct. 30, 1984, see section 214(d) of Pub. L. 98–573, set out as a note under section Secretary— 1304 of this title. (1) examine the customs officers’ accounts of receipts and disbursements of money and re- EFFECTIVE DATE OF 1970 AMENDMENT ceipts and disposition of merchandise; and For effective date of amendment by Pub. L. 91–271, (2) verify, to such extent as the Secretary of see section 203 of Pub. L. 91–271, set out as a note under the Treasury shall direct, assessments of du- section 1500 of this title. ties and taxes and allowances of drawback. § 1524 TITLE 19—CUSTOMS DUTIES Page 214

(June 17, 1930, ch. 497, title IV, § 523, 46 Stat. 740; United States any merchandise of foreign manu- Aug. 8, 1953, ch. 397, § 2(d), 67 Stat. 508; Pub. L. facture if such merchandise, or the label, sign, 91–271, title III, § 301(s), June 2, 1970, 84 Stat. 290.) print, package, wrapper, or receptacle, bears a PRIOR PROVISIONS trademark owned by a citizen of, or by a corporation or association created or organized Provisions similar to those in this section were con- within, the United States, and registered in the tained in act Sept. 21, 1922, ch. 356, title IV, § 523, 42 Stat. 974. That section was superseded by section 523 of Patent and Trademark Office by a person domi- act June 17, 1930, comprising this section, and repealed ciled in the United States, under the provisions by section 651(a)(1) of the 1930 act. of sections 81 to 109 of title 15, and if a copy of the certificate of registration of such trademark AMENDMENTS is filed with the Secretary of the Treasury, in 1970—Pub. L. 91–271 substituted reference to customs the manner provided in section 106 of said title officers for reference to collectors. 1953—Act Aug. 8, 1953, amended section generally by 15, unless written consent of the owner of such eliminating the provision continuing ‘‘naval officers of trademark is produced at the time of making customs’’ as ‘‘Comptrollers of Customs’’; by substitut- entry. ing the reference to ‘‘The Secretary of the Treasury or (b) Seizure and forfeiture such officer or employee as he shall designate’’ for references to the comptrollers of customs; and, among Any such merchandise imported into the other changes, substituting the provision that the ver- United States in violation of the provisions of ification of assessments of duties and allowances of this section shall be subject to seizure and for- drawbacks should be to such extent as the Secretary of feiture for violation of the customs laws. the Treasury directs, for the former provision requiring such verification in all cases. (c) Injunction and damages

EFFECTIVE DATE OF 1970 AMENDMENT Any person dealing in any such merchandise For effective date of amendment by Pub. L. 91–271, may be enjoined from dealing therein within the see section 203 of Pub. L. 91–271, set out as a note under United States or may be required to export or section 1500 of this title. destroy such merchandise or to remove or obliterate such trademark and shall be liable for the EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS same damages and profits provided for wrongful PROVISION use of a trade-mark, under the provisions of sec- Amendment by act Aug. 8, 1953, effective on and after tions 81 to 109 of title 15. thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under section 1304 of this title. (d) Exemptions; publication in Federal Register; forfeitures; rules and regulations § 1524. Deposit of reimbursable charges (1) The trademark provisions of this section Receipts for any reimbursable charges or ex- and section 1124 of title 15, do not apply to the penses which have been paid for out of any ap- importation of articles accompanying any per- propriation for collecting the revenue from cus- son arriving in the United States when such ar- toms shall be deposited as a refund to such ap- ticles are for his personal use and not for sale if propriation instead of being covered into the (A) such articles are within the limits of types Treasury as miscellaneous receipts, as provided and quantities determined by the Secretary pur- by section 527 of this title. suant to paragraph (2) of this subsection, and (B) (June 17, 1930, ch. 497, title IV, § 524, 46 Stat. 741; such person has not been granted an exemption June 25, 1938, ch. 679, § 19(b), 52 Stat. 1087.) under this subsection within thirty days imme- PRIOR PROVISIONS diately preceding his arrival. (2) The Secretary shall determine and publish Provisions similar to those in this section were con- in the Federal Register lists of the types of arti- tained in act Sept. 21, 1922, ch. 356, title IV, § 524, 42 Stat. 975. That section was superseded by section 524 of cles and the quantities of each which shall be act June 17, 1930, comprising this section, and repealed entitled to the exemption provided by this sub- by section 651(a)(1) of the 1930 act. section. In determining such quantities of particular types of trade-marked articles, the Sec- AMENDMENTS retary shall give such consideration as he deems 1938—Act June 25, 1938, amended section generally. necessary to the numbers of such articles usu- EFFECTIVE DATE OF 1938 AMENDMENT ally purchased at retail for personal use. Amendment by act June 25, 1938, effective on thirti- (3) If any article which has been exempted eth day following June 25, 1938, except as otherwise spe- from the restrictions on importation of the cifically provided, see section 37 of act June 25, 1938, set trade-mark laws under this subsection is sold out as a note under section 1401 of this title. within one year after the date of importation, such article, or its value (to be recovered from § 1525. Repealed. Pub. L. 89–762, § 2, Nov. 5, 1966, the importer), is subject to forfeiture. A sale 80 Stat. 1312 pursuant to a judicial order or in liquidation of Section, act June 17, 1930, ch. 497, title IV, § 525, 46 the estate of a decedent is not subject to the Stat. 741, authorized the Secretary of the Treasury to provisions of this paragraph. employ not more than ten persons in the District of Co- (4) The Secretary may prescribe such rules and lumbia who have been detailed from the field force of regulations as may be necessary to carry out the the Customs Service. provisions of this subsection. § 1526. Merchandise bearing American trade- (e) Merchandise bearing counterfeit mark; sei- mark zure and forfeiture; disposition of seized (a) Importation prohibited goods Except as provided in subsection (d) of this Any such merchandise bearing a counterfeit section, it shall be unlawful to import into the mark (within the meaning of section 1127 of title Page 215 TITLE 19—CUSTOMS DUTIES § 1527

15) imported into the United States in violation act June 17, 1930, comprising this section, and repealed of the provisions of section 1124 of title 15, shall by section 651(a)(1) of the 1930 act. be seized and, in the absence of the written con- AMENDMENTS sent of the trademark owner, forfeited for viola- 1996—Subsec. (e). Pub. L. 104–153, § 9, inserted ‘‘de- tions of the customs laws. Upon seizure of such stroy the merchandise. Alternatively, if the merchan- merchandise, the Secretary shall notify the dise is not unsafe or a hazard to health, and the Sec- owner of the trademark, and shall, after forfeit- retary has the consent of the trademark owner, the ure, destroy the merchandise. Alternatively, if Secretary may’’ after ‘‘shall, after forfeiture,’’ in sec- the merchandise is not unsafe or a hazard to ond sentence, inserted ‘‘or’’ at end of par. (2), sub- health, and the Secretary has the consent of the stituted period for ‘‘, or’’ at end of par. (3), and struck trademark owner, the Secretary may obliterate out par. (4) which read as follows: ‘‘if the merchandise the trademark where feasible and dispose of the is unsafe or a hazard to health, by destruction.’’ Subsec. (f). Pub. L. 104–153, § 10, added subsec. (f). goods seized— 1993—Subsec. (e)(3). Pub. L. 103–182 substituted ‘‘90 (1) by delivery to such Federal, State, and days’’ for ‘‘1 year’’ and ‘‘the Customs Service’’ for ‘‘ap- local government agencies as in the opinion of propriate customs officers’’. the Secretary have a need for such merchan- 1978—Subsec. (a). Pub. L. 95–410, § 211(a)(1), sub- dise, stituted ‘‘Except as provided in subsection (d) of this (2) by gift to such eleemosynary institutions section, it’’ for ‘‘It’’. as in the opinion of the Secretary have a need Subsec. (d). Pub. L. 95–410, § 211(a)(2), added subsec. for such merchandise, or (d). Subsec. (e). Pub. L. 95–410, § 211(c), added subsec. (e). (3) more than 90 days after the date of forfeiture, by sale by the Customs Service at pub- CHANGE OF NAME lic auction under such regulations as the Sec- ‘‘Patent and Trademark Office’’ substituted for ‘‘Pat- retary prescribes, except that before making ent Office’’ in subsec. (a) pursuant to Pub. L. 93–596, § 3, any such sale the Secretary shall determine Jan. 2, 1975, 88 Stat. 1949, set out as a note under sec- that no Federal, State, or local government tion 1 of Title 35, Patents. agency or eleemosynary institution has estab- TRANSFER OF FUNCTIONS lished a need for such merchandise under paragraph (1) or (2). For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the (f) Civil penalties Department of the Treasury, including functions of the (1) Any person who directs, assists financially Secretary of the Treasury relating thereto, to the Sec- or otherwise, or aids and abets the importation retary of Homeland Security, and for treatment of re- of merchandise for sale or public distribution lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department that is seized under subsection (e) of this section of Homeland Security Reorganization Plan of Novem- shall be subject to a civil fine. ber 25, 2002, set out as a note under section 542 of Title (2) For the first such seizure, the fine shall be 6. not more than the value that the merchandise would have had if it were genuine, according to § 1527. Importation of wild mammals and birds in the manufacturer’s suggested retail price, deter- violation of foreign law mined under regulations promulgated by the (a) Importation prohibited Secretary. If the laws or regulations of any country, de- (3) For the second seizure and thereafter, the pendency, province, or other subdivision of gov- fine shall be not more than twice the value that ernment restrict the taking, killing, possession, the merchandise would have had if it were genu- or exportation to the United States, of any wild ine, as determined under regulations promul- mammal or bird, alive or dead, or restrict the gated by the Secretary. exportation to the United States of any part or (4) The imposition of a fine under this sub- product of any wild mammal or bird, whether section shall be within the discretion of the Cus- raw or manufactured, no such mammal or bird, toms Service, and shall be in addition to any or part or product thereof, shall, after the expi- other civil or criminal penalty or other remedy ration of ninety days after June 17, 1930, be im- authorized by law. ported into the United States from such coun- (June 17, 1930, ch. 497, title IV, § 526, 46 Stat. 741; try, dependency, province, or other subdivision Pub. L. 93–596, § 3, Jan. 2, 1975, 88 Stat. 1949; Pub. of government, directly or indirectly, unless ac- L. 95–410, title II, § 211(a), (c), Oct. 3, 1978, 92 companied by a certification of the United Stat. 903; Pub. L. 103–182, title VI, § 663, Dec. 8, States consul, for the consular district in which 1993, 107 Stat. 2214; Pub. L. 104–153, §§ 9, 10, July is located the port or place from which such 2, 1996, 110 Stat. 1388.) mammal or bird, or part or product thereof, was REFERENCES IN TEXT exported from such country, dependency, province, or other subdivision of government, that Sections 81 to 109 of title 15, referred to in subsecs. (a) such mammal or bird, or part or product there- and (c), were repealed by act July 5, 1946, ch. 540, § 46(a), of, has not been acquired or exported in viola- 61 Stat. 444. See sections 1051 to 1127, respectively, of Title 15, Commerce and Trade. tion of the laws or regulations of such country, Section 106 of title 15, referred to in subsec. (a), was dependency, province, or other subdivision of repealed by act July 15, 1946, ch. 540, § 46(a), 60 Stat. 444. government. See section 1124 of Title 15. (b) Forfeiture PRIOR PROVISIONS Any mammal or bird, alive or dead, or any Provisions similar to those in this section were con- part or product thereof, whether raw or manu- tained in act Sept. 21, 1922, ch. 356, title IV, § 526, 42 factured, imported into the United States in vio- Stat. 975. That section was superseded by section 526 of lation of the provisions of the preceding subdivi- § 1528 TITLE 19—CUSTOMS DUTIES Page 216 sion shall be subject to seizure and forfeiture EFFECTIVE DATE OF 1982 AMENDMENT under the customs laws. Any such article so for- Amendment by Pub. L. 97–164 effective Oct. 1, 1982, feited may, in the discretion of the Secretary of see section 402 of Pub. L. 97–164, set out as a note under the Treasury and under such regulations as he section 171 of Title 28, Judiciary and Judicial Proce- may prescribe, be placed with the departments dure. or bureaus of the Federal or State Governments, EFFECTIVE DATE OF 1980 AMENDMENT or with societies or museums, for exhibition or scientific or educational purposes, or destroyed, Amendment by Pub. L. 96–417 effective Nov. 1, 1980, or (except in the case of heads or horns of wild and applicable with respect to civil actions pending on or commenced on or after such date, see section 701(a) mammals) sold in the manner provided by law. of Pub. L. 96–417, set out as a note under section 251 of (c) Section not to apply in certain cases Title 28, Judiciary and Judicial Procedure.

The provisions of this section shall not apply EFFECTIVE DATE in the case of— Section effective on thirtieth day following June 25, (1) Prohibited importations 1938, except as otherwise specifically provided, see sec- Articles the importation of which is prohib- tion 37 of act June 25, 1938, set out as an Effective Date ited under the provisions of this chapter, or of of 1938 Amendment note under section 1401 of this title. section 42(a) of title 18, or of any other law; § 1529. Collection of fees on behalf of other agen- (2) Scientific or educational purposes cies Wild mammals or birds, alive or dead, or parts or products thereof, whether raw or The Customs Service shall be reimbursed from manufactured, imported for scientific or edu- the fees collected for the cost and expense, ad- cational purposes; ministrative and otherwise, incurred in collecting any fees on behalf of any government 1 agen- (3) Certain migratory game birds cy for any reason. Migratory game birds (for which an open season is provided by the laws of the United (June 17, 1930, ch. 497, title IV, § 529, as added States and any foreign country which is a Pub. L. 103–182, title VI, § 669, Dec. 8, 1993, 107 party to a treaty with the United States, in ef- Stat. 2216.) fect on the date of importation, relating to the TRANSFER OF FUNCTIONS protection of such migratory game birds) For transfer of functions, personnel, assets, and li- brought into the United States by bona fide abilities of the United States Customs Service of the sportsmen returning from hunting trips in Department of the Treasury, including functions of the such country, if at the time of importation the Secretary of the Treasury relating thereto, to the Sec- possession of such birds is not prohibited by retary of Homeland Security, and for treatment of re- the laws of such country or of the United lated references, see sections 203(1), 551(d), 552(d), and States. 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- (June 17, 1930, ch. 497, title IV, § 527, 46 Stat. 741.) ber 25, 2002, as modified, set out as a note under section CODIFICATION 542 of Title 6. In subsec. (c)(1), ‘‘section 42(a) of title 18’’ substituted PART IV—TRANSPORTATION IN BOND AND for ‘‘section 241 of the Criminal Code [18 U.S.C. 391]’’ on WAREHOUSING OF MERCHANDISE authority of act June 25, 1948, ch. 645, 62 Stat. 683, the first section of which enacted Title 18, Crimes and § 1551. Designation as carrier of bonded mer- Criminal Procedure. chandise § 1528. Taxes not to be construed as duties Under such regulations and subject to such No tax or other charge imposed by or pursuant terms and conditions as the Secretary of the to any law of the United States shall be con- Treasury shall prescribe— strued to be a customs duty for the purpose of (1) any common carrier of merchandise own- any statute relating to the customs revenue, un- ing or operating a railroad, steamship, or less the law imposing such tax or charge des- other transportation line or route for the ignates it as a customs duty or contains a provi- transportation of merchandise in the United sion to the effect that it shall be treated as a States, duty imposed under the customs laws. Nothing (2) any contract carrier authorized to oper- in this section shall be construed to limit or re- ate as such by any agency of the United strict the jurisdiction of the United States States, and Court of International Trade or the United (3) any freight forwarder authorized to oper- States Court of Appeals for the Federal Circuit. ate as such by any agency of the United States, (June 17, 1930, ch. 497, title IV, § 528, as added June 25, 1938, ch. 679, § 20, 52 Stat. 1087; amended upon application, may, in the discretion of the Pub. L. 96–417, title VI, § 601(8), Oct. 10, 1980, 94 Secretary, be designated as a carrier of bonded Stat. 1744; Pub. L. 97–164, title I, § 163(a)(3), Apr. merchandise for the final release of which from 2, 1982, 96 Stat. 49.) customs custody a permit has not been issued. A private carrier, upon application, may, in the AMENDMENTS discretion of the Secretary, be designated under 1982—Pub. L. 97–164 substituted ‘‘Court of Appeals for the preceding sentence as a carrier of bonded the Federal Circuit’’ for ‘‘Court of Customs and Patent merchandise, subject to such regulations and, in Appeals’’. 1980—Pub. L. 96–417 redesignated the United States the case of each applicant, to such special terms Customs Court as the United States Court of Inter- national Trade. 1 So in original. Probably should be capitalized. Page 217 TITLE 19—CUSTOMS DUTIES § 1553 and conditions as the Secretary may prescribe § 1552. Entry for immediate transportation to safeguard the revenues of the United States with respect to the transportation of bonded Any merchandise, other than explosives and merchandise by such applicant. merchandise the importation of which is prohibited, arriving at a port of entry in the United (June 17, 1930, ch. 497, title IV, § 551, 46 Stat. 742; States may be entered, under such rules and reg- Dec. 28, 1945, ch. 605, 59 Stat. 667; Pub. L. 87–598, ulations as the Secretary of the Treasury may Aug. 24, 1962, 76 Stat. 400; Pub. L. 87–854, Oct. 23, prescribe, for transportation in bond without ap- 1962, 76 Stat. 1130; Pub. L. 90–240, § 3, Jan. 2, 1968, praisement to any other port of entry des- 81 Stat. 776.) ignated by the consignee, or his agent, and by PRIOR PROVISIONS such bonded carrier as he designates, there to be Provisions similar to those in this section were con- entered in accordance with the provisions of this tained in act Sept. 21, 1922, ch. 356, title IV, § 551, 42 chapter. Stat. 975. That section was superseded by section 551 of (June 17, 1930, ch. 497, title IV, § 552, 46 Stat. 742.) act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. PRIOR PROVISIONS Prior provisions concerning transportation of merchandise in bond without appraisement to another port Provisions similar to those in this section were con- of entry were contained in the Immediate Transpor- tained in act Sept. 21, 1922, ch. 356, title IV, § 552, 42 tation Act of June 10, 1880, ch. 190, 21 Stat. 173, as Stat. 975. That section was superseded by section 552 of amended, section 3 of which required the merchandise act June 17, 1930, comprising this section, and repealed to be transported by carriers designated by the Sec- by section 651(a)(1) of the 1930 act. retary of the Treasury, and required them to give bonds Prior provisions for transportation in bond without as the Secretary should require. That act was repealed appraisement of merchandise with certain exceptions, by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. when imported at certain named ports and destined for certain ports, were contained in act June 10, 1880, ch. AMENDMENTS 190, §§ 1 (as amended by act June 14, 1880, ch. 214, and 1968—Pub. L. 90–240 provided that a private carrier, act June 20, 1884, ch. 103) 2, 7, and 9, 21 Stat. 173, 174, 175. upon application, could, in the discretion of the Sec- Sections 5 (as amended by act July 2, 1884, ch. 142, and retary, be designated as a carrier of bonded merchan- act Feb. 23, 1887, ch. 215, and act Feb. 2, 1899, ch. 84) and dise, subject to regulations, terms, and conditions pre- 6 (as amended by act July 2, 1884, ch. 142), regulated the scribed by the Secretary, safeguard the revenues of the transportation and transfer of the merchandise. The United States with respect to the transportation of act of June 10, 1880 was amended by act Feb. 23, 1887, bonded merchandise by such applicant. ch. 218, 24 Stat. 414, and its provisions were extended by 1962—Pub. L. 87–854 included any contract carrier au- various acts to ports other than those originally thorized to operate as such by any agency of the United named. The act of June 10, 1880, ch. 190, as amended, States. and the acts of Feb. 23, 1887, ch. 218, and Feb. 2, 1899, ch. Pub. L. 87–598 substituted ‘‘authorized to operate as 84, were all repealed by act Sept. 21, 1922, ch. 356, title such by any agency of the United States,’’ for ‘‘, as de- IV, § 643, 42 Stat. 989, and the various acts extending the fined in section 1002(5) of title 49.’’ 1945—Act Dec. 28, 1945, substituted ‘‘Under such regu- provisions of the act of June 10, 1880, thereupon became lations and subject to such terms and conditions as the inoperative. Secretary of the Treasury shall prescribe, any common R.S. §§ 2990–2997, as amended by act Feb. 18, 1875, ch. carrier of merchandise owning or operating a railroad, 80, 18 Stat. 319, and as extended by act Mar. 14, 1876, ch. steamship, or other transportation line or route for the 23, 19 Stat. 7, and act Aug. 14, 1876, ch. 270, 19 Stat. 139, transportation of merchandise in the United States, or contained provisions somewhat similar to those of the any freight forwarder, as defined in section 1002(5) of act of June 10, 1880, ch. 190, and were repealed by sec- title 49, upon application, may, in the discretion of the tion 8 of the 1880 act. Secretary’’ for ‘‘Any common carrier of merchandise R.S. § 2581, relative to the transshipment of merchan- owning or operating railroad, steamship, or other dise transported in bond to the port of Brownsville, by transportation lines or routes for the transportation of Brazos Harbor; R.S. §§ 2816–2831, as amended by act Feb. merchandise in the United States, upon application and 27, 1877, ch. 69, § 1, 19 Stat. 246, 247, and act June 16, 1880, the filing of a bond in a form and penalty and with such ch. 239, 21 Stat. 283, relative to transportation of mer- sureties as may be approved by the Secretary of the chandise intended to be imported into certain ports of Treasury, may’’. delivery; and R.S. § 2998, prescribing a penalty for breaking or entering any car, etc., containing merchan- § 1551a. Bonded cartmen or lightermen dise transported under sections 2990–2997, or defacing The Secretary of the Treasury be, and he is, any lock or seal, etc.—were all repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. authorized, when it appears to him to be in the interest of commerce, and notwithstanding any § 1553. Entry for transportation and exportation; provision of law or regulation requiring that the lottery material from Canada transportation of imported merchandise be by a bonded common carrier, to permit such mer- (a) Any merchandise, other than explosives chandise which has been entered and examined and merchandise the importation of which is for customs purposes to be transported by bond- prohibited, shown by the manifest, bill of lading, ed cartmen or bonded lightermen between the shipping receipt, or other document to be des- ports of New York, Newark, and Perth Amboy, tined to a foreign country, may be entered for which are all included in Customs Collection transportation in bond through the United District Numbered 10 (New York): Provided, That States by a bonded carrier without appraise- this resolution shall not be construed to deprive ment or the payment of duties and exported any of the ports affected of its rights and privi- under such regulations as the Secretary of the leges as a port of entry. Treasury shall prescribe; and any baggage or personal effects not containing merchandise the (June 19, 1936, ch. 611, 49 Stat. 1538.) importation of which is prohibited arriving in CODIFICATION the United States destined to a foreign country Section was not enacted as part of Tariff Act of 1930 may, upon the request of the owner or carrier which comprises this chapter. having the same in possession for transpor- § 1553–1 TITLE 19—CUSTOMS DUTIES Page 218 tation, be entered for transportation in bond EFFECTIVE DATE OF 1990 AMENDMENT through the United States by a bonded carrier Section 484H(b) of Pub. L. 101–382, as amended by Pub. without appraisement or the payment of duty, L. 104–295, § 5, Oct. 11, 1996, 110 Stat. 3517, provided that: under such regulations as the Secretary of the ‘‘The amendments made by this section [amending this Treasury may prescribe. In places where no section] shall apply with respect to articles entered for bonded common-carrier facilities are reasonably transportation in bond on or after the date that is 15 available, such merchandise may be so trans- days after the date of enactment of this Act [Aug. 20, ported otherwise than by a bonded common car- 1990].’’ rier under such regulations as the Secretary of the Treasury shall prescribe. EFFECTIVE DATE OF 1938 AMENDMENT (b) Notwithstanding subsection (a) of this sec- Amendment by act June 25, 1938, effective on thirti- tion, the entry for transportation in bond eth day following June 25, 1938, except as otherwise spe- through the United States of any lottery ticket, cifically provided, see section 37 of act June 25, 1938, set printed paper that may be used as a lottery out as a note under section 1401 of this title. ticket, or any advertisement of any lottery, that is printed in Canada, shall be permitted without § 1553–1. Report on in-bond cargo appraisement or the payment of duties under such regulations as the Secretary of the Treas- ury may prescribe, except that such regulations (a) Report shall not permit the transportation of lottery Not later than June 30, 2007, the Commissioner materials in the personal baggage of a traveler. shall submit a report to the Committee on Com- (June 17, 1930, ch. 497, title IV, § 553, 46 Stat. 742; merce, Science, and Transportation of the Sen- June 25, 1938, ch. 679, § 21, 52 Stat. 1087; Pub. L. ate, the Committee on Finance of the Senate, 101–382, title III, § 484H(a), Aug. 20, 1990, 104 Stat. the Committee on Homeland Security and Gov- 711.) ernmental Affairs of the Senate, the Committee on Homeland Security of the House of Rep- PRIOR PROVISIONS resentatives, the Committee on Transportation Provisions similar to those in this section were con- and Infrastructure of the House of Representa- tained in act Sept. 21, 1922, ch. 356, title IV, § 553, 42 tives, and the Committee on Ways and Means of Stat. 976. That section was superseded by section 553 of the House of Representatives that includes— act June 17, 1930, comprising this section, and repealed (1) a plan for closing in-bond entries at the by section 651(a)(1) of the 1930 act. port of arrival; A prior provision that merchandise destined for a foreign country might be entered and conveyed through (2) an assessment of the personnel required the territory of the United States without payment of to ensure 100 percent reconciliation of in-bond duties under regulations to be prescribed by the Sec- entries between the port of arrival and the retary of the Treasury was contained in R.S. § 3005, as port of destination or exportation; amended by act Feb. 27, 1877, ch. 69, § 1, 19 Stat. 247, and (3) an assessment of the status of investiga- act May 21, 1900, ch. 487, § 1, 31 Stat. 181. Res. March 1, tions of overdue in-bond shipments and an 1895, No. 23, 28 Stat. 973, partially suspending the oper- evaluation of the resources required to ensure ation of that section, was repealed by act May 21, 1900, adequate investigation of overdue in-bond ch. 487, § 2, 31 Stat. 181, and the section was itself repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 shipments; Stat. 989. (4) a plan for tracking in-bond cargo within A provision that baggage or personal effects in tran- the Automated Commercial Environment sit to a foreign country might be delivered to the col- (ACE); lector for retention without payment of duty, or for- (5) an assessment of whether any particular warding to the collector of the port of departure, was technologies should be required in the trans- contained in act Oct. 3, 1913, ch. 16, § III, CC, 38 Stat. port of in-bond cargo; 192, which reenacted Customs Administrative Act June (6) an assessment of whether ports of arrival 10, 1890, ch. 407, § 28, 26 Stat. 141, as reenacted by Payne- Aldrich Tariff Act Aug. 5, 1909, ch. 6, § 28, 36 Stat. 104. should require any additional information re- Said section III, CC, of the 1913 act was repealed by act garding shipments of in-bond cargo; Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. (7) an evaluation of the criteria for targeting R.S. § 2803, on the same subject, was superseded by and examining in-bond cargo; and section 28 of the Customs Administrative Act of June (8) an assessment of the feasibility of reduc- 10, 1890, and repealed by section 642 of the act of Sept. ing the transit time for in-bond shipments, in- 21, 1922. cluding an assessment of the impact of such a R.S. § 2866, provided for the entry and conveyance in transit, without payment of duties, of merchandise ar- change on domestic and international trade. riving at certain ports in the United States destined for the British possessions in North America, and for con- (b) Definition veyance in transit from such possessions for export In this section, the term ‘‘Commissioner’’ from said ports, in pursuance of provisions of the treaty with Great Britain of May 8, 1871. It was repealed on means the Commissioner responsible for the the termination of articles 18–25, 30, of that treaty, pur- United States Customs and Border Protection in suant to the Joint Resolution of Mar. 3, 1883, No. 22, 22 the Department of Homeland Security. Stat. 641. (June 17, 1930, ch. 497, title IV, § 553A, as added AMENDMENTS Pub. L. 109–347, title IV, § 406, Oct. 13, 2006, 120 1990—Pub. L. 101–382 designated existing provisions as Stat. 1931.) subsec. (a) and added subsec. (b). 1938—Act June 25, 1938, inserted sentence providing CODIFICATION for transportation otherwise than by bonded carrier where no bonded common-carrier facilities are reason- Another section 553A of act June 17, 1930, is classified ably available. to section 1553a of this title. Page 219 TITLE 19—CUSTOMS DUTIES § 1555

§ 1553a. Recordkeeping for merchandise trans- Stat. 976. That section was superseded by section 554 of ported by pipeline act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. Merchandise in Customs 1 custody that is Prior provisions the same in effect as those in this transported by pipeline may be accounted for on section, except that they did not contain the provision a quantitative basis, based on the bill of lading, commencing with the words ‘‘unless such transpor- or equivalent document of receipt, issued by the tation,’’ were contained in R.S. § 3006, which also pro- pipeline carrier. Unless the Customs Service has vided that the merchandise transported should be reasonable cause to suspect fraud, the Customs treated as if transported entirely within the United Service may accept the bill of lading, or equiva- States. R.S. § 3007 exempted cars and vehicles from the payment of fees for receiving or certifying manifests. lent document of receipt, issued by the pipeline Both sections were repealed by act Sept. 21, 1922, ch. carrier to the shipper and accepted by the con- 356, title IV, § 642, 42 Stat. 989. signee to maintain identity. The shipper, pipeline operator, and consignee shall be subject to § 1555. Bonded warehouses the recordkeeping requirements of sections 1508 (a) Designation; preconditions; bonding require- and 1509 of this title. ments; supervision (June 17, 1930, ch. 497, title IV, § 553A, as added Subject to subsection (b) of this section, build- Pub. L. 103–182, title VI, § 664, Dec. 8, 1993, 107 ings or parts of buildings and other enclosures Stat. 2215.) may be designated by the Secretary of the CODIFICATION Treasury as bonded warehouses for the storage Another section 553A of act June 17, 1930, is classified of imported merchandise entered for ware- to section 1553–1 of this title. housing, or taken possession of by the appropriate customs officer, or under seizure, or for TRANSFER OF FUNCTIONS the manufacture of merchandise in bond, or for For transfer of functions, personnel, assets, and li- the repacking, sorting, or cleaning of imported abilities of the United States Customs Service of the Department of the Treasury, including functions of the merchandise. Such warehouses may be bonded Secretary of the Treasury relating thereto, to the Sec- for the storing of such merchandise only as shall retary of Homeland Security, and for treatment of re- belong or be consigned to the owners or propri- lated references, see sections 203(1), 551(d), 552(d), and etors thereof and be known as private bonded 557 of Title 6, Domestic Security, and the Department warehouses, or for the storage of imported mer- of Homeland Security Reorganization Plan of Novem- chandise generally and be known as public bond- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. ed warehouses. Before any imported merchandise not finally released from customs custody § 1554. Transportation through contiguous coun- shall be stored in any such premises, the owner tries or lessee thereof shall give a bond in such sum and with such sureties as may be approved by With the consent of the proper authorities, imported merchandise, in bond or duty-paid, and the Secretary of the Treasury to secure the Gov- products and manufactures of the United States ernment against any loss or expense connected may be transported from one port to another in with or arising from the deposit, storage, or ma- the United States through contiguous countries, nipulation of merchandise in such warehouse. under such regulations as the Secretary of the Except as otherwise provided in this chapter, Treasury shall prescribe, unless such transpor- bonded warehouses shall be used solely for the tation is in violation of section 4347 of the Re- storage of imported merchandise and shall be vised Statutes, as amended, section 55102 of title placed in charge of a proper officer of the cus- 46, or section 1588 of this title. toms, who, together with the proprietor thereof, shall have joint custody of all merchandise (June 17, 1930, ch. 497, title IV, § 554, 46 Stat. 743.) stored in the warehouse; and all labor on the REFERENCES IN TEXT merchandise so stored shall be performed by the Section 4347 of the Revised Statutes, as amended, re- owner or proprietor of the warehouse, under su- ferred to in text, was not classified to the Code. It was pervision of the officer of the customs in charge superseded by act Feb. 17, 1898, ch. 26, § 1, 30 Stat. 248, of the same, at the expense of the owner or pro- which was classified to section 290 of former Title 46, prietor. The compensation of such officer of the Shipping, and was subsequently repealed by Pub. L. customs and other customs employees appointed 109–304, § 19, Oct. 6, 2006, 120 Stat. 1710. Provisions simi- to supervise the receipt of merchandise into any lar to those in section 1 of act Feb. 17, 1898, ch. 26, were also contained in section 27 of act June 5, 1920, ch. 250, such warehouse and deliveries therefrom shall 41 Stat. 999, and were classified to section 883 of the be reimbursed to the Government by the propri- former Appendix to Title 46, Shipping. For disposition etor of such warehouse. of sections of the former Appendix to Title 46, see Dis- (b) Duty-free sales enterprises position Table preceding section 101 of Title 46. (1) Duty-free sales enterprises may sell and de- CODIFICATION liver for export from the customs territory In text, ‘‘section 55102 of title 46’’ substituted for duty-free merchandise in accordance with this ‘‘section 27 of the Merchant Marine Act, 1920’’ on au- subsection and such regulations as the Sec- thority of Pub. L. 109–304, § 18(c), Oct. 6, 2006, 120 Stat. retary may prescribe to carry out this sub- 1709, which Act enacted section 55102 of Title 46, Ship- ping. section. (2) A duty-free sales enterprise may be located PRIOR PROVISIONS anywhere within— Provisions similar to those in this section were con- (A) the same port of entry, as established tained in act Sept. 21, 1922, ch. 356, title IV, § 554, 42 under section 1 of the Act of August 24, 1912 (37 Stat. 434), from which a purchaser of duty-free 1 So in original. Probably should not be capitalized. merchandise departs the customs territory; or § 1555 TITLE 19—CUSTOMS DUTIES Page 220

(B) 25 statute miles from the exit point (I) at a merchandise storage location at through which the purchaser of duty-free mer- or beyond the exit point; or chandise will depart the customs territory; or (II) at any location approved by the Sec- (C) a port of entry, as established under secretary before the date of enactment of the tion 1 of the Act of August 24, 1912 (37 Stat. Omnibus Trade Act of 1987. 434), or within 25 statute miles of a staffed port of entry if reasonable assurance can be (4) If a State or local or other governmental provided that duty-free merchandise sold by authority, incident to its jurisdiction over any the enterprise will be exported by individuals airport, seaport, or other exit point facility, re- departing from the customs territory through quires that a concession or other form of ap- an international airport located within the proval be obtained from that authority with re- customs territory. spect to the operation of a duty-free sales enterprise under which merchandise is delivered to or (3) Each duty-free sales enterprise— through such facility for exportation, merchan- (A) shall establish procedures to provide rea- dise incident to such operation may not be with- sonable assurance that duty-free merchandise drawn from a bonded warehouse and transferred sold by the enterprise will be exported from to or through such facility unless the operator the customs territory; of the duty-free sales enterprise demonstrates to (B) if the duty-free sales enterprise is an air- the Secretary that the concession or approval port store, shall establish and enforce, in ac- required for the enterprise has been obtained. cordance with such regulations as the Sec- retary may prescribe, restrictions on the sale (5) This subsection does not prohibit a duty- of duty-free merchandise to any one individual free sales enterprise from offering for sale and to personal use quantities; delivering to, or on behalf of, individuals depart- (C) shall display in prominent places within ing from the customs territory merchandise its place of business notices which state clear- other than duty-free merchandise, except that ly that any duty-free merchandise purchased such other merchandise may not be stored in a from the enterprise— bonded warehouse facility other than a bonded (i) has not been subject to any Federal facility used for retail sales. duty or tax, (6)(A) Except as provided in subparagraph (B), (ii) if brought back into the customs terri- merchandise that is purchased in a duty-free tory, must be declared and is subject to Fed- sales enterprise is not eligible for exemption eral duty and tax, and from duty under subchapter IV of chapter 98 of (iii) is subject to the customs laws and reg- the Harmonized Tariff Schedule of the United ulation of any foreign country to which it is States if such merchandise is brought back to taken; the customs territory. (D) shall not be required to mark or other- (B) Except in the case of travel involving tran- wise place a distinguishing identifier on indi- sit to, from, or through an insular possession of vidual items of merchandise to indicate that the United States, merchandise described in sub- the items were sold by a duty-free sales enter- paragraph (A) that is purchased by a United prise, unless the Secretary finds a pattern in States resident shall be eligible for exemption which such items are being brought back into from duty under subheadings 9804.00.65, the customs territory without declaration; 9804.00.70, and 9804.00.72 of the Harmonized Tariff (E) may unpack merchandise into saleable Schedule of the United States upon the United units after it has been entered for warehouse States resident’s return to the customs territory and placed in a duty-free sales enterprise, of the United States, if the resident meets the without requirement of further permits; and eligibility requirements for the exemption (F) shall deliver duty-free merchandise— claimed. Notwithstanding any other provision of (i) in the case of a duty-free sales enter- law, such merchandise shall be considered to be prise that is an airport store— an article acquired abroad as an incident of the (I) to the purchaser (or a family member journey from which the resident is returning, for or companion traveling with the pur- purposes of determining eligibility for any such chaser) in an area that is within the air- exemption. port and to which access to passengers is (7) The Secretary shall by regulation establish restricted to those departing from the cus- a separate class of bonded warehouses for duty- toms territory; free sales enterprises. Regulations issued to (II) to the purchaser (or a family mem- carry out this paragraph shall take into account ber or companion traveling with the pur- the unique characteristics of the different types chaser) at the exit point of a specific de- of duty-free sales enterprises. parting flight; (8) For purposes of this subsection— (III) by placing the merchandise within (A) The term ‘‘airport store’’ means a duty- the aircraft on which the purchaser will free sales enterprise which delivers merchan- depart for carriage as passenger baggage; dise to, or on behalf of, individuals departing or from the customs territory from an inter- (IV) if the duty-free sales enterprise has national airport located within the customs made a good faith effort to effect delivery territory. for exportation through one of the meth- (B) The term ‘‘border store’’ means a duty- ods described in subclause (I), (II), or (III) free sales enterprise which delivers merchan- but is unable to do so, by any other rea- dise to, or on behalf of, individuals departing sonable method to effect delivery; or from the customs territory through a land or (ii) in the case of a duty-free sales enter- water border by a means of conveyance other prise that is a border store— than an aircraft. Page 221 TITLE 19—CUSTOMS DUTIES § 1555

(C) The term ‘‘customs territory’’ means the bond in such sum and with such sureties as customs territory of the United States and may be approved by the Secretary of the foreign trade zones. Treasury to secure the Government against (D) The term ‘‘duty-free sales enterprise’’ any loss or expense connected with or arising means a person that sells, for use outside the from the deposit, storage, or manipulation of customs territory, duty-free merchandise that merchandise in such warehouse. The ware- is delivered from a bonded warehouse to an house proprietor’s bond shall also secure the airport or other exit point for exportation by, manipulation of international travel merchan- or on behalf of, individuals departing from the dise in a staging area. customs territory. (B) A transfer of liability from the inter- (E) The term ‘‘duty-free merchandise’’ national carrier to the warehouse proprietor means merchandise sold by a duty-free sales occurs when the carrier assigns custody of enterprise on which neither Federal duty nor international travel merchandise to the ware- Federal tax has been assessed pending expor- house proprietor for purposes of entry into tation from the customs territory. warehouse or for manipulation in the staging (F) The term ‘‘exit point’’ means the area in area. close proximity to an actual exit for departing (C) A transfer of liability from the ware- from the customs territory, including the gate house proprietor to the international carrier holding area in the case of an airport, but only occurs when the bonded warehouse proprietor if there is reasonable assurance that duty-free assigns custody of international travel mer- merchandise delivered in the gate holding area chandise to the carrier. will be exported from the customs territory. (D) The Secretary is authorized to promul- (G) The term ‘‘personal use quantities’’ gate regulations to require the proprietor and means quantities that are only suitable for the international carrier to keep records of uses other than resale, and includes reason- the disposition of any cart brought into the able quantities for household or family con- United States and all merchandise on such sumption as well as for gifts to others. cart. (c) International travel merchandise (June 17, 1930, ch. 497, title IV, § 555, 46 Stat. 743; (1) Definitions Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 For purposes of this section— Stat. 287; Pub. L. 98–573, title II, § 211, Oct. 30, (A) the term ‘‘international travel mer- 1984, 98 Stat. 2977; Pub. L. 100–418, title I, chandise’’ means duty-free or domestic mer- § 1908(b), Aug. 23, 1988, 102 Stat. 1315; Pub. L. chandise which is placed on board aircraft 101–382, title I, § 139(a)(1), Aug. 20, 1990, 104 Stat. on international flights for sale to pas- 653; Pub. L. 104–295, § 29, Oct. 11, 1996, 110 Stat. sengers, but which is not merchandise inci- 3535; Pub. L. 106–36, title II, § 2417, June 25, 1999, dental to the operation of a duty-free sales 113 Stat. 176; Pub. L. 106–476, title I, § 1454, Nov. enterprise; 9, 2000, 114 Stat. 2168.) (B) the term ‘‘staging area’’ is an area con- REFERENCES IN TEXT trolled by the proprietor of a bonded warehouse outside of the physical parameters of For provisions relating to ports of entry established the bonded warehouse in which manipula- under section 1 of the Act of August 24, 1912 (37 Stat. 434), referred to in subsec. (b)(2)(A), (C), see Prior Provi- tion of international travel merchandise in sions note under section 1 of this title. carts occurs; The date of enactment of the Omnibus Trade Act of (C) the term ‘‘duty-free merchandise’’ 1987, referred to in subsec. (b)(3)(F)(ii)(II), probably means merchandise on which the liability means the date of enactment of the Omnibus Trade and for payment of duty or tax imposed by rea- Competitiveness Act of 1988, Pub. L. 100–418, which was son of importation has been deferred pending approved Aug. 23, 1988. exportation from the customs territory; The Harmonized Tariff Schedule of the United States, (D) the term ‘‘manipulation’’ means the referred to in subsec. (b)(6), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set repackaging, cleaning, sorting, or removal out under section 1202 of this title. from or placement on carts of international travel merchandise; and PRIOR PROVISIONS (E) the term ‘‘cart’’ means a portable con- Provisions similar to those in this section were container holding international travel merchan- tained in act Sept. 21, 1922, ch. 356, title IV, § 555, 42 dise on an aircraft for exportation. Stat. 976. That section was superseded by section 555 of (2) Bonded warehouse for international travel act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. merchandise Prior provisions dealing with the subject matter of The Secretary shall by regulation establish this section were contained in R.S. § 2958, authorizing a separate class of bonded warehouse for the cellars and vaults of stores for storage of wines and dis- storage and manipulation of international tilled spirits, and yards for storage of coal, etc., to be travel merchandise pending its placement on constituted bonded warehouses; section 2959, authorizing parts of buildings to be bonded for the storage of board aircraft departing for foreign destina- grain; section 2960, requiring private warehouses to be tions. used solely for the storage of warehoused merchandise, (3) Rules for treatment of international travel and be approved by the Secretary of the Treasury, and merchandise and bonded warehouses and be in charge of a proper officer of the customs, etc.; sec- staging areas tion 2961 requiring bonds to hold the United States harmless, and providing that imports deposited in (A) The proprietor of a bonded warehouse es- warehouses should be at the risk and expense of the tablished for the storage and manipulation of owner or importer; section 2968, authorizing the exten- international travel merchandise shall give a sion of warehouse privileges to the port of Albany; and § 1556 TITLE 19—CUSTOMS DUTIES Page 222 section 2988, as amended by act Feb. 27, 1877, ch. 69, § 1, ‘‘(1) duty-free sales enterprises play a significant 19 Stat. 247, requiring collectors to make reports of role in attracting international passengers to the merchandise in warehouses. All of these sections were United States and thereby their operations favorably repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 affect our balance of payments; Stat. 989. ‘‘(2) concession fees derived from the operations of authorized duty-free sales enterprises constitute an AMENDMENTS important source of revenue for the State, local and 2000—Subsec. (c). Pub. L. 106–476 added subsec. (c). other governmental authorities that collect such 1999—Subsec. (b)(2)(B), (C). Pub. L. 106–36 substituted fees; ‘‘; or’’ for period at end of subpar. (B) and added subpar. ‘‘(3) there is inadequate statutory and regulatory (C). recognition of, and guidelines for the operation of, 1996—Subsec. (b)(6). Pub. L. 104–295 designated exist- duty-free sales enterprises; and ing provisions as subpar. (A), substituted ‘‘Except as ‘‘(4) there is a need to encourage uniformity and provided in subparagraph (B), merchandise’’ for ‘‘Mer- consistency of regulation of duty-free sales enter- chandise’’, and added subpar. (B). prises.’’ 1990—Subsec. (b)(6). Pub. L. 101–382, which directed § 1556. Bonded warehouses; regulations for estab- substitution of ‘‘subchapter IV of chapter 98 of the Har- monized Tariff Schedule of the United States’’ for ‘‘sub- lishing part A of part 2 of schedule 8 of the Tariff schedules of The Secretary of the Treasury shall from time the United States’’, was executed by making the substi- to time establish such rules and regulations as tution for ‘‘subpart A of part 2 of schedule 8 of the Tar- iff Schedules of the United States’’ to reflect the prob- may be necessary for the establishment of bond- able intent of Congress. ed warehouses and to protect the interests of the 1988—Subsec. (b). Pub. L. 100–418 amended subsec. (b) Government in the conduct, management, and generally. Prior to amendment, subsec. (b) read as fol- operation of such warehouses and in the with- lows: ‘‘If a State or local governmental authority, inci- drawal of and accounting for merchandise depos- dent to its jurisdiction over any airport, seaport, or ited therein. other exit point facility, requires that a concession or other form of approval be obtained from that authority (June 17, 1930, ch. 497, title IV, § 556, 46 Stat. 743.) with respect to the operation of a duty-free sales enter- PRIOR PROVISIONS prise under which merchandise is delivered to such facility for exportation, merchandise incident to such op- Provisions similar to those in this section were con- eration may not be withdrawn from a bonded ware- tained in act Sept. 21, 1922, ch. 356, title IV, § 556, 42 house and transferred to such facility unless the opera- Stat. 976. That section was superseded by section 556 of tor of the duty-free sales enterprise demonstrates to act June 17, 1930, comprising this section, and repealed the Secretary of the Treasury that the concession or by section 651(a)(1) of the 1930 act. approval required for the enterprise has been obtained. Prior provisions on the subject matter of this section For purposes of this subsection, the term ‘duty-free were contained in R.S. § 2989, as amended by act Feb. 27, sales enterprise’ means an entity that sells, in less 1877, ch. 69, § 1, 19 Stat. 247, authorizing the Secretary than wholesale quantities, duty-free or tax-free mer- of the Treasury to establish rules and regulations for chandise that is delivered from a bonded warehouse to the execution of the provisions of that chapter (chapter an airport, seaport, or point of exit from the United 7 of Title 34 of the Revised Statutes, The Bond and States for exportation by, or on behalf of, individuals Warehouse System); and in act June 22, 1874, ch. 391, departing from the United States.’’ § 24, 18 Stat. 191, authorizing the Secretary to make 1984—Pub. L. 98–573 designated existing provisions as regulations for the conduct and management of bonded subsec. (a), substituted ‘‘Subject to subsection (b) of warehouses, general order stores and other deposi- this section, buildings’’ for ‘‘Buildings’’, and added sub- tories, and to revise, alter or revoke regulations or or- sec. (b). ders, issued by collectors, prohibiting the bonding of 1970—Pub. L. 91–271 substituted reference to appro- warehouses or the establishment of general order stores priate customs officer for reference to collector. without his authority and approval, and making it his duty to require warehouses to be located contiguous, or EFFECTIVE DATE OF 2000 AMENDMENT as near as might be, to landing places of vessels. These Amendment by Pub. L. 106–476, except as otherwise sections were repealed by act Sept. 21, 1922, ch. 356, provided, applicable with respect to goods entered, or title IV, §§ 642, 643, 42 Stat. 989. withdrawn from warehouse, for consumption, on or § 1557. Entry for warehouse after the 15th day after Nov. 9, 2000, see section 1471 of Pub. L. 106–476, set out as a note under section 58c of (a) Withdrawal of merchandise; time; payment of this title. charges

EFFECTIVE DATE OF 1988 AMENDMENT (1) Any merchandise subject to duty (including international travel merchandise), with the ex- Section 1908(c) of Pub. L. 100–418 provided that: ‘‘The amendment made by this section [amending this sec- ception of perishable articles and explosive sub- tion] shall take effect on the date that is 15 days after stances other than firecrackers, may be entered the date of enactment of this Act [Aug. 23, 1988].’’ for warehousing and be deposited in a bonded warehouse at the expense and risk of the owner 1 EFFECTIVE DATE OF 1984 AMENDMENT purchaser, importer, or consignee. Such mer- Amendment by Pub. L. 98–573 effective on 15th day chandise may be withdrawn, at any time within after Oct. 30, 1984, see section 214(a), (b) of Pub. L. 5 years from the date of importation, or such 98–573, set out as a note under section 1304 of this title. longer period of time as the Bureau of Customs EFFECTIVE DATE OF 1970 AMENDMENT and Border Protection may at its discretion permit upon proper request being filed and good For effective date of amendment by Pub. L. 91–271, cause shown, for consumption upon payment of see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. the duties and charges accruing thereon at the rate of duty imposed by law upon such merchan- DUTY-FREE SALES ENTERPRISES; FINDINGS dise at the date of withdrawal; or may be with- Section 1908(a) of Pub. L. 100–418 provided that: ‘‘The Congress finds that— 1 So in original. Probably should be followed by a comma. Page 223 TITLE 19—CUSTOMS DUTIES § 1557 drawn for exportation or for transportation and ed in the transferor prior to the transfer. The exportation to a foreign country, or for ship- transferee shall also have the right to receive all ment or for transportation and shipment to the lawful refunds of money paid by him to the Virgin Islands, American Samoa, Wake Island, United States with respect to the merchandise Midway Islands, Kingman Reef, Johnston Island, the subject of the transfer, and shall have the or the island of Guam, without the payment of right to file a protest under section 1514 of this duties thereon, or for transportation and re- title to the same extent that such right would warehousing at another port or elsewhere, or for have been available to the transferor. Notice of transfer to another bonded warehouse at the liquidation shall be given to the transferee in same port; except that— the form and manner prescribed by the Sec- (A) the total period of time for which such retary of the Treasury. A transferee may further merchandise may remain in bonded warehouse transfer the right to withdraw merchandise, sub- shall not exceed 5 years from the date of im- ject to the provisions of this subsection relating portation or such longer period of time as the to original transfers. Bureau of Customs and Border Protection may (c) Destruction of merchandise at request of con- at its discretion permit upon proper request signee being filed and good cause shown; and (B) turbine fuel may be withdrawn for use Merchandise entered under bond, under any under section 1309 of this title without the provision of law, may, upon payment of all payment of duty if an amount equal to the charges other than duty on the merchandise, be quantity of fuel withdrawn is shown to be used destroyed, at the request and at the expense of within 30 days after the day of withdrawal, but the consignee, within the bonded period under duties (together with interest payable from customs supervision, in lieu of exportation, and the date of the withdrawal at the rate of inter- upon such destruction the entry of such mer- est established under section 6621 of title 26) chandise shall be liquidated without payment of shall be deposited by the 40th day after the duty and any duties collected shall be refunded. day of withdrawal on fuel that was withdrawn (d) Withdrawal before payment in excess of the quantity shown to have been Merchandise may be withdrawn for consump- so used during such 30-day period. tion without the payment of the duty thereon if (2) Merchandise upon which the duties have the importer of record or transferee is permitted been paid and which shall have remained con- to pay duty at a later time pursuant to regula- tinuously in bonded warehouse or otherwise in tions prescribed by the Secretary under section the custody and under the control of customs of- 1505 of this title. ficers, may be entered or withdrawn at any time (June 17, 1930, ch. 497, title IV, § 557, 46 Stat. 744; within 5 years after the date of importation, or June 25, 1938, ch. 679, §§ 2, 22(a), 23(a), 52 Stat. such longer period of time as the Bureau of Cus- 1077, 1087, 1088; Aug. 8, 1953, ch. 397, § 21(a), 67 toms and Border Protection may at its discre- Stat. 519; June 30, 1955, ch. 258, § 2(a) (4), 69 Stat. tion permit upon proper request being filed and 242; Pub. L. 91–271, title III, § 301(t), June 2, 1970, good cause shown, for exportation or for trans- 84 Stat. 290; Pub. L. 91–685, § 1, Jan. 12, 1971, 84 portation and exportation to a foreign country, Stat. 2069; Pub. L. 95–410, title I, § 108(a), (b)(1), or for shipment or for transportation and ship- Oct. 3, 1978, 92 Stat. 892; Pub. L. 97–446, title II, ment to the Virgin Islands, American Samoa, § 201(f), Jan. 12, 1983, 96 Stat. 2350; Pub. L. Wake Island, Midway Islands, Kingman Reef, 103–182, title VI, § 665, Dec. 8, 1993, 107 Stat. 2215; Johnston Island, or the island of Guam, under Pub. L. 106–36, title II, § 2409, June 25, 1999, 113 such regulations as the Secretary of the Treas- Stat. 171; Pub. L. 109–280, title XIV, § 1635(c), ury shall prescribe, and upon such entry or with- Aug. 17, 2006, 120 Stat. 1170.) drawal, and exportation or shipment, the duties thereon shall be refunded. PRIOR PROVISIONS (b) Transferal of right of withdrawal Provisions similar to those in this section were con- The right to withdraw any merchandise en- tained in act Sept. 21, 1922, ch. 356, title IV, § 557, 42 Stat. 977. That section was superseded by section 557 of tered in accordance with subsection (a) of this act June 17, 1930, comprising this section, and repealed section for the purposes specified in such sub- by section 651(a)(1) of the 1930 act. section may be transferred upon compliance Prior provisions dealing with the subject matter of with regulations prescribed by the Secretary of this section were contained in the following statutes, the Treasury and upon the filing by the trans- all of which were repealed by act Sept. 21, 1922, ch. 356, feree of a bond in such amount and containing title IV, §§ 642, 643, 42 Stat. 989: such conditions as the Secretary of the Treasury Act Oct. 3, 1913, ch. 16, § III, S, 38 Stat. 189, reenacting shall prescribe. The bond shall include an obli- the provisions of Customs Administrative Act of June 10, 1890, ch. 407, § 20, 26 Stat. 140, as amended by act Oct. gation to pay, with respect to the merchandise 1, 1890, ch. 1244, § 54, 26 Stat. 624, and act Dec. 15, 1902, the subject of the transfer, all unpaid regular, ch. 1, 32 Stat. 753, and as reenacted by Payne-Aldrich increased, and additional duties, all unpaid Tariff Act, Aug. 5, 1909, ch. 6, § 28, 36 Stat. 101, and au- taxes imposed upon or by reason of importation, thorizing the withdrawal for consumption of merchan- and all unpaid charges and exactions. Such dise deposited in any public or private bonded ware- transfers shall be irrevocable, shall relieve the house within three years from date of importation, on transferor from all customs liability with repayment of duties and charges to which it might be spect to obligations assumed by the transferee subject at the time of such withdrawal; Res. Sept. 5, 1916, ch. 441, 39 Stat. 725, extending the under the bond herein provided for, and shall time for which merchandise for exportation to Mexico confer upon the transferee all rights to the might remain in bonded warehouse; privileges provided for in this section and in sec- R.S. § 2962, authorizing the deposit of merchandise, tions 1562 and 1563 of this title which were vest- with specified exceptions, when duly entered and bond- § 1557 TITLE 19—CUSTOMS DUTIES Page 224 ed for warehousing, in any public warehouse owned or protest under section 1514 of this title to the same ex- leased by the United States, the private warehouse of tent that such right would have been available to the the importer used exclusively for the storage of the im- transferor and required notice of liquidation to be porter’s warehoused merchandise, or a warehouse used given the transferee in the form and manner prescribed as a general warehouse for the storage of warehoused by the Secretary of the Treasury for former provisions merchandise; section 2964, providing that when the which denied the transferee the right to file any pro- owner, etc., should make entry for warehousing, the test under section 1514 of this title except as to deci- collector should take possession and deposit the mer- sions with respect to his rights under subsec. (c) of this chandise in the public stores, or in stores to be agreed section or under section 1562 or 1563 of this title or on, there to be kept at the risk of the owner, importer, against a decision as to the rate or amount of duty, etc., and subject to their order, on payment of duties tax, charge, or exaction when such rate or amount has and expenses to be ascertained on entry, and secured by been changed by statute or proclamation on or after bond with surety; section 2970 (superseded by Customs the date of the transfer, or the right to file an appeal Administrative Act of June 10, 1890, ch. 407, § 20, 26 Stat. for reappraisement under section 1501 of this title, ex- 140), relative to the withdrawal of merchandise; section cept when subsequent to the transfer and before a with- 2971, authorizing withdrawal for exportation, or trans- drawal for consumption has been deposited for the mer- shipment to the Pacific Coast, and providing for exclu- chandise, it has been charge changed in condition pur- sion of periods when exportation or transshipment suant to section 1311 or 1562 of this title in a manner should be prevented in computing the three years; sec- which necessitates that it be appraised in its changed tion 2977 relative to return of duties on merchandise condition in order that the correct amount of duties upon which duties had been paid; section 3000 authoriz- may be assessed, and prohibited any new or separate ing withdrawal and transportation to a bonded ware- liquidation, reliquidation, or determination to be made house in another district and rewarehousing thereat; in name of, or on behalf of, a transferee, except with re- section 3001, as amended by act Feb. 27, 1877, ch. 69, § 1, gard to any matter which may arise under subsec. (c) 19 Stat. 247, authorizing the Secretary of the Treasury of this section or section 1562 or 1563 of this title when to prescribe the form of bond to be given for transpor- the transferee has invoked either of these sections, and tation under the preceding section, and the time for de- in the case of a statutory or proclaimed change in the livery, and imposing a penalty and providing for for- rate of duty, tax, charge, or exaction applicable to the feiture for failure to transport and deliver within the merchandise the subject of the transfer and effective on time limited; sections 3002 and 3003, as amended by act or after the date of the transfer. Feb. 27, 1877, ch. 69, § 1, 19 Stat. 247, and section 3004, as 1970—Subsec. (b). Pub. L. 91–271 substituted ‘‘a pro- amended by act Sept. 25, 1890, ch. 917, § 2, 26 Stat. 470, test contesting an appraisement decision in accordance authorizing withdrawal for exportation to Mexico by with section 1514 of this title’’ for ‘‘an appeal for reap- certain routes, and through certain ports; praisement under section 1501 of this title’’. R.S. § 2967, which provided that merchandise imported 1955—Subsec. (a). Act June 30, 1955, inserted ‘‘John- into the port of Louisville, and destined for Jefferson- ston Island’’ in two places. ville, might be landed and warehoused at Jeffersonville, 1953—Subsec. (b). Act Aug. 8, 1953, provided that all was superseded by the Plan of Reorganization of the Customs Service set out in a note to section 1 of this transfers shall be irrevocable; that in the case of each title, and repealed by act Sept. 21, 1922, ch. 356, title IV, transfer the transferee shall file a bond undertaking to § 642, 42 Stat. 989. pay all unpaid duties, taxes, charges, and exactions on the merchandise the subject of the transfer; and that a AMENDMENTS transferee shall have no right to file a protest under 2006—Subsec. (a)(1). Pub. L. 109–280, § 1635(c)(1)(A), in- section 1514 of this title, or to a separate liquidation in serted ‘‘, or such longer period of time as the Bureau of his behalf, unless the rate of duty, tax, charge, or exac- Customs and Border Protection may at its discretion tion has been changed pursuant to statute or proclama- permit upon proper request being filed and good cause tion after the right to withdraw the merchandise was shown’’ after ‘‘date of importation’’ in second sentence transferred to him. of introductory provisions. 1938—Act June 25, 1938, amended section generally, Subsec. (a)(1)(A). Pub. L. 109–280, § 1635(c)(1)(B), in- and among other changes, inserted ‘‘Wake Island, Mid- serted ‘‘or such longer period of time as the Bureau of way Islands, Kingman Reef’’ before ‘‘or the island of Customs and Border Protection may at its discretion Guam,’’ and struck out ‘‘(or ten months in the case of permit upon proper request being filed and good cause grain)’’ wherever appearing. shown’’ after ‘‘date of importation’’. EFFECTIVE DATE OF 2006 AMENDMENT Subsec. (a)(2). Pub. L. 109–280, § 1635(c)(2), inserted ‘‘, or such longer period of time as the Bureau of Cus- Amendment by Pub. L. 109–280 applicable with re- toms and Border Protection may at its discretion per- spect to goods entered, or withdrawn from warehouse mit upon proper request being filed and good cause for consumption, on or after the 15th day after Aug. 17, shown,’’ after ‘‘date of importation’’. 2006, see section 1641 of Pub. L. 109–280, set out as a note 1999—Subsec. (a)(1). Pub. L. 106–36 inserted ‘‘(includ- under section 58c of this title. ing international travel merchandise)’’ after ‘‘Any merchandise subject to duty’’ in first sentence of introduc- EFFECTIVE DATE OF 1983 AMENDMENT tory provisions. Amendment by Pub. L. 97–446 applicable with respect 1993—Subsec. (a). Pub. L. 103–182 designated first two to merchandise entered on and after 30th day after Jan. sentences as par. (1), substituted ‘‘; except that—’’ 12, 1983, see section 201(g) of Pub. L. 97–446, set out as along with subpars. (A) and (B) for ‘‘: Provided, That a note under section 1484 of this title. the total period of time for which such merchandise may remain in bonded warehouse shall not exceed 5 EFFECTIVE DATE OF 1978 AMENDMENT years from the date of importation.’’, and designated Section 108(b)(2) of Pub. L. 95–410 provided that: ‘‘For remaining portion of subsec. (a) as par. (2). purposes of applying the amendments made by para- 1983—Subsec. (a). Pub. L. 97–446, § 201(f)(1), inserted graph (1) [amending this section and section 1559 of this ‘‘purchaser’’ after ‘‘risk of the owner’’. Subsec. (d). Pub. L. 97–446, § 201(f)(2), substituted ‘‘im- title] to merchandise remaining in a bonded warehouse porter of record’’ for ‘‘consignee’’ before ‘‘or trans- on the date of enactment of this Act [Oct. 3, 1978], any feree’’. period of time the merchandise was in the bonded ware- 1978—Subsec. (a). Pub. L. 95–410, § 108(b)(1), sub- house before that date shall be disregarded.’’ stituted ‘‘5 years’’ for ‘‘three years’’ wherever appear- EFFECTIVE DATE OF 1971 AMENDMENT ing. Subsec. (d). Pub. L. 95–410, § 108(a), added subsec. (d). Section 2 of Pub. L. 91–685 provided that: ‘‘The 1971—Subsec. (b). Pub. L. 91–685 substituted provi- amendment made by the first section of this Act sions which granted the transferee the right to file a [amending this section] shall apply with respect to ar- Page 225 TITLE 19—CUSTOMS DUTIES § 1559 ticles entered for warehousing on or after the date of because of the exportation or destruction of any the enactment of this Act [Jan. 12, 1971].’’ merchandise after its release from the custody EFFECTIVE DATE OF 1970 AMENDMENT of the Government, except in the following cases: For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under (1) When articles are exported with respect section 1500 of this title. to which a drawback of duties is expressly provided for by law; EFFECTIVE DATE OF 1955 AMENDMENT (2) When prohibited articles have been regu- Amendment by act June 30, 1955, effective July 1, larly entered in good faith and are subse- 1955, see note set out under section 1401 of this title. quently exported or destroyed pursuant to a EFFECTIVE DATE OF 1953 AMENDMENT law of the United States and under such regulations as the Secretary of the Treasury may Section 21(b) of act Aug. 8, 1953, provided that: ‘‘Not- prescribe; and withstanding any other provision of this Act [amending (3) When articles entered under bond, under this section and sections 258, 1001, 1201, 1304, 1308, 1309, 1313, 1315, 1317, 1321, 1431, 1439, 1440, 1482, 1484, 1486, 1487, any provision of law, are destroyed within the 1489, 1498, 1501, 1503, 1508, 1520, 1523, and 1562 of this bonded period as provided for in section 1557 of title, enacting sections 1322 and 1646a of this title, and this title, or are destroyed within the bonded repealing sections 33 to 35, 39, 42 to 45, 273, 274, 472 to period by death, accidental fire, or other cas- 475, 1320, and 1503a of this title], the foregoing sub- ualty, and proof of such destruction is fur- section (a) shall be effective with respect to merchan- nished which shall be satisfactory to the Sec- dise entered after the date of the enactment of this Act retary of the Treasury, in which case any ac- [Aug. 8, 1953] and to merchandise which has been en- crued duties shall be remitted or refunded and tered before that date and is the subject of a transfer within the purview of section 557(b) of the Tariff Act any condition in the bond that the articles [subsec. (b) of this section], as amended by this Act, shall be exported shall be deemed to have been and made after the date of the enactment of this Act.’’ satisfied.

EFFECTIVE DATE OF 1938 AMENDMENT (b) Payment of duties required notwithstanding export or destruction of articles; exception Section 22(b) of act June 25, 1938, provided that: ‘‘On and after the effective date of this Act [see note set out When articles are exported or destroyed under under section 1401 of this title], this section [amending customs supervision after once having been re- this section] shall be effective with respect to merchan- leased from customs custody, as provided for in dise entered for warehouse prior to, as well as after, subsection (h) 1 of section 1304 of this title, such such date.’’ exportation or destruction shall not exempt Section 23(b) of act June 25, 1938, provided that: ‘‘The amendments made by subsection (a) of this section such articles from the payment of duties other [amending this section] shall apply in the case of grain than the marking duty provided for in such sub- imported prior to the effective date of this act [see note section (h). set out under section 1401 of this title] which, on such (June 17, 1930, ch. 497, title IV, § 558, 46 Stat. 744; date, has not become abandoned to the Government under section 491 or 559 of the Tariff Act of 1930 [section June 25, 1938, ch. 679, § 24, 52 Stat. 1088; Pub. L. 1491 or 1559 of this title], and which has remained in the 106–36, title I, § 1001(b)(9), June 25, 1999, 113 Stat. custody of customs officers.’’ 132.)

SAVINGS PROVISION REFERENCES IN TEXT Savings provision of act Aug. 8, 1953, which amended Subsection (h) of section 1304 of this title, referred to subsec. (b) of this section, see note set out under sec- in subsec. (b), was redesignated subsection (i) and a new tion 1304 of this title. subsection (h) of section 1304 was added by Pub. L. 106–36, title II, § 2423(a), June 25, 1999, 113 Stat. 180. EXTENSION OF THREE-YEAR PERIOD PRIOR PROVISIONS For extension of three year period prescribed in this section, see Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 Provisions similar to those in this section were con- Stat. c41, set out as a note under section 1318 of this tained in R.S. § 2978, as amended by act Feb. 27, 1877, ch. title. 69, § 1, 19 Stat. 247, and in R.S. § 3025, both of which were Proc. No. 2599, Nov. 6, 1943, 8 F.R. 15359, 57 Stat. 758, superseded by act Sept. 21, 1922, ch. 356, title IV, § 558, as amended by Proc. No. 2712, Dec. 4, 1946, 11 F.R. 14133, 42 Stat. 977, and were repealed by section 642 thereof. 61 Stat. 1047, superseded by Proc. No. 2948, Oct. 12, 1951, Section 558 of the 1922 act was superseded by section 558 16 F.R. 10589, 65 Stat. c41. of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. APPROPRIATIONS AMENDMENTS Section 2 of act June 26, 1934, ch. 756, 48 Stat. 1225, which was classified to section 725a of former Title 31, 1999—Subsec. (b). Pub. L. 106–36 substituted ‘‘sub- Money and Finance, repealed the permanent appropria- section (h)’’ for ‘‘subsection (c)’’ in two places. tion under the title ‘‘Debentures or drawbacks, boun- 1938—Act June 25, 1938, designated existing provisions ties, or allowances (Customs) (2x321)’’ effective July 1, as subsecs. (a) and (b). 1935, and provided that such portions of any Acts as EFFECTIVE DATE OF 1938 AMENDMENT make permanent appropriations to be expended under such account are amended so as to authorize, in lieu Amendment by act June 25, 1938, effective on thirti- thereof, annual appropriations from the general fund of eth day following June 25, 1938, except as otherwise spe- the Treasury in identical terms and in such amounts as cifically provided, see section 37 of act June 25, 1938, set now provided by the laws providing such permanent ap- out as a note under section 1401 of this title. propriations. § 1559. Warehouse goods deemed abandoned § 1558. No remission or refund after release of after 5 years merchandise Merchandise upon which any duties or charges (a) Exceptions are unpaid, remaining in bonded warehouse be- No remission, abatement, refund, or drawback of estimated or liquidated duty shall be allowed 1 See References in Text note below. § 1560 TITLE 19—CUSTOMS DUTIES Page 226 yond 5 years from the date of importation, or [section 1491 or 1559 of this title], and which has re- such longer period of time as the Bureau of Cus- mained in the custody of customs officers.’’ toms and Border Protection may at its discre- EXTENSION OF THREE-YEAR PERIOD tion permit upon proper request being filed and good cause shown, shall be regarded as aban- For extension of three year period prescribed in this section, see Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 doned to the Government and shall be sold under Stat. c41, set out as a note under section 1318 of this such regulations as the Secretary of the Treas- title. ury shall prescribe, and the proceeds of sale paid Proc. No. 2599, Nov. 6, 1943, 8 F.R. 15359, 57 Stat. 758, into the Treasury, as in the case of unclaimed as amended by Proc. No. 2712, Dec. 4, 1946, 11 F.R. 14133, merchandise covered by section 1493 of this title, 61 Stat. 1047, was superseded by Proc. No. 2948, Oct. 12, subject to the payment to the owner or con- 1951, 16 F.R. 10589, 65 Stat. c41. signee of such amount, if any, as shall remain APPROPRIATIONS after deduction of duties, charges, and expenses. Merchandise upon which all duties and charges Section 2 of act June 26, 1934, ch. 756, 48 Stat. 1225, which was classified to section 725a of former Title 31, have been paid, remaining in bonded warehouse Money and Finance, repealed the permanent appropria- beyond 5 years from the date of importation, or tion under the title ‘‘Refunding proceeds of unclaimed such longer period of time as the Bureau of Cus- merchandise (Customs) (2x326)’’ effective July 1, 1935, toms and Border Protection may at its discre- and provided that such portions of any Acts as make tion permit upon proper request being filed and permanent appropriations to be expended under such good cause shown, shall be held to be no longer account are amended so as to authorize, in lieu thereof, in the custody or control of the officers of the annual appropriations from the general fund of the customs. Treasury in identical terms and in such amounts as now provided by the laws providing such permanent ap- (June 17, 1930, ch. 497, title IV, § 559, 46 Stat. 744; propriations. June 25, 1938, ch. 679, § 23(a), 52 Stat. 1088; Pub. L. 95–410, title I, § 108(b)(1), Oct. 3, 1978, 92 Stat. 892; § 1560. Leasing of warehouses Pub. L. 109–280, title XIV, § 1635(d), Aug. 17, 2006, The Secretary of the Treasury may cause to be 120 Stat. 1170.) set aside any available space in a building used PRIOR PROVISIONS as a customhouse for the storage of bonded merchandise or may lease premises for the storage Provisions similar to those in this section were con- of unclaimed merchandise or other imported tained in act Sept. 21, 1922, ch. 356, title IV, § 559, 42 merchandise required to be stored by the Gov- Stat. 977. That section was superseded by section 559 of act June 17, 1930, comprising this section, and repealed ernment, and set aside a portion of such leased by section 651(a)(1) of the 1930 act. premises for the storage of bonded merchandise: Prior provisions that goods, remaining in public store Provided, That no part of any premises owned or or bonded warehouse beyond three years, should be released by the Government may be used for the garded as abandoned and sold, and the proceeds paid storage of bonded merchandise at any port at into the Treasury, and that the Secretary might pay which a public bonded warehouse has been es- the proceeds to the owner, etc., after deducting duties, tablished and is in operation. All the premises charges and expenses, were contained in R.S. §§ 2971 and so leased shall be leased on public account and 2972, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. the storage and other charges shall be deposited and accounted for as customs receipts, and the AMENDMENTS rates therefor shall not be less than the charges 2006—Pub. L. 109–280 inserted ‘‘, or such longer period for storage and similar services made at such of time as the Bureau of Customs and Border Protec- port of entry by commercial concerns for the tion may at its discretion permit upon proper request storage and handling of merchandise. No officer being filed and good cause shown’’ after ‘‘date of impor- of the customs shall own, in whole or in part, tation’’ in two places. any bonded warehouse or enter into any con- 1978—Pub. L. 95–410 substituted ‘‘5 years’’ for ‘‘three years’’ wherever appearing. tract or agreement for the lease or use of any 1938—Act June 25, 1938, struck out ‘‘(or ten months in building to be thereafter erected as a public the case of grain)’’ wherever appearing. store or warehouse. No lease of any building to be so used shall be taken for a longer period EFFECTIVE DATE OF 2006 AMENDMENT than three years, nor shall rent for any such Amendment by Pub. L. 109–280 applicable with re- premises be paid, in whole or in part, in ad- spect to goods entered, or withdrawn from warehouse vance. for consumption, on or after the 15th day after Aug. 17, 2006, see section 1641 of Pub. L. 109–280, set out as a note (June 17, 1930, ch. 497, title IV, § 560, 46 Stat. 745; under section 58c of this title. Pub. L. 91–271, title III, § 301(u), June 2, 1970, 84 Stat. 290.) EFFECTIVE DATE OF 1978 AMENDMENT Period of time prior to Oct. 3, 1978, disregarded in ap- PRIOR PROVISIONS plication of amendment to merchandise in bonded Provisions similar to those in this section were con- warehouse, see section 108(b)(1) of Pub. L. 95–410, set tained in act Sept. 21, 1922, ch. 356, title IV, § 560, 42 out as a note under section 1557 of this title. Stat. 977. That section was superseded by section 560 of act June 17, 1930, comprising this section, and repealed EFFECTIVE DATE OF 1938 AMENDMENT by section 651(a)(1) of the 1930 act. Section 23(b) of act June 25, 1938, provided as follows: Prior provisions on the subject matter of this section ‘‘The amendments made by subsection (a) of this sec- were contained in R.S. § 2953, providing that nothing tion [amending this section] shall apply in the case of therein contained should be construed to prevent the grain imported prior to the effective date of this act leasing or hiring of buildings for use of appraisers, or [see note set out under section 1401 of this title] which, for short periods, of stores required for customhouse on such date, has not become abandoned to the Govern- purposes at the smaller ports; section 2954, authorizing ment under section 491 or 559 of the Tariff Act of 1930 the leasing of warehouses for storage of unclaimed Page 227 TITLE 19—CUSTOMS DUTIES § 1562 goods or goods required to be stored; section 2955, pro- (B) duty shall be paid on the merchandise hibiting the leasing of warehouses at ports at which before the 61st day after the date of expor- there was any private bonded warehouse, but excepting tation, but upon the presentation, before buildings for use of appraisers, etc.; section 2956, pro- such 61st day, of satisfactory evidence of the viding that warehouses hired should be on public account, and be appropriated exclusively to receipt of for- amount of any customs duties paid to the eign merchandise, subject, as to rates of storage, to NAFTA country on the merchandise, the regulation by the Secretary of the Treasury; and sec- customs duty may be waived or reduced tion 2957, prohibiting leases for more than three years, (subject to section 1508(b)(2)(B) of this title) or the payment of rent in advance. All of these sections in an amount that does not exceed the lesser were repealed by act Sept. 21, 1922, ch. 356, title IV, of— § 642, 42 Stat. 989. (i) the total amount of customs duties A prior provision that no officer of the customs paid or owed on the merchandise on impor- should have any personal ownership of, or interest in, any bonded warehouse or general order store, was con- tation into the United States, or tained in act June 22, 1874, ch. 391, § 24, 18 Stat. 191; and (ii) the total amount of customs duties a provision prohibiting agreements for the use of any paid on the merchandise to the NAFTA building to be erected was contained in R.S. § 2957. Both country; of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, §§ 642, 643, 42 Stat. 989. (3) without payment of duties for exportation to any foreign country other than to AMENDMENTS Chile, to a NAFTA country, or to Canada when 1970—Pub. L. 91–271 substituted ‘‘officer of the cus- exports to that country are subject to para- toms’’ for ‘‘collector or other officer of the customs’’. graph (4); (4) without payment of duties for expor- EFFECTIVE DATE OF 1970 AMENDMENT tation to Canada (if that country ceases to be For effective date of amendment by Pub. L. 91–271, a NAFTA country and the suspension of the see section 203 of Pub. L. 91–271, set out as a note under operation of the United States-Canada Free- section 1500 of this title. Trade Agreement thereafter terminates), but § 1561. Public stores the exemption from the payment of duties under this paragraph applies only in the case Any premises owned or leased by the Govern- of an exportation during the period such ment and used for the storage of merchandise Agreement is in operation of merchandise for the final release of which from customs cus- that— tody a permit has not been issued shall be (A) is only cleaned, sorted, or repacked in known as a ‘‘public store.’’ a bonded warehouse, or (June 17, 1930, ch. 497, title IV, § 561, 46 Stat. 745.) (B) is a drawback eligible good under section 204(a) of the United States-Canada Free- PRIOR PROVISIONS Trade Agreement Implementation Act of Provisions similar to those in this section were con- 1988; tained in act Sept. 21, 1922, ch. 356, title IV, § 561, 42 Stat. 978. That section was superseded by section 561 of (5) without payment of duties for shipment act June 17, 1930, comprising this section, and repealed to the Virgin Islands, American Samoa, Wake by section 651(a)(1) of the 1930 act. Island, Midway Island, Kingman Reef, John- ston Island or the island of Guam; and § 1562. Manipulation in warehouse (6)(A) without payment of duties for expor- Merchandise shall only be withdrawn from a tation to Chile, if the merchandise is of a kind bonded warehouse in such quantity and in such described in any of paragraphs (1) through (5) condition as the Secretary of the Treasury shall of section 203(a) of the United States-Chile by regulation prescribe. Upon permission being Free Trade Agreement Implementation Act; granted by the Secretary of the Treasury, and and under customs supervision, at the expense of the (B) for exportation to Chile if the merchan- proprietor, merchandise may be cleaned, sorted, dise consists of goods subject to Chile FTA repacked, or otherwise changed in condition, but drawback, as defined in section 203(a) of the not manufactured, in bonded warehouses estab- United States-Chile Free Trade Agreement lished for that purpose and be withdrawn there- Implementation Act, except that— from— (i) the merchandise may not be withdrawn (1) without payment of duties for expor- from warehouse without assessment of a tation to a NAFTA country, as defined in sec- duty on the merchandise in its condition and tion 3301(4) of this title, if the merchandise is quantity, and at its weight, at the time of of a kind described in any of paragraphs (1) withdrawal from the warehouse with such through (8) of section 3333(a) of this title; additions to, or deductions from, the final (2) for exportation to a NAFTA country if appraised value as may be necessary by rea- the merchandise consists of goods subject to son of a change in condition, and NAFTA drawback, as defined in section 3333(a) (ii) duty shall be paid on the merchandise of this title, except that— before the 61st day after the date of expor- (A) the merchandise may not be withdrawn tation, except that such duties may be from warehouse without assessment of a waived or reduced by— duty on the merchandise in its condition and (I) 100 percent during the 8-year period quantity, and at its weight, at the time of beginning on January 1, 2004, withdrawal from the warehouse with such (II) 75 percent during the 1-year period additions to or deductions from the final ap- beginning on January 1, 2012, praised value as may be necessary by reason (III) 50 percent during the 1-year period of change in condition, and beginning on January 1, 2013, and § 1562 TITLE 19—CUSTOMS DUTIES Page 228

(IV) 25 percent during the 1-year period AMENDMENTS beginning on January 1, 2014. 2006—Pub. L. 109–280, in introductory provisions, sub- Merchandise may be withdrawn from bonded stituted ‘‘Merchandise shall only be withdrawn from a warehouse for consumption, or for exportation bonded warehouse in such quantity and in such condition as the Secretary of the Treasury shall by regula- to Canada if the duty exemption under para- tion prescribe. Upon permission’’ for ‘‘Unless by special graph (4) of the preceding sentence does not authority of the Secretary of the Treasury, no mer- apply, upon the payment of duties accruing chandise shall be withdrawn from bonded warehouse in thereon, in its condition and quantity, and at its less quantity than an entire bale, cask, box, or other weight, at the time of withdrawal from ware- package; or, if in bulk, in the entire quantity imported house, with such additions to or deductions from or in a quantity not less than one ton weight. All mer- the final appraised value as may be necessary by chandise so withdrawn shall be withdrawn in the origi- reason of change in condition. The basis for the nal packages in which imported unless, upon the application of the importer, it appears to be the appropriate assessment of duties on such merchandise so customs officer that it is necessary to the safety or withdrawn for consumption shall be the ad- preservation of the merchandise to repack or transfer justed final appraised value, and if the rate of the same; except that upon permission therefor’’. duty is based upon or regulated in any manner 2003—Par. (3). Pub. L. 108–77, §§ 107(c), 203(b)(4)(A), by the value of the merchandise, such rate shall temporarily substituted ‘‘to Chile, to a NAFTA coun- be based upon or regulated by such adjusted try,’’ for ‘‘to a NAFTA country’’. See Effective and Ter- final appraised value. The scouring or carbon- mination Dates of 2003 Amendment note below. izing of wool shall not be considered a process of Par. (6). Pub. L. 108–77, §§ 107(c), 203(b)(4)(D), temporarily added par. (6). See Effective and Termination manufacture within the provisions of this sec- Dates of 2003 Amendment note below. tion. Under such regulations as the Secretary of 1993—Pub. L. 103–182 substituted ‘‘be withdrawn the Treasury shall prescribe, imported merchan- therefrom—’’ for ‘‘be withdrawn therefrom without dise which has been entered and which has repayment of duties—’’ in second sentence, substituted mained in continuous customs custody may be ‘‘paragraph (4) of the preceding sentence’’ for ‘‘para- manipulated in accordance with the provisions graph (1) of the preceding sentence’’ in third sentence, of this section under customs supervision and at added pars. (1) to (5), and struck out former pars. (1) to (3) which read as follows: the risk and expense of the consignee, but else- ‘‘(1) for exportation to Canada, but on or after Janu- where than in a bonded warehouse, in cases ary 1, 1994, or such later date as may be proclaimed by where neither the protection of the revenue nor the President under section 204(b)(2)(B) of the United the proper conduct of customs business requires States-Canada Free-Trade Agreement Implementation that such manipulation be done in bonded ware- Act of 1988, such exemption from the payment of duties house. applies only in the case of the exportation to Canada of merchandise that— (June 17, 1930, ch. 497, title IV, § 562, 46 Stat. 745; ‘‘(A) is only cleaned, sorted, or repacked in a bond- June 25, 1938, ch. 679, §§ 2, 25, 52 Stat. 1077, 1088; ed warehouse, or Aug. 8, 1953, ch. 397, § 18(f), 67 Stat. 518; June 30, ‘‘(B) is a drawback eligible good under section 1955, ch. 258, § 2(a)(5), 69 Stat. 242; Pub. L. 91–271, 204(a) of such Act of 1988; title III, § 301(b), June 2, 1970, 84 Stat. 287; Pub. ‘‘(2) for exportation to any foreign country except L. 100–449, title II, § 204(c)(4), Sept. 28, 1988, 102 Canada; and ‘‘(3) for shipment to the Virgin Islands, American Stat. 1863; Pub. L. 103–182, title II, § 203(b)(4), Samoa, Wake Island, Midway Island, Kingman Reef, Dec. 8, 1993, 107 Stat. 2090; Pub. L. 108–77, title II, Johnston Island or the island of Guam.’’ § 203(b)(4), Sept. 3, 2003, 117 Stat. 928; Pub. L. 1988—Pub. L. 100–449 substituted the except clause 109–280, title XIV, § 1635(e), Aug. 17, 2006, 120 Stat. and following sentence for proviso at end of second sec- 1170.) tion which read as follows: ‘‘: Provided, That upon permission therefor being granted by the Secretary of the AMENDMENT OF SECTION Treasury, and under customs supervision, at the expense of the proprietor, merchandise may be cleaned, For termination of amendment by section sorted, repacked, or otherwise changed in condition, 107(c) of Pub. L. 108–77, see Effective and Ter- but not manufactured, in bonded warehouses estab- mination Dates of 2003 Amendment note below. lished for that purpose and be withdrawn therefrom for exportation to a foreign country or for shipment to the REFERENCES IN TEXT Virgin Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Island, or the island Section 204 of the United States-Canada Free-Trade of Guam, without payment of the duties, or for con- Agreement Implementation Act of 1988, referred to in sumption, upon payment of the duties accruing there- par. (4)(B), is section 204 of Pub. L. 100–449, which is set on, in its condition and quantity, and at its weight, at out in a note under section 2112 of this title. the time of withdrawal from warehouse, with such ad- Section 203(a) of the United States-Chile Free Trade ditions to or deductions from the final appraised value Agreement Implementation Act, referred to in par. (6), as may be necessary by reason of change in condition.’’ is section 203(a) of Pub. L. 108–77, which is set out in a 1970—Pub. L. 91–271 substituted reference to appro- note under section 3805 of this title. priate customs officer for reference to collector. 1955—Act June 30, 1955, inserted ‘‘Johnston Island’’. PRIOR PROVISIONS 1953—Act Aug. 8, 1953, in third sentence struck out Provisions similar to those in this section were con- ‘‘the entered value or’’ after ‘‘consumption shall be’’, tained in act Sept. 21, 1922, ch. 356, title IV, § 562, 42 ‘‘whichever is higher,’’ after ‘‘the adjusted final ap- Stat. 978. That section was superseded by section 562 of praised value,’’, and ‘‘; but for the purpose of the ascer- act June 17, 1930, comprising this section, and repealed tainment and assessment of additional duties under by section 651(a)(1) of the 1930 act. section 1489 of this chapter adjustments of the final ap- Prior provisions substantially the same, in effect, as praised value shall be disregarded’’ after ‘‘such adjusted those in this section with respect to the quantity of final appraised value’’. merchandise which might be withdrawn, were con- 1938—Act June 25, 1938, inserted sentence providing tained in R.S. § 2980, prior to repeal by act Sept. 21, 1922, for manipulation of imported merchandise entering and ch. 356, title IV, § 642, 42 Stat. 989. remaining in continuous customs custody in cases Page 229 TITLE 19—CUSTOMS DUTIES § 1563 where neither the protection of the revenue nor proper while in the appraiser’s stores, or of the actual conduct of business requires such manipulation be done injury or destruction, in whole or in part, of any in a bonded warehouse, and inserted ‘‘Wake Island, merchandise by accidental fire or other cas- Midway Islands, Kingman Reef’’ before ‘‘or the island ualty, while in bonded warehouse, or in the ap- of Guam’’. praiser’s stores, or while in transportation under EFFECTIVE DATE OF 2006 AMENDMENT bond, or while in the custody of the officers of Amendment by Pub. L. 109–280 applicable with re- the customs, although not in bond, or while spect to goods entered, or withdrawn from warehouse within the limits of any port of entry and before for consumption, on or after the 15th day after Aug. 17, having been landed under the supervision of the 2006, see section 1641 of Pub. L. 109–280, set out as a note officers of the customs, to abate or refund, as under section 58c of this title. the case may be, the duties upon such merchan- EFFECTIVE AND TERMINATION DATES OF 2003 dise, in whole or in part, and to pay any such re- AMENDMENT fund out of any moneys in the Treasury not otherwise appropriated, and to cancel any ware- Amendment by Pub. L. 108–77 effective on the date the United States-Chile Free Trade Agreement enters house bond or bonds, or enter satisfaction there- into force (Jan. 1, 2004), and to cease to be effective on on in whole or in part, as the case may be, but the date the Agreement ceases to be in force, see sec- no abatement or refund shall be made in respect tion 107(a), (c) of Pub. L. 108–77, set out in a note under of injury or destruction of any merchandise in section 3805 of this title. bonded warehouse occurring after the expiration of three years from the date of importation. The EFFECTIVE DATE OF 1993 AMENDMENT decision of the Secretary of the Treasury as to Amendment by Pub. L. 103–182 applicable (1) with re- the abatement or refund of the duties on any spect to exports from the United States to Canada on such merchandise shall be final and conclusive Jan. 1, 1996, if Canada is a NAFTA country on that date and after such date for so long as Canada continues to upon all persons. be a NAFTA country and (2) with respect to exports The Secretary of the Treasury is authorized to from the United States to Mexico on Jan. 1, 2001, if prescribe such regulations as he may deem nec- Mexico is a NAFTA country on that date and after such essary to carry out the provisions of this sub- date for so long as Mexico continues to be a NAFTA division and he may by such regulations limit country, see section 213(c) of Pub. L. 103–182, set out as the time within which proof of loss, theft, in- an Effective Date note under section 3331 of this title. jury, or destruction shall be submitted, and may EFFECTIVE AND TERMINATION DATES OF 1988 provide for the abatement or refund of duties, as AMENDMENT authorized herein, by appropriate customs officers in cases in which the amount of the abate- Amendment by Pub. L. 100–449 effective on date the United States-Canada Free-Trade Agreement enters ment or refund claimed is less than $25 and in into force (Jan. 1, 1989), and to cease to have effect on which the importer has agreed to abide by the date Agreement ceases to be in force, see section 501(a), decision of the customs officer. The decision of (c) of Pub. L. 100–449, set out in a note under section the customs officer in any such case shall be 2112 of this title. final and conclusive upon all persons. EFFECTIVE DATE OF 1970 AMENDMENT (b) Abandonment of merchandise to Govern- ment; remittal or refund of duties paid For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under Under such regulations as the Secretary of the section 1500 of this title. Treasury may prescribe and subject to any conditions imposed thereby the consignee may at EFFECTIVE DATE OF 1955 AMENDMENT any time within three years from the date of Amendment by act June 30, 1955, effective July 1, original importation, abandon to the Govern- 1955, see note set out under section 1401 of this title. ment any merchandise in bonded warehouse, EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS whereupon any duties on such merchandise may PROVISION be remitted or refunded as the case may be, but Amendment by act Aug. 8, 1953, effective on and after any merchandise so abandoned shall not be less thirtieth day following Aug. 8, 1953, and savings provi- than an entire package and shall be abandoned sion, see notes set out under section 1304 of this title. in the original package without having been repacked while in a bonded warehouse (other than EFFECTIVE DATE OF 1938 AMENDMENT a bonded manipulating warehouse). Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise spe- (June 17, 1930, ch. 497, title IV, § 563, 46 Stat. 746; cifically provided, see section 37 of act June 25, 1938, set June 25, 1938, ch. 679, § 23(a), 52 Stat. 1088; Pub. L. out as a note under section 1401 of this title. 91–271, title III, § 301(v), June 2, 1970, 84 Stat. 290.) § 1563. Allowance for loss, abandonment of ware- CODIFICATION house goods Provisions of this section authorizing transfer of cases before the United States Customs Court on June (a) Abatement or allowance for deterioration, 18, 1930, to the Secretary of the Treasury, or to the col- loss or damage to merchandise in customs lector, for consideration and determination, were omit- custody; exception ted.

In no case shall there be any abatement or al- PRIOR PROVISIONS lowance made in the duties for any injury, deterioration, loss, or damage sustained by any mer- Prior provisions somewhat similar to those in this section, were contained in R.S. § 2983, and section 2984 chandise while remaining in customs custody, as amended by act Feb. 27, 1877, ch. 69, § 1, 19 Stat. 247, except that the Secretary of the Treasury is au- which contained a further provision for cancellation or thorized, upon production of proof satisfactory satisfaction of warehouse bonds. Both of these sections to him of the loss or theft of any merchandise were superseded by act Sept. 21, 1922, ch. 356, title IV, § 1564 TITLE 19—CUSTOMS DUTIES Page 230

§ 563, 42 Stat. 978, and repealed by section 642 thereof. numbered Pub. L. 99–514, title XVIII, § 1889(3), Section 563 of the 1922 act was superseded and enlarged Oct. 22, 1986, 100 Stat. 2925.) by section 563 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. PRIOR PROVISIONS

AMENDMENTS Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 564, 42 1970—Subsec. (a). Pub. L. 91–271 substituted ‘‘appro- Stat. 978. That section was superseded by section 564 of priate customs officers’’ for ‘‘collectors of customs’’, act June 17, 1930, comprising this section, and repealed and ‘‘customs officer’’ for ‘‘collector’’ wherever appear- by section 651(a)(1) of the 1930 act. ing. Provisions somewhat similar to those in this section 1938—Act June 25, 1938, struck out ‘‘(or ten months in were contained in R.S. § 2981, as amended by act June the case of grain)’’ wherever appearing. 10, 1880, ch. 190, § 10, 21 Stat. 175, and act May 21, 1896, EFFECTIVE DATE OF 1970 AMENDMENT ch. 217, 29 Stat. 129, which also required notice to be given the party claiming the lien before delivery of the For effective date of amendment by Pub. L. 91–271, goods, and provided that possession by officers of the see section 203 of Pub. L. 91–271, set out as a note under customs should not affect the discharge of the lien. section 1500 of this title. That section was repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. EFFECTIVE DATE OF 1938 AMENDMENT Section 23(b) of act June 25, 1938, provided as follows: AMENDMENTS ‘‘The amendments made by subsection (a) of this sec- 1984—Pub. L. 98–573 inserted provision making this tion [amending this section] shall apply in the case of section applicable to licensed customs brokers who grain imported prior to the effective date of this act otherwise possess a lien for the purposes stated above [see note set out under section 1401 of this title] which, upon the merchandise under the statutes or common on such date, has not become abandoned to the Govern- law, or by order of any court of competent jurisdiction, ment under section 491 or 559 of the Tariff Act of 1930 of any State. [section 1491 or 1559 of this title], and which has re- 1970—Pub. L. 91–271 substituted reference to customs mained in the custody of customs officers.’’ officer for reference to collector of customs.

APPROPRIATIONS EFFECTIVE DATE OF 1984 AMENDMENT Section 2 of act June 26, 1934, ch. 756, 48 Stat. 1225, Amendment by Pub. L. 98–573 effective on close of which was classified to section 725a of former Title 31, 180th day following Oct. 30, 1984, see section 214(d) of Money and Finance, repealed the permanent appropria- Pub. L. 98–573, set out as a note under section 1304 of tion under the title ‘‘Refunding duties on goods de- this title. stroyed (Customs) (2x330)’’ effective July 1, 1935, and provided that such portions of any Acts as make per- EFFECTIVE DATE OF 1970 AMENDMENT manent appropriations to be expended under such ac- For effective date of amendment by Pub. L. 91–271, count are amended so as to authorize, in lieu thereof, see section 203 of Pub. L. 91–271, set out as a note under annual appropriations from the general fund of the section 1500 of this title. Treasury in identical terms and in such amounts as now provided by the laws providing such permanent ap- PLAN AMENDMENTS NOT REQUIRED UNTIL propriations. JANUARY 1, 1989 § 1564. Liens For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 Whenever a customs officer shall be notified in and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. writing of the existence of a lien for freight, 99–514 require an amendment to any plan, such plan charges, or contribution in general average upon amendment shall not be required to be made before the any imported merchandise sent to the apprais- first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a er’s store for examination, entered for ware- note under section 401 of Title 26, Internal Revenue housing or taken possession of by him, he shall Code. refuse to permit delivery thereof from public store or bonded warehouse until proof shall be § 1565. Cartage produced that the said lien has been satisfied or discharged. The rights of the United States shall The cartage of merchandise entered for ware- not be prejudiced or affected by the filing of house shall be done by— such lien, nor shall the United States or its offi- (1) cartmen appointed and licensed by the cers be liable for losses or damages consequent Customs Service; or upon such refusal to permit delivery. If mer- (2) carriers designated under section 1551 of chandise, regarding which such notice of lien this title to carry bonded merchandise; has been filed, shall be forfeited or abandoned who shall give bond, in a penal sum to be fixed and sold, the freight, charges, or contribution in by the Customs Service, for the protection of general average due thereon shall be paid from the Government against any loss of, or damage the proceeds of such sale in the same manner as to, the merchandise while being so carted. The other lawful charges and expenses are paid cartage of merchandise designated for examina- therefrom. The provisions of this section shall tion at the appraiser’s stores and of merchandise apply to licensed customs brokers who other- taken into custody by the customs officer as un- wise possess a lien for the purposes stated above claimed shall be performed by such persons as upon the merchandise under the statutes or may be designated, under contract or otherwise, common law, or by order of any court of com- by the Secretary of the Treasury, and under petent jurisdiction, of any State. such regulations for the protection of the own- (June 17, 1930, ch. 497, title IV, § 564, 46 Stat. 747; ers thereof and of the revenue as the Secretary Pub. L. 91–271, title III, § 301(w), June 2, 1970, 84 of the Treasury shall prescribe. Stat. 290; Pub. L. 98–573, title II, § 212(c)(A), for- (June 17, 1930, ch. 497, title IV, § 565, 46 Stat. 747; merly § 212(b)(7)(A), Oct. 30, 1984, 98 Stat. 2984, re- Pub. L. 91–271, title III, § 301(x), June 2, 1970, 84 Page 231 TITLE 19—CUSTOMS DUTIES § 1581

Stat. 290; Pub. L. 103–182, title VI, § 666, Dec. 8, (c) Penalty for presenting forged, altered, or 1993, 107 Stat. 2215.) false documents

PRIOR PROVISIONS Any master of a vessel being examined as Provisions similar to those in this section were con- herein provided, who presents any forged, al- tained in act Sept. 21, 1922, ch. 356, title IV, § 565, 42 tered, or false document or paper to the examin- Stat. 979. That section was superseded by section 565 of ing officer, knowing the same to be forged, al- act June 17, 1930, comprising this section, and repealed tered, or false and without revealing the fact by section 651(a)(1) of the 1930 act. shall, in addition to any forfeiture to which in Act June 22, 1874, ch. 391, § 25, 18 Stat. 191, required consequence the vessel may be subject, be liable cartage of merchandise in the custody of the govern- to a fine of not more than $5,000 nor less than ment to be let to the lowest responsible bidder, prior to $500. repeal by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. (d) Penalty for failure to stop at command

AMENDMENTS Any vessel or vehicle which, at any authorized 1993—Pub. L. 103–182 amended first sentence gener- place, is directed to come to a stop by any offi- ally. Prior to amendment, first sentence read as fol- cer of the customs, or is directed to come to a lows: ‘‘The cartage of merchandise entered for ware- stop by signal made by any vessel employed in house shall be done by cartmen to be appointed and li- the service of the customs and displaying proper censed by the appropriate customs officer and who insignia, shall come to a stop, and upon failure shall give a bond in a penal sum to be fixed by such cus- to comply a vessel or vehicle so directed to come toms officer, for the protection of the Government to a stop shall become subject to pursuit and the against any loss of, or damage to, such merchandise master, owner, operator, or person in charge while being so carted.’’ 1970—Pub. L. 91–271 substituted references to appro- thereof shall be liable to a penalty of not more priate customs officer of customs officer for references than $5,000 nor less than $1,000. to collector of customs or collector wherever appear- (e) Seizure of vessel or merchandise ing. If upon the examination of any vessel or vehi- EFFECTIVE DATE OF 1970 AMENDMENT cle it shall appear that a breach of the laws of For effective date of amendment by Pub. L. 91–271, the United States is being or has been commit- see section 203 of Pub. L. 91–271, set out as a note under ted so as to render such vessel or vehicle, or the section 1500 of this title. merchandise, or any part thereof, on board of, or TRANSFER OF FUNCTIONS brought into the United States by, such vessel or vehicle, liable to forfeiture or to secure any For transfer of functions, personnel, assets, and li- fine or penalty, the same shall be seized and any abilities of the United States Customs Service of the Department of the Treasury, including functions of the person who has engaged in such breach shall be Secretary of the Treasury relating thereto, to the Sec- arrested. retary of Homeland Security, and for treatment of re- (f) Duty of customs officers to seize vessel lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department It shall be the duty of the several officers of of Homeland Security Reorganization Plan of Novem- the customs to seize and secure any vessel, vehi- ber 25, 2002, as modified, set out as a note under section cle, or merchandise which shall become liable to 542 of Title 6. seizure, and to arrest any person who shall become liable to arrest, by virtue of any law re- PART V—ENFORCEMENT PROVISIONS specting the revenue, as well without as within § 1581. Boarding vessels their respective districts, and to use all necessary force to seize or arrest the same. (a) Customs officers (g) Vessels deemed employed within United Any officer of the customs may at any time go States on board of any vessel or vehicle at any place in the United States or within the customs waters Any vessel, within or without the customs wa- or, as he may be authorized, within a customs- ters, from which any merchandise is being, or enforcement area established under the Anti- has been, unlawfully introduced into the United Smuggling Act [19 U.S.C. 1701 et seq.], or at any States by means of any boat belonging to, or other authorized place, without as well as with- owned, controlled, or managed in common with, in his district, and examine the manifest and said vessel, shall be deemed to be employed other documents and papers and examine, in- within the United States and, as such, subject to spect, and search the vessel or vehicle and every the provisions of this section. part thereof and any person, trunk, package, or (h) Application of section to treaties of United cargo on board, and to this end may hail and States stop such vessel or vehicle, and use all necessary The provisions of this section shall not be con- force to compel compliance. strued to authorize or require any officer of the (b) Officers of Department of the Treasury United States to enforce any law of the United Officers of the Department of the Treasury States upon the high seas upon a foreign vessel and other persons authorized by such depart- in contravention of any treaty with a foreign ment may go on board of any vessel at any place government enabling or permitting the authori- in the United States or within the customs wa- ties of the United States to board, examine, ters and hail, stop, and board such vessel in the search, seize, or otherwise to enforce upon said enforcement of the navigation laws and arrest vessel upon the high seas the laws of the United or, in case of escape or attempted escape, pursue States except as such authorities are or may and arrest any person engaged in the breach or otherwise be enabled or permitted under special violation of the navigation laws. arrangement with such foreign government. § 1582 TITLE 19—CUSTOMS DUTIES Page 232

(June 17, 1930, ch. 497, title IV, § 581, 46 Stat. 747; § 1583. Examination of outbound mail Aug. 5, 1935, ch. 438, title II, § 203, 49 Stat. 521; (a) Examination 1946 Reorg. Plan No. 3, §§ 101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; Sept. 1, 1954, ch. (1) In general 1213, title V, § 504, 68 Stat. 1141.) For purposes of ensuring compliance with the Customs laws of the United States and REFERENCES IN TEXT other laws enforced by the Customs Service, The Anti-Smuggling Act, referred to in subsec. (a), is including the provisions of law described in act Aug. 5, 1935, ch. 438, 49 Stat. 517, which is classified paragraph (2), a Customs officer may, subject principally to chapter 5 (§ 1701 et seq.) of this title. For to the provisions of this section, stop and complete classification of this Act to the Code, see sec- search at the border, without a search war- tion 1711 of this title and Tables. rant, mail of domestic origin transmitted for For definition of officer of the customs used in text, see section 1401 of this title. export by the United States Postal Service and foreign mail transiting the United States PRIOR PROVISIONS that is being imported or exported by the Provisions similar to those in this section were con- United States Postal Service. tained in act Sept. 21, 1922, ch. 356, title IV, § 581, 42 (2) Provisions of law described Stat. 979. That section was superseded by section 581 of The provisions of law described in this para- act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. graph are the following: Prior provisions dealing with the subject matter of (A) Section 5316 of title 31 (relating to re- this section were contained in R.S. § 3059, conferring ports on exporting and importing monetary powers similar in most respects to those conferred by instruments). this section, so far as it relates to vessels, on any offi- (B) Sections 1461, 1463, 1465, and 1466, and cer of the customs, including inspectors and occasional chapter 110 of title 18 (relating to obscenity inspectors, or of a revenue cutter, or authorized agent and child pornography). of the Treasury Department, or other persons specially (C) Section 953 of title 21 (relating to ex- appointed in writing; section 3060, requiring appointments under the preceding section to be filed in the portation of controlled substances). custom house; section 3067, authorizing collectors, etc., (D) The Export Administration Act of 1979 and officers of revenue cutters to go on board vessels in (50 U.S.C. App. 2401 et seq.). port or within four leagues of the coast, for the purpose (E) Section 2778 of title 22. of demanding manifests, and examining and searching (F) The International Emergency Eco- vessels; and section 3069, relative to noting and sealing, nomic Powers Act (50 U.S.C. 1701 et seq.). if necessary, packages found separate from the residue (b) Search of mail not sealed against inspection of the cargo. All of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. and other mail Mail not sealed against inspection under the AMENDMENTS postal laws and regulations of the United States, 1954—Subsec. (d). Act Sept. 1, 1954, provided a penalty mail which bears a Customs declaration, and against the owner, operator or person in charge, as well mail with respect to which the sender or ad- as the master, of a vessel failing to come to a required dressee has consented in writing to search, may stop and struck out provisions relating to the duty of be searched by a Customs officer. the customs officers to pursue such vessels. 1935—Act Aug. 5, 1935, amended section generally (c) Search of mail sealed against inspection among which changes it subdivided the section into weighing in excess of 16 ounces subsecs. (a) to (h), inclusive. (1) In general

TRANSFER OF FUNCTIONS Mail weighing in excess of 16 ounces sealed Word ‘‘Treasury’’ was substituted for ‘‘Commerce’’ in against inspection under the postal laws and subsec. (b) upon authority of Reorg. Plan No. 3 of 1946. regulations of the United States may be See note set out under section 1613 of this title. searched by a Customs officer, subject to paragraph (2), if there is reasonable cause to sus- § 1582. Search of persons and baggage; regula- pect that such mail contains one or more of tions the following: (A) Monetary instruments, as defined in The Secretary of the Treasury may prescribe section 1956 of title 18. regulations for the search of persons and bag- (B) A weapon of mass destruction, as de- gage and he is authorized to employ female in- fined in section 2332a(b) 1 of title 18. spectors for the examination and search of per- (C) A drug or other substance listed in sons of their own sex; and all persons coming schedule I, II, III, or IV in section 812 of title into the United States from foreign countries 21. shall be liable to detention and search by au- (D) National defense and related informa- thorized officers or agents of the Government tion transmitted in violation of any of sec- under such regulations. tions 793 through 798 of title 18. (June 17, 1930, ch. 497, title IV, § 582, 46 Stat. 748.) (E) Merchandise mailed in violation of section 1715 or 1716 of title 18. PRIOR PROVISIONS (F) Merchandise mailed in violation of any Provisions similar to those in this section were con- provision of chapter 71 (relating to obscen- tained in R.S. § 3064, which was superseded by act Sept. ity) or chapter 110 (relating to sexual exploi- 21, 1922, ch. 356, title IV, § 582, 42 Stat. 979, and was re- tation and other abuse of children) of title pealed by section 642 thereof. Section 582 of the 1922 act was superseded by section 582 of act June 17, 1930, com- 18. prising this section, and repealed by section 651(a)(1) of the 1930 act. 1 See References in Text note below. Page 233 TITLE 19—CUSTOMS DUTIES § 1584

(G) Merchandise mailed in violation of the AMENDMENTS Export Administration Act of 1979 (50 U.S.C. 2004—Subsec. (c)(1). Pub. L. 108–429 realigned margins. App. 2401 et seq.). (H) Merchandise mailed in violation of sec- EFFECTIVE DATE tion 2778 of title 22. Pub. L. 107–210, div. A, title III, § 344(c), Aug. 6, 2002, (I) Merchandise mailed in violation of the 116 Stat. 987, provided that: International Emergency Economic Powers ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), Act (50 U.S.C. 1701 et seq.). this section [enacting this section and provisions set out as a note under this section] and the amendments (J) Merchandise mailed in violation of the made by this section shall take effect on the date of en- Trading with the Enemy Act (50 U.S.C. App. actment of this Act [Aug. 6, 2002]. 1 et seq.). ‘‘(2) CERTIFICATION WITH RESPECT TO FOREIGN MAIL.— (K) Merchandise subject to any other law The provisions of section 583 of the Tariff Act of 1930 enforced by the Customs Service. [this section] relating to foreign mail transiting the (2) Limitation United States that is imported or exported by the United States Postal Service shall not take effect until No person acting under the authority of the Secretary of State certifies to Congress, pursuant paragraph (1) shall read, or authorize any to subsection (b) [set out as a note below], that the ap- other person to read, any correspondence con- plication of such section 583 is consistent with inter- tained in mail sealed against inspection unless national law and any international obligation of the prior to so reading— United States.’’ (A) a search warrant has been issued pur- TRANSFER OF FUNCTIONS suant to rule 41 of the Federal Rules of For transfer of functions, personnel, assets, and li- Criminal Procedure; or abilities of the United States Customs Service of the (B) the sender or addressee has given writ- Department of the Treasury, including functions of the ten authorization for such reading. Secretary of the Treasury relating thereto, to the Sec- (d) Search of mail sealed against inspection retary of Homeland Security, and for treatment of re- weighing 16 ounces or less lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department Notwithstanding any other provision of this of Homeland Security Reorganization Plan of Novem- section, subsection (a)(1) of this section shall ber 25, 2002, as modified, set out as a note under section not apply to mail weighing 16 ounces or less 542 of Title 6. sealed against inspection under the postal laws CERTIFICATION BY SECRETARY and regulations of the United States. Pub. L. 107–210, div. A, title III, § 344(b), Aug. 6, 2002, (June 17, 1930, ch. 497, title IV, § 583, as added 116 Stat. 987, provided that: ‘‘Not later than 3 months Pub. L. 107–210, div. A, title III, § 344(a), Aug. 6, after the date of enactment of this section [Aug. 6, 2002, 116 Stat. 986; amended Pub. L. 108–429, title 2002], the Secretary of State shall determine whether II, § 2004(a)(12), Dec. 3, 2004, 118 Stat. 2590.) the application of section 583 of the Tariff Act of 1930 [this section] to foreign mail transiting the United REFERENCES IN TEXT States that is imported or exported by the United States Postal Service is being handled in a manner con- The Customs laws of the United States, referred to in sistent with international law and any international subsec. (a)(1), are classified generally to this title. obligation of the United States. Section 583 of such Act The Export Administration Act of 1979, referred to in shall not apply to such foreign mail unless the Sec- subsecs. (a)(2)(D) and (c)(1)(G), is Pub. L. 96–72, Sept. 29, retary certifies to Congress that the application of such 1979, 93 Stat. 503, as amended, which is classified prin- section 583 is consistent with international law and any cipally to section 2401 et seq. of Title 50, Appendix, War international obligation of the United States.’’ and National Defense. For complete classification of this Act to the Code, see Short Title note set out under § 1584. Falsity or lack of manifest; penalties section 2401 of Title 50, Appendix, and Tables. The International Emergency Economic Powers Act, (a) General rule referred to in subsecs. (a)(2)(F) and (c)(1)(I), is title II (1) Any master of any vessel and any person in of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, as amended, charge of any vehicle bound to the United which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete States who does not produce the manifest to the classification of this Act to the Code, see Short Title officer (whether of the Customs Service or the note set out under section 1701 of Title 50 and Tables. Coast Guard) demanding the same shall be liable Section 2332a(b) of title 18, referred to in subsec. to a penalty of $1,000, and if any merchandise, (c)(1)(B), does not define the term ‘‘weapon of mass de- including sea stores, is found on board of or struction’’. However, that term is defined elsewhere in after having been unladen from such vessel or that section. vehicle which is not included or described in The Trading with the Enemy Act, referred to in sub- said manifest or does not agree therewith, the sec. (c)(1)(J), is act Oct. 6, 1917, ch. 106, 40 Stat. 411, as amended, which is classified to sections 1 to 6, 7 to 39 master of such vessel or the person in charge of and 41 to 44 of Title 50, Appendix, War and National De- such vehicle or the owner of such vessel or vehi- fense. For complete classification of this Act to the cle or any person directly or indirectly respon- Code, see Tables. sible for any discrepancy between the merchan- Rule 41 of the Federal Rules of Criminal Procedure, dise and said manifest shall be liable to a pen- referred to in subsec. (c)(2)(A), is set out in the Appen- alty equal to the lesser of $10,000 or the domestic dix to Title 18, Crimes and Criminal Procedure. value of the merchandise so found or unladen, PRIOR PROVISIONS and any such merchandise belonging or consigned to the master or other officer or to any A prior section 1583, acts June 17, 1930, ch. 497, title IV, § 583, 46 Stat. 748; Aug. 2, 1956, ch. 887, § 4(c), 70 Stat. of the crew of such vessel, or to the owner or 948, related to delivery and certification of manifest, person in charge of such vehicle, shall be subject prior to repeal by Pub. L. 103–182, title VI, § 690(b)(9), to forfeiture, and if any merchandise described Dec. 8, 1993, 107 Stat. 2223. in such manifest is not found on board the vessel § 1584 TITLE 19—CUSTOMS DUTIES Page 234 or vehicle the master or other person in charge United States is prohibited, be so found upon or the owner of such vessel or vehicle or any any vessel not exceeding five hundred net tons, person directly or indirectly responsible for any the vessel shall, in addition to any other pen- discrepancy between the merchandise and said alties herein or by law provided, be seized and manifest shall be subject to a penalty of $1,000: forfeited. Provided, That if the Customs Service shall be (b) Procedures satisfied that the manifest was lost or mislaid without intentional fraud, or was defaced by ac- (1) If the Customs Service has reasonable cident, or is incorrect by reason of clerical error cause to believe that there has been a violation or other mistake and that no part of the mer- of subsection (a)(1) of this section and deter- chandise not found on board was unshipped or mines that further proceedings are warranted, discharged except as specified in the report of the Customs Service shall issue or electronically the master, said penalties shall not be incurred. transmit to the person concerned a notice of in- For purposes of this subsection, the term ‘‘cleri- tent to issue or electronically transmit a claim cal error’’ means a nonnegligent, inadvertent, or for a monetary penalty. Such notice shall— typographical mistake in the preparation, as- (A) describe the merchandise; sembly, or submission (electronically or other- (B) set forth the details of the error in the wise) of the manifest. manifest; (2) If any of such merchandise so found con- (C) specify all laws and regulations allegedly sists of heroin, morphine, cocaine, isonipecaine, violated; or opiate, the master of such vessel or person in (D) disclose all the material facts which es- charge of such vehicle or the owner of such ves- tablish the alleged violation; sel or vehicle or any person directly or indi- (E) state the estimated loss of lawful duties, rectly responsible for heroin, morphine, cocaine, if any, and, taking into account all of the cir- isonipecaine, or opiate being in such merchan- cumstances, the amount of the proposed mon- dise shall be liable to a penalty of $1,000 for each etary penalty; and ounce thereof so found. If any of such merchan- (F) inform such person that he will have a dise so found consists of smoking opium, opium reasonable opportunity to make representa- prepared for smoking, or marihuana, the master tions, both oral and written, as to why such of such vessel or person in charge of such vehicle penalty claim should not be issued. or the owner of such vessel or vehicle or any No notice is required under this subsection for person directly or indirectly responsible for any violation of subsection (a)(1) of this section smoking opium, opium prepared for smoking, or for which the proposed penalty is $1,000 or less. marihuana being in such merchandise shall be (2) After considering representations, if any, liable to a penalty of $500 for each ounce thereof made by the person concerned pursuant to the so found. If any of such merchandise so found notice issued under paragraph (1), the Customs consists of crude opium, the master of such ves- Service shall determine whether any violation sel or person in charge of such vehicle or the of subsection (a)(1) of this section, as alleged in owner of such vessel or vehicle or any person di- the notice, has occurred. If the Customs Service rectly or indirectly responsible for crude opium determines that there was no violation, the Cus- being in such merchandise shall be liable to a toms Service shall promptly issue or electroni- penalty of $200 for each ounce thereof so found. cally transmit a statement of the determination Such penalties shall, notwithstanding the pro- to the person to whom the notice was sent. If viso in section 1594 of this title (relating to the the Customs Service determines that there was immunity of vessels or vehicles used as common a violation, the Customs Service shall issue or carriers), constitute a lien upon such vessel electronically transmit a penalty claim to such which may be enforced by a libel in rem; except person. The penalty claim shall specify all that the master or owner of a vessel used by any changes in the information provided under sub- person as a common carrier in the transaction paragraphs (A) through (E) of paragraph (1). of business as such common carrier shall not be liable to such penalties and the vessel shall not (June 17, 1930, ch. 497, title IV, § 584, 46 Stat. 748; be held subject to the lien, if it appears to the Aug. 5, 1935, ch. 438, title II, § 204, 49 Stat. 523; satisfaction of the court that neither the master July 1, 1944, ch. 377, § 10, 58 Stat. 722; Mar. 8, 1946, nor any of the officers (including licensed and ch. 81, § 9, 60 Stat. 39; Pub. L. 91–271, title III, unlicensed officers and petty officers) nor the § 301(b), June 2, 1970, 84 Stat. 287; Pub. L. 91–513, owner of the vessel knew, and could not, by the title III, § 1102(m), Oct. 27, 1970, 84 Stat. 1293; exercise of the highest degree of care and dili- Pub. L. 95–410, title I, § 109, Oct. 3, 1978, 92 Stat. gence, have known, that such narcotic drugs 892; Pub. L. 99–570, title III, § 3118, Oct. 27, 1986, were on board. Clearance of any such vessel may 100 Stat. 3207–84; Pub. L. 103–182, title VI, § 619, be withheld until such penalties are paid or Dec. 8, 1993, 107 Stat. 2180; Pub. L. 106–36, title I, until a bond, satisfactory to the Customs Serv- § 1001(b)(7), June 25, 1999, 113 Stat. 132.) ice, is given for the payment thereof. The provi- PRIOR PROVISIONS sions of this paragraph shall not prevent the forfeiture of any such vessel or vehicle under any Provisions similar to those in this section were con- other provision of law. As used in this para- tained in act Sept. 21, 1922, ch. 356, title IV, § 584, 42 graph, the terms ‘‘opiate’’ and ‘‘marihuana’’ Stat. 980. Section 584 of the 1922 act was superseded by section 584 of act June 17, 1930, comprising this section, shall have the same meaning given those terms and repealed by section 651(a)(1) of the 1930 act. by sections 802(18) and 802(16), respectively, of Prior provisions dealing with the subject matter of title 21. this section were contained in R.S. § 2809, imposing a (3) If any of such merchandise (sea stores ex- penalty and providing for forfeiture for bringing in cepted), the importation of which into the merchandise not included in the manifest, or without a Page 235 TITLE 19—CUSTOMS DUTIES § 1584 manifest; section 2810, as amended by act Feb. 27, 1877, found or unladen, made the above penalty and penalty ch. 69, § 1, 19 Stat. 246, making an exception in case of of $500 for describing merchandise in the manifest with- mistake or accident, etc.; section 2814, imposing pen- out being found aboard the vessel or vehicle applicable alties for failing to produce, or deliver copies of the to any person directly or indirectly responsible for any manifests, etc.; section 2815, requiring officers to report discrepancy between the merchandise and the manifest, violations; section 2887, imposing a penalty if any pack- and defined the term ‘‘clerical error’’. age reported was not found, or if the merchandise did Subsec. (a)(2). Pub. L. 95–410, § 109(1)(B), (5)–(7), des- not agree with the report or manifest, etc. All of these ignated unnumbered second par. as par. (2) and made sections were repealed by act Sept. 21, 1922, ch. 356, the penalties of $50, $25, and $10 applicable to any per- title IV, § 642, 42 Stat. 989. son directly or indirectly responsible, respectively, for: heroin, morphine, cocaine, isonipecaine, or opiate being AMENDMENTS in the merchandise; smoking opium, opium prepared 1999—Subsec. (a)(2). Pub. L. 106–36, § 1001(b)(7)(A), in for smoking, or marihuana being in the merchandise; last sentence, substituted ‘‘802(18) and 802(16), respec- and crude opium being in the merchandise. tively, of title 21’’ for ‘‘802(17) and 802(15), respectively, Subsec. (a)(3). Pub. L. 95–410, § 109(1)(C), designated of title 21’’. unnumbered third par. as par. (3). Subsec. (a)(3). Pub. L. 106–36, § 1001(b)(7)(B), struck Subsec. (b). Pub. L. 95–410, § 109(8), added subsec. (b). 1970—Pub. L. 91–271 substituted references to appro- out ‘‘or which consists of any spirits, wines, or other al- priate customs officer for references to collector wher- coholic liquors for the importation of which into the ever appearing. United States a certificate is required under section Par. (2). Pub. L. 91–513 struck out ‘‘isonipecaine’’ 1707 of this title and the required certificate be not from list of defined substances and substituted sections shown,’’ after ‘‘United States is prohibited,’’ and sub- 802(17) and 802(15) of title 21 for sections 3228(e), 3228(f), stituted period at end for ‘‘, and, if any manifested and 3238(b) of title 26 as the sections where definitions merchandise (sea stores excepted) consisting of any referred to are to be found. such spirits, wines, or other alcoholic liquors be found 1946—Par. (2). Act Mar. 8, 1946, struck out ‘‘or’’ before upon any such vessel and the required certificate be not ‘‘isonipecaine’’ and inserted ‘‘or opiate’’, after ‘‘iso- shown, the master of the vessel shall be liable to the nipecaine’’ in first sentence, inserted ‘‘opiate’’ after penalty herein provided in the case of merchandise not ‘‘isonipecaine’’ and inserted ‘‘3228(f)’’ in last sentence. duly manifested: Provided, That if the Customs Service 1944—Par. (2). Act July 1, 1944, struck out ‘‘or’’ before shall be satisfied that the certificate required for the ‘‘cocaine,’’ and inserted ‘‘or isonipecaine’’ after ‘‘co- importation of any spirits, wines, or other alcoholic caine’’ in first sentence, struck ‘‘or’’ before ‘‘or opium liquors was issued and was lost or mislaid without in- prepared’’ and inserted a comma in lieu thereof, intentional fraud, or was defaced by accident, or is incor- serted ‘‘or Marihuana’’ after ‘‘prepared for smoking’’ in rect by reason of clerical error or other mistake, said second sentence, and inserted last sentence. penalties shall not be incurred.’’ 1935—Act Aug. 5, 1935, amended second par. and in- 1993—Subsec. (a)(1). Pub. L. 103–182, § 619(1), sub- serted last par. stituted ‘‘officer (whether of the Customs Service or the Coast Guard) demanding the same’’ for ‘‘officer de- EFFECTIVE DATE OF 1970 AMENDMENTS manding the same’’ and ‘‘Customs Service shall be sat- Amendment by Pub. L. 91–513 effective on first day of isfied’’ for ‘‘appropriate customs officer shall be sat- the seventh calendar month that begins after Oct. 26, isfied’’ and inserted ‘‘(electronically or otherwise)’’ 1970, see section 1105(a) of Pub. L. 91–513, set out as an after ‘‘submission’’ in last sentence. Effective Date note under section 951 of Title 21, Food Subsec. (a)(2), (3). Pub. L. 103–182, § 619(1)(A), sub- and Drugs. stituted ‘‘Customs Service’’ for ‘‘appropriate customs For effective date of amendment by Pub. L. 91–271, officer’’ wherever appearing. see section 203 of Pub. L. 91–271, set out as a note under Subsec. (b)(1). Pub. L. 103–182, § 619(2), substituted ‘‘If section 1500 of this title. the Customs Service’’ for ‘‘If the appropriate customs SAVINGS PROVISION officer’’ and ‘‘the Customs Service shall issue or electronically transmit to the person concerned a notice of Prosecutions for any violation of law occurring, and intent to issue or electronically transmit a claim’’ for civil seizures or forfeitures and injunctive proceedings ‘‘he shall issue to the person concerned a written notice commenced, prior to the effective date of amendment of his intention to issue a claim’’. of this section by section 1102 of Pub. L. 91–513 not to Subsec. (b)(2). Pub. L. 103–182, § 619(2)(A)–(C), sub- be affected or abated by reason thereof, see section 1103 stituted ‘‘the Customs Service shall determine’’ for of Pub. L. 91–513, set out as a note under section 171 of ‘‘the appropriate customs officer shall determine’’, Title 21, Food and Drugs. ‘‘the Customs Service determines that there was no TRANSFER OF FUNCTIONS violation, the Customs Service shall promptly issue or electronically transmit a statement’’ for ‘‘such officer For transfer of functions, personnel, assets, and li- determines that there was no violation, he shall abilities of the United States Customs Service of the promptly issue a written statement’’, ‘‘the Customs Department of the Treasury, including functions of the Service determines that there was a violation, the Cus- Secretary of the Treasury relating thereto, to the Sec- toms Service shall issue or electronically transmit a retary of Homeland Security, and for treatment of re- penalty claim’’ for ‘‘such officer determines that there lated references, see sections 203(1), 551(d), 552(d), and was a violation, he shall issue a written penalty claim’’ 557 of Title 6, Domestic Security, and the Department and ‘‘The penalty claim shall specify’’ for ‘‘The written of Homeland Security Reorganization Plan of Novem- penalty claim shall specify’’. ber 25, 2002, as modified, set out as a note under section 1986—Subsec. (a)(1). Pub. L. 99–570, § 3118(1), sub- 542 of Title 6. stituted ‘‘$1,000’’ for ‘‘$500’’ in two places. For transfer of authorities, functions, personnel, and Subsec. (a)(2). Pub. L. 99–570, § 3118(2)–(4), substituted assets of the Coast Guard, including the authorities ‘‘$1,000’’ for ‘‘$50’’, ‘‘$500’’ for ‘‘$25’’, and ‘‘$200’’ for and functions of the Secretary of Transportation relat- ‘‘$10’’. ing thereto, to the Department of Homeland Security, Subsec. (b)(1). Pub. L. 99–570, § 3118(1), substituted and for treatment of related references, see sections ‘‘$1,000’’ for ‘‘$500’’. 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- 1978—Subsec. (a)(1). Pub. L. 95–410, § 109(1)(A), (2)–(4), rity, and the Department of Homeland Security Reor- inserted introductory heading ‘‘(a) GENERAL RULE.—’’, ganization Plan of November 25, 2002, as modified, set designated unnumbered first par. as par. (1), sub- out as a note under section 542 of Title 6. stituted for merchandise found or unladen but not included or described in the manifest a penalty the lesser STANDARDS OF CARE IN DISCOVERING CONTRABAND of $10,000 or the domestic value of the merchandise for Pub. L. 100–690, title VII, § 7369, Nov. 18, 1988, 102 Stat. prior penalty equal to the value of the merchandise so 4481, directed Secretary of the Treasury, no later than § 1585 TITLE 19—CUSTOMS DUTIES Page 236

120 days after Nov. 18, 1988, and after an opportunity for ceived or delivered merchandise while outside public comment, to prescribe regulations which set the territorial sea, who allows any merchandise forth criteria for use by the owner, master, pilot, oper- (including sea stores) destined to the United ator, or officer of, or other employee in charge of, any common carrier in meeting the standards under sec- States, the importation of which into the United tions 1584(a)(2) and 1594(c) of this title for the exercise States is prohibited, or which consists of any of the highest degree of care and diligence to know spirits, wines, or other alcoholic liquors, to be whether controlled substances imported into the unladen, without permit to unlade, at any place United States are on board the common carrier and, upon the high seas adjacent to the customs wa- within 6 months after Nov. 18, 1988, to issue controlled ters of the United States, to be transshipped to substances regulations for a 2-year demonstration pro- or placed in or received on any vessel of the gram to establish procedures for air carrier development and Customs Service approval of foreign and do- United States or any other vessel which is mestic security and inspection practices by permitting owned by any person a citizen of, or domiciled air carriers to request the Secretary of the Treasury to in, the United States, or any corporation incor- permit air carriers, the Customs Service, or an ap- porated in the United States, shall be liable to proved agent of the Customs Service to inspect at a penalty equal to twice the value of the mer- United States airports of entry, and aircraft arriving chandise but not less than $10,000, and the vessel from foreign locations. from which the merchandise is so unladen, and § 1585. Repealed. Pub. L. 103–182, title VI, its cargo and such merchandise, shall be seized § 690(b)(10), Dec. 8, 1993, 107 Stat. 2223 and forfeited. Section, acts June 17, 1930, ch. 497, title IV, § 585, 46 (d) Liability of master of receiving vessel in un- Stat. 749; Aug. 5, 1935, ch. 438, title III, § 303, 49 Stat. 527; lawful transshipment Oct. 27, 1986, Pub. L. 99–570, title III, § 3113(b), 100 Stat. If any merchandise (including sea stores) un- 3207–82, set forth penalties assessed when vessel or vehi- laden in violation of the provisions of this sec- cle from foreign port or place departed or unloaded tion is transshipped to or placed in or received merchandise before making report or entry. on any other vessel, the master of the vessel on § 1586. Unlawful unlading or transshipment which such merchandise is placed, and any person aiding or assisting therein, shall be liable to (a) Penalty for unlading prior to grant of permis- a penalty equal to twice the value of the mer- sion chandise, but not less than $10,000, and such ves- The master of any vessel from a foreign port sel, and its cargo and such merchandise, shall be or place, or of a hovering vessel which has re- seized and forfeited. ceived or delivered merchandise while outside (e) Imprisonment of persons aiding in unlawful the territorial sea, who allows any merchandise unlading or transshipment (including sea stores) to be unladen from such vessel at any time after its arrival within the Whoever, at any place, if a citizen of the customs waters and before such vessel has come United States, or at any place in the United to the proper place for the discharge of such States or within customs waters, if a foreign na- merchandise, and before he has received a per- tional, shall engage or aid or assist in any un- mit to unlade, shall be liable to a penalty equal lading or transshipment of any merchandise in to twice the value of the merchandise but not consequence of which any vessel becomes sub- less than $10,000, and such vessel and its cargo ject to forfeiture under the provisions of this and the merchandise so unladen shall be seized section shall, in addition to any other penalties and forfeited. provided by law, be liable to imprisonment for (b) Penalty for transshipment to any vessel for not more than 15 years. purpose of unlawful entry (f) Unlading or transshipment because of acci- The master of any vessel from a foreign port dent, stress of weather, etc. or place, or of a hovering vessel which has re- Whenever any part of the cargo or stores of a ceived or delivered merchandise while outside vessel has been unladen or transshipped because the territorial sea, who allows any merchandise of accident, stress of weather, or other neces- (including sea stores), the importation of which sity, the master of such vessel and the master of into the United States is prohibited, or which any vessel to which such cargo or stores has consists of any spirits, wines, or other alcoholic been transshipped shall, as soon as possible liquors, to be unladen from his vessel at any thereafter, notify the Customs Service at the place upon the high seas adjacent to the cus- district within which such unlading or trans- toms waters of the United States to be transshipment has occurred, or the Customs Service shipped to or placed in or received on any vessel at the district at which such vessel shall first of any description, with knowledge, or under cir- arrive thereafter, and shall furnish proof that cumstances indicating the purpose to render it such unlading or transshipment was made nec- possible, that such merchandise, or any part essary by accident, stress of weather, or other thereof, may be introduced, or attempted to be unavoidable cause, and if the Customs Service is introduced, into the United States in violation satisfied that the unlading or transshipment was of law, shall be liable to a penalty equal to twice in fact due to accident, stress of weather, or the value of the merchandise but not less than other necessity, the penalties described in this $10,000, and the vessel from which the merchan- section shall not be incurred. dise is so unladen, and its cargo and such mer- (June 17, 1930, ch. 497, title IV, § 586, 46 Stat. 749; chandise, shall be seized and forfeited. Aug. 5, 1935, ch. 438, title II, § 205, 49 Stat. 524; (c) Penalty for unlawful transshipment to any Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 vessel of United States Stat. 287; Pub. L. 99–570, title III, § 3119, Oct. 27, The master of any vessel from a foreign port 1986, 100 Stat. 3207–84; Pub. L. 103–182, title VI, or place, or of a hovering vessel which has re- § 620, Dec. 8, 1993, 107 Stat. 2180.) Page 237 TITLE 19—CUSTOMS DUTIES § 1587

PRIOR PROVISIONS visions of said section 1581 shall apply thereto, Provisions similar to those in this section were con- as well without as within his district, and in ex- tained in act Sept. 21, 1922, ch. 356, title IV, §§ 586, 587, amining the same, any such officer may also ex- 42 Stat. 980, 981. These sections were superseded by sec- amine the master upon oath respecting the tion 586 of act June 17, 1930, comprising this section, cargo and voyage of the vessel, and may also and repealed by section 651(a)(1) of the 1930 act. bring the vessel into the most convenient port Provisions somewhat similar to those in this section, of the United States to examine the cargo, and but applicable only to vessels ‘‘bound to the United if the master of said vessel refuses to comply States’’ were contained in R.S. § 2867, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. with the lawful directions of such officer or does Provisions substantially the same in effect as those not truly answer such questions as are put to contained in the act of 1922, § 587, except that the pen- him respecting the vessel, its cargo, or voyage, alty was treble the value of the merchandise, and the he shall be liable to a penalty of not more than provision for forfeiture applied only to the vessel was $5,000 nor less than $500. If, upon the examina- contained in R.S. § 2868, prior to repeal by act Sept. 21, tion of any such vessel or its cargo by any offi- 1922, ch. 356, title IV, § 642, 42 Stat. 989. cer of the customs, any dutiable merchandise AMENDMENTS destined to the United States is found, or discovered to have been, on board thereof, the ves- 1993—Subsecs. (a) to (c). Pub. L. 103–182, § 620(1), inserted ‘‘, or of a hovering vessel which has received or sel and its cargo shall be seized and forfeited. It delivered merchandise while outside the territorial shall be presumed that any merchandise (sea sea,’’ after ‘‘from a foreign port or place’’. stores excepted), the importation of which into Subsec. (f). Pub. L. 103–182, § 620(2), substituted ‘‘the the United States is prohibited, or which con- Customs Service at the district’’ for ‘‘the appropriate sists of any spirits, wines, or other alcoholic liq- customs officer of the district’’ and ‘‘the appropriate uors, so found, or discovered to have been, on customs officer within the district’’ and ‘‘the Customs board thereof, is destined to the United States. Service is satisfied’’ for ‘‘the appropriate customs officer is satisfied’’. (b) Unexplained lightness of vessel or discharge 1986—Subsecs. (a) to (d). Pub. L. 99–570, § 3119(1), sub- of cargo stituted ‘‘$10,000’’ for ‘‘$1,000’’ wherever appearing. If any vessel laden with cargo be found at any Subsec. (e). Pub. L. 99–570, § 3119(2)(A), substituted place in the United States or within the customs ‘‘customs waters’’ for ‘‘one league of the coast of the waters or within a customs-enforcement area es- United States’’. Pub. L. 99–570, § 3119(2)(B), which directed that ‘‘15 tablished under the Anti-Smuggling Act [19 years’’ be substituted for ‘‘2 years’’ was executed by U.S.C. 1701 et seq.] and such vessel afterwards is making the substitution for ‘‘two years’’ as the prob- found light or in ballast or having discharged its able intent of Congress. cargo or any part thereof, and the master is un- 1970—Subsec. (f). Pub. L. 91–271 substituted references able to give a due account of the port or place to appropriate customs officer for references to collec- at which the cargo, or any part thereof, consist- tor wherever appearing. ing of any merchandise the importation of 1935—Act Aug. 5, 1935, redesignated existing provi- which into the United States is prohibited or sions as subsecs. (a) and (f) and added subsecs. (b) to (e). any spirits, wines, or other alcoholic liquors, EFFECTIVE DATE OF 1970 AMENDMENT was lawfully discharged, the vessel shall be For effective date of amendment by Pub. L. 91–271, seized and forfeited. see section 203 of Pub. L. 91–271, set out as a note under (c) Vessel bona fide bound from one foreign port section 1500 of this title. to another foreign port TRANSFER OF FUNCTIONS Nothing contained in this section shall be con- For transfer of functions, personnel, assets, and li- strued to render any vessel liable to forfeiture abilities of the United States Customs Service of the which is bona fide bound from one foreign port Department of the Treasury, including functions of the to another foreign port, and which is pursuing Secretary of the Treasury relating thereto, to the Sec- her course, wind and weather permitting. retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and (June 17, 1930, ch. 497, title IV, § 587, 46 Stat. 749; 557 of Title 6, Domestic Security, and the Department Aug. 5, 1935, ch. 438, title II, § 206, 49 Stat. 525.) of Homeland Security Reorganization Plan of Novem- REFERENCES IN TEXT ber 25, 2002, as modified, set out as a note under section 542 of Title 6. The Anti-Smuggling Act, referred to in subsecs. (a) and (b), is act Aug. 5, 1935, ch. 438, 49 Stat. 517, as § 1587. Examination of hovering vessels amended, which is classified principally to chapter 5 (§ 1701 et seq.) of this title. For complete classification (a) Boarding and examination of this Act to the Code, see section 1711 of this title and Any hovering vessel, or any vessel which fails Tables. (except for unavoidable cause), at any place PRIOR PROVISIONS within the customs waters or within a customs- Provisions similar to those in this section were con- enforcement area established under the Anti- tained in act Sept. 21, 1922, ch. 356, title IV, § 588, 42 Smuggling Act [19 U.S.C. 1701 et seq.], to display Stat. 981. That section was superseded by section 588 of lights as required by law, or which has become act June 17, 1930, comprising this section, and repealed subject to pursuit as provided in section 1581 of by section 651(a)(1) of the 1930 act. this title, or which, being a foreign vessel to Provisions substantially the same as those in this which subsection (h) of section 1581 of this title section, except that they applied only to ports on the applies, is permitted by special arrangement northern, northeastern and northwestern frontiers, were contained in R.S. § 3110, prior to repeal by act with a foreign government to be so examined Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. without the customs waters of the United States, may at any time be boarded and exam- AMENDMENTS ined by any officer of the customs, and the pro- 1937—Act Aug. 5, 1935, amended section generally. § 1588 TITLE 19—CUSTOMS DUTIES Page 238

§ 1588. Transportation between American ports EFFECTIVE DATE via foreign ports Section effective Oct. 15, 1984, see section 214(e) of Pub. L. 98–573, set out as an Effective Date of 1984 If any merchandise is laden at any port or Amendment note under section 1304 of this title. place in the United States upon any vessel belonging wholly or in part to a subject of a for- § 1590. Aviation smuggling eign country, and is taken thence to a foreign (a) In general port or place to be reladen and reshipped to any It is unlawful for the pilot of any aircraft to other port in the United States, either by the transport, or for any individual on board any same or by another vessel, foreign or American, aircraft to possess, merchandise knowing, or in- with intent to evade the provisions relating to tending, that the merchandise will be intro- the transportation of merchandise from one port duced into the United States contrary to law. or place of the United States to another port or place of the United States in a vessel belonging (b) Sea transfers wholly or in part to a subject of any foreign It is unlawful for any person to transfer mer- power, the merchandise shall, on its arrival at chandise between an aircraft and a vessel on the such last-named port or place, be seized and for- high seas or in the customs waters of the United feited to the United States, and the vessel shall States if such person has not been authorized by pay a tonnage duty of 50 cents per net ton. the Secretary to make such transfer and— (1) either— (June 17, 1930, ch. 497, title IV, § 588, 46 Stat. 749.) (A) the aircraft is owned by a citizen of the United States or is registered in the United § 1589. Repealed. Pub. L. 100–690, title VII, States, or § 7367(c)(5), Nov. 18, 1988, 102 Stat. 4480 (B) the vessel is a vessel of the United Section, act June 17, 1930, ch. 497, title IV, § 589, as States (within the meaning of section 1703(b) added Oct. 12, 1984, Pub. L. 98–473, title II, § 320, 98 Stat. of this title), or 2056, set forth arrest authority of customs officers. (2) regardless of the nationality of the vessel CODIFICATION or aircraft, such transfer is made under circumstances indicating the intent to make it Another section 589 of act June 17, 1930, was added by possible for such merchandise, or any part Pub. L. 98–573, title II, § 213(a)(17), Oct. 30, 1984, 98 Stat. 2988, and is classified to section 1589a of this title. thereof, to be introduced into the United A prior section 589 of act June 17, 1930, ch. 497, title States unlawfully. IV, 46 Stat. 750, related to unlawful relanding and was (c) Civil penalties classified to this section, prior to repeal by act June 25, Any person who violates any provision of this 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948. See sec- section is liable for a civil penalty equal to tion 544 of Title 18, Crimes and Criminal Procedure. twice the value of the merchandise involved in § 1589a. Enforcement authority of customs offi- the violation, but not less than $10,000. The cers value of any controlled substance included in the merchandise shall be determined in accord- Subject to the direction of the Secretary of ance with section 1497(b) of this title. the Treasury, an officer of the customs may— (d) Criminal penalties (1) carry a firearm; (2) execute and serve any order, warrant, In addition to being liable for a civil penalty subpena, summons, or other process issued under subsection (c) of this section, any person who intentionally commits a violation of any under the authority of the United States; provision of this section is, upon conviction— (3) make an arrest without a warrant for any (1) liable for a fine of not more than $10,000 offense against the United States committed or imprisonment for not more than 5 years, or in the officer’s presence or for a felony, cog- both, if none of the merchandise involved was nizable under the laws of the United States a controlled substance; or committed outside the officer’s presence if the (2) liable for a fine of not more than $250,000 officer has reasonable grounds to believe that or imprisonment for not more than 20 years, the person to be arrested has committed or is or both, if any of the merchandise involved committing a felony; and was a controlled substance. (4) perform any other law enforcement duty (e) Seizure and forfeiture that the Secretary of the Treasury may designate. (1) Except as provided in paragraph (2), a vessel or aircraft used in connection with, or in aid- (June 17, 1930, ch. 497, title IV, § 589, as added ing or facilitating, any violation of this section, Pub. L. 98–573, title II, § 213(a)(17), Oct. 30, 1984, whether or not any person is charged in connec- 98 Stat. 2988.) tion with such violation, may be seized and for- CODIFICATION feited in accordance with the customs laws. (2) Paragraph (1) does not apply to a vessel or Another section 589 of act June 17, 1930, as added by aircraft operated as a common carrier. Pub. L. 98–473, title II, § 320, Oct. 12, 1984, 98 Stat. 2056, was classified to section 1589 of this title, prior to re- (f) ‘‘Merchandise’’ defined peal by Pub. L. 100–690. As used in this section, the term ‘‘merchandise’’ means only merchandise the importation PRIOR PROVISIONS of which into the United States is prohibited or A prior section 589 of act June 17, 1930, ch. 497, title restricted. IV, 46 Stat. 750, related to unlawful relanding and was (g) Intent of transfer of merchandise classified to this section, prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948. See sec- For purposes of imposing civil penalties under tion 544 of Title 18, Crimes and Criminal Procedure. this section, any of the following acts, when per- Page 239 TITLE 19—CUSTOMS DUTIES § 1592 formed within 250 miles of the territorial sea of lawful duty, tax, or fee thereby, no person, by the United States, shall be prima facie evidence fraud, gross negligence, or negligence— that the transportation or possession of mer- (A) may enter, introduce, or attempt to chandise was unlawful and shall be presumed to enter or introduce any merchandise into the constitute circumstances indicating that the commerce of the United States by means purpose of the transfer is to make it possible for of— such merchandise, or any part thereof, to be in- (i) any document or electronically trans- troduced into the United States unlawfully, and mitted data or information, written or for purposes of subsection (e) of this section or oral statement, or act which is material section 1595a of this title, shall be prima facie and false, or evidence that an aircraft or vessel was used in (ii) any omission which is material, or connection with, or to aid or facilitate, a viola- (B) may aid or abet any other person to tion of this section: violate subparagraph (A). (1) The operation of an aircraft or a vessel without lights during such times as lights are (2) Exception required to be displayed under applicable law. Clerical errors or mistakes of fact are not (2) The presence on an aircraft of an auxil- violations of paragraph (1) unless they are part iary fuel tank which is not installed in accord- of a pattern of negligent conduct. The mere ance with applicable law. nonintentional repetition by an electronic sys- (3) The failure to identify correctly— tem of an initial clerical error does not con- (A) the vessel by name or country of reg- stitute a pattern of negligent conduct. istration, or (B) the aircraft by registration number (b) Procedures and country of registration, (1) Pre-penalty notice when requested to do so by a customs officer (A) In general or other government authority. If the Customs Service has reasonable (4) The external display of false registration cause to believe that there has been a viola- numbers, false country of registration, or, in tion of subsection (a) of this section and de- the case of a vessel, false vessel name. (5) The presence on board of unmanifested termines that further proceedings are war- merchandise, the importation of which is pro- ranted, it shall issue to the person concerned hibited or restricted. a written notice of its intention to issue a (6) The presence on board of controlled sub- claim for a monetary penalty. Such notice stances which are not manifested or which are shall— not accompanied by the permits or licenses re- (i) describe the merchandise; quired under Single Convention on Narcotic (ii) set forth the details of the entry or Drugs or other international treaty. introduction, the attempted entry or in- (7) The presence of any compartment or troduction, or the aiding or procuring of equipment which is built or fitted out for the entry or introduction; smuggling. (iii) specify all laws and regulations al- (8) The failure of a vessel to stop when legedly violated; hailed by a customs officer or other govern- (iv) disclose all the material facts which ment authority. establish the alleged violation; (v) state whether the alleged violation (June 17, 1930, ch. 497, title IV, § 590, as added occurred as a result of fraud, gross neg- Pub. L. 99–570, title III, § 3120, Oct. 27, 1986, 100 ligence, or negligence; Stat. 3207–84.) (vi) state the estimated loss of lawful du- PRIOR PROVISIONS ties, taxes, and fees, if any, and, taking A prior section 1590, act June 17, 1930, ch. 497, title IV, into account all circumstances, the § 590, 46 Stat. 750, related to false drawback claims, amount of the proposed monetary penalty; prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat. and 862, eff. Sept. 1, 1948. See section 550 of Title 18, Crimes (vii) inform such person that he shall and Criminal Procedure. have a reasonable opportunity to make TERRITORIAL SEA OF UNITED STATES representations, both oral and written, as For extension of territorial sea of United States, see to why a claim for a monetary penalty Proc. No. 5928, set out as a note under section 1331 of should not be issued in the amount stated. Title 43, Public Lands. (B) Exceptions § 1591. Repealed. June 25, 1948, ch. 645, § 21, 62 The preceding subparagraph shall not Stat. 862, eff. Sept. 1, 1948 apply if— (i) the importation with respect to which Section, acts June 17, 1930, ch. 497, title IV, § 591, 46 the violation of subsection (a) of this sec- Stat. 750; Aug. 5, 1935, ch. 438, title III, § 304(a), 49 Stat. 527, related to fraud and personal penalties. See section tion occurs is noncommercial in nature, or 542 of Title 18, Crimes and Criminal Procedure. (ii) the amount of the penalty in the penalty claim issued under paragraph (2) is § 1592. Penalties for fraud, gross negligence, and $1,000 or less. negligence (2) Penalty claim (a) Prohibition After considering representations, if any, (1) General rule made by the person concerned pursuant to the Without regard to whether the United States notice issued under paragraph (1), the Customs is or may be deprived of all or a portion of any Service shall determine whether any violation § 1592 TITLE 19—CUSTOMS DUTIES Page 240

of subsection (a) of this section, as alleged in amount of the lawful duties, taxes, and the notice, has occurred. If the Customs Serv- fees at the time of disclosure, or within 30 ice determines that there was no violation, it days (or such longer period as the Customs shall promptly issue a written statement of Service may provide) after notice by the the determination to the person to whom the Customs Service of its calculation of such notice was sent. If the Customs Service deter- unpaid amount, or mines that there was a violation, it shall issue (ii) if such violation did not affect the a written penalty claim to such person. The assessment of duties, 10 percent of the du- written penalty claim shall specify all changes tiable value; or in the information provided under clauses (i) (B) if such violation resulted from neg- through (vi) of paragraph (1)(A). Such person ligence or gross negligence, the interest shall have a reasonable opportunity under sec- (computed from the date of liquidation at tion 1618 of this title to make representations, the prevailing rate of interest applied under both oral and written, seeking remission or section 6621 of title 26) on the amount of law- mitigation of the monetary penalty. At the ful duties, taxes, and fees of which the conclusion of any proceeding under such sec- United States is or may be deprived so long tion 1618, the Customs Service shall provide to as such person tenders the unpaid amount of the person concerned a written statement the lawful duties, taxes, and fees at the time which sets forth the final determination and of disclosure, or within 30 days (or such the findings of fact and conclusions of law on longer period as the Customs Service may which such determination is based. provide) after notice by the Customs Service (c) Maximum penalties of its calculation of such unpaid amount. (1) Fraud The person asserting lack of knowledge of the A fraudulent violation of subsection (a) of commencement of a formal investigation has this section is punishable by a civil penalty in the burden of proof in establishing such lack an amount not to exceed the domestic value of of knowledge. For purposes of this section, a the merchandise. formal investigation of a violation is consid- (2) Gross negligence ered to be commenced with regard to the disclosing party and the disclosed information on A grossly negligent violation of subsection the date recorded in writing by the Customs (a) of this section is punishable by a civil pen- Service as the date on which facts and circum- alty in an amount not to exceed— stances were discovered or information was re- (A) the lesser of— ceived which caused the Customs Service to (i) the domestic value of the merchan- believe that a possibility of a violation of sub- dise, or section (a) of this section existed. (ii) four times the lawful duties, taxes, and fees of which the United States is or (5) Prior disclosure regarding NAFTA claims may be deprived, or An importer shall not be subject to penalties under subsection (a) of this section for making (B) if the violation did not affect the as- an incorrect claim for preferential tariff treat- sessment of duties, 40 percent of the dutiable ment under section 3332 of this title if the im- value of the merchandise. porter— (3) Negligence (A) has reason to believe that the NAFTA A negligent violation of subsection (a) of Certificate of Origin (as defined in section this section is punishable by a civil penalty in 1508(b)(1) of this title) on which the claim an amount not to exceed— was based contains incorrect information; (A) the lesser of— and (i) the domestic value of the merchan- (B) in accordance with regulations issued dise, or by the Secretary, voluntarily and promptly (ii) two times the lawful duties, taxes, makes a corrected declaration and pays any and fees of which the United States is or duties owing. may be deprived, or (6) Prior disclosure regarding claims under the (B) if the violation did not affect the as- United States-Chile Free Trade Agreement sessment of duties, 20 percent of the dutiable An importer shall not be subject to penalties value of the merchandise. under subsection (a) of this section for making (4) Prior disclosure an incorrect claim that a good qualifies as an originating good under section 202 of the If the person concerned discloses the circum- United States-Chile Free Trade Agreement stances of a violation of subsection (a) of this Implementation Act if the importer, in ac- section before, or without knowledge of, the cordance with regulations issued by the Sec- commencement of a formal investigation of retary of the Treasury, voluntarily makes a such violation, with respect to such violation, corrected declaration and pays any duties merchandise shall not be seized and any mone- owing. tary penalty to be assessed under subsection (c) of this section shall not exceed— (7) Prior disclosure regarding claims under the (A) if the violation resulted from fraud— United States-Singapore Free Trade Agree- (i) an amount equal to 100 percent of the ment lawful duties, taxes, and fees of which the (A) An importer shall not be subject to pen- United States is or may be deprived, so alties under subsection (a) of this section for long as such person tenders the unpaid making an incorrect claim that a good quali- Page 241 TITLE 19—CUSTOMS DUTIES § 1592

fies as an originating good under section 202 of person is insolvent or beyond the jurisdiction the United States-Singapore Free Trade of the United States or that seizure is other- Agreement Implementation Act if the im- wise essential to protect the revenue of the porter, in accordance with regulations issued United States or to prevent the introduction by the Secretary of the Treasury, voluntarily of prohibited or restricted merchandise into and promptly makes a corrected declaration the customs territory of the United States, and pays any duties owing. then such merchandise may be seized and, (B) In the regulations referred to in subpara- upon assessment of a monetary penalty, for- graph (A), the Secretary of the Treasury is au- feited unless the monetary penalty is paid thorized to prescribe time periods for making within the time specified by law. Within a rea- a corrected declaration and paying duties sonable time after any such seizure is made, owing under subparagraph (A), if such periods the Secretary shall issue to the person con- are not shorter than 1 year following the date cerned a written statement containing the on which the importer makes the incorrect reasons for the seizure. After seizure of mer- claim that a good qualifies as an originating chandise under this subsection, the Secretary good. may, in the case of restricted merchandise, (8) Prior disclosure regarding claims under the and shall, in the case of any other merchan- United States-Australia free trade agree- dise (other than prohibited merchandise), re- ment turn such merchandise upon the deposit of security not to exceed the maximum monetary (A) In general penalty which may be assessed under sub- An importer shall not be subject to pen- section (c) of this section. alties under subsection (a) of this section for (d) Deprivation of lawful duties, taxes, or fees making an incorrect claim that a good Notwithstanding section 1514 of this title, if qualifies as an originating good under sec- the United States has been deprived of lawful tion 203 of the United States-Australia Free duties, taxes, or fees as a result of a violation of Trade Agreement Implementation Act if the subsection (a) of this section, the Customs Serv- importer, in accordance with regulations is- ice shall require that such lawful duties, taxes, sued by the Secretary of the Treasury, vol- and fees be restored, whether or not a monetary untarily and promptly makes a corrected penalty is assessed. declaration and pays any duties owing. (e) Court of International Trade proceedings (B) Time periods for making corrections Notwithstanding any other provision of law, in In the regulations referred to in subpara- any proceeding commenced by the United States graph (A), the Secretary of the Treasury is in the Court of International Trade for the re- authorized to prescribe time periods for covery of any monetary penalty claimed under making a corrected declaration and paying this section— duties owing under subparagraph (A), if such (1) all issues, including the amount of the periods are not shorter than 1 year following penalty, shall be tried de novo; the date on which the importer makes the (2) if the monetary penalty is based on fraud, incorrect claim. the United States shall have the burden of (9) Prior disclosure regarding claims under the proof to establish the alleged violation by Dominican Republic-Central America- clear and convincing evidence; United States Free Trade Agreement (3) if the monetary penalty is based on gross negligence, the United States shall have the An importer shall not be subject to penalties burden of proof to establish all the elements of under subsection (a) of this section for making the alleged violation; and an incorrect claim that a good qualifies as an (4) if the monetary penalty is based on neg- originating good under section 4033 of this ligence, the United States shall have the bur- title if the importer, in accordance with regu- den of proof to establish the act or omission lations issued by the Secretary of the Treas- constituting the violation, and the alleged vio- ury, promptly and voluntarily makes a cor- lator shall have the burden of proof that the rected declaration and pays any duties owing. act or omission did not occur as a result of (10) Prior disclosure regarding claims under negligence. the United States-Peru Trade Promotion (f) False certifications regarding exports to Agreement NAFTA countries An importer shall not be subject to penalties (1) In general under subsection (a) for making an incorrect Subject to paragraph (3), it is unlawful for claim that a good qualifies as an originating any person to certify falsely, by fraud, gross good under section 203 of the United States- negligence, or negligence, in a NAFTA Certifi- Peru Trade Promotion Agreement Implemen- cate of Origin (as defined in section 1508(b)(1) tation Act if the importer, in accordance with of this title) that a good to be exported to a regulations issued by the Secretary of the NAFTA country (as defined in section 3301(4) Treasury, promptly and voluntarily makes a of this title) qualifies under the rules of origin corrected declaration and pays any duties set out in section 3332 of this title. owing with respect to that good. (2) Applicable provisions (11) Seizure The procedures and penalties of this section If the Secretary has reasonable cause to be- that apply to a violation of subsection (a) of lieve that a person has violated the provisions this section also apply to a violation of para- of subsection (a) of this section and that such graph (1), except that— § 1592 TITLE 19—CUSTOMS DUTIES Page 242

(A) subsection (d) of this section does not tification of origin (as defined in section apply, and 1508(g)(1)(B) of this title) that a good exported (B) subsection (c)(5) of this section applies from the United States qualifies as an origi- only if the person voluntarily and promptly nating good under the rules of origin set out in provides, to all persons to whom the person section 4033 of this title. The procedures and provided the NAFTA Certificate of Origin, penalties of this section that apply to a viola- written notice of the falsity of the Certifi- tion of subsection (a) of this section also apply cate. to a violation of this subsection. (3) Exception (2) Prompt and voluntary disclosure of incor- A person may not be considered to have vio- rect information lated paragraph (1) if— No penalty shall be imposed under this sub- (A) the information was correct at the section if, promptly after an exporter or pro- time it was provided in a NAFTA Certificate ducer that issued a CAFTA–DR certification of of Origin but was later rendered incorrect origin has reason to believe that such certifi- due to a change in circumstances; and cation contains or is based on incorrect infor- (B) the person voluntarily and promptly mation, the exporter or producer voluntarily provides written notice of the change to all provides written notice of such incorrect in- persons to whom the person provided the formation to every person to whom the certifi- Certificate of Origin. cation was issued. (g) False certifications of origin under the (3) Exception United States-Chile Free Trade Agreement A person may not be considered to have vio- (1) In general lated paragraph (1) if— (A) the information was correct at the Subject to paragraph (2), it is unlawful for time it was provided in a CAFTA–DR certifi- any person to certify falsely, by fraud, gross cation of origin but was later rendered in- negligence, or negligence, in a Chile FTA Cer- correct due to a change in circumstances; tificate of Origin (as defined in section 1 and 1508(f)(1)(B) of this title that a good exported (B) the person promptly and voluntarily from the United States qualifies as an origi- provides written notice of the change in cir- nating good under the rules of origin set out in cumstances to all persons to whom the per- section 202 of the United States-Chile Free son provided the certification. Trade Agreement Implementation Act. The procedures and penalties of this section that (i) False certifications of origin under the United apply to a violation of subsection (a) of this States-Peru Trade Promotion Agreement section also apply to a violation of this sub- (1) In general section. Subject to paragraph (2), it is unlawful for (2) Immediate and voluntary disclosure of in- any person to certify falsely, by fraud, gross correct information negligence, or negligence, in a PTPA certification of origin (as defined in section No penalty shall be imposed under this sub- 1508(h)(1)(B) of this title) that a good exported section if, immediately after an exporter or from the United States qualifies as an origi- producer that issued a Chile FTA Certificate nating good under the rules of origin provided of Origin has reason to believe that such cer- for in section 203 of the United States-Peru tificate contains or is based on incorrect infor- Trade Promotion Agreement Implementation mation, the exporter or producer voluntarily Act. The procedures and penalties of this sec- provides written notice of such incorrect in- tion that apply to a violation of subsection (a) formation to every person to whom the certifi- also apply to a violation of this subsection. cate was issued. (2) Prompt and voluntary disclosure of incor- (3) Exception rect information A person may not be considered to have vio- No penalty shall be imposed under this sub- lated paragraph (1) if— section if, promptly after an exporter or pro- (A) the information was correct at the ducer that issued a PTPA certification of ori- time it was provided in a Chile FTA Certifi- gin has reason to believe that such certificate of Origin but was later rendered incor- cation contains or is based on incorrect infor- rect due to a change in circumstances; and mation, the exporter or producer voluntarily (B) the person immediately and volun- provides written notice of such incorrect in- tarily provides written notice of the change formation to every person to whom the certifi- in circumstances to all persons to whom the cation was issued. person provided the certificate. (3) Exception (h) False certifications of origin under the Do- A person shall not be considered to have vio- minican Republic-Central America-United lated paragraph (1) if— States Free Trade Agreement (A) the information was correct at the (1) In general time it was provided in a PTPA certification Subject to paragraph (2), it is unlawful for of origin but was later rendered incorrect any person to certify falsely, by fraud, gross due to a change in circumstances; and negligence, or negligence, in a CAFTA–DR cer- (B) the person promptly and voluntarily provides written notice of the change in cir- 1 So in original. Probably should be followed by a closing pa- cumstances to all persons to whom the per- renthesis. son provided the certification. Page 243 TITLE 19—CUSTOMS DUTIES § 1592

(June 17, 1930, ch. 497, title IV, § 592, 46 Stat. 750; trative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141, and Aug. 5, 1935, ch. 438, title III, § 304(b), 49 Stat. 527; provisions of a similar nature were made by section 9 Pub. L. 95–410, title I, § 110(a), Oct. 3, 1978, 92 of that act, amended by the Payne-Aldrich Tariff Act of Stat. 893; Pub. L. 96–417, title VI, § 609, Oct. 10, Aug. 5, 1909, ch. 6, § 28, 36 Stat. 97, and further amended by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, § III, 1980, 94 Stat. 1746; Pub. L. 99–514, § 2, Oct. 22, 1986, H, 38 Stat. 183. 100 Stat. 2095; Pub. L. 103–182, title II, § 205(c), Act June 22, 1874, ch. 391, § 16, 18 Stat. 189, required title VI, § 621, Dec. 8, 1993, 107 Stat. 2095, 2180; special findings as to fraud in actions, etc., to enforce Pub. L. 104–295, §§ 3(a)(4), (5), 21(e)(12), (13), Oct. forfeitures, etc., prior to repeal by Customs Adminis- 11, 1996, 110 Stat. 3515, 3531; Pub. L. 106–36, title trative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141. I, § 1001(b)(8), June 25, 1999, 113 Stat. 132; Pub. L. AMENDMENTS 108–77, title II, § 205(a), Sept. 3, 2003, 117 Stat. 930; Pub. L. 108–78, title II, § 204, Sept. 3, 2003, 117 2007—Subsec. (c)(10), (11). Pub. L. 110–138, §§ 107(c), 205(a)(1), temporarily added par. (10) and redesignated Stat. 961; Pub. L. 108–286, title II, § 205, Aug. 3, former par. (10) as (11). See Effective and Termination 2004, 118 Stat. 939; Pub. L. 109–53, title II, § 206(a), Dates of 2007 Amendment note below. Aug. 2, 2005, 119 Stat. 484; Pub. L. 110–138, title II, Subsec. (i). Pub. L. 110–138, §§ 107(c), 205(a)(2), tempo- § 205(a), Dec. 14, 2007, 121 Stat. 1475.) rarily added subsec. (i). See Effective and Termination Dates of 2007 Amendment note below. AMENDMENT OF SECTION 2005—Subsec. (c)(9), (10). Pub. L. 109–53, §§ 107(d), For termination of amendment by section 206(a)(1), temporarily added par. (9) and redesignated 107(c) of Pub. L. 110–138, see Effective and Ter- former par. (9) as (10). See Effective and Termination Dates of 2005 Amendment note below. mination Dates of 2007 Amendment note below. Subsec. (h). Pub. L. 109–53, §§ 107(d), 206(a)(2), tempo- For termination of amendment by section rarily added subsec. (h). See Effective and Termination 107(d) of Pub. L. 109–53, see Effective and Ter- Dates of 2005 Amendment note below. mination Dates of 2005 Amendment note below. 2004—Subsec. (c)(8), (9). Pub. L. 108–286, §§ 106(c), 205, For termination of amendment by section temporarily added par. (8) and redesignated former par. 106(c) of Pub. L. 108–286, see Effective and Ter- (8) as (9). See Effective and Termination Dates of 2004 mination Dates of 2004 Amendment note below. Amendment note below. For termination of amendment by section 2003—Subsec. (c)(6). Pub. L. 108–77, §§ 107(c), 205(a)(1)(B), temporarily added par. (6). Former par. (6) 107(c) of Pub. L. 108–78, see Effective and Ter- redesignated (7). See Effective and Termination Dates mination Dates of 2003 Amendments note below. of 2003 Amendments note below. For termination of amendment by section Subsec. (c)(7). Pub. L. 108–78, §§ 107(c), 204(2), tempo- 107(c) of Pub. L. 108–77, see Effective and Ter- rarily added par. (7). Former par. (7) redesignated (8). mination Dates of 2003 Amendments note below. See Effective and Termination Dates of 2003 Amend- ments note below. REFERENCES IN TEXT Pub. L. 108–77, §§ 107(c), 205(a)(1)(A), temporarily redesignated par. (6) as (7). See Effective and Termi- Section 202 of the United States-Chile Free Trade nation Dates of 2003 Amendments note below. Agreement Implementation Act, referred to in subsecs. Subsec. (c)(8). Pub. L. 108–78, §§ 107(c), 204(1), tempo- (c)(6) and (g)(1), is section 202 of Pub. L. 108–77, which rarily redesignated par. (7) as (8). See Effective and is set out in a note under section 3805 of this title. Termination Dates of 2003 Amendments note below. Section 202 of the United States-Singapore Free Subsec. (g). Pub. L. 108–77, §§ 107(c), 205(a)(2), tempo- Trade Agreement Implementation Act, referred to in rarily added subsec. (g). See Effective and Termination subsec. (c)(7)(A), is section 202 of Pub. L. 108–78, which Dates of 2003 Amendments note below. is set out in a note under section 3805 of this title. 1999—Subsec. (c)(4)(A)(i), (B). Pub. L. 106–36 amended Section 203 of the United States-Australia Free Trade Pub. L. 103–182, § 621(4)(A). See 1993 Amendment notes Agreement Implementation Act, referred to in subsec. below. (c)(8)(A), is section 203 of Pub. L. 108–286, which is set 1996—Subsec. (a)(1). Pub. L. 104–295, § 3(a)(4)(A), sub- out in a note under section 3805 of this title. stituted ‘‘lawful duty, tax, or fee’’ for ‘‘lawful duty’’. Section 203 of the United States-Peru Trade Pro- Subsecs. (b)(1)(A)(vi), (c)(2)(A)(ii), (3)(A)(ii). Pub. L. motion Agreement Implementation Act, referred to in 104–295, § 3(a)(4)(B), substituted ‘‘lawful duties, taxes, subsecs. (c)(10) and (i)(1), is section 203 of Pub. L. and fees’’ for ‘‘lawful duties’’. 110–138, which is set out in a note under section 3805 of Subsec. (c)(4)(A)(i), (B). Pub. L. 104–295, § 21(e)(12), this title. amended Pub. L. 103–182, § 621(4)(A). See 1993 Amend- PRIOR PROVISIONS ment notes below. Pub. L. 104–295, § 3(a)(4)(B), substituted ‘‘lawful du- Provisions similar to those in this section were con- ties, taxes, and fees’’ for ‘‘lawful duties’’ in two places. tained in act Oct. 3, 1913, ch. 16, § III, H, 38 Stat. 183, Subsec. (d). Pub. L. 104–295, § 21(e)(13), inserted comma which was superseded by act Sept. 21, 1922, ch. 356, title after ‘‘taxes’’ in heading. IV, § 592, 42 Stat. 982, and was repealed by section 643 Pub. L. 104–295, § 3(a)(5), substituted ‘‘and fees be re- thereof. Section 592 of the 1922 act was superseded by stored’’ for ‘‘or fees be restored’’. section 592 of act June 17, 1930, comprising this section, 1993—Subsec. (a)(1)(A)(i). Pub. L. 103–182, § 621(1), in- and repealed by section 651(a)(1) of the 1930 act. serted ‘‘or electronically transmitted data or informa- The provisions of section III, H, of the 1913 act were tion’’ after ‘‘document’’. substituted for provisions of the same nature made by Subsec. (a)(2). Pub. L. 103–182, § 621(2), inserted at end the Customs Administrative Act of June 10, 1890, ch. ‘‘The mere nonintentional repetition by an electronic 407, §§ 6, 9, 26 Stat. 134, 135, amended and reenacted by system of an initial clerical error does not constitute a Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 pattern of negligent conduct.’’ Stat. 95, 97. Subsec. (b)(1)(A). Pub. L. 103–182, § 621(3)(A), sub- Those provisions superseded similar provisions made stituted ‘‘the Customs Service’’ for ‘‘the appropriate by R.S. § 2864, as amended by act Feb. 18, 1875, ch. 80, 18 customs officer’’, ‘‘it shall issue’’ for ‘‘he shall issue’’ Stat. 319, prior to repeal by act Sept. 21, 1922, ch. 356, and ‘‘its intention’’ for ‘‘his intention’’ in introductory title IV, § 642, 42 Stat. 989. provisions. R.S. § 2839 provided for forfeiture of merchandise en- Subsec. (b)(2). Pub. L. 103–182, § 621(3)(B), substituted tered, but not invoiced according to the actual cost at ‘‘the Customs Service shall determine’’ for ‘‘the appro- the place of exportation, with the design to evade pay- priate customs officer shall determine’’, ‘‘the Customs ment of duty. It was repealed by the Customs Adminis- Service determines’’ for ‘‘such officer determines’’ in § 1592 TITLE 19—CUSTOMS DUTIES Page 244 two places, ‘‘it shall’’ for ‘‘he shall’’ in two places, and to in such invoice, declaration, affidavit, letter, paper, ‘‘the Customs Service shall provide’’ for ‘‘the appro- or statement;’’. priate customs officer shall provide’’. Subsec. (c)(4). Pub. L. 103–182, § 621(4)(B), inserted at EFFECTIVE AND TERMINATION DATES OF 2007 end ‘‘For purposes of this section, a formal investiga- AMENDMENT tion of a violation is considered to be commenced with Amendment by Pub. L. 110–138 effective on the date regard to the disclosing party and the disclosed infor- the United States-Peru Trade Promotion Agreement mation on the date recorded in writing by the Customs enters into force (Feb. 1, 2009) and to cease to be effec- Service as the date on which facts and circumstances tive on the date the Agreement ceases to be in force, were discovered or information was received which see section 107(a), (c) of Pub. L. 110–138, set out in a caused the Customs Service to believe that a possibil- note under section 3805 of this title. ity of a violation of subsection (a) of this section existed.’’ EFFECTIVE AND TERMINATION DATES OF 2005 Subsec. (c)(4)(A)(i). Pub. L. 103–182, § 621(4)(A), as AMENDMENT amended by Pub. L. 104–295, § 21(e)(12); Pub. L. 106–36, Amendment by Pub. L. 109–53 effective on the date § 1001(b)(8), substituted ‘‘time of disclosure, or within 30 the Dominican Republic-Central America-United days (or such longer period as the Customs Service may States Free Trade Agreement enters into force (Mar. 1, provide) after notice by the Customs Service of its’’ for 2006) and to cease to have effect on date Agreement ‘‘time of disclosure or within thirty days, or such ceases to be in force with respect to the United States, longer period as the appropriate customs officer may and, during any period in which a country ceases to be provide, after notice by the appropriate customs officer a CAFTA–DR country, to cease to have effect with re- of his’’. spect to such country, see section 107 of Pub. L. 109–53, Subsec. (c)(4)(B). Pub. L. 103–182, § 621(4)(A), as amend- set out as an Effective and Termination Dates note ed by Pub. L. 104–295, § 21(e)(12); Pub. L. 106–36, under section 4001 of this title. § 1001(b)(8), which directed the substitution of ‘‘time of disclosure, or within 30 days (or such longer period as EFFECTIVE AND TERMINATION DATES OF 2004 the Customs Service may provide) after notice by the AMENDMENT Customs Service of its’’ for ‘‘time of disclosure, or within 30 days, or such longer period as the appropriate Amendment by Pub. L. 108–286 effective on the date customs officer may provide, after notice by the appro- on which the United States-Australia Free Trade priate customs officer of his’’, was executed by making Agreement enters into force (Jan. 1, 2005) and to cease the substitution for text which began ‘‘time of disclo- to be effective on the date on which the Agreement ter- sure or within 30 days’’, to reflect the probable intent minates, see section 106(a), (c) of Pub. L. 108–286, set of Congress. out in a note under section 3805 of this title. Subsec. (c)(5), (6). Pub. L. 103–182, § 205(c)(1), added EFFECTIVE AND TERMINATION DATES OF 2003 par. (5) and redesignated former par. (5) as (6). AMENDMENTS Subsec. (d). Pub. L. 103–182, § 621(5), inserted ‘‘, taxes or fees’’ after ‘‘duties’’ in heading and in text sub- Amendment by Pub. L. 108–78 effective on the date stituted ‘‘duties, taxes, or fees’’ for ‘‘duties’’ in two the United States-Singapore Free Trade Agreement en- places and ‘‘the Customs Service’’ for ‘‘the appropriate ters into force (Jan. 1, 2004), and to cease to be effective customs officer’’. on the date the Agreement ceases to be in force, see Subsec. (f). Pub. L. 103–182, § 205(c)(2), added subsec. section 107(a), (c) of Pub. L. 108–78, set out in a note (f). under section 3805 of this title. 1986—Subsec. (c)(4)(B). Pub. L. 99–514 substituted ‘‘In- Amendment by Pub. L. 108–77 effective on the date ternal Revenue Code of 1986’’ for ‘‘Internal Revenue the United States-Chile Free Trade Agreement enters Code of 1954’’, which for purposes of codification was into force (Jan. 1, 2004), and to cease to be effective on translated as ‘‘title 26’’ thus requiring no change in the date the Agreement ceases to be in force, see sec- text. tion 107(a), (c) of Pub. L. 108–77, set out in a note under 1980—Subsec. (e). Pub. L. 96–417 substituted in head- section 3805 of this title. ing ‘‘Court of International Trade’’ for ‘‘District court’’ and in text ‘‘proceeding commenced by the United EFFECTIVE DATE OF 1996 AMENDMENT States in the Court of International Trade’’ for ‘‘pro- Amendment by section 3(a)(4), (5) of Pub. L. 104–295 ceeding in a United States district court commenced by applicable as of Dec. 8, 1993, see section 3(b) of Pub. L. the United States pursuant to section 1604 of this 104–295, set out as a note under section 1321 of this title. title’’. 1978—Pub. L. 95–410 substituted subsecs. (a) to (e) re- EFFECTIVE DATE OF 1993 AMENDMENT lating to penalties for fraud, gross negligence, and negligence for prior provisions which: provided for forfeit- Amendment by section 205(c) of Pub. L. 103–182 effec- ure of merchandise, or recovery of value thereof, where tive on the date the North American Free Trade Agree- entry or attempted entry of the merchandise was made ment enters into force with respect to the United using fraudulent or false invoice, declaration, affidavit, States [Jan. 1, 1994], see section 213(b) of Pub. L. letter, paper, or false statement, written or verbal, 103–182, set out as an Effective Date note under section false or fraudulent practice or appliance, or false state- 3331 of this title. ment in a declaration on entry without reasonable EFFECTIVE DATE OF 1980 AMENDMENT cause to believe the truth of the statement or aided or procured the making any such false statement as to Amendment by Pub. L. 96–417 applicable with respect any material matter without reasonable cause to be- to civil actions commenced on or after 90th day after lieve the truth of the statement, regardless of depriva- Nov. 1, 1980, see section 701(c)(2) of Pub. L. 96–417, set tion of lawful duties, or guilty of any willful act or out as a note under section 251 of Title 28, Judiciary omission when there was a deprivation of such duties; and Judicial Procedure. made the forfeiture applicable to the whole of the mer- EFFECTIVE DATE OF 1978 AMENDMENT chandise or the value thereof where package contained the particular articles to which the fraud or false paper Section 110(f) of Pub. L. 95–410 provided that: or statement related; and defined attempt to enter the ‘‘(1)(A) Except as provided in subparagraphs (B) and merchandise without an actual entry having been made (C), subsections (a), (b), and (c) (other than new sub- or offered. section (e) of section 592 of the Tariff Act of 1930 as 1935—Act Aug. 5, 1935, inserted ‘‘whether or not the added by subsection (a)) [subsec. (a), (b), and (c), not in- United States shall or may be deprived of the lawful cluding (e) of this section] shall be effective with re- duties, or any portion thereof, accruing upon the mer- spect to proceedings commenced after the 89th day chandise, or any portion thereof, embraced or referred after the date of enactment of this Act [Oct. 3, 1978]. Page 245 TITLE 19—CUSTOMS DUTIES § 1592a

‘‘(B) Except as provided in subparagraph (C), section (B) if a petition with respect to that claim 592 of the Tariff Act of 1930 [this section] (as such sec- has been filed under section 1618 of this title, tion existed on the day before the date of enactment of against whom a final decision has been is- this Act) [Oct. 3, 1978] shall apply to any alleged intentional violation thereof involving television receivers sued under such section after exhaustion of that are the product of Japan and that were or are the administrative remedies, subject of antidumping proceedings if the alleged inten- citing any of the violations of the customs tional violation— laws referred to in paragraph (2). Such list ‘‘(i) occurred before the date of enactment of this Act, and shall be published not later than March 31 and ‘‘(ii) was the subject of an investigation by the Cus- September 30 of each year. toms Service which was begun before the date of en- (2) Violations actment of this Act. ‘‘(C) Except as provided in the next sentence, sub- The violations of the customs laws referred section (e) of section 592 of the Tariff Act of 1930 (as to in paragraph (1) are the following: added by subsection (a)) [subsec. (e) of this section] (A) Using documentation, or providing shall be effective on the date of enactment of this Act documentation subsequently used by the im- [Oct. 3, 1978]. Notwithstanding any provision of law, in porter of record, which indicates a false or any proceeding in a United States district court com- fraudulent country of origin or source of tex- menced by the United States pursuant to section 604 of tile or apparel products. the Tariff Act of 1930 [section 1604 of this title] for the (B) Using counterfeit visas, licenses, per- recovery of any monetary penalty claimed under section 592 of such Act [this section] for an alleged inten- mits, bills of lading, or similar documenta- tional violation described in subparagraph (B)— tion, or providing counterfeit visas, licenses, ‘‘(i) all issues, including the amount of the penalty, permits, bills of lading, or similar docu- shall be tried de novo; and mentation that is subsequently used by the ‘‘(ii) the United States shall have the burden of importer of record, with respect to the entry proof to establish such violation by a preponderance into the customs territory of the United of the evidence. ‘‘(2)(A) The amendment made by subsection (e) [to States of textile or apparel products. section 1621 of this title] shall apply with respect to al- (C) Manufacturing, producing, supplying, leged violations of section 592 of the Tariff Act of 1930 or selling textile or apparel products which [this section] resulting from gross negligence or neg- are falsely or fraudulently labelled as to ligence which are committed on or after the date of the country of origin or source. enactment of this Act [Oct. 3, 1978]. (D) Engaging in practices which aid or ‘‘(B) In the case of any alleged violation of such sec- abet the transshipment, through a country tion 592 [this section] resulting from gross negligence or negligence which was committed before the date of other than the country of origin, of textile the enactment of this Act [Oct. 3, 1978] and for which or apparel products in a manner which con- no suit or action for recovery was commenced before ceals the true origin of the textile or apparel such date of enactment, no suit or action for recovery products or permits the evasion of quotas with respect to such alleged violation shall be insti- on, or voluntary restraint agreements with tuted after— respect to, imports of textile or apparel ‘‘(i) the closing date of the 5-year period beginning on the date on which the alleged violation was com- products. mitted, or (3) Removal from list ‘‘(ii) the closing date of the 2-year period beginning Any person whose name has been included in on such date of enactment, whichever date later occurs, except that no such suit or a list published under paragraph (1) may peti- action may be instituted after the date on which such tion the Secretary to be removed from such suit or action would have been barred under section 621 list. If the Secretary finds that such person of the Tariff Act of 1930 [section 1621 of this title] (as has not committed any violations described in in effect on the day before such date of enactment).’’ paragraph (2) for a period of not less than 3 TRANSFER OF FUNCTIONS years after the date on which the person’s name was so published, the Secretary shall re- For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the move such person from the list as of the next Department of the Treasury, including functions of the publication of the list under paragraph (1). Secretary of the Treasury relating thereto, to the Sec- (4) Reasonable care required for subsequent retary of Homeland Security, and for treatment of re- imports lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department (A) Responsibility of importers and others of Homeland Security Reorganization Plan of Novem- After the name of a person has been pub- ber 25, 2002, as modified, set out as a note under section lished under paragraph (1), the Secretary of 542 of Title 6. the Treasury shall require any importer of § 1592a. Special provisions regarding certain vio- record entering, introducing, or attempting lations to introduce into the commerce of the United States textile or apparel products (a) Publication of names of certain violators that were either directly or indirectly pro- (1) Publication duced, manufactured, supplied, sold, ex- The Secretary of the Treasury is authorized ported, or transported by such named person to publish in the Federal Register a list of the to show, to the satisfaction of the Secretary, name of any producer, manufacturer, supplier, that such importer has exercised reasonable seller, exporter, or other person located out- care to ensure that the textile or apparel side the customs territory of the United products are accompanied by documenta- States— tion, packaging, and labelling that are accu- (A) against whom the Customs Service has rate as to its origin. Such reasonable care issued a penalty claim under section 1592 of shall not include reliance solely on a source this title, and of information which is the named person. § 1593 TITLE 19—CUSTOMS DUTIES Page 246

(B) Failure to exercise reasonable care AMENDMENTS If the Customs Service determines that 1996—Subsec. (a)(3). Pub. L. 104–295 substituted ‘‘list merchandise is not from the country under paragraph (1)’’ for ‘‘list under paragraph (2)’’. claimed on the documentation accompany- EFFECTIVE DATE ing the merchandise, the failure to exercise reasonable care described in subparagraph Section effective on the date on which the WTO Agreement enters into force with respect to the United (A) shall be considered when the Customs States [Jan. 1, 1995], see section 335 of Pub. L. 103–465, Service determines whether the importer of set out as a note under section 3591 of this title. record is in violation of section 1484(a) of this title. TRANSFER OF FUNCTIONS (b) List of high risk countries For transfer of functions, personnel, assets, and li- (1) List abilities of the United States Customs Service of the Department of the Treasury, including functions of the The President or his designee, upon the ad- Secretary of the Treasury relating thereto, to the Sec- vice of the Secretaries of Commerce and retary of Homeland Security, and for treatment of re- Treasury, and the heads of other appropriate lated references, see sections 203(1), 551(d), 552(d), and departments and agencies, is authorized to 557 of Title 6, Domestic Security, and the Department publish a list of countries in which illegal ac- of Homeland Security Reorganization Plan of Novem- tivities have occurred involving transshipped ber 25, 2002, set out as a note under section 542 of Title 6. textile or apparel products or activities designed to evade quotas of the United States on § 1593. Repealed. June 25, 1948, ch. 645, § 21, 62 textile or apparel products, if those countries Stat. 862, eff. Sept. 1, 1948 fail to demonstrate a good faith effort to cooperate with United States authorities in Section, act June 17, 1930, ch. 497, title IV, § 593, 46 ceasing such activities. Such list shall be pub- Stat. 751, related to smuggling and clandestine importations. See section 545 of Title 18, Crimes and Criminal lished in the Federal Register not later than Procedure. March 31 of each year. Any country that is on the list and that subsequently demonstrates a § 1593a. Penalties for false drawback claims good faith effort to cooperate with United (a) Prohibition States authorities in ceasing illegal activities described in the first sentence shall be re- (1) General rule moved from the list, and such removal shall be No person, by fraud, or negligence— published in the Federal Register as soon as (A) may seek, induce or affect, or attempt practicable. to seek, induce, or affect, the payment or (2) Reasonable care required for subsequent credit to that person or others of any draw- imports back claim by means of— (i) any document, written or oral state- (A) Responsibility of importers of record ment, or electronically transmitted data The Secretary of the Treasury shall re- or information, or act which is material quire any importer of record entering, intro- and false, or ducing, or attempting to introduce into the (ii) any omission which is material; or commerce of the United States textile or apparel products indicated, on the documenta- (B) may aid or abet any other person to tion, packaging, or labelling accompanying violate subparagraph (A). such products, to be from any country on (2) Exception the list published under paragraph (1) to Clerical errors or mistakes of fact are not show, to the satisfaction of the Secretary, violations of paragraph (1) unless they are part that such importer, consignee, or purchaser of a pattern of negligent conduct. The mere has exercised reasonable care to ascertain nonintentional repetition by an electronic sys- the true country of origin of the textile or tem of an initial clerical error does not con- apparel products. stitute a pattern of negligent conduct. (B) Failure to exercise reasonable care (b) Procedures If the Customs Service determines that (1) Prepenalty notice merchandise is not from the country (A) In general claimed on the documentation accompanying the merchandise, the failure to exercise If the Customs Service has reasonable reasonable care described in subparagraph cause to believe that there has been a viola- (A) shall be considered when the Customs tion of subsection (a) of this section and de- Service determines whether the importer of termines that further proceedings are war- record is in violation of section 1484(a) of ranted, the Customs Service shall issue to this title. the person concerned a written notice of in- (3) ‘‘Country’’ defined tent to issue a claim for a monetary penalty. Such notice shall— For purposes of this subsection, the term (i) identify the drawback claim; ‘‘country’’ means a foreign country or terri- (ii) set forth the details relating to the tory, including any overseas dependent terri- seeking, inducing, or affecting, or the at- tory or possession of a foreign country. tempted seeking, inducing, or affecting, or (June 17, 1930, ch. 497, title IV, § 592A, as added the aiding or procuring of, the drawback Pub. L. 103–465, title III, § 333, Dec. 8, 1994, 108 claim; Stat. 4947; amended Pub. L. 104–295, § 20(c)(3), (iii) specify all laws and regulations al- Oct. 11, 1996, 110 Stat. 3528.) legedly violated; Page 247 TITLE 19—CUSTOMS DUTIES § 1593a

(iv) disclose all the material facts which the same issue, the penalty amount for the establish the alleged violation; 2d violation shall be in an amount not to ex- (v) state whether the alleged violation ceed 50 percent of the total actual or poten- occurred as a result of fraud or negligence; tial loss of revenue. The penalty amount for (vi) state the estimated actual or poten- each succeeding repetitive negligent viola- tial loss of revenue due to the drawback tion shall be in an amount not to exceed the claim, and, taking into account all cir- actual or potential loss of revenue. If the cumstances, the amount of the proposed same party commits a nonrepetitive viola- monetary penalty; and tion, that violation shall be subject to a pen- (vii) inform such person that he shall alty not to exceed 20 percent of the actual or have a reasonable opportunity to make potential loss of revenue. representations, both oral and written, as to why a claim for a monetary penalty (3) Prior disclosure should not be issued in the amount stated. (A) In general (B) Exceptions Subject to subparagraph (B), if the person The Customs Service may not issue a pre- concerned discloses the circumstances of a penalty notice if the amount of the penalty violation of subsection (a) of this section be- in the penalty claim issued under paragraph fore, or without knowledge of the com- (2) is $1,000 or less. In such cases, the Cus- mencement of, a formal investigation of toms Service may proceed directly with a such violation, the monetary penalty as- penalty claim. sessed under this subsection may not ex- (C) Prior approval ceed— (i) if the violation resulted from fraud, No prepenalty notice in which the alleged an amount equal to the actual or potential violation occurred as a result of fraud shall revenue of which the United States is or be issued without the prior approval of Cus- may be deprived as a result of overpay- toms Headquarters. ment of the claim; or (2) Penalty claim (ii) if the violation resulted from neg- After considering representations, if any, ligence, an amount equal to the interest made by the person concerned pursuant to the computed on the basis of the prevailing notice issued under paragraph (1), the Customs rate of interest applied under section 6621 Service shall determine whether any violation of title 26 on the amount of actual revenue of subsection (a) of this section, as alleged in of which the United States is or may be de- the notice, has occurred. If the Customs Serv- prived during the period that— ice determines that there was no violation, (I) begins on the date of the overpay- the Customs Service shall promptly issue a ment of the claim; and written statement of the determination to the (II) ends on the date on which the per- person to whom the notice was sent. If the son concerned tenders the amount of the Customs Service determines that there was a overpayment. violation, Customs shall issue a written pen- (B) Condition affecting penalty limitations alty claim to such person. The written penalty claim shall specify all changes in the informa- The limitations in subparagraph (A) on the tion provided under clauses (i) through (vii) of amount of the monetary penalty to be as- paragraph (1)(A). Such person shall have a rea- sessed under this subsection apply only if sonable opportunity under section 1618 of this the person concerned tenders the amount of title to make representations, both oral and the overpayment made on the claim at the written, seeking remission or mitigation of time of disclosure, or within 30 days (or such the monetary penalty. At the conclusion of longer period as the Customs Service may any proceeding under section 1618 of this title, provide), after notice by the Customs Serv- the Customs Service shall provide to the per- ice of its calculation of the amount of the son concerned a written statement which sets overpayment. forth the final determination, and the findings (C) Burden of proof of fact and conclusions of law on which such The person asserting lack of knowledge of determination is based. the commencement of a formal investigation (c) Maximum penalties has the burden of proof in establishing such (1) Fraud lack of knowledge. A fraudulent violation of subsection (a) of (4) Commencement of investigation this section is punishable by a civil penalty in For purposes of this section, a formal inves- an amount not to exceed 3 times the actual or tigation of a violation is considered to be com- potential loss of revenue. menced with regard to the disclosing party (2) Negligence and the disclosed information on the date re- (A) In general corded in writing by the Customs Service as A negligent violation of subsection (a) of the date on which facts and circumstances this section is punishable by a civil penalty were discovered or information was received in an amount not to exceed 20 percent of the which caused the Customs Service to believe actual or potential loss of revenue for the 1st that a possibility of a violation of subsection violation. (a) of this section existed. (B) Repetitive violations (5) Exclusivity If the Customs Service determines that a Penalty claims under this section shall be repeat negligent violation occurs relating to the exclusive civil remedy for any drawback § 1593a TITLE 19—CUSTOMS DUTIES Page 248

related violation of subsection (a) of this sec- (A) has been certified as a participant in tion. the drawback compliance program under (d) Deprivation of lawful revenue subsection (e) of this section; and (B) is generally in compliance with the ap- Notwithstanding section 1514 of this title, if propriate procedures and requirements of the United States has been deprived of lawful the program; duties and taxes resulting from a violation of subsection (a) of this section, the Customs Serv- commits a violation of subsection (a) of this ice shall require that such duties and taxes be section, the Customs Service, shall, in the ab- restored whether or not a monetary penalty is sence of fraud or repeated violations, and in assessed. lieu of a monetary penalty, issue a written no- (e) Drawback compliance program tice of the violation to the party. Repeated violations by a party may result in the issu- (1) In general ance of penalties and removal of certification After consultation with the drawback trade under the program until corrective action, community, the Customs Service shall estab- satisfactory to the Customs Service, is taken. lish a drawback compliance program in which (2) Contents of notice claimants and other parties in interest may participate after being certified by the Cus- A notice of violation issued under paragraph toms Service under paragraph (2). Participa- (1) shall— tion in the drawback compliance program is (A) state that the party has violated sub- voluntary. section (a) of this section; (B) explain the nature of the violation; and (2) Certification (C) warn the party that future violations A party may be certified as a participant in of subsection (a) of this section may result the drawback compliance program after meet- in the imposition of monetary penalties. ing the general requirements established (3) Response to notice under the program or after negotiating an alternative program suited to the needs of the Within a reasonable time after receiving party and the Customs Service. Certification written notice under paragraph (1), the party requirements shall take into account the size shall notify the Customs Service of the steps and nature of the party’s drawback program it has taken to prevent a recurrence of the and the volume of claims. In order to be cer- violation. tified, the participant must be able to dem- (g) Repetitive violations onstrate that it— (1) A party who has been issued a written no- (A) understands the legal requirements for tice under subsection (f)(1) of this section and filing claims, including the nature of the subsequently commits a repeat negligent viola- records required to be maintained and pro- tion involving the same issue is subject to the duced and the time periods involved; following monetary penalties: (B) has in place procedures to explain the Customs Service requirements to those em- (A) 2d violation ployees that are involved in the preparation An amount not to exceed 20 percent of the of claims, and the maintenance and produc- loss of revenue. tion of required records; (B) 3rd violation (C) has in place procedures regarding the An amount not to exceed 50 percent of the preparation of claims and maintenance of re- loss of revenue. quired records, and the production of such records to the Customs Service; (C) 4th and subsequent violations (D) has designated a dependable individual An amount not to exceed 100 percent of the or individuals to be responsible for compli- loss of revenue. ance under the program and whose duties include maintaining familiarity with the (2) If a party that has been certified as a par- drawback requirements of the Customs Serv- ticipant in the drawback compliance program ice; under subsection (e) of this section commits an (E) has a record maintenance procedure alleged violation which was not repetitive, the approved by the Customs Service for origi- party shall be issued a ‘‘warning letter’’, and, for nal records, or, if approved by the Customs any subsequent violation, shall be subject to the Service, for alternate records or record- same maximum penalty amounts stated in para- keeping formats other than the original graph (1). records; and (h) Regulation (F) has procedures for notifying the Cus- The Secretary shall promulgate regulations toms Service of variances to, and violations and guidelines to implement this section. Such of, the requirements of the drawback com- regulations shall specify that for purposes of pliance program or any negotiated alter- subsections (c) and (g) of this section, a repeat native programs, and for taking corrective negligent violation involving the same issue action when notified by the Customs Service shall be treated as a repetitive violation for a for violations or problems regarding such maximum period of 3 years. program. (i) Court of International Trade proceedings (f) Alternatives to penalties Notwithstanding any other provision of law, in (1) In general any proceeding commenced by the United States When a party that— in the Court of International Trade for the re- Page 249 TITLE 19—CUSTOMS DUTIES § 1594 covery of any monetary penalty claimed under as a common carrier is subject to seizure and this section— forfeiture under the customs laws for violations (1) all issues, including the amount of the relating to merchandise contained— penalty, shall be tried de novo; (A) on the person; (2) if the monetary penalty is based on fraud, (B) in baggage belonging to and accompany- the United States shall have the burden of ing a passenger being lawfully transported on proof to establish the alleged violation by such conveyance; or clear and convincing evidence; and (C) in the cargo of the conveyance if the (3) if the monetary penalty is based on neg- cargo is listed on the manifest and marks, ligence, the United States shall have the bur- numbers, weights and quantities of the outer den of proof to establish the act or omission packages or containers agree with the mani- constituting the violation, and the alleged vio- fest; lator shall have the burden of providing evi- unless the owner or operator, or the master, dence that the act or omission did not occur as pilot, conductor, driver or other person in a result of negligence. charge participated in, or had knowledge of, the (June 17, 1930, ch. 497, title IV, § 593A, as added violation, or was grossly negligent in preventing Pub. L. 103–182, title VI, § 622(a), Dec. 8, 1993, 107 or discovering the violation. Stat. 2181; amended Pub. L. 108–429, title I, (2) Except as provided in paragraph (1) or sub- § 1563(f), Dec. 3, 2004, 118 Stat. 2587.) section (c) of this section, no vessel, vehicle, or aircraft is subject to forfeiture to the extent of AMENDMENTS an interest of an owner for a drug-related of- 2004—Subsec. (h). Pub. L. 108–429 substituted ‘‘sub- fense established by that owner to have been sections (c) and (g)’’ for ‘‘subsection (g)’’. committed or omitted without the knowledge, consent, or willful blindness of the owner. EFFECTIVE DATE OF 2004 AMENDMENT (c) Prohibited merchandise on conveyance Amendment by Pub. L. 108–429 effective Dec. 3, 2004, and applicable to drawback entries filed on or after If any merchandise the importation of which Dec. 3, 2004, and to those filed before Dec. 3, 2004, if liq- is prohibited is found to be, or to have been— uidation of the drawback entry is not final on Dec. 3, (1) on board a conveyance used as a common 2004, see section 1563(g)(1) of Pub. L. 108–429, set out as carrier in the transaction of business as a a note under section 1313 of this title. common carrier in one or more packages or EFFECTIVE DATE containers— (A) that are not manifested (or not shown Section 622(b) of Pub. L. 103–182 provided that: ‘‘The on bills of lading or airway bills); or amendment made by subsection (a) [enacting this sec- (B) whose marks, numbers, weight or tion] applies to drawback claims filed on and after the nationwide operational implementation of an auto- quantities disagree with the manifest (or mated drawback selectivity program by the Customs with the bills of lading or airway bills); or Service. The Customs Service shall publish notice of (2) concealed in or on such a conveyance, but this date in the Customs Bulletin.’’ not in the cargo; TRANSFER OF FUNCTIONS the conveyance may be seized, and after inves- For transfer of functions, personnel, assets, and litigation, forfeited unless it is established that abilities of the United States Customs Service of the neither the owner or operator, master, pilot, nor Department of the Treasury, including functions of the any other employee responsible for maintaining Secretary of the Treasury relating thereto, to the Sec- and insuring the accuracy of the cargo manifest retary of Homeland Security, and for treatment of re- knew, or by the exercise of the highest degree of lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department care and diligence could have known, that such of Homeland Security Reorganization Plan of Novem- merchandise was on board. ber 25, 2002, as modified, set out as a note under section (d) Definitions 542 of Title 6. For purposes of this section— § 1594. Seizure of conveyances (1) The term ‘‘owner or operator’’ includes— (A) a lessee or person operating a convey- (a) In general ance under a rental agreement or charter Whenever— party; and (1) any vessel, vehicle, or aircraft; or (B) the officers and directors of a corpora- (2) the owner or operator, or the master, tion; pilot, conductor, driver, or other person in (C) station managers and similar super- charge of a vessel, vehicle, or aircraft; visory ground personnel employed by air- lines; is subject to a penalty for violation of the cus- (D) one or more partners of a partnership; toms laws, the conveyance involved shall be (E) representatives of the owner or opera- held for the payment of such penalty and may be tor in charge of the passenger or cargo oper- seized and forfeited and sold in accordance with ations at a particular location; and the customs laws. The proceeds of sale, if any, in (F) and other persons with similar respon- excess of the assessed penalty and expenses of sibilities. seizing, maintaining, and selling the property (2) The term ‘‘master’’ and similar terms re- shall be held for the account of any interested lating to the person in charge of a conveyance party. includes the purser or other person on the con- (b) Exceptions veyance who is responsible for maintaining (1) No conveyance used by any person as a records relating to the cargo transported in common carrier in the transaction of business the conveyance. § 1595 TITLE 19—CUSTOMS DUTIES Page 250

(e) Costs and expenses of seizure to any justice of the peace, to any municipal, When a common carrier has been seized in ac- county, State, or Federal judge, or to any Fed- cordance with the provisions of subsection (c) of eral magistrate judge, and shall thereupon be this section and it is subsequently determined entitled to a warrant to enter such dwelling that a violation of such subsection occurred but house in the daytime only, or such store or that the vessel will be released, the conveyance other place at night or by day, and to search for is liable for the costs and expenses of the seizure and seize such merchandise or other article de- and detention. scribed in the warrant. (2) If any house, store, or other building or (June 17, 1930, ch. 497, title IV, § 594, 46 Stat. 751; place, in which any merchandise or other article Pub. L. 99–570, title III, § 3121, Oct. 27, 1986, 100 subject to forfeiture is found, is upon or within Stat. 3207–86; Pub. L. 100–690, title VI, § 6076(b), 10 feet of the boundary line between the United Nov. 18, 1988, 102 Stat. 4324.) States and a foreign country, such portion PRIOR PROVISIONS thereof that is within the United States may be Provisions substantially similar to subsec. (a) of this taken down or removed. section, so far as it relates to vessels, except that they referred to the ‘‘revenue laws,’’ instead of the ‘‘customs (b) Entry upon property of others laws,’’ were contained in R.S. § 3088. Provisions sub- Any person authorized by this chapter to stantially similar to subsec. (b), so far as it relates to make searches and seizures, or any person as- vessels, were contained in act Feb. 8, 1881, ch. 34, 21 sisting him or acting under his directions, may, Stat. 322. Provisions similar to subsec. (b), except that if deemed necessary by him or them, enter into they applied to railway cars, engines, other vehicles, and teams, and referred to the owner, superintendent, or upon or pass through the lands, inclosures, or agent of the owner in charge, instead of the ‘‘conduc- and buildings, other than the dwelling house, of tor, driver,’’ etc., were contained in R.S. § 3063. All of any person whomsoever, in the discharge of his these sections were superseded and more closely as- official duties. similated to this section by act Sept. 21, 1922, ch. 356, title IV, § 594, 42 Stat. 982, and repealed by sections 642 (June 17, 1930, ch. 497, title IV, § 595, 46 Stat. 752; and 643 thereof. Section 594 of the 1922 act was super- Pub. L. 91–271, title III, § 301(y), June 2, 1970, 84 seded by section 594 of act June 17, 1930, comprising this Stat. 290; Pub. L. 99–570, title III, § 3122, Oct. 27, section, and repealed by section 651(a)(1) of the 1930 act. 1986, 100 Stat. 3207–87; Pub. L. 101–650, title III, AMENDMENTS § 321, Dec. 1, 1990, 104 Stat. 5117.)

1988—Subsec. (b). Pub. L. 100–690 designated existing PRIOR PROVISIONS provisions as par. (1), redesignated former pars. (1), (2), and (3) as subpars. (A), (B), and (C), respectively, and Provisions similar to those in this section were con- added par. (2). tained in act Sept. 21, 1922, ch. 356, title IV, § 595, 42 1986—Pub. L. 99–570 amended section generally. Prior Stat. 983. That section was superseded by section 595 of to amendment, section catchline read ‘‘Libel of vessels act June 17, 1930, comprising this section, and repealed and vehicles’’ and text read as follows: ‘‘Whenever a by section 651(a)(1) of the 1930 act. vessel or vehicle, or the owner or master, conductor, Provisions somewhat similar to those in subsec. (a), driver, or other person in charge thereof, has become but authorizing searches in the daytime only, with a subject to a penalty for violation of the customs-reve- further provision as to forfeitures, were contained in nue laws of the United States, such vessel or vehicle R.S. § 3066, as amended by act Apr. 25, 1882, ch. 89, 22 shall be held for the payment of such penalty and may Stat. 49. Provisions for searches of buildings on or near be seized and proceeded against summarily by libel to the boundary line, and for seizure and forfeiture of mer- recover the same: Provided, That no vessel or vehicle chandise, and removal of the building, were contained used by any person as a common carrier in the trans- in R.S. § 3107. Provisions empowering persons, author- action of business as such common carrier shall be so ized to make searches and seizures, to enter into or held or subject to seizure or forfeiture under the cus- upon lands, inclosures, and buildings, were contained in toms laws, unless it shall appear that the owner or R.S. § 3065. All of these sections were repealed by act master of such vessel or the conductor, driver, or other Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. person in charge of such vehicle was at the time of the R.S. § 3091, authorized the issuance of a warrant, upon alleged illegal act a consenting party or privy thereto.’’ complaint and affidavit of fraud on the revenue, directing the marshal of the district to enter any place and § 1595. Searches and seizures seize books or papers relating to merchandise in re- (a) Warrant spect to which the alleged fraud was committed, and produce them before the judge. (1) If any officer or person authorized to make R.S. § 3092, provided that no warrant for such seizure searches and seizures has probable cause to be- should be issued unless the complaint should set forth lieve that— the character of the fraud alleged, its nature, the im- (A) any merchandise upon which the duties portations in respect to which it was committed, and have not been paid, or which has been other- the papers to be seized, and required the return of such wise brought into the United States unlaw- warrant as other warrants are returned. fully; R.S. § 3093, provided that books and papers so seized (B) any property which is subject to forfeit- should be subject to the order of the judge, who should allow the examination of the same by the collector or ure under any provision of law enforced or ad- any officer authorized by him, and authorized the re- ministered by the United States Customs tention by the judge of such books and papers as he Service; or might deem necessary. (C) any document, container, wrapping, or The provisions of act July 18, 1866, § 39, and of act other article which is evidence of a violation Mar. 2, 1867, § 2, which were incorporated into these of section 1592 of this title involving fraud or three sections, were repealed by the Anti-Moiety Act of of any other law enforced or administered by June 22, 1874, ch. 391, § 1, 18 Stat. 186. These sections the United States Customs Service, were repealed, therefore, by that act, it having effect as subsequent to the Revised Statutes, and as repealing is in any dwelling house, store, or other building any portion of the revision inconsistent therewith, by or place, he may make application, under oath, virtue of R.S. § 5601. Page 251 TITLE 19—CUSTOMS DUTIES § 1595a

AMENDMENTS (1) The merchandise shall be seized and for- 1986—Subsec. (a). Pub. L. 99–570 amended subsec. (a) feited if it— generally. Prior to amendment, subsec. (a) read as fol- (A) is stolen, smuggled, or clandestinely lows: ‘‘If any officer or person authorized to make imported or introduced; searches and seizures shall have cause to suspect the (B) is a controlled substance, as defined in presence in any dwelling house, store, or other building the Controlled Substances Act (21 U.S.C. 801 or place of any merchandise upon which the duties have et seq.), and is not imported in accordance not been paid, or which has been otherwise brought with applicable law; into the United States contrary to law, he may make (C) is a contraband article, as defined in application, under oath, to any justice of the peace, to any municipal, county, State, or Federal judge, or to section 80302 of title 49; or any United States magistrate, and shall thereupon be (D) is a plastic explosive, as defined in sec- entitled to a warrant to enter such dwelling house in tion 841(q) of title 18, which does not contain the daytime only, or such store or other place at night a detection agent, as defined in section or by day, and to search for and seize such merchan- 841(p) of such title. dise: Provided, That if any such house, store, or other building, or place in which such merchandise shall be (2) The merchandise may be seized and for- found, is upon or within ten feet of the boundary line feited if— between the United States and a foreign country, such (A) its importation or entry is subject to portion thereof as is within the United States may any restriction or prohibition which is im- forthwith be taken down or removed.’’ posed by law relating to health, safety, or 1970—Subsec. (a). Pub. L. 91–271 struck out ‘‘collector conservation and the merchandise is not in of customs or other’’ before ‘‘officer or person’’. compliance with the applicable rule, regula- CHANGE OF NAME tion, or statute; ‘‘Magistrate judge’’ substituted for ‘‘magistrate’’ in (B) its importation or entry requires a li- subsec. (a)(1) pursuant to section 321 of Pub. L. 101–650, cense, permit or other authorization of an set out as a note under section 631 of Title 28, Judiciary agency of the United States Government and and Judicial Procedure. the merchandise is not accompanied by such license, permit, or authorization; EFFECTIVE DATE OF 1970 AMENDMENT (C) it is merchandise or packaging in For effective date of amendment by Pub. L. 91–271, which copyright, trademark, or trade name see section 203 of Pub. L. 91–271, set out as a note under protection violations are involved (includ- section 1500 of this title. ing, but not limited to, violations of section TRANSFER OF FUNCTIONS 1124, 1125, or 1127 of title 15, section 506 of For transfer of functions, personnel, assets, and li- title 17, or section 2318 or 2320 of title 18); abilities of the United States Customs Service of the (D) it is trade dress merchandise involved Department of the Treasury, including functions of the in the violation of a court order citing sec- Secretary of the Treasury relating thereto, to the Sec- tion 1125 of title 15; retary of Homeland Security, and for treatment of re- (E) it is merchandise which is marked in- lated references, see sections 203(1), 551(d), 552(d), and tentionally in violation of section 1304 of 557 of Title 6, Domestic Security, and the Department this title; or of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section (F) it is merchandise for which the im- 542 of Title 6. porter has received written notices that previous importations of identical merchandise § 1595a. Forfeitures and other penalties from the same supplier were found to have (a) Importation, removal, etc. contrary to laws of been marked in violation of section 1304 of United States this title. Except as specified in subsection (b) or (c) of (3) If the importation or entry of the mer- section 1594 of this title, every vessel, vehicle, chandise is subject to quantitative restric- animal, aircraft, or other thing used in, to aid tions requiring a visa, permit, license, or other in, or to facilitate, by obtaining information or similar document, or stamp from the United in any other way, the importation, bringing in, States Government or from a foreign govern- unlading, landing, removal, concealing, harbor- ment or issuing authority pursuant to a bilat- ing, or subsequent transportation of any article eral or multilateral agreement, the merchan- which is being or has been introduced, or at- dise shall be subject to detention in accord- tempted to be introduced, into the United ance with section 1499 of this title unless the States contrary to law, whether upon such ves- appropriate visa, license, permit, or similar sel, vehicle, animal, aircraft, or other thing or document or stamp is presented to the Cus- otherwise, may be seized and forfeited together toms Service; but if the visa, permit, license, with its tackle, apparel, furniture, harness, or or similar document or stamp which is pre- equipment. sented in connection with the importation or (b) Penalty for aiding unlawful importation entry of the merchandise is counterfeit, the Every person who directs, assists financially merchandise may be seized and forfeited. (4) If the merchandise is imported or intro- or otherwise, or is in any way concerned in any duced contrary to a provision of law which unlawful activity mentioned in the preceding governs the classification or value of merchan- subsection shall be liable to a penalty equal to dise and there are no issues as to the admissi- the value of the article or articles introduced or bility of the merchandise into the United attempted to be introduced. States, it shall not be seized except in accord- (c) Merchandise introduced contrary to law ance with section 1592 of this title. Merchandise which is introduced or attempted (5) In any case where the seizure and forfeit- to be introduced into the United States contrary ure of merchandise are required or authorized to law shall be treated as follows: by this section, the Secretary may— §§ 1596 to 1598 TITLE 19—CUSTOMS DUTIES Page 252

(A) remit the forfeiture under section 1618 Department of the Treasury, including functions of the of this title, or Secretary of the Treasury relating thereto, to the Sec- (B) permit the exportation of the merchan- retary of Homeland Security, and for treatment of re- dise, unless its release would adversely af- lated references, see sections 203(1), 551(d), 552(d), and fect health, safety, or conservation or be in 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- contravention of a bilateral or multilateral ber 25, 2002, as modified, set out as a note under section agreement or treaty. 542 of Title 6. (d) Merchandise exported contrary to law §§ 1596 to 1598. Repealed. June 25, 1948, ch. 645, Merchandise exported or sent from the United § 21, 62 Stat. 862, eff. Sept. 1, 1948 States or attempted to be exported or sent from the United States contrary to law, or the pro- Section 1596, act June 17, 1930, ch. 497, title IV, § 596, ceeds or value thereof, and property used to fa- 46 Stat. 752, related to buildings on boundary. See sec- cilitate the exporting or sending of such mer- tion 547 of Title 18, Crimes and Criminal Procedure. Section 1597, act June 17, 1930, ch. 497, title IV, § 597, chandise, the attempted exporting or sending of 46 Stat. 752, related to fraudulent treatment of goods in such merchandise, or the receipt, purchase, warehouses. See section 548 of Title 18. transportation, concealment, or sale of such Section 1598, acts June 17, 1930, ch. 497, title IV, § 598, merchandise prior to exportation shall be seized 46 Stat. 752; June 25, 1938, ch. 679, § 26, 52 Stat. 1089, re- and forfeited to the United States. lated to offenses concerning seals and unlawful removal of goods from custom custody. See section 549 of Title (June 17, 1930, ch. 497, title IV, § 596, as added 18. Sept. 1, 1954, ch. 1213, title V, § 502, 68 Stat. 1140; amended Pub. L. 99–570, title III, § 3123, Oct. 27, § 1599. Officers not to be interested in vessels or 1986, 100 Stat. 3207–87; Pub. L. 103–182, title VI, cargo § 624, Dec. 8, 1993, 107 Stat. 2187; Pub. L. 104–132, No person employed under the authority of the title VI, § 606, Apr. 24, 1996, 110 Stat. 1290; Pub. L. United States, in the collection of duties on im- 109–177, title III, § 311(d), Mar. 9, 2006, 120 Stat. ports or tonnage, shall own, either in whole or 242; Pub. L. 110–403, title II, § 209(b), Oct. 13, 2008, in part, any vessel (other than a yacht or other 122 Stat. 4264.) pleasure boat), or act as agent, attorney, or con- REFERENCES IN TEXT signee for the owner or owners of any vessel, or The Controlled Substances Act, referred to in subsec. of any cargo or lading on board the same; nor (c)(1)(B), is title II of Pub. L. 91–513, Oct. 27, 1970, 84 shall any such person import, or be concerned Stat. 1242, as amended, which is classified principally directly or indirectly in the importation of, any to subchapter I (§ 801 et seq.) of chapter 13 of Title 21, merchandise for sale into the United States. Food and Drugs. For complete classification of this Act Every person who violates this section shall be to the Code, see Short Title note set out under section liable to a penalty of $500. 801 of Title 21 and Tables. (June 17, 1930, ch. 497, title IV, § 599, 46 Stat. 753; CODIFICATION Pub. L. 95–410, title II, § 212, Oct. 3, 1978, 92 Stat. In subsec. (c)(1)(C), ‘‘section 80302 of title 49’’ sub- 904.) stituted for ‘‘section 1 of the Act of August 9, 1939 (49 U.S.C. App. 781)’’ on authority of Pub. L. 103–272, § 6(b), PRIOR PROVISIONS July 5, 1994, 108 Stat. 1378, the first section of which en- Identical provisions were contained in R.S. § 2638, acted subtitles II, III, and V to X of Title 49, Transpor- which was superseded by act Sept. 21, 1922, ch. 356, title tation. IV, § 599, 42 Stat. 984, and repealed by section 642 there- AMENDMENTS of. Section 599 of the 1922 act was superseded by section 599 of act June 17, 1930, comprising this section, and re- 2008—Subsec. (c)(2)(C). Pub. L. 110–403, which directed pealed by section 651(a)(1) of the 1930 act. amendment of section 596(c)(2)(c) of the Tariff Act of 1950 by striking out ‘‘or 509’’, was executed by striking AMENDMENTS out ‘‘or 509’’ after ‘‘506’’ in subsec. (c)(2)(C) of this sec- 1978—Pub. L. 95–410 excepted from the interest prohi- tion, which is section 596 of the Tariff Act of 1930, to re- bition ownership of a yacht or other pleasure boat. flect the probable intent of Congress. 2006—Subsec. (d). Pub. L. 109–177 added subsec. (d). § 1600. Application of the customs laws to other 1996—Subsec. (c)(1)(D). Pub. L. 104–132 added subpar. seizures by customs officers (D). 1993—Subsec. (c). Pub. L. 103–182 amended subsec. (c) The procedures set forth in sections 1602 generally. Prior to amendment, subsec. (c) read as fol- through 1619 of this title shall apply to seizures lows: ‘‘Any merchandise that is introduced or at- of any property effected by customs officers tempted to be introduced into the United States contrary to law (other than in violation of section 1592 of under any law enforced or administered by the this title) may be seized and forfeited.’’ Customs Service unless such law specifies dif- 1986—Subsec. (a). Pub. L. 99–570, § 3123(1), (2), sub- ferent procedures. stituted ‘‘subsection (b) or (c) of section 1594’’ for ‘‘the proviso to section 1594’’ and ‘‘may be seized’’ for ‘‘shall (June 17, 1930, ch. 497, title IV, § 600, as added be seized’’. Pub. L. 98–473, title II, § 323, Oct. 12, 1984, 98 Stat. Subsec. (c). Pub. L. 99–570, § 3123(3), added subsec. (c). 2057.)

EFFECTIVE DATE OF 1996 AMENDMENT PRIOR PROVISIONS Amendment by Pub. L. 104–132 effective 1 year after A prior section 600 of act June 17, 1930, ch. 497, title Apr. 24, 1996, see section 607 of Pub. L. 104–132, set out IV, 46 Stat. 753, related to gratuities, prior to repeal by as a note under section 841 of Title 18, Crimes and act June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, Criminal Procedure. 1948.

TRANSFER OF FUNCTIONS TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the abilities of the United States Customs Service of the Page 253 TITLE 19—CUSTOMS DUTIES § 1603

Department of the Treasury, including functions of the in the same manner as provided for a search Secretary of the Treasury relating thereto, to the Sec- warrant under the Federal Rules of Criminal retary of Homeland Security, and for treatment of re- Procedure. This authority is in addition to any lated references, see sections 203(1), 551(d), 552(d), and seizure authority otherwise provided by law. 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- (b) Whenever a seizure of merchandise for vio- ber 25, 2002, as modified, set out as a note under section lation of the customs laws is made, or a viola- 542 of Title 6. tion of the customs laws is discovered, and legal proceedings by the United States attorney in §§ 1601, 1601a. Repealed. June 25, 1948, ch. 645, connection with such seizure or discovery are § 21, 62 Stat. 862, eff. Sept. 1, 1948 required, it shall be the duty of the appropriate customs officer to report promptly such seizure Section 1601, act June 17, 1930, ch. 497, title IV, § 601, 46 Stat. 753, related to bribery. or violation to the United States attorney for Section 1601a, act Aug. 5, 1935, ch. 438, title III, § 309, the district in which such violation has oc- 49 Stat. 528, related to wearing of uniform or badge of curred, or in which such seizure was made, and Coast Guard or Customs Service while violating reve- to include in such report a statement of all the nue laws. See sections 702, 703, and 912 of Title 18. facts and circumstances of the case within his knowledge, with the names of the witnesses and § 1602. Seizure; report to customs officer a citation to the statute or statutes believed to It shall be the duty of any officer, agent, or have been violated, and on which reliance may other person authorized by law to make seizures be had for forfeiture or conviction. of merchandise or baggage subject to seizure for (June 17, 1930, ch. 497, title IV, § 603, 46 Stat. 754; violation of the customs laws, to report every June 25, 1938, ch. 679, § 27, 52 Stat. 1089; Pub. L. such seizure immediately to the appropriate 91–271, title III, § 301(aa), June 2, 1970, 84 Stat. customs officer for the district in which such 291; Pub. L. 95–410, title I, § 110(b), Oct. 3, 1978, 92 violation occurred, and to turn over and deliver Stat. 896; Pub. L. 100–690, title VII, § 7365, Nov. to such customs officer any vessel, vehicle, air- 18, 1988, 102 Stat. 4478.) craft, merchandise, or baggage seized by him, and to report immediately to such customs offi- REFERENCES IN TEXT cer every violation of the customs laws. The Federal Rules of Criminal Procedure, referred to in subsec. (a), are set out in the Appendix to Title 18, (June 17, 1930, ch. 497, title IV, § 602, 46 Stat. 754; Crimes and Criminal Procedure. Pub. L. 91–271, title III, § 301(z), June 2, 1970, 84 Stat. 290; Pub. L. 98–473, title II, § 321, Oct. 12, PRIOR PROVISIONS 1984, 98 Stat. 2056; Pub. L. 98–573, title II, Provisions similar to those in this section were con- § 213(a)(1), Oct. 30, 1984, 98 Stat. 2984.) tained in act Sept. 21, 1922, ch. 356, title IV, § 603, 42 Stat. 984. That section was superseded by section 603 of PRIOR PROVISIONS act June 17, 1930, comprising this section, and repealed Provisions similar to those in this section were con- by section 651(a)(1) of the 1930 act. tained in act Sept. 21, 1922, ch. 356, title IV, § 602, 42 A prior provision requiring the collector or other per- Stat. 984. That section was superseded by section 602 of son causing a seizure to be made to give information act June 17, 1930, comprising this section, and repealed thereof to the Solicitor of the Treasury, was contained by section 651(a)(1) of the 1930 act. in R.S. § 3083, as amended by act Feb. 27, 1877, ch. 69, § 1, Prior provisions requiring officers or persons em- 19 Stat. 247. R.S. § 3084 required collectors to report to ployed in the customs revenue service, upon detection the district attorney of the district in which any fine, of any violation of the customs laws, to make com- penalty, or forfeiture might be incurred, a statement of plaint to the collector, were contained in act June 22, all the facts and circumstances. Officers of customs de- 1874, ch. 391, § 15, 18 Stat. 189, prior to repeal by act tecting violations of the customs laws were required to Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. report to the collectors, and the latter were required to report to the district attorneys, by act June 22, 1874, AMENDMENTS ch. 391, § 15, 18 Stat. 189. All of these sections were repealed by act Sept. 21, 1922, ch. 356, title IV, §§ 642, 643, 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- 42 Stat. 989. erence to aircraft. 1970—Pub. L. 91–271 substituted references to appro- AMENDMENTS priate customs officer or such customs officer for references to collector wherever appearing. 1988—Pub. L. 100–690, § 7365, substituted ‘‘Seizure; warrants and reports’’ for ‘‘Seizure; customs officer’s re- EFFECTIVE DATE OF 1984 AMENDMENT ports’’ in section catchline, added subsec. (a), and designated existing provisions as subsec. (b). Amendment by Pub. L. 98–573 effective Oct. 15, 1984, 1978—Pub. L. 95–410 inserted ‘‘promptly’’ after ‘‘to re- see section 214(e) of Pub. L. 98–573, set out as a note port’’. under section 1304 of this title. 1970—Pub. L. 91–271 substituted reference to appropriate customs officer for reference to collector or prin- EFFECTIVE DATE OF 1970 AMENDMENT cipal local officer of Customs Agency Service. For effective date of amendment by Pub. L. 91–271, 1938—Act June 25, 1938, amended section generally. see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91–271, § 1603. Seizure; warrants and reports see section 203 of Pub. L. 91–271, set out as a note under (a) Any property which is subject to forfeiture section 1500 of this title. to the United States for violation of the cus- EFFECTIVE DATE OF 1938 AMENDMENT toms laws and which is not subject to search and Amendment by act June 25, 1938, effective on thirti- seizure in accordance with the provisions of sec- eth day following June 25, 1938, except as otherwise spe- tion 1595 of this title, may be seized by the ap- cifically provided, see section 37 of act June 25, 1938, set propriate officer or person upon process issued out as a note under section 1401 of this title. § 1604 TITLE 19—CUSTOMS DUTIES Page 254

TRANSFER OF FUNCTIONS EFFECTIVE DATE OF 1970 AMENDMENT Functions of all other officers of Department of the For effective date of amendment by Pub. L. 91–271, Treasury and functions of all agencies and employees of see section 203 of Pub. L. 91–271, set out as a note under such Department transferred, with certain exceptions, section 1500 of this title. to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any § 1605. Seizure; custody; storage of his functions, by any of such officers, agencies, and All vessels, vehicles, aircraft, merchandise, employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the and baggage seized under the provisions of the Appendix to Title 5, Government Organization and Em- customs laws, or laws relating to the naviga- ployees. Customs Service was under Department of the tion, registering, enrolling or licensing, or entry Treasury. or clearance, of vessels, unless otherwise provided by law, shall be placed and remain in the § 1604. Seizure; prosecution custody of the appropriate customs officer for It shall be the duty of the Attorney General of the district in which the seizure was made to the United States immediately to inquire into await disposition according to law. Pending such disposition, the property shall the facts of cases reported to him by customs of- be stored in such place as, in the customs offi- ficers and the laws applicable thereto, and if it cer’s opinion, is most convenient and appro- appears probable that any fine, penalty, or for- priate with due regard to the expense involved, feiture has been incurred by reason of such vio- whether or not the place of storage is within the lation, for the recovery of which the institution judicial district or the customs collection dis- of proceedings in the United States district trict in which the property was seized; and stor- court or the Court of International Trade is nec- age of the property outside the judicial district essary, forthwith to cause the proper proceed- or customs collection district in which it was ings to be commenced and prosecuted, without seized shall in no way affect the jurisdiction of delay, for the recovery of such fine, penalty, or the court which would otherwise have jurisdic- forfeiture in such case provided, unless, upon in- tion over such property. quiry and examination, the Attorney General decides that such proceedings can not probably (June 17, 1930, ch. 497, title IV, § 605, 46 Stat. 754; be sustained or that the ends of public justice do Sept. 1, 1954, ch. 1213, title V, § 505, 68 Stat. 1141; not require that they should be instituted or Pub. L. 91–271, title III, § 301(cc), June 2, 1970, 84 prosecuted, in which case he shall report the Stat. 291; Pub. L. 98–473, title II, § 321, Oct. 12, facts to the Secretary of the Treasury for his di- 1984, 98 Stat. 2056; Pub. L. 98–573, title II, rection in the premises. § 213(a)(2), Oct. 30, 1984, 98 Stat. 2984.) (June 17, 1930, ch. 497, title IV, § 604, 46 Stat. 754; PRIOR PROVISIONS Pub. L. 91–271, title III, § 301(bb), June 2, 1970, 84 Provisions similar to those in this section were con- Stat. 291; Pub. L. 96–417, title VI, § 610, Oct. 10, tained in act Sept. 21, 1922, ch. 356, title IV, § 605, 42 1980, 94 Stat. 1746.) Stat. 985. That section was superseded by section 605 of act June 17, 1930, comprising this section, and repealed PRIOR PROVISIONS by section 651(a)(1) of the 1930 act. Provisions similar to those in this section were con- Provisions substantially similar to those in this sec- tained in act Sept. 21, 1922, ch. 356, title IV, § 604, 42 tion so far as it relates to merchandise or property Stat. 984. That section was superseded by section 604 of seized under the customs laws, were contained in R.S. act June 17, 1930, comprising this section, and repealed § 3086, prior to repeal by act Sept. 21, 1922, ch. 356, title by section 651(a)(1) of the 1930 act. IV, § 642, 42 Stat. 989. Prior provisions substantially similar in effect, with AMENDMENTS a further provision for an allowance for expenses and services, were contained in R.S. § 3085. Provisions re- 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- quiring district attorneys to cause investigations to be erence to aircraft in first par. 1970—Pub. L. 91–271 substituted references to appro- made before a United States commissioner and to initi- priate customs officer or customs officer for references ate and prosecute proper proceedings to recover fines to collector wherever appearing. and penalties were contained in act June 22, 1874, ch. 1954—Act Sept. 1, 1954, permitted collector of seized 391, § 15, 18 Stat. 189. Both of these sections were re- property to store it in such places as he considers con- pealed by act Sept. 21, 1922, ch. 356, title IV, §§ 642, 643, venient or appropriate, whether within or without the 42 Stat. 989. judicial district in which it was seized, without affect- The 1922 act also superseded a provision contained in ing the jurisdiction of the court over such property. R.S. § 3087, requiring collectors to cause suits to be commenced without delay and prosecuted to effect. EFFECTIVE DATE OF 1984 AMENDMENT

AMENDMENTS Amendment by Pub. L. 98–573 effective Oct. 15, 1984, see section 214(e) of Pub. L. 98–573, set out as a note 1980—Pub. L. 96–417 substituted ‘‘the Attorney Gen- under section 1304 of this title. eral of the United States’’ and ‘‘the Attorney General’’ for ‘‘every United States district attorney’’ and ‘‘such EFFECTIVE DATE OF 1970 AMENDMENT district attorney’’, respectively, and authorized institu- For effective date of amendment by Pub. L. 91–271, tion of proceedings in the Court of International Trade. see section 203 of Pub. L. 91–271, set out as a note under 1970—Pub. L. 91–271 substituted reference to customs section 1500 of this title. officers for reference to collectors. § 1606. Seizure; appraisement EFFECTIVE DATE OF 1980 AMENDMENT The appropriate customs officer shall deter- Amendment by Pub. L. 96–417 effective Nov. 1, 1980, and applicable with respect to civil actions pending on mine the domestic value, at the time and place or commenced on or after such date, see section 701(a) of appraisement, of any vessel, vehicle, aircraft, of Pub. L. 96–417, set out as a note under section 251 of merchandise, or baggage seized under the cus- Title 28, Judiciary and Judicial Procedure. toms laws. Page 255 TITLE 19—CUSTOMS DUTIES § 1607

(June 17, 1930, ch. 497, title IV, § 606, 46 Stat. 754; struments having a value of over $100,000 which, Pub. L. 91–271, title III, § 301(dd), June 2, 1970, 84 or the proceeds of which, have not been depos- Stat. 291; Pub. L. 98–473, title II, § 321, Oct. 12, ited into the Customs Forfeiture Fund under 1984, 98 Stat. 2056; Pub. L. 98–573, title II, section 1613b of this title within 120 days of sei- § 213(a)(3), Oct. 30, 1984, 98 Stat. 2984.) zure, as of the end of the previous fiscal year.

PRIOR PROVISIONS (June 17, 1930, ch. 497, title IV, § 607, 46 Stat. 754; Provisions similar to those in this section were con- June 25, 1938, ch. 679, § 28(a), 52 Stat. 1089; Sept. tained in act Sept. 21, 1922, ch. 356, title IV, § 606, 42 1, 1954, ch. 1213, title V, § 506, 68 Stat. 1141; Pub. Stat. 985. That section was superseded by section 606 of L. 91–271, title III, § 301(ee), June 2, 1970, 84 Stat. act June 17, 1930, comprising this section, and repealed 291; Pub. L. 95–410, title I, § 111(a), Oct. 3, 1978, 92 by section 651(a)(1) of the 1930 act. Stat. 897; Pub. L. 98–473, title II, § 311, Oct. 12, Prior provisions for appraisement of property seized 1984, 98 Stat. 2053; Pub. L. 98–573, title II, under the customs laws, or laws relating to the reg- § 213(a)(4), Oct. 30, 1984, 98 Stat. 2984; Pub. L. istering, enrolling or licensing of vessels, were con- 101–382, title I, § 122, Aug. 20, 1990, 104 Stat. 642; tained in R.S. § 3074, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. Pub. L. 104–237, title II, § 201(c), Oct. 3, 1996, 110 Stat. 3101.) AMENDMENTS 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- PRIOR PROVISIONS erence to aircraft. Provisions similar to those in this section were con- 1970—Pub. L. 91–271 substituted ‘‘appropriate customs tained in act Sept. 21, 1922, ch. 356, title IV, § 607, 42 officer shall’’ for ‘‘collector shall require the appraiser Stat. 985. That section was superseded by section 607 of to’’. act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. EFFECTIVE DATE OF 1984 AMENDMENT Prior provisions for publication or posting of notice Amendment by Pub. L. 98–573 effective Oct. 15, 1984, of seizure, requiring claimants to appear and file their see section 214(e) of Pub. L. 98–573, set out as a note claim, when the appraised value did not exceed $500, under section 1304 of this title. were contained in R.S. § 3075, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91–271, AMENDMENTS see section 203 of Pub. L. 91–271, set out as a note under 1996—Subsec. (a)(3). Pub. L. 104–237, § 201(c)(1), in- section 1500 of this title. serted ‘‘or listed chemical’’ after ‘‘controlled sub- § 1607. Seizure; value $500,000 or less, prohibited stance’’. Subsec. (b). Pub. L. 104–237, § 201(c)(2), amended sub- articles, transporting conveyances sec. (b) generally. Prior to amendment, subsec. (b) read (a) Notice of seizure as follows: ‘‘As used in this section, the term ‘controlled substance’ has the meaning given that term in If— section 802 of title 21.’’ (1) the value of such seized vessel, vehicle, 1990—Pub. L. 101–382, § 122(6), substituted ‘‘$500,000’’ aircraft, merchandise, or baggage does not ex- for ‘‘$100,000’’ in section catchline. ceed $500,000; Subsec. (a)(1). Pub. L. 101–382, § 122(1), substituted (2) such seized merchandise is merchandise ‘‘$500,000’’ for ‘‘$100,000’’. the importation of which is prohibited; Subsec. (a)(4). Pub. L. 101–382, § 122(2)–(4), added par. (3) such seized vessel, vehicle, or aircraft was (4). Subsec. (c). Pub. L. 101–382, § 122(5), added subsec. (c). used to import, export, transport, or store any 1984—Pub. L. 98–573 amended section generally. See controlled substance or listed chemical; or explanation below for amendment by Pub. L. 98–473. (4) such seized merchandise is any monetary Pub. L. 98–473 amended section generally in manner instrument within the meaning of section substantially identical to amendment by Pub. L. 98–573. 5312(a)(3) of title 31; Prior to amendment, section read as follows: ‘‘If such value of such vessel, vehicle, merchandise, or baggage the appropriate customs officer shall cause a no- does not exceed $10,000, the appropriate customs officer tice of the seizure of such articles and the inten- shall cause a notice of the seizure of such articles and tion to forfeit and sell or otherwise dispose of the intention to forfeit and sell or otherwise dispose of the same according to law to be published for at the same according to law to be published for at least least three successive weeks in such manner as three successive weeks in such manner as the Secretary the Secretary of the Treasury may direct. Writ- of the Treasury may direct. For the purposes of this ten notice of seizure together with information section and sections 1610 and 1612 of this title merchandise the importation of which is prohibited shall be on the applicable procedures shall be sent to held not to exceed $10,000 in value.’’ each party who appears to have an interest in 1978—Pub. L. 95–410 substituted ‘‘$10,000’’ for ‘‘$2,500’’ the seized article. wherever appearing. (b) ‘‘Controlled substance’’ and ‘‘listed chemical’’ 1970—Pub. L. 91–271 substituted reference to appro- defined priate customs officer for reference to collector, and struck out reference to appraiser’s return of value. As used in this section, the terms ‘‘controlled 1954—Act Sept. 1, 1954, substituted ‘‘$2,500’’ for substance’’ and ‘‘listed chemical’’ have the ‘‘$1,000’’ wherever appearing. meaning given such terms in section 802 of title 1938—Act June 25, 1938, substituted ‘‘forfeit and sell 21. or otherwise dispose of the same according to law’’ for ‘‘forfeit and sell the same’’. (c) Report to Congress The Commissioner of Customs shall submit to EFFECTIVE DATE OF 1984 AMENDMENT the Congress, by no later than February 1 of Amendment by Pub. L. 98–573 effective Oct. 15, 1984, each fiscal year, a report on the total dollar see section 214(e) of Pub. L. 98–573, set out as a note value of uncontested seizures of monetary in- under section 1304 of this title. § 1608 TITLE 19—CUSTOMS DUTIES Page 256

EFFECTIVE DATE OF 1970 AMENDMENT 98–473 in view of later amendment by Pub. L. 98–573. See 1984 Amendment notes below. For effective date of amendment by Pub. L. 91–271, 1984—Pub. L. 98–573, § 213(a)(5)(B), which directed the see section 203 of Pub. L. 91–271, set out as a note under insertion of ‘‘$2,500 or 10 percent of the value of the section 1500 of this title. claimed property, whichever is lower, but not less EFFECTIVE DATE OF 1938 AMENDMENT than’’ after ‘‘penal sum of’’, was executed to text as superseding the amendment made by Pub. L. 98–473 to re- Amendment by act June 25, 1938, effective on thirti- flect the probable intent of Congress. See 1986 Amend- eth day following June 25, 1938, except as otherwise spe- ment note above. cifically provided, see section 37 of act June 25, 1938, set Pub. L. 98–473, § 312, inserted ‘‘$5,000 or 10 per centum out as a note under section 1401 of this title. of the value of the claimed property, whichever is TRANSFER OF FUNCTIONS lower, but not less than,’’ after ‘‘penal sum of’’. See 1984 and 1986 Amendment notes above. For transfer of functions, personnel, assets, and li- Pub. L. 98–573, § 213(a)(5)(A), and Pub. L. 98–473, § 321, abilities of the United States Customs Service of the inserted reference to aircraft. Department of the Treasury, including functions of the 1970—Pub. L. 91–271 substituted references to appro- Secretary of the Treasury relating thereto, to the Sec- priate customs officer or such customs officer for ref- retary of Homeland Security, and for treatment of re- erences to collector wherever appearing. lated references, see sections 203(1), 551(d), 552(d), and EFFECTIVE DATE OF 1984 AMENDMENT 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- Amendment by Pub. L. 98–573 effective Oct. 15, 1984, ber 25, 2002, as modified, set out as a note under section see section 214(e) of Pub. L. 98–573, set out as a note 542 of Title 6. under section 1304 of this title. § 1608. Seizure; claims; judicial condemnation EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91–271, Any person claiming such vessel, vehicle, air- see section 203 of Pub. L. 91–271, set out as a note under craft, merchandise, or baggage may at any time section 1500 of this title. within twenty days from the date of the first publication of the notice of seizure file with the § 1609. Seizure; summary forfeiture and sale appropriate customs officer a claim stating his (a) In general interest therein. Upon the filing of such claim, If no such claim is filed or bond given within and the giving of a bond to the United States in the twenty days hereinbefore specified, the ap- the penal sum of $5,000 or 10 percent of the value propriate customs officer shall declare the ves- of the claimed property, whichever is lower, but sel, vehicle, aircraft, merchandise, or baggage not less than $250, with sureties to be approved forfeited, and shall sell the same at public auc- by such customs officer, conditioned that in tion in the same manner as merchandise aban- case of condemnation of the articles so claimed doned to the United States is sold or otherwise the obligor shall pay all the costs and expenses dispose of the same according to law, and shall of the proceedings to obtain such condemnation, deposit the proceeds of sale, after deducting the such customs officer shall transmit such claim expenses described in section 1613 of this title, and bond, with a duplicate list and description into the Customs Forfeiture Fund. of the articles seized, to the United States attorney for the district in which seizure was made, (b) Effect who shall proceed to a condemnation of the mer- A declaration of forfeiture under this section chandise or other property in the manner pre- shall have the same force and effect as a final scribed by law. decree and order of forfeiture in a judicial forfeiture proceeding in a district court of the (June 17, 1930, ch. 497, title IV, § 608, 46 Stat. 755; United States. Title shall be deemed to vest in Pub. L. 91–271, title III, § 301(e), June 2, 1970, 84 the United States free and clear of any liens or Stat. 288; Pub. L. 98–473, title II, §§ 312, 321, Oct. encumbrances (except for first preferred ship 12, 1984, 98 Stat. 2054, 2056; Pub. L. 98–573, title II, mortgages pursuant to subsection O of section 30 § 213(a)(5), Oct. 30, 1984, 98 Stat. 2985; Pub. L. of the Ship Mortgage Act, 1920 (46 U.S.C. App. 99–570, title I, § 1862, Oct. 27, 1986, 100 Stat. 961) or any corresponding revision, consolida- 3207–54; Pub. L. 100–690, title VII, § 7367(c)(2), tion, and enactment of such subsection in title Nov. 18, 1988, 102 Stat. 4479.) 46) from the date of the act for which the forfeit- PRIOR PROVISIONS ure was incurred. Officials of the various States, Provisions similar to those in this section were con- insular possessions, territories, and common- tained in R.S. § 3076, which was superseded by act Sept. wealths of the United States shall, upon applica- 21, 1922, ch. 356, title IV, § 608, 42 Stat. 985, and was re- tion of the appropriate customs officer accom- pealed by section 642 thereof. Section 608 of the 1922 act panied by a certified copy of the declaration of was superseded by section 608 of act June 17, 1930, com- forfeiture, remove any recorded liens or encum- prising this section, and repealed by section 651(a)(1) of brances which apply to such property and issue the 1930 act. or reissue the necessary certificates of title, reg- AMENDMENTS istration certificates, or similar documents to 1988—Pub. L. 100–690 reenacted section without the United States or to any transferee of the change. See 1984 and 1986 Amendment notes below. United States. 1986—Pub. L. 99–570, § 1862(a), substituted ‘‘$5,000’’ for (June 17, 1930, ch. 497, title IV, § 609, 46 Stat. 755; ‘‘$2,500’’. See 1984 Amendment notes below. June 25, 1938, ch. 679, § 28(b), 52 Stat. 1089; Pub. L. Pub. L. 99–570, § 1862(b), which provided that ‘‘Section 91–271, title III, § 301(b), June 2, 1970, 84 Stat. 287; 608 of such Act [this section], as enacted by Public Law 98–473, is repealed’’, was not executed to text because Pub. L. 98–473, title II, §§ 313, 321, Oct. 12, 1984, 98 such section was amended (rather than enacted) by Stat. 2054, 2056; Pub. L. 98–573, title II, § 213(a)(6), Pub. L. 98–473, and to reflect the probable intent of Oct. 30, 1984, 98 Stat. 2985; Pub. L. 100–690, title Congress to repeal the amendment made by Pub. L. VII, § 7367(b), Nov. 18, 1988, 102 Stat. 4479.) Page 257 TITLE 19—CUSTOMS DUTIES § 1611

REFERENCES IN TEXT cifically provided, see section 37 of act June 25, 1938, set out as a note under section 1401 of this title. Subsection O of section 30 of the Ship Mortgage Act, 1920 (46 U.S.C. App. 961), referred to in subsec. (b), was § 1610. Seizure; judicial forfeiture proceedings classified to section 961 of the former Appendix to Title 46, Shipping, and was repealed and partially reenacted If any vessel, vehicle, aircraft, merchandise, or in sections 31326(a), 31327, 31328, and 31329 of Title 46, baggage is not subject to section 1607 of this Shipping, by Pub. L. 100–710, title I, §§ 102(c), 106(b)(2), title, the appropriate customs officer shall Nov. 23, 1988, 102 Stat. 4738, 4752. Section 31328 of Title 46 was subsequently repealed by Pub. L. 104–324, title transmit a report of the case, with the names of XI, § 1113(b)(1), Oct. 19, 1996, 110 Stat. 3970. Section 105(a) available witnesses, to the United States attor- of Pub. L. 100–710, set out as a note preceding section ney for the district in which the seizure was 101 of Title 46, provides that a reference to a law re- made for the institution of the proper proceed- placed by section 102 of Pub. L. 100–710 is deemed to ings for the condemnation of such property. refer to the corresponding provision of Pub. L. 100–710. For disposition of sections of the former Appendix to (June 17, 1930, ch. 497, title IV, § 610, 46 Stat. 755; Title 46, see Disposition Table preceding section 101 of Sept. 1, 1954, ch. 1213, title V, § 506, 68 Stat. 1141; Title 46. Pub. L. 91–271, title III, § 301(ee), June 2, 1970, 84 Stat. 291; Pub. L. 95–410, title I, § 111(b), Oct. 3, PRIOR PROVISIONS 1978, 92 Stat. 898; Pub. L. 98–473, title II, § 314, Provisions similar to those in this section were con- Oct. 12, 1984, 98 Stat. 2054; Pub. L. 98–573, title II, tained in act Sept. 21, 1922, ch. 356, title IV, § 609, 42 § 213(a)(7), Oct. 30, 1984, 98 Stat. 2985; Pub. L. Stat. 985. That section was superseded by section 609 of 100–690, title VII, § 7367(c)(3), Nov. 18, 1988, 102 act June 17, 1930, comprising this section, and repealed Stat. 4480.) by section 651(a)(1) of the 1930 act. Provisions for sale of the property by the collector if PRIOR PROVISIONS no claim should be filed or bond given, were contained in R.S. § 3077, prior to repeal by act Sept. 21, 1922, ch. Provisions similar to those in this section were con- 356, title IV, § 642, 42 Stat. 989. tained in act Sept. 21, 1922, ch. 356, title IV, § 610, 42 Stat. 985. That section was superseded by section 610 of AMENDMENTS act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. 1988—Pub. L. 100–690 amended section generally. Prior to amendment, section read as follows: AMENDMENTS ‘‘(a) If no such claim is filed or bond given within the twenty days hereinbefore specified, the appropriate 1988—Pub. L. 100–690 reenacted section without customs officer shall declare the vessel, vehicle, air- change. craft, merchandise, or baggage forfeited, and shall sell 1984—Pub. L. 98–573 substituted ‘‘If any vessel, vehi- the same at public auction in the same manner as mer- cle, aircraft, merchandise, or baggage is not subject to chandise abandoned to the United States is sold or section 1607 of this title’’ for ‘‘If the value of any vessel, otherwise dispose of the same according to law, and vehicle, merchandise, or baggage so seized is greater (except as provided in subsection (b) of this section) than $10,000’’. shall deposit the proceeds of sale, after deducting ex- Pub. L. 98–473 amended section in manner substan- penses enumerated in section 1613 of this title into the tially identical to amendment by Pub. L. 98–573. Customs Forfeiture Fund. 1978—Pub. L. 95–410 substituted ‘‘$10,000’’ for ‘‘$2,500’’ ‘‘(b) During the period beginning on October 30, 1984, wherever appearing. and ending on September 30, 1987, the appropriate cus- 1970—Pub. L. 91–271 substituted reference to appro- toms officer shall deposit the proceeds of sale (after de- priate customs officer for reference to collector, and ducting such expenses) in the Customs Forfeiture struck out reference to appraiser’s return of value. Fund.’’ 1954—Act Sept. 1, 1954, substituted ‘‘$2,500’’ for 1984—Pub. L. 98–573 designated existing provisions as ‘‘$1,000’’. subsec. (a), inserted reference to aircraft, inserted ‘‘(ex- EFFECTIVE DATE OF 1984 AMENDMENT cept as provided in subsection (b) of this section)’’ after ‘‘according to law, and’’, and added subsec. (b). Amendment by Pub. L. 98–573 effective Oct. 15, 1984, Pub. L. 98–473, § 321, inserted reference to aircraft. see section 214(e) of Pub. L. 98–573, set out as a note Pub. L. 98–473, § 313, substituted ‘‘after deducting ex- under section 1304 of this title. penses enumerated in section 1613 of this title into the Customs Forfeiture Fund’’ for ‘‘after deducting the ac- EFFECTIVE DATE OF 1970 AMENDMENT tual expenses of seizure, publication, and sale in the For effective date of amendment by Pub. L. 91–271, Treasury of the United States’’. see section 203 of Pub. L. 91–271, set out as a note under 1970—Pub. L. 91–271 substituted reference to appro- section 1500 of this title. priate customs officer for reference to collector. 1938—Act June 25, 1938, inserted ‘‘or otherwise dispose § 1611. Seizure; sale unlawful of the same according to law’’ after ‘‘in the same manner as merchandise abandoned to the United States is If the sale of any vessel, vehicle, aircraft, mer- sold’’. chandise, or baggage forfeited under the customs laws in the district in which seizure there- EFFECTIVE DATE OF 1984 AMENDMENT of was made be prohibited by the laws of the Amendment by Pub. L. 98–573 effective Oct. 15, 1984, State in which such district is located, or if a see section 214(e) of Pub. L. 98–573, set out as a note sale may be made more advantageously in any under section 1304 of this title. other district, the Secretary of the Treasury EFFECTIVE DATE OF 1970 AMENDMENT may order such vessel, vehicle, aircraft, merchandise, or baggage to be transferred for sale in For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under any customs district in which the sale thereof section 1500 of this title. may be permitted. Upon the request of the Sec- retary of the Treasury, any court may, in pro- EFFECTIVE DATE OF 1938 AMENDMENT ceedings for the forfeiture of any vessel, vehicle, Amendment by act June 25, 1938, effective on thirti- aircraft, merchandise, or baggage under the cus- eth day following June 25, 1938, except as otherwise spe- toms laws, provide in its decree of forfeiture § 1612 TITLE 19—CUSTOMS DUTIES Page 258 that the vessel, vehicle, aircraft, merchandise, merchandise, or baggage is disproportionate to or baggage, so forfeited, shall be delivered to the the value thereof, the Customs Service may Secretary of the Treasury for disposition in ac- promptly order the destruction or other appro- cordance with the provisions of this section. If priate disposition of such property under regula- the Secretary of the Treasury is satisfied that tions prescribed by the Secretary. No customs the proceeds of any sale will not be sufficient to officer shall be liable for the destruction or pay the costs thereof, he may order a destruc- other disposition of property made pursuant to tion by the customs officers: Provided, That any this section. merchandise forfeited under the customs laws, (June 17, 1930, ch. 497, title IV, § 612, 46 Stat. 755; the sale or use of which is prohibited under any June 25, 1948, ch. 646, § 1, 62 Stat. 869; Sept. 1, law of the United States or of any State, may, 1954, ch. 1213, title V, § 506, 68 Stat. 1141; Pub. L. in the discretion of the Secretary of the Treas- 91–271, title III, § 301(ff), June 2, 1970, 84 Stat. 291; ury, be destroyed, or remanufactured into an ar- Pub. L. 95–410, title I, § 111(c), Oct. 3, 1978, 92 ticle that is not prohibited, the resulting article Stat. 898; Pub. L. 98–473, title II, § 315, Oct. 12, to be disposed of to the profit of the United 1984, 98 Stat. 2054; Pub. L. 98–573, title II, States only. § 213(a)(9), Oct. 30, 1984, 98 Stat. 2985; Pub. L. (June 17, 1930, ch. 497, title IV, § 611, 46 Stat. 755; 100–690, title VII, § 7367(c)(4), Nov. 18, 1988, 102 Pub. L. 98–473, title II, § 321, Oct. 12, 1984, 98 Stat. Stat. 4480; Pub. L. 103–182, title VI, § 667, Dec. 8, 2056; Pub. L. 98–573, title II, § 213(a)(8), Oct. 30, 1993, 107 Stat. 2215.) 1984, 98 Stat. 2985.) PRIOR PROVISIONS PRIOR PROVISIONS Provisions similar to those in this section were con- Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 612, 42 tained in act Sept. 21, 1922, ch. 356, title IV, § 611, 42 Stat. 986. That section was superseded by section 612 of Stat. 985. That section was superseded by section 611 of act June 17, 1930, comprising this section, and repealed act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. by section 651(a)(1) of the 1930 act. Provisions concerning the sale of property liable to perish or waste, etc., were contained in R.S. § 3080, prior AMENDMENTS to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- Stat. 989. erence to aircraft in four places. AMENDMENTS EFFECTIVE DATE OF 1984 AMENDMENT 1993—Subsec. (a). Pub. L. 103–182, § 667(1), substituted ‘‘the Customs Service’’ for ‘‘the appropriate customs Amendment by Pub. L. 98–573 effective Oct. 15, 1984, officer’’ after ‘‘Whenever it appears to’’, for ‘‘such offi- see section 214(e) of Pub. L. 98–573, set out as a note cer’’ after ‘‘delivered under bond,’’, for ‘‘such officer’’ under section 1304 of this title. before ‘‘shall forthwith transmit’’ and for ‘‘the customs § 1612. Seizure; summary sale officer’’ after ‘‘Whether such sale be made by’’ and substituted ‘‘its report of the seizure’’ for ‘‘the appraiser’s (a) Whenever it appears to the Customs Serv- return and his report of the seizure’’. ice that any vessel, vehicle, aircraft, merchan- Subsec. (b). Pub. L. 103–182, § 667(2), amended subsec. dise, or baggage seized under the customs laws (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘If the expense of keeping the vessel, vehicle, is liable to perish or to waste or to be greatly re- aircraft, merchandise, or baggage is disproportionate duced in value by keeping, or that the expense to the value thereof, and such value is less than $1,000, of keeping the same is disproportionate to the such officer may proceed forthwith to order destruction value thereof, and such vessel, vehicle, aircraft, or other appropriate disposition of such property, under merchandise, or baggage is subject to section regulations prescribed by the Secretary of the Treas- 1607 of this title, and such vessel, vehicle, air- ury.’’ craft, merchandise, or baggage has not been de- 1988—Pub. L. 100–690 reenacted section substantially livered under bond, the Customs Service shall without change. 1984—Subsec. (a). Pub. L. 98–573 designated existing proceed forthwith to advertise and sell the same provisions as subsec. (a), inserted reference to aircraft at auction under regulations to be prescribed by in six places and substituted ‘‘the value thereof, and the Secretary of the Treasury. If such vessel, ve- such vessel’’ for ‘‘the value thereof, and the value of hicle, aircraft, merchandise, or baggage is not such vessel’’, ‘‘is subject to section 1607 of this title’’ subject to section 1607 of this title, the Customs for ‘‘as determined under section 1606 of this title, does Service shall forthwith transmit its report of not exceed $10,000’’, ‘‘If such vessel’’ for ‘‘If such value the seizure to the United States attorney, who of such vessel’’, and ‘‘baggage is not subject to section shall petition the court to order an immediate 1607 of this title,’’ for ‘‘baggage exceeds $10,000’’, and added subsec. (b). sale of such vessel, vehicle, aircraft, merchan- Pub. L. 98–473 amended section in manner substan- dise, or baggage, and if the ends of justice re- tially identical to amendment by Pub. L. 98–573, but did quire it the court shall order such immediate not add a subsec. (b) or provisions similar thereto. sale, the proceeds thereof to be deposited with 1978—Pub. L. 95–410 substituted ‘‘$10,000’’ for ‘‘$2,500’’ the court to await the final determination of the wherever appearing. condemnation proceedings. Whether such sale be 1970—Pub. L. 91–271 substituted references to appro- made by the Customs Service or by order of the priate customs officer or such officer for references to court, the proceeds thereof shall be held subject collector wherever appearing therein, and struck out references to appraiser and appraiser’s return of value. to claims of parties in interest to the same ex- 1954—Act Sept. 1, 1954, substituted ‘‘$2,500’’ for tent as the vessel, vehicle, aircraft, merchan- ‘‘$1,000’’ wherever appearing. dise, or baggage so sold would have been subject to such claim. CHANGE OF NAME (b) If the Customs Service determines that the Act June 25, 1948, eff. Sept. 1, 1948, substituted expense of keeping the vessel, vehicle, aircraft, ‘‘United States attorney’’ for ‘‘United States district Page 259 TITLE 19—CUSTOMS DUTIES § 1613 attorney’’. See section 541 of Title 28, Judiciary and Ju- and a bond for such costs was not given, the dicial Procedure, and Historical and Revision Note costs as taxed by the court; thereunder. (2) For the satisfaction of liens for freight, EFFECTIVE DATE OF 1984 AMENDMENT charges, and contributions in general average, notice of which has been filed with the appro- Amendment by Pub. L. 98–573 effective Oct. 15, 1984, priate customs officer according to law; and see section 214(e) of Pub. L. 98–573, set out as a note under section 1304 of this title. (3) The residue shall be deposited in the general fund of the Treasury of the United EFFECTIVE DATE OF 1970 AMENDMENT States.1 For effective date of amendment by Pub. L. 91–271, (b) Disposition of proceeds in excess of penalty see section 203 of Pub. L. 91–271, set out as a note under assessed under section 1592 section 1500 of this title. If merchandise is forfeited under section 1592 TRANSFER OF FUNCTIONS of this title, any proceeds from the sale thereof For transfer of functions, personnel, assets, and li- in excess of the monetary penalty finally as- abilities of the United States Customs Service of the sessed thereunder and the expenses and costs de- Department of the Treasury, including functions of the scribed in subsection (a)(1) and (2) of this section Secretary of the Treasury relating thereto, to the Sec- or subsection (a)(1), (a)(3), or (a)(4) of section retary of Homeland Security, and for treatment of re- 1613b of this title incurred in such sale shall be lated references, see sections 203(1), 551(d), 552(d), and returned to the person against whom the pen- 557 of Title 6, Domestic Security, and the Department alty was assessed. of Homeland Security Reorganization Plan of Novem- ber 25, 2002, set out as a note under section 542 of Title (c) Treatment of deposits 6. If property is seized by the Secretary under law enforced or administered by the Customs § 1613. Disposition of proceeds of forfeited prop- Service, or otherwise acquired under section 1605 erty of this title, and relief from the forfeiture is (a) Application for remission of forfeiture and granted by the Secretary, or his designee, upon restoration of proceeds of sale; disposition of terms requiring the deposit or retention of a proceeds when no application has been made monetary amount in lieu of the forfeiture, the amount recovered shall be treated in the same Except as provided in subsection (b) of this manner as the proceeds of sale of a forfeited section, any person claiming any vessel, vehicle, item. aircraft, merchandise, or baggage, or any interest therein, which has been forfeited and sold (d) Expenses under the provisions of this chapter, may at any In any judicial or administrative proceeding time within three months after the date of sale to forfeit property under any law enforced or ad- apply to the Secretary of the Treasury if the ministered by the Customs Service or the Coast forfeiture and sale was under the customs laws, Guard, the seizure, storage, and other expenses or to the Commandant of the Coast Guard or the related to the forfeiture that are incurred by the Commissioner of Customs, as the case may be, if Customs Service or the Coast Guard after the the forfeiture and sale was under the navigation seizure, but before the institution of, or during, laws, for a remission of the forfeiture and res- the proceedings, shall be a priority claim in the toration of the proceeds of such sale, or such same manner as the court costs and the ex- part thereof as may be claimed by him. Upon penses of the Federal marshal. the production of satisfactory proof that the ap- (June 17, 1930, ch. 497, title IV, § 613, 46 Stat. 756; plicant did not know of the seizure prior to the June 25, 1938, ch. 679, § 29, 52 Stat. 1089; 1946 declaration or condemnation of forfeiture, and Reorg. Plan No. 3, §§ 101–104, eff. July 16, 1946, 11 was in such circumstances as prevented him F.R. 7875, 60 Stat. 1097; Pub. L. 91–271, title III, from knowing of the same, and that such forfeit- § 301(b), June 2, 1970, 84 Stat. 287; Pub. L. 95–410, ure was incurred without any willful negligence title I, § 110(c), Oct. 3, 1978, 92 Stat. 896; Pub. L. or intention to defraud on the part of the appli- 98–473, title II, §§ 316, 321, Oct. 12, 1984, 98 Stat. cant, the Secretary of the Treasury, the Com- 2054, 2056; Pub. L. 98–573, title II, § 213(a)(10), Oct. mandant of the Coast Guard, or the Commis- 30, 1984, 98 Stat. 2986; Pub. L. 99–570, title III, sioner of Customs may order the proceeds of the § 3124, Oct. 27, 1986, 100 Stat. 3207–88.) sale, or any part thereof, restored to the applicant, after deducting the cost of seizure and of PRIOR PROVISIONS sale, the duties, if any, accruing on the mer- Provisions similar to those in this section were con- chandise or baggage, and any sum due on a lien tained in act Sept. 21, 1922, ch. 356, title IV, § 613, 42 for freight, charges, or contribution in general Stat. 986. That section was superseded by section 613 of average that may have been filed. If no applica- act June 17, 1930, comprising this section, and repealed tion for such remission or restoration is made by section 651(a)(1) of the 1930 act. within three months after such sale, or if the ap- Provisions authorizing applications to the Secretary plication be denied by the Secretary of the of the Treasury for remission of forfeitures and restoration of the proceeds of sales, and provisions substan- Treasury, the Commandant of the Coast Guard, tially the same as those in this section concerning the or the Commissioner of Customs, the proceeds of granting of such applications, were contained in R.S. sale shall be disposed of as follows: § 3078. R.S. § 3079 provided that if no application was (1) For the payment of all proper expenses of made within three months the proceeds should be dis- the proceedings of forfeiture and sale, includ- tributed in the same manner as if the property had ing expenses of seizure, maintaining the cus- been condemned and sold under a decree of court. R.S. tody of the property, advertising and sale, and if condemned by a decree of a district court 1 See 1984 Amendment note below. § 1613a TITLE 19—CUSTOMS DUTIES Page 260

§ 3090, as amended by act Feb. 27, 1877, ch. 69, § 1, 19 transferred to Secretary of Transportation by Pub. L. Stat. 248, also specified how the proceeds of fines, pen- 89–670, § 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) alties, and forfeitures incurred under customs laws, of Pub. L. 89–670, however, provided that notwithstand- should be applied and distributed. All these sections ing such transfer of functions, Coast Guard shall oper- were repealed by act Sept. 21, 1922, ch. 356, title IV, ate as part of Navy in time of war or when President § 642, 42 Stat. 989. directs as provided in section 3 of Title 14. See section 108 of Title 49, Transportation. AMENDMENTS For transfer of functions of other officers, employees, 1986—Subsecs. (c), (d). Pub. L. 99–570 added subsecs. and agencies of Department of the Treasury, with cer- (c) and (d). tain exceptions, to Secretary of the Treasury with 1984—Subsec. (a). Pub. L. 98–573, § 213(a)(10)(A), and power to delegate, see Reorg. Plan No. 26 of 1950, §§ 1, 2, Pub. L. 98–473, § 321, inserted reference to aircraft in eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out provisions preceding par. (1). in the Appendix to Title 5, Government Organization Subsec. (a)(3). Pub. L. 98–573, § 213(a)(10)(B), sub- and Employees. Commissioner of Customs, referred to stituted ‘‘in the general fund of the Treasury of the in text, was an officer in Department of the Treasury. United States’’ for ‘‘with the Treasurer of the United Functions of Coast Guard and Commandant of Coast States as a customs or navigation fine’’. Guard excepted from transfer when Coast Guard is op- Pub. L. 98–473, § 316, which directed the substitution erating as part of Navy under sections 1 and 3 of Title of ‘‘The residue shall be deposited in the Customs For- 14, Coast Guard. feiture Fund’’ for ‘‘The residue shall be deposited with By Reorg. Plan No. 3 of 1946, set out in the Appendix the Treasurer of the United States as a customs or to Title 5, Government Organization and Employees, navigation fine’’ was not executed to text in view of the functions of Secretary of Commerce relating to remis- later amendment by section 213(a)(10)(B) of Pub. L. sion and mitigation of fines, penalties and forfeitures 98–573. incurred for violation of navigation laws were trans- Subsec. (b). Pub. L. 98–573, § 213(a)(10)(C), inserted ‘‘or ferred to Commandant of Coast Guard and Commis- subsection (a)(1), (a)(3), or (a)(4) of section 1613b of this sioner of Customs, subject to direction and control of title’’. Secretary of the Treasury, except as otherwise required 1978—Subsec. (a). Pub. L. 95–410, § 110(c)(1), designated by law with respect to United States Coast Guard existing provisions as subsec. (a) and substituted ‘‘Ex- whenever it operates as a part of Navy. Accordingly, cept as provided in subsection (b) of this section, any’’ references to Commandant of Coast Guard and Com- for ‘‘Any’’. missioner of Customs substituted in text for ‘‘the Sec- Subsec. (b). Pub. L. 95–410, § 110(c)(2), added subsec. retary of Commerce’’. (b). APPROPRIATIONS 1970—Pub. L. 91–271 substituted reference to appro- Section 2 of act June 26, 1934, ch. 756, 48 Stat. 1225, priate customs officer for reference to collector. which was classified to section 725a of former Title 31, 1938—Act June 25, 1938, inserted ‘‘and’’ at end of subd. Money and Finance, repealed the permanent appropria- (2), struck out subd. (3), and redesignated subd. (4) as tion under the title ‘‘Proceeds of goods seized and sold (3). (Customs) (2x322)’’ effective July 1, 1935, and provided EFFECTIVE DATE OF 1984 AMENDMENT that such portions of any Acts as make permanent appropriations to be expended under such account are Amendment by Pub. L. 98–573 effective Oct. 15, 1984, amended so as to authorize, in lieu thereof, annual ap- see section 214(e) of Pub. L. 98–573, set out as a note propriations from the general fund of the Treasury in under section 1304 of this title. identical terms and in such amounts as now provided EFFECTIVE DATE OF 1970 AMENDMENT by the laws providing such permanent appropriations. For effective date of amendment by Pub. L. 91–271, § 1613a. Repealed. Pub. L. 99–514, title XVIII, see section 203 of Pub. L. 91–271, set out as a note under § 1888(7), Oct. 22, 1986, 100 Stat. 2925 section 1500 of this title. Section, act June 17, 1930, ch. 497, title IV, § 613a, as EFFECTIVE DATE OF 1938 AMENDMENT added and amended Oct. 12, 1984, Pub. L. 98–473, title II, Amendment by act June 25, 1938, effective on thirti- §§ 317, 2304, 98 Stat. 2054, 2193; Oct. 27, 1986, Pub. L. eth day following June 25, 1938, except as otherwise spe- 99–570, title I, § 1152(b)(1), 100 Stat. 3207–12; July 11, 1987, cifically provided, see section 37 of act June 25, 1938, set Pub. L. 100–71, title I, § 101, 101 Stat. 438, related to es- out as a note under section 1401 of this title. tablishment, purpose, etc. of the Customs Forfeiture Fund. See section 1613b of this title. TRANSFER OF FUNCTIONS Section 1152(b)(1) of Pub. L. 99–570, which amended For transfer of authorities, functions, personnel, and this section subsequently to repeal by Pub. L. 99–514, assets of the Coast Guard, including the authorities was repealed by section 101 of Pub. L. 100–71, which also and functions of the Secretary of Transportation relat- provided in part that section 1152(b) of Pub. L. 99–570 be ing thereto, to the Department of Homeland Security, treated as though it had never been enacted. and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- § 1613b. Customs Forfeiture Fund rity, and the Department of Homeland Security Reor- (a) In general ganization Plan of November 25, 2002, set out as a note (1) There is established in the Treasury of the under section 542 of Title 6. For transfer of functions, personnel, assets, and li- United States a fund to be known as the ‘‘Cus- abilities of the United States Customs Service of the toms Forfeiture Fund’’ (hereafter in this section Department of the Treasury, including functions of the referred to as the ‘‘Fund’’), which shall be avail- Secretary of the Treasury relating thereto, to the Sec- able to the United States Customs Service, sub- retary of Homeland Security, and for treatment of re- ject to appropriation, with respect to seizures lated references, see sections 203(1), 551(d), 552(d), and and forfeitures by the United States Customs 557 of Title 6, Domestic Security, and the Department Service and the United States Coast Guard of Homeland Security Reorganization Plan of Novem- under any law enforced or administered by those ber 25, 2002, set out as a note under section 542 of Title 6. agencies for payment, or for reimbursement to Coast Guard transferred to Department of Transpor- the appropriation from which payment was tation, and functions, powers, and duties relating to made, for— Coast Guard of Secretary of the Treasury and of other (A) all proper expenses of the seizure (includ- officers and offices of Department of the Treasury ing investigative costs incurred by the United Page 261 TITLE 19—CUSTOMS DUTIES § 1613b

States Customs Service leading to seizures) or cers that are incurred in joint law enforce- the proceedings of forfeiture and sale, includ- ment operations with the United States Cus- ing, but not limited to, the expenses of inven- toms Service. tory, security, and maintenance of custody of (b) United States Coast Guard the property, advertisement and sale of the The Commissioner of Customs shall make property, and if condemned by the court and a available to the United States Coast Guard, bond for such costs was not given, the costs as from funds appropriated under subsection (f)(2) taxed by the court; (B) awards of compensation to informers of this section in excess of $10,000,000 for a fiscal under section 1619 of this title; year, proceeds in the Fund derived from seizures (C) satisfaction of— by the Coast Guard. Funds made available under (i) liens for freight, charges, and contribu- this subsection may be used for— tions in general average, notice of which has (1) equipment for any vessel, vehicle, or air- been filed with the appropriate customs offi- craft available for official use by the United cer according to law, and States Coast Guard to enable the vessel, vehi- (ii) other liens against forfeited property; cle, or aircraft to assist in law enforcement functions; (D) amounts authorized by law with respect (2) equipment for any vessel, vehicle, equip- to remission and mitigation; ment, or aircraft available for official use by a (E) claims of parties in interest to property State or local law enforcement agency to en- disposed of under section 1612(b) of this title, able the vessel, vehicle, or aircraft to assist in in the amounts applicable to such claims at law enforcement functions if the conveyance the time of seizure; and will be used in joint law enforcement oper- (F) equitable sharing payments made to ations with the United States Coast Guard; other Federal agencies, State and local law en- (3) payment of overtime salaries, travel, forcement agencies, and foreign countries fuel, training, equipment, and other similar under the authority of section 1616a(c) of this costs of State and local law enforcement offi- title or section 981 of title 18. cers that are incurred in joint law enforce- (2)(A) Any payment made under subparagraph ment operations with the United States Coast (C) or (D) of paragraph (1) with respect to a sei- Guard; and zure or a forfeiture of property shall not exceed (4) expenses incurred in bringing vessels into the value of the property at the time of the sei- compliance with applicable environmental zure. laws prior to disposal by sinking. (B) Any payment made under subparagraph (F) (c) Deposits of paragraph (1) with respect to a seizure or for- There shall be deposited into the Fund all forfeiture of property shall not exceed the value of feited currency and proceeds from forfeiture the property at the time of disposition. (3) In addition to the purposes described in under any law enforced or administered by the paragraph (1), the Fund shall be available for— United States Customs Service or the United (A) purchases by the United States Customs States Coast Guard and all income from invest- Service of evidence of— ments made under subsection (d) of this section. (i) smuggling of controlled substances, and (d) Investment (ii) violations of the currency and foreign Amounts in the Fund which are not currently transaction reporting requirements of chap- needed for the purposes of this section shall be ter 51 of title 31, if there is a substantial invested in obligations of, or guaranteed by, the probability that the violations of these re- United States. quirements are related to the smuggling of (e) Annual reports; audits controlled substances; (1) The Commissioner of Customs shall trans- (B) equipment for any vessel, vehicle, or air- mit to the Congress, by no later than February craft available for official use by the United 1 of each fiscal year the following detailed re- States Customs Service to enable the vessel, ports: vehicle, or aircraft to assist in law enforce- (A) a report on— ment functions; (i) the estimated total value of property (C) the reimbursement, at the discretion of forfeited under any law enforced or adminis- the Secretary, of private persons for expenses tered by the United States Customs Service incurred by such persons in cooperating with or the United States Coast Guard with re- the United States Customs Service in inves- spect to which funds were not deposited in tigations and undercover law enforcement op- the Fund during the previous fiscal year, and erations; (ii) the estimated total value of all such (D) publication of the availability of awards property transferred to any State or local under section 1619 of this title; law enforcement agency; (E) equipment for any vessel, vehicle, or aircraft available for official use by a State or (B) a report on— local law enforcement agency to enable the (i) the balance of the Fund at the begin- vessel, vehicle, or aircraft to assist in law en- ning of the preceding fiscal year; forcement functions if the conveyance will be (ii) liens and mortgages paid and amount used in joint law enforcement operations with of money shared with State and local law the United States Customs Service; and enforcement agencies during the previous (F) payment of overtime salaries, travel, fiscal year; fuel, training, equipment, and other similar (iii) the net amount realized from the op- costs of State and local law enforcement offi- erations of the Fund during the previous fis- § 1613b TITLE 19—CUSTOMS DUTIES Page 262

cal year, the amount of seized cash being AMENDMENTS held as evidence, and the amount of money 1996—Subsec. (e)(2). Pub. L. 104–316 struck out ‘‘an- that has been carried over to the current fis- nual financial’’ before ‘‘audits conducted’’ and inserted cal year; before period at end ‘‘, under such conditions as the (iv) any defendant’s equity in property val- Comptroller General determines appropriate’’. ued at $1,000,000 or more; 1990—Subsec. (a)(1)(F). Pub. L. 101–382, § 121(1), added (v) the balance of the Fund at the end of subpar. (F). Subsec. (a)(2). Pub. L. 101–382, § 121(2), designated ex- the previous fiscal year; and isting provisions as subpar. (A) and added subpar. (B). (C) a report containing, for the previous fis- Subsec. (c). Pub. L. 101–382, § 121(3), inserted ‘‘forfeited cal year— currency and’’ before ‘‘proceeds’’. Subsec. (e)(1)(B). Pub. L. 101–382, § 121(4)(B)(i), (ii), re- (i) a complete set of audited financial designated cls. (iii) through (vi) as (ii) through (v), re- statements (including a balance sheet, in- spectively, and struck out former cl. (ii), which read as come statement, and cash flow analysis) pre- follows: ‘‘sources of receipts (seized cash, conveyances, pared in a manner consistent with the re- and others) of the Fund during the previous fiscal quirements of the Comptroller General, and year;’’. (ii) an analysis of income and expenses Subsec. (e)(1)(C). Pub. L. 101–382, § 121(4)(A), (B)(iii), showing the revenue received or lost— (iv), (C), added subpar. (C). (I) by property category (general prop- Subsec. (f). Pub. L. 101–382, § 121(5), which amended subsec. (f) generally to read as follows: erty, vehicles, vessels, aircraft, cash, and ‘‘(1) Subject to paragraph (2), there are authorized real property) and to be appropriated from the Fund not to exceed (II) by type of disposition (sales, remis- $20,000,000 for each fiscal year to carry out the pur- sions, cancellations, placed into official poses set forth in subsections (a)(3) and (b) of this sec- use, sharing with State and local agencies, tion for such fiscal year. and destructions). ‘‘(2) Of the amount authorized to be appropriated under paragraph (1), not to exceed the following shall (2) The Fund shall be subject to audits con- be available to carry out the purposes set forth in ducted by the Comptroller General of the United subsection (a)(3) of this section: States, under such conditions as the Comptrol- ‘‘(A) $14,855,000 for fiscal year 1991. ‘‘(B) $15,598,000 for fiscal year 1992.’’ ler General determines appropriate. was repealed by Pub. L. 101–508, § 10012(a)(1). See Con- (f) Authorization of appropriations struction of 1990 Amendment note below. (1) There are hereby appropriated from the Subsec. (f)(2). Pub. L. 101–508, § 10012(a)(2), amended Fund such sums as may be necessary to carry par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘There are authorized to be appropriated from out the purposes set forth in subsection (a)(1) of the Fund not to exceed $20,000,000 for each fiscal year to this section. carry out the purposes set forth in subsections (a)(3) (2)(A) Subject to subparagraph (B), there are and (b) of this section for such fiscal year.’’ authorized to be appropriated from the Fund not 1988—Pub. L. 100–690 amended section generally. to exceed $20,000,000 for each fiscal year to carry Subsec. (a)(iii). Pub. L. 100–418, § 1912(2), substituted out the purposes set forth in subsections (a)(3) ‘‘private persons’’ for ‘‘private citizens’’. Subsec. (c). Pub. L. 100–418, § 1912(1), substituted ‘‘de- and (b) of this section for such fiscal year. scribed in subsection (a) of this section for which the (B) Of the amount authorized to be appro- fund is available to the United States Customs Serv- priated under subparagraph (A), not to exceed ice,’’ for ‘‘beginning on October 30, 1984, and ending on the following, shall be available to carry out the September 30, 1987,’’. purposes set forth in subsection (a)(3) of this 1987—Pub. L. 100–71 repealed Pub. L. 99–570, section: § 1152(b)(2). See 1986 Amendment note below. (i) $14,855,000 for fiscal year 1991. Subsec. (a)(5)(v), (vi). Pub. L. 100–202 added cls. (v) (ii) $15,598,000 for fiscal year 1992. and (vi). 1986—Pub. L. 99–570, § 1152(b)(2), which directed the re- (3) At the end of each fiscal year, any unobli- peal of this section, was itself repealed by Pub. L. gated amount in excess of $15,000,000 remaining 100–71. See Repeal and Revival of Section note below. in the Fund shall be deposited into the general Subsec. (a). Pub. L. 99–570, § 3142(a)(1)(A), (F), substituted ‘‘1991’’ for ‘‘1987’’ in introductory provisions fund of the Treasury of the United States. and amended generally concluding provisions which (June 17, 1930, ch. 497, title IV, § 613A, as added had read as follows: ‘‘In addition to the purposes de- Pub. L. 98–573, title II, § 213(a)(11), Oct. 30, 1984, scribed in paragraphs (1) through (6), the fund shall be 98 Stat. 2986; amended Pub. L. 99–570, title I, available for purchases by the United States Customs § 1152(b)(2), title III, § 3142(a), Oct. 27, 1986, 100 Service of evidence of (A) smuggling of controlled substances, and (B) violations of the currency and foreign Stat. 3207–12, 3207–93; Pub. L. 100–71, title I, § 101, transaction reporting requirements of chapter 53 of July 11, 1987, 101 Stat. 438; Pub. L. 100–202, title 31 if there is a substantial probability that the § 101(m) [title I, § 106], Dec. 22, 1987, 101 Stat. violations of these requirements are related to the 1329–390, 1329–397; Pub. L. 100–418, title I, § 1912, smuggling of controlled substances.’’ Aug. 23, 1988, 102 Stat. 1320; Pub. L. 100–690, title Subsec. (a)(1). Pub. L. 99–570, § 3142(a)(1)(B), inserted VII, § 7364, Nov. 18, 1988, 102 Stat. 4475; Pub. L. ‘‘(including investigative costs leading to seizures)’’ after ‘‘of the seizure’’. 101–382, title I, § 121, Aug. 20, 1990, 104 Stat. 640; Subsec. (a)(5), (6). Pub. L. 99–570, § 3142(a)(1)(C)–(E), re- Pub. L. 101–508, title X, § 10012(a), Nov. 5, 1990, 104 designated par. (6) as (5) and struck out former par. (5) Stat. 1388–390; Pub. L. 104–316, title I, § 110(a), which provided that the fund would be available with Oct. 19, 1996, 110 Stat. 3832.) respect to seizures and forfeitures by the United States Customs Service for equipping for law enforcement PRIOR PROVISIONS functions of forfeited vessels, vehicles and aircraft re- Prior similar provisions were contained in section tained as provided by law for official use by the Cus- 613a of act June 17, 1930, as added by Pub. L. 98–473, toms Service. title II, § 317, Oct. 12, 1984, 98 Stat. 2054, which was clas- Subsec. (f). Pub. L. 99–570, § 3142(a)(2), amended sub- sified to section 1613a of this title and subsequently re- sec. (f) generally. Prior to amendment, subsec. (f) read pealed. as follows: Page 263 TITLE 19—CUSTOMS DUTIES § 1615

‘‘(1) There are authorized to be appropriated from the lease the vessel, vehicle, aircraft, merchandise, fund for each of the four fiscal years beginning with fis- or baggage seized upon the payment of such cal year 1984, not more than $10,000,000. value thereof, which shall be distributed in the ‘‘(2) At the end of each of the first three of such four order provided in section 1613 of this title. fiscal years, any amount in the fund in excess of $10,000,000 shall be deposited in the general fund of the (June 17, 1930, ch. 497, title IV, § 614, 46 Stat. 757; Treasury. At the end of the last of such four fiscal 1946 Reorg. Plan No. 3, §§ 101–104, eff. July 16, years, any amount in the fund shall be deposited in the 1946, 11 F.R. 7875, 60 Stat. 1097; Pub. L. 91–271, general fund of the Treasury, and the fund shall cease title III, § 301(b), June 2, 1970, 84 Stat. 287; Pub. to exist.’’ L. 98–473, title II, § 321, Oct. 12, 1984, 98 Stat. 2056; EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 98–573, title II, § 213(a)(12), Oct. 30, 1984, Section 10012(c) of Pub. L. 101–508 provided that: ‘‘The 98 Stat. 2987.) provisions of this section [amending this section] take PRIOR PROVISIONS effect August 21, 1990.’’ Provisions similar to those in this section were con- EFFECTIVE DATE OF 1986 AMENDMENT tained in act Sept. 21, 1922, ch. 356, title IV, § 614, 42 Section 3142(b) of Pub. L. 99–570 provided that: ‘‘The Stat. 987. That section was superseded by section 614 of amendments made by subsection (a) [amending this act June 17, 1930, comprising this section, and repealed section] shall take effect October 1, 1986.’’ by section 651(a)(1) of the 1930 act. A prior provision authorizing collectors, subject to EFFECTIVE DATE the approval of the Secretary of the Treasury, to release seized merchandise on payment of the appraised Section effective Oct. 15, 1984, see section 214(e) of value when the appraised value did not exceed $1,000, Pub. L. 98–573, set out as an Effective Date of 1984 were contained in R.S. § 3081, prior to repeal by act Amendment note under section 1304 of this title. Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. CONSTRUCTION OF 1990 AMENDMENT AMENDMENTS Section 10012(a)(1) of Pub. L. 101–508 provided that: 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- ‘‘Paragraph (5) of section 121 of the Customs and Trade erence to aircraft in three places. Act of 1990 [Pub. L. 101–382] is repealed and subsection 1970—Pub. L. 91–271 substituted reference to the ap- (f) of section 613A of the Tariff Act of 1930 [subsec. (f) propriate customs officer for reference to the collector. of this section] shall be applied as if the amendment made by such paragraph (5) had not been enacted.’’ EFFECTIVE DATE OF 1984 AMENDMENT REPEAL AND REVIVAL OF SECTION Amendment by Pub. L. 98–573 effective Oct. 15, 1984, see section 214(e) of Pub. L. 98–573, set out as a note Section 1152(b)(2) of Pub. L. 99–570, which had directed under section 1304 of this title. the repeal of this section, was repealed by section 101 of Pub. L. 100–71, which also provided in part that sec- EFFECTIVE DATE OF 1970 AMENDMENT tion 1152(b) of Pub. L. 99–570 be treated as though it had never been enacted. For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under TRANSFER OF FUNCTIONS section 1500 of this title.

For transfer of functions, personnel, assets, and li- TRANSFER OF FUNCTIONS abilities of the United States Customs Service of the Department of the Treasury, including functions of the For transfer of authorities, functions, personnel, and Secretary of the Treasury relating thereto, to the Sec- assets of the Coast Guard, including the authorities retary of Homeland Security, and for treatment of re- and functions of the Secretary of Transportation relat- lated references, see sections 203(1), 551(d), 552(d), and ing thereto, to the Department of Homeland Security, 557 of Title 6, Domestic Security, and the Department and for treatment of related references, see sections of Homeland Security Reorganization Plan of Novem- 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- ber 25, 2002, as modified, set out as a note under section rity, and the Department of Homeland Security Reor- 542 of Title 6. ganization Plan of November 25, 2002, set out as a note For transfer of authorities, functions, personnel, and under section 542 of Title 6. assets of the Coast Guard, including the authorities For transfer of functions, personnel, assets, and li- and functions of the Secretary of Transportation relat- abilities of the United States Customs Service of the ing thereto, to the Department of Homeland Security, Department of the Treasury, including functions of the and for treatment of related references, see sections Secretary of the Treasury relating thereto, to the Sec- 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- retary of Homeland Security, and for treatment of re- rity, and the Department of Homeland Security Reor- lated references, see sections 203(1), 551(d), 552(d), and ganization Plan of November 25, 2002, as modified, set 557 of Title 6, Domestic Security, and the Department out as a note under section 542 of Title 6. of Homeland Security Reorganization Plan of Novem- ber 25, 2002, set out as a note under section 542 of Title § 1614. Release of seized property 6. Substitution in text of reference to Commandant of If any person claiming an interest in any ves- the Coast Guard or Commissioner of Customs for ‘‘the sel, vehicle, aircraft, merchandise, or baggage Secretary of Commerce’’ under the authority of Reorg. seized under the provisions of this chapter offers Plan No. 3 of 1946, see Transfer of Functions note set to pay the value of such vessel, vehicle, aircraft, out under section 1613 of this title. merchandise, or baggage, as determined under § 1615. Burden of proof in forfeiture proceedings section 1606 of this title, and it appears that such person has in fact a substantial interest In all suits or actions (other than those aris- therein, the appropriate customs officer may, ing under section 1592 of this title) brought for subject to the approval of the Secretary of the the forfeiture of any vessel, vehicle, aircraft, Treasury if under the customs laws, or the Com- merchandise, or baggage seized under the provi- mandant of the Coast Guard or the Commis- sions of any law relating to the collection of du- sioner of Customs, as the case may be, if under ties on imports or tonnage, where the property the navigation laws, accept such offer and re- is claimed by any person, the burden of proof § 1616 TITLE 19—CUSTOMS DUTIES Page 264 shall lie upon such claimant; and in all suits or § 1616. Repealed. Pub. L. 99–570, title I, § 1863(b), actions brought for the recovery of the value of Oct. 27, 1986, 100 Stat. 3207–54 any vessel, vehicle, aircraft, merchandise, or Section, act June 17, 1930, ch. 497, title IV, § 616, as baggage, because of violation of any such law, added Oct. 12, 1984, Pub. L. 98–473, title II, § 318, 98 Stat. the burden of proof shall be upon the defendant: 2055, related to disposition of forfeited property. Provided, That probable cause shall be first Another section 616 of act June 17, 1930, as added by shown for the institution of such suit or action, Pub. L. 98–573, title II, § 213(a)(4), Oct. 30, 1984, 98 Stat. to be judged of by the court, subject to the fol- 2987, is classified to section 1616a of this title. A prior section 616 of act June 17, 1930, ch. 497, title lowing rules of proof: IV, 46 Stat. 757, related to prohibition against com- (1) The testimony or deposition of the officer promising Government claims and was classified to of the customs who has boarded or required to this section, prior to repeal by act June 25, 1948, ch. 645, come to a stop or seized a vessel, vehicle, or § 24, 62 Stat. 682, eff. Sept. 1, 1948. See section 1915 of aircraft, or has arrested a person, shall be Title 18, Crimes and Criminal Procedure. prima facie evidence of the place where the act § 1616a. Disposition of forfeited property in question occurred. (2) Marks, labels, brands, or stamps, indic- (a) State proceedings ative of foreign origin, upon or accompanying The Secretary of the Treasury may dis- mechandise 1 or containers of merchandise, continue forfeiture proceedings under this chap- shall be prima facie evidence of the foreign or- ter in favor of forfeiture under State law. If a igin of such merchandise. complaint for forfeiture is filed under this chap- (3) The fact that a vessel of any description ter, the Attorney General may seek dismissal of is found, or discovered to have been, in the vi- the complaint in favor of forfeiture under State cinity of any hovering vessel and under any law. circumstances indicating contact or commu- (b) Transfer of seized property; notice nication therewith, whether by proceeding to If forfeiture proceedings are discontinued or or from such vessel, or by coming to in the vi- dismissed under this section— cinity of such vessel, or by delivering to or re- (1) the United States may transfer the seized ceiving from such vessel any merchandise, per- property to the appropriate State or local offi- son, or communication, or by any other means cial; and effecting contact or communication there- (2) notice of the discontinuance or dismissal with, shall be prima facie evidence that the shall be provided to all known interested par- vessel in question has visited such hovering ties. vessel. (c) Retention or transfer of forfeited property (June 17, 1930, ch. 497, title IV, § 615, 46 Stat. 757; (1) The Secretary of the Treasury may apply Aug. 5, 1935, ch. 438, title II, § 207, 49 Stat. 525; property forfeited under this chapter in accord- Pub. L. 95–410, title I, § 110(d), Oct. 3, 1978, 92 ance with subparagraph (A) or (B), or both: Stat. 896; Pub. L. 98–473, title II, § 321, Oct. 12, (A) Retain any of the property for official 1984, 98 Stat. 2056; Pub. L. 98–573, title II, use. § 213(a)(13), Oct. 30, 1984, 98 Stat. 2987.) (B) Transfer any of the property to— (i) any other Federal agency; (ii) any State or local law enforcement PRIOR PROVISIONS agency that participated directly or indi- Provisions somewhat similar to those in this section rectly in the seizure or forfeiture of the were contained in act Oct. 3, 1913, ch. 16, § III, T, 38 property; or Stat. 189, the provisions of which were originally en- (iii) the Civil Air Patrol. acted in the Customs Administrative Act of June 10, 1890, ch. 407, § 21, 26 Stat. 140, and reenacted by the (2) The Secretary may transfer any forfeited Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 personal property or the proceeds of the sale of Stat. 101, and amended by the 1913 act. Section III of any forfeited personal or real property to any the 1913 act was superseded by act Sept. 21, 1922, ch. 356, foreign country which participated directly or title IV, § 615, 42 Stat. 987, and was repealed by section indirectly in the seizure or forfeiture of the 643 thereof. Section 615 of the 1922 act was superseded property, if such a transfer— by section 615 of act June 17, 1930, comprising this sec- (A) has been agreed to by the Secretary of tion, and repealed by section 651(a)(1) of the 1930 act. State; (B) is authorized in an international agree- AMENDMENTS ment between the United States and the for- 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- eign country; and erence to aircraft in provisions preceding par. (1) and in (C) is made to a country which, if applicable, par. (1). has been certified under section 2291j(b) of 1978—Pub. L. 95–410 inserted ‘‘(other than those aris- title 22. ing under section 1592 of this title)’’ after ‘‘In all suits or actions’’. (3) Aircraft may be transferred to the Civil Air 1935—Act Aug. 5, 1935, inserted a comma in place of a Patrol under paragraph (1)(B)(iii) in support of period at the end, inserted ‘‘subject to the following air search and rescue and other emergency serv- rules of proof’’, and added subds. (1) to (3). ices and, pursuant to a memorandum of understanding entered into with a Federal agency, il- EFFECTIVE DATE OF 1984 AMENDMENT legal drug traffic surveillance. Jet-powered air- Amendment by Pub. L. 98–573 effective Oct. 15, 1984, craft may not be transferred to the Civil Air Pa- see section 214(e) of Pub. L. 98–573, set out as a note trol under the authority of paragraph (1)(B)(iii). under section 1304 of this title. (d) Liability of United States after transfer The United States shall not be liable in any 1 So in original. Probably should be ‘‘merchandise’’. action relating to property transferred under Page 265 TITLE 19—CUSTOMS DUTIES § 1618 this section if such action is based on an act or act June 17, 1930, comprising this section, and repealed omission occurring after the transfer. by section 651(a)(1) of the 1930 act. (June 17, 1930, ch. 497, title IV, § 616, as added AMENDMENTS Pub. L. 98–573, title II, § 213(a)(14), Oct. 30, 1984, 1970—Pub. L. 91–271 substituted reference to customs 98 Stat. 2987; amended Pub. L. 99–570, title I, officer for reference to collector and struck out ref- § 1863(a), Oct. 27, 1986, 100 Stat. 3207–54; Pub. L. erence to customs agents. 100–690, title VII, § 7366(a), Nov. 18, 1988, 102 Stat. 4478; Pub. L. 101–207, § 3(e), Dec. 7, 1989, 103 Stat. CHANGE OF NAME 1834; Pub. L. 103–447, title I, § 102(c), Nov. 2, 1994, Act June 25, 1948, eff. Sept. 1, 1948, substituted 108 Stat. 4693.) ‘‘United States attorney’’ for ‘‘district attorney’’. See section 541 of Title 28, Judiciary and Judicial Proce- CODIFICATION dure, and Historical and Revision Note thereunder.

Another section 616 of act June 17, 1930, as added by EFFECTIVE DATE OF 1970 AMENDMENT Pub. L. 98–473, title II, § 318, Oct. 12, 1984, 98 Stat. 2055, was classified to section 1616 of this title and subse- For effective date of amendment by Pub. L. 91–271, quently repealed. see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. AMENDMENTS TRANSFER OF FUNCTIONS 1994—Subsec. (c)(2)(C). Pub. L. 103–447 substituted ‘‘section 2291j(b) of title 22’’ for ‘‘section 2291(h) of title Functions of Secretary of the Treasury, General 22’’. Counsel of Department of the Treasury, or Department 1989—Subsec. (c)(1)(B). Pub. L. 101–207, § 3(e)(1), of the Treasury under this section with respect to func- amended subpar. (B) generally. Prior to amendment, tions transferred to Secretary of Commerce in sections subpar. (B) read as follows: ‘‘Transfer any of the prop- 1303 and 1671 et seq. of this title by section 5(a)(1)(C) of erty to any— Reorg. Plan No. 3 of 1979 were transferred to Secretary ‘‘(i) other Federal agency; or of Commerce pursuant to Reorg. Plan No. 3 of 1979, ‘‘(ii) State or local law enforcement agency that § 5(a)(1)(C), 44 F.R. 69275, 93 Stat. 1381, eff. Jan. 2, 1980, participated directly or indirectly in the seizure or as provided by section 1–107(a) of Ex. Ord. No. 12188, forfeiture of the property.’’ Jan. 2, 1980, 45 F.R. 993, set out as notes under section Subsec. (c)(3). Pub. L. 101–207, § 3(e)(2), added par. (3). 2171 of this title. 1988—Subsec. (c). Pub. L. 100–690 amended subsec. (c) Act May 10, 1934, ch. 277, § 512(b), 48 Stat. 759, abol- generally. Prior to amendment, subsec. (c) read as fol- ished offices of General Counsel and Assistant General lows: ‘‘The Secretary of the Treasury may transfer any Counsel for Bureau of Internal Revenue, and office of property forfeited under this chapter to any other Fed- Solicitor and Assistant Solicitor of the Treasury and eral agency or to any State or local law enforcement transferred powers, duties, and functions thereof to agency which participated directly in the seizure or General Counsel for Department of the Treasury. forfeiture of the property.’’ 1986—Subsec. (c). Pub. L. 99–570 inserted ‘‘any other § 1618. Remission or mitigation of penalties Federal agency or to’’ after ‘‘property forfeited under this chapter to’’. Whenever any person interested in any vessel, vehicle, aircraft, merchandise, or baggage seized EFFECTIVE DATE OF 1988 AMENDMENT under the provisions of this chapter, or who has Section 7366(b) of Pub. L. 100–690 provided that: ‘‘The incurred, or is alleged to have incurred, any fine amendment made by subsection (a) [amending this sec- or penalty thereunder, files with the Secretary tion] applies with respect to property forfeited under of the Treasury if under the customs laws, and the Tariff Act of 1930 [this chapter] on or after the date with the Commandant of the Coast Guard or the of the enactment of this Act [Nov. 18, 1988].’’ Commissioner of Customs, as the case may be, if EFFECTIVE DATE under the navigation laws, before the sale of Section effective Oct. 15, 1984, see section 214(e) of such vessel, vehicle, aircraft, merchandise, or Pub. L. 98–573, set out as an Effective Date of 1984 baggage a petition for the remission or mitiga- Amendment note under section 1304 of this title. tion of such fine, penalty, or forfeiture, the Sec- retary of the Treasury, the Commandant of the § 1617. Compromise of Government claims by Coast Guard, or the Commissioner of Customs, if Secretary of the Treasury he finds that such fine, penalty, or forfeiture Upon a report by a customs officer, United was incurred without willful negligence or with- States attorney, or any special attorney, having out any intention on the part of the petitioner charge of any claim arising under the customs to defraud the revenue or to violate the law, or laws, showing the facts upon which such claim is finds the existence of such mitigating circum- based, the probabilities of a recovery and the stances as to justify the remission or mitigation terms upon which the same may be com- of such fine, penalty, or forfeiture, may remit or promised, the Secretary of the Treasury is au- mitigate the same upon such terms and condi- thorized to compromise such claim, if such actions as he deems reasonable and just, or order tion shall be recommended by the General Coun- discontinuance of any prosecution relating sel for the Department of the Treasury. thereto. In order to enable him to ascertain the facts, the Secretary of the Treasury may issue a (June 17, 1930, ch. 497, title IV, § 617, 46 Stat. 757; commission to any customs officer to take testi- May 10, 1934, ch. 277, § 512(b), 48 Stat. 759; June mony upon such petition: Provided, That nothing 25, 1948, ch. 646, § 1, 62 Stat. 869; Pub. L. 91–271, in this section shall be construed to deprive any title III, § 301(gg), June 2, 1970, 84 Stat. 291.) person of an award of compensation made before PRIOR PROVISIONS the filing of such petition. Provisions similar to those in this section were con- (June 17, 1930, ch. 497, title IV, § 618, 46 Stat. 757; tained in act Sept. 21, 1922, ch. 356, title IV, § 617, 42 1946 Reorg. Plan No. 3, §§ 101–104, eff. July 16, Stat. 987. That section was superseded by section 617 of 1946, 11 F.R. 7875, 60 Stat. 1097; Pub. L. 91–271, § 1619 TITLE 19—CUSTOMS DUTIES Page 266 title III, § 301(hh), June 2, 1970, 84 Stat. 291; Pub. toms officer original information concern- L. 98–473, title II, § 321, Oct. 12, 1984, 98 Stat. 2056; ing— Pub. L. 98–573, title II, § 213(a)(16), Oct. 30, 1984, (i) any fraud upon the customs revenue, 98 Stat. 2988.) or (ii) any violation of the customs laws or PRIOR PROVISIONS the navigation laws which is being, or has Provisions similar to those in this section were con- been, perpetrated or contemplated by any tained in act Sept. 21, 1922, ch. 356, title IV, § 618, 42 other person; and Stat. 987. That section was superseded by section 618 of act June 17, 1930, comprising this section, and was re- (2) such detection and seizure or such infor- pealed by section 651(a)(1) of the 1930 act. mation leads to a recovery of— Provisions for a petition to the judge of the district, (A) any duties withheld, or a summary investigation before the judge or a United (B) any fine, penalty, or forfeiture of prop- States Commissioner, and transmission of the facts ap- erty incurred; pearing thereon, with a certified copy of the evidence, to the Secretary of the Treasury, and provisions au- the Secretary may award and pay such person thorizing the Secretary to remit fines and penalties, an amount that does not exceed 25 percent of the etc., were contained in act June 22, 1874, ch. 391, §§ 17, net amount so recovered. 18, 20, 18 Stat. 189, 190, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. (b) Forfeited property not sold If— AMENDMENTS (1) any vessel, vehicle, aircraft, merchandise, 1984—Pub. L. 98–573 and Pub. L. 98–473 inserted ref- or baggage is forfeited to the United States erence to aircraft in two places. and is thereafter, in lieu of sale— 1970—Pub. L. 91–271 substituted ‘‘customs officer’’ for ‘‘customs agent, collector, judge of the United States (A) destroyed under the customs or naviga- Customs Court, or United States commissioner’’. tion laws, or (B) delivered to any governmental agency EFFECTIVE DATE OF 1984 AMENDMENT for official use, and Amendment by Pub. L. 98–573 effective Oct. 15, 1984, (2) any person would be eligible to receive an see section 214(e) of Pub. L. 98–573, set out as a note under section 1304 of this title. award under subsection (a) of this section but for the lack of sale of such forfeited property, EFFECTIVE DATE OF 1970 AMENDMENT the Secretary may award and pay such person For effective date of amendment by Pub. L. 91–271, an amount that does not exceed 25 percent of the see section 203 of Pub. L. 91–271, set out as a note under appraised value of such forfeited property. section 1500 of this title. (c) Dollar limitation TRANSFER OF FUNCTIONS The amount awarded and paid to any person For transfer of authorities, functions, personnel, and under this section may not exceed $250,000 for assets of the Coast Guard, including the authorities any case. and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, (d) Source of payment and for treatment of related references, see sections Unless otherwise provided by law, any amount 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- paid under this section shall be paid out of ap- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, set out as a note propriations available for the collection of the under section 542 of Title 6. customs revenue. For transfer of functions, personnel, assets, and li- (e) Recovery of bail bond abilities of the United States Customs Service of the Department of the Treasury, including functions of the For purposes of this section, an amount recov- Secretary of the Treasury relating thereto, to the Sec- ered under a bail bond shall be deemed a recov- retary of Homeland Security, and for treatment of re- ery of a fine incurred. lated references, see sections 203(1), 551(d), 552(d), and (June 17, 1930, ch. 497, title IV, § 619, 46 Stat. 758; 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- Aug. 5, 1935, ch. 438, title III, § 305, 49 Stat. 527; ber 25, 2002, set out as a note under section 542 of Title Pub. L. 98–473, title II, §§ 319, 321, Oct. 12, 1984, 98 6. Stat. 2056; Pub. L. 98–573, title II, § 213(a)(15), Substitution in text of references to Commandant of Oct. 30, 1984, 98 Stat. 2988; Pub. L. 99–570, title the Coast Guard and Commissioner of Customs for ‘‘the III, § 3125, Oct. 27, 1986, 100 Stat. 3207–88.) Secretary of Commerce’’ under the authority of Reorg. Plan No. 3 of 1946, see note set out under section 1613 PRIOR PROVISIONS of this title. Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 619, 42 § 1619. Award of compensation to informers Stat. 988. That section was superseded by section 619 of (a) In general act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. If— Provisions somewhat similar to those in this section, (1) any person who is not an employee or of- but applicable in part to any officer of the customs or ficer of the United States— other person, were contained in act June 22, 1874, ch. (A) detects and seizes any vessel, vehicle, 391, § 4, 18 Stat. 186. Section 3 of the 1874 act required aircraft, merchandise, or baggage subject to the Secretary of the Treasury to make suitable com- seizure and forfeiture under the customs pensation in certain cases, as thereinafter provided, made an appropriation and required payments to be re- laws or the navigation laws and reports such ported to Congress. Section 6 required claims to com- detection and seizure to a customs officer, or pensation to be established to the satisfaction of the (B) furnishes to a United States attorney, court or judge, and required satisfactory proof when the Secretary of the Treasury, or any cus- the fine, etc., was collected without judicial proceed- Page 267 TITLE 19—CUSTOMS DUTIES § 1621 ings. All of these sections were repealed by act Sept. 21, any portion of the money which may accrue to 1922, ch. 356, title IV, § 643, 42 Stat. 989. any person making such detection and seizure, Section 2 of the act of June 22, 1874, ch. 391, repealed or furnishing such information, shall be guilty all provisions under which moieties of fines, etc., were paid to informers, etc., and required the proceeds of all of a felony and, upon conviction thereof, shall be fines, penalties, and forfeitures to be paid into the punished by a fine of not more than $10,000, or Treasury. This last provision was omitted from the by imprisonment for not more than two years, Code as superseded by section 527 of this title (act Mar. or both, and shall be thereafter ineligible to any 4, 1907, ch. 2918, § 1, 34 Stat. 1315). office of honor, trust, or emolument. Any such Section 26 of that Act repealed inconsistent laws and person who pays to any such officer, or to any saved existing rights. It was omitted from the Code as temporary and executed. person for the use of such officer, any portion of R.S. § 2948, providing that additional duties were not such money, or anything of value for or because to be deemed fines, etc., for distribution to customs of- of such money, shall have a right of action ficers, became inoperative by the repeal of all provi- against such officer, or his legal representatives, sions for payment of moieties of fines, etc., to inform- or against such person, or his legal representa- ers or officers, by the act of June 2, 1874, ch. 391, § 2, and tives, and shall be entitled to recover the money was repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, so paid or the thing of value so given. 42 Stat. 989. An appropriation for compensation in lieu of moieties (June 17, 1930, ch. 497, title IV, § 620, 46 Stat. 758.) was made by act Mar. 2, 1926, ch. 43, § 1, 44 Stat. 141. Similar appropriations were contained in prior acts. PRIOR PROVISIONS

AMENDMENTS Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 620, 42 1986—Pub. L. 99–570 amended section generally. Prior Stat. 988. That section was superseded by section 620 of to amendment, section read as follows: ‘‘Any person act June 17, 1930, comprising this section, and repealed not an officer of the United States who detects and by section 651(a)(1) of the 1930 act. seizes any vessel, vehicle, aircraft, merchandise, or Provisions somewhat similar to those in this section baggage subject to seizure and forfeiture under the cus- but excepting cases of smuggling were contained in act toms laws or the navigation laws, and who reports the June 22, 1874, ch. 391, § 7, 18 Stat. 187, prior to repeal by same to an officer of the customs, or who furnishes to act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. a United States attorney, to the Secretary of the Treasury, or to any customs officer original informa- § 1621. Limitation of actions tion concerning any fraud upon the customs revenue, or a violation of the customs laws or the navigation No suit or action to recover any duty under laws, perpetrated or contemplated, which detection and section 1592(d), 1593a(d) of this title, or any pecu- seizure or information leads to a recovery of any duties niary penalty or forfeiture of property accruing withheld, or of any fine, penalty, or forfeiture incurred, under the customs laws shall be instituted un- may be awarded and paid by the Secretary of the Treas- less such suit or action is commenced within ury a compensation of 25 per centum of the net amount recovered, but not to exceed $250,000 in any case, which five years after the time when the alleged of- shall be paid out of any appropriations available for the fense was discovered, or in the case of forfeiture, collection of the revenue from customs. For the pur- within 2 years after the time when the involve- poses of this section an amount recovered under a bail ment of the property in the alleged offense was bond shall be deemed a recovery of a fine incurred. If discovered, whichever was later; except that— any vessel, vehicle, aircraft, merchandise, or baggage is (1) in the case of an alleged violation of sec- forfeited to the United States, and is thereafter, in lieu tion 1592 or 1593a of this title, no suit or action of sale, destroyed under the customs or navigation laws (including a suit or action for restoration of or delivered to any governmental agency for official use, compensation of 25 per centum of the appraised lawful duties under subsection (d) of such sec- value thereof may be awarded and paid by the Sec- tions) may be instituted unless commenced retary of the Treasury under the provisions of this sec- within 5 years after the date of the alleged tion, but not to exceed $250,000 in any case. In no event violation or, if such violation arises out of shall the Secretary delegate the authority to pay an fraud, within 5 years after the date of discov- award under this section in excess of $10,000 to an offi- ery of fraud, and cial below the level of the Commissioner of Customs.’’ (2) the time of the absence from the United 1984—Pub. L. 98–573, § 213(a)(15)(A), and Pub. L. 98–473, § 321, inserted reference to aircraft in two places. States of the person subject to the penalty or Pub. L. 98–573, § 213(a)(15)(B), substituted ‘‘$250,000’’ forfeiture, or of any concealment or absence of for ‘‘$50,000’’ in two places. the property, shall not be reckoned within the Pub. L. 98–473, § 319(a), substituted ‘‘$150,000’’ for 5-year period of limitation. ‘‘$50,000’’. Pub. L. 98–473, § 319(b), inserted ‘‘In no event shall the (June 17, 1930, ch. 497, title IV, § 621, 46 Stat. 758; Secretary delegate the authority to pay an award Aug. 5, 1935, ch. 438, title III, § 306, 49 Stat. 527; under this section in excess of $10,000 to an official Pub. L. 95–410, title I, § 110(e), Oct. 3, 1978, 92 below the level of the Commissioner of Customs.’’ Stat. 897; Pub. L. 103–182, title VI, § 668, Dec. 8, 1935—Act Aug. 5, 1935, inserted ‘‘or the navigation 1993, 107 Stat. 2216; Pub. L. 106–185, § 11, Apr. 25, laws’’ after ‘‘customs laws’’, and provisions authorizing award of compensation of 25 per centum of the ap- 2000, 114 Stat. 217.) praised value, but not to exceed $50,000 in any case. PRIOR PROVISIONS EFFECTIVE DATE OF 1984 AMENDMENT Provisions similar to those in this section were con- Amendment by Pub. L. 98–573 effective Oct. 15, 1984, tained in act Sept. 21, 1922, ch. 356, title IV, § 621, 42 see section 214(e) of Pub. L. 98–573, set out as a note Stat. 988. That section was superseded by section 621 of under section 1304 of this title. act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. § 1620. Acceptance of money by United States of- Provisions substantially similar to those in this sec- ficers tion, except that the period of limitation was three years, were contained in act June 22, 1874, ch. 391, § 22, Any officer of the United States who directly 18 Stat. 190, prior to repeal by act Sept. 21, 1922, ch. 356, or indirectly receives, accepts, or contracts for title IV, § 643, 42 Stat. 989. § 1622 TITLE 19—CUSTOMS DUTIES Page 268

AMENDMENTS retary of the Treasury or the Customs Service is 2000—Pub. L. 106–185 inserted ‘‘, or in the case of for- authorized to enforce, the Secretary of the feiture, within 2 years after the time when the involve- Treasury may— ment of the property in the alleged offense was discov- (1) Except as otherwise specifically provided ered, whichever was later’’ after ‘‘within five years by law, prescribe the conditions and form of after the time when the alleged offense was discovered’’ such bond and the manner in which the bond in introductory provisions. 1993—Pub. L. 103–182 inserted ‘‘any duty under section may be filed with or, pursuant to an author- 1592(d), 1593a(d) of this title, or’’ before ‘‘any pecuniary ized electronic data interchange system, penalty’’ and substituted ‘‘discovered; except that—’’ transmitted to the Customs Service, and fix along with pars. (1) and (2) for ‘‘discovered: Provided, the amount of penalty thereof, whether for the That in the case of an alleged violation of section 1592 payment of liquidated damages or of a penal of this title arising out of gross negligence or neg- sum: Provided, That when a consolidated bond ligence, such suit or action shall not be instituted more than five years after the date the alleged violation was authorized by paragraph 4 of this subsection is committed: Provided further, That the time of the ab- taken, the Secretary of the Treasury may fix sence from the United States of the person subject to the penalty of such bond without regard to such penalty or forfeiture, or of any concealment or ab- any other provision of law, regulation, or in- sence of the property, shall not be reckoned within this struction. period of limitation.’’ (2) Provide for the approval of the sureties 1978—Pub. L. 95–410 prescribed for any suit or action for violation of section 1592 of this title arising out of on such bond, without regard to any general gross negligence or negligence a five year limitation provision of law. period following date of alleged violation. (3) Authorize the execution of a term bond 1935—Act Aug. 5, 1935, substituted ‘‘the alleged of- the conditions of which shall extend to and fense was discovered’’ for ‘‘such penalty or forfeiture cover similar cases of importations over such accrued’’. period of time, not to exceed one year, or such EFFECTIVE DATE OF 2000 AMENDMENT longer period as he may fix when in his opin- Amendment by Pub. L. 106–185 applicable to any for- ion special circumstances existing in a par- feiture proceeding commenced on or after the date that ticular instance require such longer period. is 120 days after Apr. 25, 2000, see section 21 of Pub. L. (4) Authorize, to the extent that he may 106–185, set out as a note under section 1324 of Title 8, deem necessary, the taking of a consolidated Aliens and Nationality. bond (single entry or term), in lieu of separate EFFECTIVE DATE OF 1978 AMENDMENT bonds to assure compliance with two or more Effective date of amendment by Pub. L. 95–410 for al- provisions of law, regulations, or instructions leged violation of section 1592 of this title arising out which the Secretary of the Treasury or the of gross negligence or negligence committed on or after Customs Service is authorized to enforce. A Oct. 3, 1978, or before such date without commencement consolidated bond taken pursuant to the au- of proceedings except where barred by provisions of this thority contained in this subsection shall have section in effect prior to such date, see section 110(f)(2) the same force and effect in respect of every of Pub. L. 95–410, set out as a note under section 1592 of this title. provision of law, regulation, or instruction for the purposes for which it is required as though § 1622. Foreign landing certificates separate bonds had been taken to assure com- The Secretary of the Treasury may by regula- pliance with each such provision. tions require the production of landing certificates in respect of merchandise exported from (c) Cancellation of bond the United States, or in respect of residue cargo, The Secretary of the Treasury may authorize in cases in which he deems it necessary for the the cancellation of any bond provided for in this protection of the revenue, or to comply with section, or of any charge that may have been international obligations. made against such bond, in the event of a breach (June 17, 1930, ch. 497, title IV, § 622, 46 Stat. 759; of any condition of the bond, upon the payment Pub. L. 99–570, title III, § 3126, Oct. 27, 1986, 100 of such lesser amount or penalty or upon such Stat. 3207–89.) other terms and conditions as he may deem sufficient. In order to assure uniform, reasonable, AMENDMENTS and equitable decisions, the Secretary of the 1986—Pub. L. 99–570 inserted ‘‘, or to comply with Treasury shall publish guidelines establishing international obligations’’ before period at end. standards for setting the terms and conditions for cancellation of bonds or charges thereunder. § 1623. Bonds and other security (a) Requirement of bond by regulation (d) Validity of bond In any case in which bond or other security is No condition in any bond taken to assure com- not specifically required by law, the Secretary pliance with any law, regulation, or instruction of the Treasury may by regulation or specific in- which the Secretary of the Treasury or the Cus- struction require, or authorize customs officers toms Service is authorized to enforce shall be to require, such bonds or other security as he, or held invalid on the ground that such condition is they, may deem necessary for the protection of not specified in the law, regulation, or instruc- the revenue or to assure compliance with any tion authorizing or requiring the taking of such provision of law, regulation, or instruction bond. Any bond transmitted to the Customs which the Secretary of the Treasury or the Cus- Service pursuant to an authorized electronic toms Service may be authorized to enforce. data interchange system shall have the same (b) Conditions and form of bond force and effect and be binding upon the parties Whenever a bond is required or authorized by thereto as if such bond were manually executed, a law, regulation, or instruction which the Sec- signed, and filed. Page 269 TITLE 19—CUSTOMS DUTIES § 1625

(e) Deposit of money or obligation of United thorized to make such rules and regulations as States in lieu of bond may be necessary to carry out the provisions of The Secretary of the Treasury is authorized to this chapter. permit the deposit of money or obligations of (June 17, 1930, ch. 497, title IV, § 624, 46 Stat. 759.) the United States, in such amount and upon PRIOR PROVISIONS such conditions as he may by regulation prescribe, in lieu of sureties on any bond required Provisions similar to those in this section were con- or authorized by a law, regulation, or instruc- tained in act Sept. 21, 1922, ch. 356, title IV, § 623, 42 tion which the Secretary of the Treasury or the Stat. 988. That section was superseded by section 624 of act June 17, 1930, comprising this section, and repealed Customs Service is authorized to enforce. by section 651(a)(1) of the 1930 act. (June 17, 1930, ch. 497, title IV, § 623, 46 Stat. 759; June 25, 1938, ch. 679, § 30, 52 Stat. 1089; Pub. L. § 1625. Interpretive rulings and decisions; public 91–271, title III, § 301(ii), June 2, 1970, 84 Stat. 291; information Pub. L. 100—418, title I, § 1904, Aug. 23, 1988, 102 (a) Publication Stat. 1313; Pub. L. 103–182, title VI, § 647, Dec. 8, Within 90 days after the date of issuance of 1993, 107 Stat. 2207.) any interpretive ruling (including any ruling AMENDMENTS letter, or internal advice memorandum) or protest review decision under this chapter with re- 1993—Subsec. (b)(1). Pub. L. 103–182, § 647(1), inserted spect to any customs transaction, the Secretary ‘‘and the manner in which the bond may be filed with or, pursuant to an authorized electronic data inter- shall have such ruling or decision published in change system, transmitted to the Customs Service’’ the Customs Bulletin or shall otherwise make after ‘‘form of such bond’’. such ruling or decision available for public in- Subsec. (d). Pub. L. 103–182, § 647(2), inserted at end spection. ‘‘Any bond transmitted to the Customs Service pursu- (b) Appeals ant to an authorized electronic data interchange system shall have the same force and effect and be binding A person may appeal an adverse interpretive upon the parties thereto as if such bond were manually ruling and any interpretation of any regulation executed, signed, and filed.’’ prescribed to implement such ruling to a higher 1988—Subsec. (c). Pub. L. 100–418 provided for publica- level of authority within the Customs Service tion of guidelines establishing customs bond cancella- for de novo review. Upon a reasonable showing tion standards. of business necessity, any such appeal shall be 1970—Subsec. (a). Pub. L. 91–271 substituted reference to customs officers for reference to collectors of cus- considered and decided no later than 60 days fol- toms. lowing the date on which the appeal is filed. The 1938—Act June 25, 1938, amended section generally, Secretary shall issue regulations to implement among other changes adding subsecs. (c) to (e). this subsection.

EFFECTIVE DATE OF 1970 AMENDMENT (c) Modification and revocation For effective date of amendment by Pub. L. 91–271, A proposed interpretive ruling or decision see section 203 of Pub. L. 91–271, set out as a note under which would— section 1500 of this title. (1) modify (other than to correct a clerical error) or revoke a prior interpretive ruling or EFFECTIVE DATE OF 1938 AMENDMENT decision which has been in effect for at least 60 Amendment by act June 25, 1938, effective on thirti- days; or eth day following June 25, 1938, except as otherwise spe- (2) have the effect of modifying the treat- cifically provided, see section 37 of act June 25, 1938, set ment previously accorded by the Customs out as a note under section 1401 of this title. Service to substantially identical trans- TRANSFER OF FUNCTIONS actions; For transfer of functions, personnel, assets, and li- shall be published in the Customs Bulletin. The abilities of the United States Customs Service of the Secretary shall give interested parties an oppor- Department of the Treasury, including functions of the tunity to submit, during not less than the 30-day Secretary of the Treasury relating thereto, to the Sec- period after the date of such publication, com- retary of Homeland Security, and for treatment of re- ments on the correctness of the proposed ruling lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department or decision. After consideration of any com- of Homeland Security Reorganization Plan of Novem- ments received, the Secretary shall publish a ber 25, 2002, as modified, set out as a note under section final ruling or decision in the Customs Bulletin 542 of Title 6. within 30 days after the closing of the comment Functions of all other officers of Department of the period. The final ruling or decision shall become Treasury and functions of all agencies and employees of effective 60 days after the date of its publica- such Department transferred, with certain exceptions, tion. to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any (d) Publication of customs decisions that limit of his functions, by any of such officers, agencies, and court decisions employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July A decision that proposes to limit the applica- 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the tion of a court decision shall be published in the Appendix to Title 5, Government Organization and Em- ployees. Customs Service was under Department of the Customs Bulletin together with notice of oppor- Treasury. tunity for public comment thereon prior to a final decision. § 1624. General regulations (e) Public information In addition to the specific powers conferred by The Secretary may make available in writing this chapter the Secretary of the Treasury is au- or through electronic media, in an efficient, § 1626 TITLE 19—CUSTOMS DUTIES Page 270 comprehensive and timely manner, all informa- to be entered without an accompanying valid ex- tion, including directives, memoranda, elec- port license or other documents may be denied tronic messages and telexes which contain in- entry into the United States. structions, requirements, methods or advice (b) Period of applicability necessary for importers and exporters to comply 1 This section applies only to requests received with the Customs laws and regulations. All in- by the Secretary of the Treasury prior to Janu- formation which may be made available pursu- ary 1, 1983, and for the duration of the arrange- ant to this subsection shall be subject to any ex- ments. emption from disclosure provided by section 552 of title 5. (June 17, 1930, ch. 497, title IV, § 626, as added Pub. L. 96–276, § 153, Oct. 2, 1982, 96 Stat. 1202.) (June 17, 1930, ch. 497, title IV, § 625, as added Pub. L. 95–410, title I, § 112, Oct. 3, 1978, 92 Stat. § 1627. Repealed. Pub. L. 100–690, title VII, 898; amended Pub. L. 103–182, title VI, § 623, Dec. § 7367(c)(6), Nov. 18, 1988, 102 Stat. 4480 8, 1993, 107 Stat. 2186; Pub. L. 104–295, § 21(e)(14), Section, act June 17, 1930, ch. 497, title IV, § 627, as Oct. 11, 1996, 110 Stat. 3531.) added Oct. 25, 1984, Pub. L. 98–547, title III, § 302, 98 Stat. AMENDMENTS 2771, related to unlawful importation or exportation of certain vehicles and equipment. 1996—Subsec. (a). Pub. L. 104–295 made technical Another section 627 of act June 17, 1930, as added by amendment to reference in original act which appears Pub. L. 98–573, title II, § 205, Oct. 30, 1984, 98 Stat. 2974, in text as reference to ‘‘this chapter’’. is classified to section 1627a of this title. 1993—Pub. L. 103–182 amended section generally. Prior to amendment, section read as follows: ‘‘Within 120 § 1627a. Unlawful importation or exportation of days after issuing any precedential decision (including certain vehicles; inspections any ruling letter, internal advice memorandum, or protest review decision) under this chapter with respect to (a) Violations; penalties; seizures and forfeitures any customs transaction, the Secretary shall have such (1) Whoever knowingly imports, exports, or at- decision published in the Customs Bulletin or shall tempts to import or export— otherwise make such decision available for public in- (A) Any 1 stolen self-propelled vehicle, ves- spection.’’ sel, aircraft, or part of a self-propelled vehicle, TRANSFER OF FUNCTIONS vessel, or aircraft; or (B) any self-propelled vehicle or part of a For transfer of functions, personnel, assets, and li- self-propelled vehicle from which the identi- abilities of the United States Customs Service of the fication number has been removed, obliter- Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- ated, tampered with, or altered; retary of Homeland Security, and for treatment of re- shall be subject to a civil penalty in an amount lated references, see sections 203(1), 551(d), 552(d), and determined by the Secretary, not to exceed 557 of Title 6, Domestic Security, and the Department $10,000 for each violation. of Homeland Security Reorganization Plan of Novem- (2) Any violation of this subsection shall make ber 25, 2002, set out as a note under section 542 of Title 6. such self-propelled vehicle, vessel, aircraft, or part thereof subject to seizure and forfeiture STUDY AND REPORT RELATING TO TIMELINESS OF under this chapter. PROSPECTIVE RULINGS (b) Regulations; violations; penalties Pub. L. 107–210, div. A, title III, § 335, Aug. 6, 2002, 116 A person attempting to export a used self-pro- Stat. 978, required the Comptroller General, not later pelled vehicle shall present, pursuant to regula- than 1 year after Aug. 6, 2002, to conduct a study and report to committees of Congress on the extent to tions prescribed by the Secretary, to the appro- which the Office of Regulations and Rulings of the Cus- priate customs officer both the vehicle and a toms Service had made improvements to decrease the document describing such vehicle which in- time between requests for, and issuance of, prospective cludes the vehicle identification number, before rulings relating to the proper classification, valuation, lading if the vehicle is to be transported by ves- or marking of goods proposed to be imported into the sel or aircraft, or before export if the vehicle is United States. to be transported by rail, highway, or under its own power. Failure to comply with the regula- § 1626. Steel products trade enforcement tions of the Secretary shall subject such person (a) Export validation requirement to a civil penalty of not more than $500 for each In order to monitor and enforce export meas- violation. ures required by a foreign government or cus- (c) Definitions toms union, pursuant to an international ar- For purposes of this section— rangement with the United States, the Sec- (1) the term ‘‘self-propelled vehicle’’ includes retary of the Treasury may, upon receipt of a re- any automobile, truck, tractor, bus, motor- quest by the President of the United States and cycle, motor home, self-propelled agricultural by a foreign government or customs union, re- machinery, self-propelled construction equip- quire the presentation of a valid export license ment, self-propelled special use equipment, or other documents issued by such foreign gov- and any other self-propelled vehicle used or ernment or customs union as a condition for designed for running on land but not on rail; entry into the United States of steel mill prod- (2) the term ‘‘aircraft’’ has the meaning ucts specified in the request. The Secretary may given it in section 40102(a)(6) of title 49; provide by regulation for the terms and condi- (3) the term ‘‘used’’ refers to any self-pro- tions under which such merchandise attempted pelled vehicle the equitable or legal title to

1 So in original. Probably should not be capitalized. 1 So in original. Probably should not be capitalized. Page 271 TITLE 19—CUSTOMS DUTIES § 1629

which has been transferred by a manufacturer, that such information will be held in confidence distributor, or dealer to an ultimate pur- and used only for the law enforcement purposes chaser; and for which such information is provided to such (4) the term ‘‘ultimate purchaser’’ means the agencies by the Secretary. first person, other than a dealer purchasing in (2) No information may be provided under sub- his capacity as a dealer, who in good faith pur- section (a) of this section to any foreign cus- chases a self-propelled vehicle for purposes toms or law enforcement agency that has vio- other than resale. lated any assurances described in paragraph (1). (d) Cooperation of law enforcement and govern- (c) Government agency of NAFTA country mental authorities The Secretary may authorize the Customs Customs officers may cooperate and exchange Service to exchange information with any gov- information concerning motor vehicles, off- ernment agency of a NAFTA country, as defined highway mobile equipment, vessels, or aircraft, in section 3301(4) of this title, if the Secretary— either before exportation or after exportation or (1) reasonably believes the exchange of infor- importation, with such Federal, State, local, mation is necessary to implement chapter 3, 4, and foreign law enforcement or governmental or 5 of the North American Free Trade Agree- authorities, and with such organizations en- ment, and gaged in theft prevention activities, as may be (2) obtains assurances from such country designated by the Secretary. that the information will be held in confidence and used only for governmental purposes. (June 17, 1930, ch. 497, title IV, § 627, as added Pub. L. 98–573, title II, § 205, Oct. 30, 1984, 98 Stat. (June 17, 1930, ch. 497, title IV, § 628, as added 2974.) Pub. L. 99–570, title III, § 3127, Oct. 27, 1986, 100 Stat. 3207–89; amended Pub. L. 103–182, title II, CODIFICATION § 209, Dec. 8, 1993, 107 Stat. 2098.) In subsec. (c)(2), ‘‘section 40102(a)(6) of title 49’’ substituted for ‘‘section 101(5) of the Federal Aviation Act AMENDMENTS of 1958 (49 U.S.C. 1301(5))’’ on authority of Pub. L. 1993—Subsec. (c). Pub. L. 103–182 added subsec. (c). 103–272, § 6(b), July 5, 1994, 108 Stat. 1378, the first section of which enacted subtitles II, III, and V to X of EFFECTIVE DATE OF 1993 AMENDMENT Title 49, Transportation. Amendment by Pub. L. 103–182 effective on the date Another section 627 of act June 17, 1930, as added by the North American Free Trade Agreement enters into Pub. L. 98–547, title III, § 302, Oct. 25, 1984, 98 Stat. 2771, force with respect to the United States [Jan. 1, 1994], was classified to section 1627 of this title and subse- see section 213(b) of Pub. L. 103–182, set out as an Effec- quently repealed. tive Date note under section 3331 of this title.

EFFECTIVE DATE TRANSFER OF FUNCTIONS Section effective on 15th day after Oct. 30, 1984, see For transfer of functions, personnel, assets, and li- section 214(a), (b) of Pub. L. 98–573, set out as an Effec- abilities of the United States Customs Service of the tive Date of 1984 Amendment note under section 1304 of Department of the Treasury, including functions of the this title. Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- § 1628. Exchange of information lated references, see sections 203(1), 551(d), 552(d), and (a) In general 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- The Secretary may by regulation authorize ber 25, 2002, as modified, set out as a note under section customs officers to exchange information or 542 of Title 6. documents with foreign customs and law enforcement agencies if the Secretary reasonably § 1629. Inspections and preclearance in foreign believes the exchange of information is nec- countries essary to— (a) In general (1) insure compliance with any law or regulation enforced or administered by the Cus- When authorized by treaty or executive agree- toms Service; ment, the Secretary may station customs offi- (2) administer or enforce multilateral or bi- cers in foreign countries for the purpose of ex- lateral agreements to which the United States amining persons and merchandise prior to their is a party; arrival in, or subsequent to their exit from, the (3) assist in investigative, judicial and quasi- United States. judicial proceedings in the United States; and (b) Functions and duties (4) an action comparable to any of those de- Customs officers stationed in a foreign coun- scribed in paragraphs (1) through (4) 1 under- try under subsection (a) of this section may ex- taken by a foreign customs or law enforce- ercise such functions and perform such duties ment agency, or in relation to a proceeding in (including inspections, searches, seizures and ar- a foreign country. rests) as may be permitted by the treaty, agree- (b) Nondisclosure and uses of information pro- ment or law of the country in which they are vided stationed. (1) Information may be provided to foreign (c) Compliance customs and law enforcement agencies under The Secretary may by regulation require com- subsection (a) of this section only if the Sec- pliance with the customs laws of the United retary obtains assurances from such agencies States in a foreign country and, in such a case the customs laws and other civil and criminal 1 So in original. Probably should be ‘‘(3)’’. laws of the United States relating to the impor- § 1629 TITLE 19—CUSTOMS DUTIES Page 272 tation or exportation of merchandise, filing of (h) Customs procedures and commitments false statements, and the unlawful removal of (1) In general merchandise from customs custody shall apply in the same manner as if the foreign station is The Secretary of Homeland Security, the a port of entry or exit within the customs terri- United States Trade Representative, and other tory of the United States. appropriate Federal officials shall work through appropriate international organiza- (d) Seizures tions including the World Customs Organiza- tion (WCO), the World Trade Organization When authorized by treaty, agreement or for- (WTO), the International Maritime Organiza- eign law, merchandise which is subject to sei- tion, and the Asia-Pacific Economic Coopera- zure or forfeiture under United States law may tion, to align, to the extent practicable, cus- be seized in a foreign country and transported toms procedures, standards, requirements, and under customs custody to the customs territory commitments in order to facilitate the effi- to the United States to be proceeded against cient flow of international trade. under the customs law. (2) United States Trade Representative (e) Stationing of foreign customs and agriculture (A) In general inspection officers in the United States The United States Trade Representative The Secretary of State, in coordination with shall seek commitments in negotiations in the Secretary and the Secretary of Agriculture, the WTO regarding the articles of GATT 1994 may enter into agreements with any foreign that are described in subparagraph (B) that country authorizing the stationing in the United make progress in achieving— States of customs and agriculture inspection of- (i) harmonization of import and export ficials of that country (if similar privileges are data collected by WTO members for cus- extended by that country to United States offi- toms purposes, to the extent practicable; cials) for the purpose of ensuring that persons (ii) enhanced procedural fairness and and merchandise going directly to that country transparency with respect to the regula- from the United States, or that have gone dition of imports and exports by WTO mem- rectly from that country to the United States, bers; comply with the customs and other laws of that (iii) transparent standards for the effi- country governing the importation or expor- cient release of cargo by WTO members, to tation of merchandise. Any foreign customs or the extent practicable; and agriculture inspection official stationed in the (iv) the protection of confidential com- United States under this subsection may exer- mercial data. cise such functions, perform such duties, and enjoy such privileges and immunities as United (B) Articles described States officials may be authorized to perform or The articles of the GATT 1994 described in are afforded in that foreign country by treaty, this subparagraph are the following: agreement, or law. (i) Article V (relating to transit). (ii) Article VIII (relating to fees and for- (f) Application of certain laws malities associated with importation and When customs officials of a foreign country exportation). are stationed in the United States in accordance (iii) Article X (relating to publication with subsection (e) of this section, and if similar and administration of trade regulations). provisions are applied to United States officials (C) GATT 1994 stationed in that country— The term ‘‘GATT 1994’’ means the General (1) sections 111 and 1114 of title 18 shall apply Agreement on Tariff and Trade annexed to as if the officials were designated in those sec- the WTO Agreement. tions; and (2) any person who in any matter before a (3) Customs foreign customs official stationed in the The Secretary of Homeland Security, acting United States knowingly and willfully fal- through the Commissioner and in consultation sifies, conceals, or covers up by any trick, with the United States Trade Representative, scheme, or device a material fact, or makes shall work with the WCO to facilitate the effi- any false, fictitious or fraudulent statements cient flow of international trade, taking into or representations, or makes or uses any false account existing international agreements and writing or document knowing the same to con- the negotiating objectives of the WTO. The tain any false, fictitious or fraudulent state- Commissioner shall work to— ment or entry, is liable for a fine of not more (A) harmonize, to the extent practicable, than $10,000 or imprisonment for not more import data collected by WCO members for than 5 years, or both. customs purposes; (B) automate and harmonize, to the extent (g) Privileges and immunities practicable, the collection and storage of Any person designated to perform the duties of commercial data by WCO members; an officer of the Customs Service pursuant to (C) develop, to the extent practicable, section 1401(i) of this title shall be entitled to transparent standards for the release of the same privileges and immunities as an officer cargo by WCO members; of the Customs Service with respect to any ac- (D) develop and harmonize, to the extent tions taken by the designated person in the per- practicable, standards, technologies, and formance of such duties. protocols for physical or nonintrusive ex- Page 273 TITLE 19—CUSTOMS DUTIES § 1629

aminations that will facilitate the efficient EFFECTIVE DATE OF 2006 AMENDMENT flow of international trade; and Amendment by Pub. L. 109–280 applicable with re- (E) ensure the protection of confidential spect to goods entered, or withdrawn from warehouse commercial data. for consumption, on or after the 15th day after Aug. 17, (4) Definition 2006, see section 1641 of Pub. L. 109–280, set out as a note under section 58c of this title. In this subsection, the term ‘‘Commis- sioner’’ means the Commissioner responsible AUTHORITY FOR THE ESTABLISHMENT OF INTEGRATED BORDER INSPECTION AREAS AT THE UNITED STATES- for the United States Customs and Border Pro- CANADA BORDER tection in the Department of Homeland Secu- rity. Pub. L. 108–429, title I, § 1560, Dec. 3, 2004, 118 Stat. 2580, provided that: (June 17, 1930, ch. 497, title IV, § 629, as added ‘‘(a) FINDINGS.—Congress makes the following find- Pub. L. 99–570, title III, § 3128, Oct. 27, 1986, 100 ings: ‘‘(1) The increased security and safety concerns Stat. 3207–89; amended Pub. L. 108–7, div. J, title that developed in the aftermath of the terrorist at- I, § 127(c), Feb. 20, 2003, 117 Stat. 441; Pub. L. tacks in the United States on September 11, 2001, 108–429, title I, § 1561(b), (c), Dec. 3, 2004, 118 Stat. need to be addressed. 2581, 2582; Pub. L. 109–280, title XIV, § 1635(f)(1), ‘‘(2) One concern that has come to light is the vul- Aug. 17, 2006, 120 Stat. 1171; Pub. L. 109–347, title nerability of the international bridges and tunnels IV, § 404, Oct. 13, 2006, 120 Stat. 1928.) along the United States borders. ‘‘(3) It is necessary to ensure that potentially dan- AMENDMENTS gerous vehicles are inspected prior to crossing these bridges and tunnels; however, currently these vehi- 2006—Subsec. (e). Pub. L. 109–280 substituted ‘‘ensur- cles are not inspected until after they have crossed ing’’ for ‘‘insuring’’. into the United States. Subsec. (h). Pub. L. 109–347 added subsec. (h). ‘‘(4) Establishing Integrated Border Inspection 2004—Pub. L. 108–429, § 1561(c), repealed Pub. L. 108–7, Areas (IBIAs) would address these concerns by in- § 127(c). See 2003 Amendment notes below. specting vehicles before they gained access to the in- Subsec. (a). Pub. L. 108–429, § 1561(b)(1), inserted ‘‘, or frastructure of international bridges and tunnels subsequent to their exit from,’’ after ‘‘prior to their ar- joining the United States and Canada. rival in’’. ‘‘(b) CREATION OF INTEGRATED BORDER INSPECTION Subsec. (c). Pub. L. 108–429, § 1561(b)(2), inserted ‘‘or AREAS.— exportation’’ after ‘‘relating to the importation’’ and ‘‘(1) IN GENERAL.—The Commissioner of the Cus- ‘‘or exit’’ after ‘‘port of entry’’. toms Service [Bureau of Customs and Border Protec- Subsec. (e). Pub. L. 108–429, § 1561(b)(3), amended head- tion], in consultation with the Canadian Customs and ing and text of subsec. (e) generally. Prior to amend- Revenue Agency (CCRA), shall seek to establish Inte- ment, text read as follows: ‘‘The Secretary of State, in grated Border Inspection Areas (IBIAs), such as areas coordination with the Secretary, may enter into agree- on either side of the United States-Canada border, in ments with any foreign country authorizing the sta- which United States Customs officers can inspect ve- tioning in the United States of customs and officials of hicles entering the United States from Canada before that country (if similar privileges are extended by that they enter the United States, or Canadian Customs country to United States officials) for the purpose of officers can inspect vehicles entering Canada from insuring that persons and merchandise going directly the United States before they enter Canada. Such in- to that country from the United States comply with spections may include, where appropriate, employ- the customs and other laws of that country governing ment of reverse inspection techniques. the importation of merchandise. Any foreign customs ‘‘(2) ADDITIONAL REQUIREMENT.—The Commissioner official stationed in the United States under this sub- of Customs, in consultation with the Administrator section may exercise such functions, and perform such of the General Services Administration when appro- duties, as United States officials may be authorized to priate, shall seek to carry out paragraph (1) in a man- perform in that foreign country under reciprocal agree- ner that minimizes adverse impacts on the surround- ment.’’ ing community. Subsec. (g). Pub. L. 108–429, § 1561(b)(4), added subsec. ‘‘(3) ELEMENTS OF THE PROGRAM.—Using the author- (g). ity granted by this section and under section 629 of 2003—Subsec. (a). Pub. L. 108–7, § 127(c)(1), which di- the Tariff Act of 1930 [19 U.S.C. 1629], the Commis- rected insertion of ‘‘, or subsequent to their exit from,’’ sioner of Customs, in consultation with the Canadian Customs and Revenue Agency, shall seek to— after ‘‘prior to their arrival in’’ in section 1629 of title ‘‘(A) locate Integrated Border Inspection Areas in 19, was repealed by Pub. L. 108–429, § 1561(c). areas with bridges or tunnels with high traffic vol- Subsec. (c). Pub. L. 108–7, § 127(c)(2), which directed ume, significant commercial activity, and that insertion of ‘‘or exportation’’ after ‘‘relating to the im- have experienced backups and delays since Septem- portation’’ and ‘‘or exit’’ after ‘‘port of entry’’ in sec- ber 11, 2001; tion 1629 of title 19, was repealed by Pub. L. 108–429, ‘‘(B) ensure that United States Customs officers § 1561(c). stationed in any such IBIA on the Canadian side of Subsec. (e). Pub. L. 108–7, § 127(c)(3), which directed the border are vested with the maximum authority substitution of ‘‘such functions,’’ for ‘‘such functions to carry out their duties and enforce United States and’’ and ‘‘by treaty, agreement or law’’ for ‘‘under re- law; ciprocal agreement’’, and insertion of ‘‘and agriculture ‘‘(C) ensure that United States Customs officers inspection’’ after ‘‘States of customs’’ and ‘‘foreign cus- stationed in any such IBIA on the Canadian side of toms’’, ‘‘and the Secretary of Agriculture’’ after ‘‘in co- the border shall possess the same immunity that ordination with the Secretary’’, ‘‘or that have gone di- they would possess if they were stationed in the rectly from that country to the United States’’ after United States; and ‘‘to that country from the United States’’, ‘‘or expor- ‘‘(D) encourage appropriate officials of the United tation’’ after ‘‘governing the importation’’, ‘‘, and States to enter into an agreement with Canada per- enjoy such privileges and immunities’’ after ‘‘such du- mitting Canadian Customs officers stationed in any ties’’, and ‘‘or are afforded’’ after ‘‘authorized to per- such IBIA on the United States side of the border to form’’, in section 1629 of title 19, was repealed by Pub. enjoy such immunities as permitted in Canada.’’ L. 108–429, § 1561(c). Subsec. (g). Pub. L. 108–7, § 127(c)(4), which directed CREATION OF INTEGRATED BORDER INSPECTION AREAS addition of subsec. (g) to section 1629 of title 19, was re- Pub. L. 108–7, div. J, title I, § 127(a), Feb. 20, 2003, 117 pealed by Pub. L. 108–429, § 1561(c). Stat. 440, which related to the creation of integrated § 1630 TITLE 19—CUSTOMS DUTIES Page 274 border inspection areas on either side of the United (c) Payment of costs States–Canada border, was repealed by Pub. L. 108–429, title I, § 1561(c), Dec. 3, 2004, 118 Stat. 2582. The debtor shall be assessed and pay any and all costs associated with collection efforts pur- § 1630. Authority to settle claims suant to this section. Notwithstanding section (a) In general 3302(b) of title 31, any sum so collected shall be used to pay the costs of debt collection services. With respect to a claim that cannot be settled under chapter 171 of title 28, the Secretary may (June 17, 1930, ch. 497, title IV, § 631, as added settle, for not more than $50,000 in any one case, Pub. L. 103–182, title VI, § 671, Dec. 8, 1993, 107 a claim for damage to, or loss of, privately Stat. 2217; amended Pub. L. 104–295, § 3(a)(9), Oct. owned property caused by an investigative or 11, 1996, 110 Stat. 3516; Pub. L. 106–36, title I, law enforcement officer (as defined in section § 1001(b)(5)(A), June 25, 1999, 113 Stat. 132.) 2680(h) of title 28) who is employed by the Cus- AMENDMENTS toms Service and acting within the scope of his 1999—Subsec. (c). Pub. L. 106–36 amended directory or her employment. language of Pub. L. 104–295. See 1996 Amendment note (b) Limitations below. The Secretary may not pay a claim under sub- 1996—Subsec. (c). Pub. L. 104–295, as amended by Pub. section (a) that— L. 106–36, added subsec. (c). (1) concerns commercial property; EFFECTIVE DATE OF 1996 AMENDMENT (2) is presented to the Secretary more than Amendment by Pub. L. 104–295 applicable as of Dec. 8, 1 year after it occurs; or 1993, see section 3(b) of Pub. L. 104–295, set out as a note (3) is presented by an officer or employee of under section 1321 of this title. the United States Government and arose with- TRANSFER OF FUNCTIONS in the scope of employment. (c) Final settlement For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the A claim may be paid under this section only if Department of the Treasury, including functions of the the claimant accepts the amount of settlement Secretary of the Treasury relating thereto, to the Sec- in complete satisfaction of the claim. retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and (June 17, 1930, ch. 497, title IV, § 630, as added 557 of Title 6, Domestic Security, and the Department Pub. L. 103–182, title VI, § 670, Dec. 8, 1993, 107 of Homeland Security Reorganization Plan of Novem- Stat. 2216.) ber 25, 2002, set out as a note under section 542 of Title 6. TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- PART VI—MISCELLANEOUS PROVISIONS abilities of the United States Customs Service of the Department of the Treasury, including functions of the § 1641. Customs brokers Secretary of the Treasury relating thereto, to the Sec- (a) Definitions retary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and As used in this section: 557 of Title 6, Domestic Security, and the Department (1) The term ‘‘customs broker’’ means any of Homeland Security Reorganization Plan of Novem- person granted a customs broker’s license by ber 25, 2002, as modified, set out as a note under section the Secretary under subsection (b) of this sec- 542 of Title 6. tion. (2) The term ‘‘customs business’’ means § 1631. Use of private collection agencies those activities involving transactions with (a) In general the Customs Service concerning the entry and Notwithstanding any other provision of law, admissibility of merchandise, its classification the Secretary, under such terms and conditions and valuation, the payment of duties, taxes, or as the Secretary considers appropriate, shall other charges assessed or collected by the Cus- enter into contracts and incur obligations with toms Service upon merchandise by reason of one or more persons for collection services to re- its importation, or the refund, rebate, or draw- cover indebtedness arising under the customs back thereof. It also includes the preparation laws and owed the United States Government, of documents or forms in any format and the but only after the Customs Service has ex- electronic transmission of documents, in- hausted all administrative efforts, including all voices, bills, or parts thereof, intended to be claims against applicable surety bonds, to col- filed with the Customs Service in furtherance lect the indebtedness. of such activities, whether or not signed or (b) Contract requirements filed by the preparer, or activities relating to such preparation, but does not include the Any contract entered into under subsection (a) mere electronic transmission of data received of this section shall provide that— for transmission to Customs. (1) the Secretary retains the authority to re- (3) The term ‘‘Secretary’’ means the Sec- solve a dispute, compromise a claim, end col- retary of the Treasury. lection action, and refer a matter to the At- (b) Customs broker’s licenses torney General to bring a civil action; and (2) the person is subject to— (1) In general (A) section 552a of title 5 to the extent pro- No person may conduct customs business vided in subsection (m) of such section; and (other than solely on behalf of that person) un- (B) laws and regulations of the United less that person holds a valid customs broker’s States Government and State governments license issued by the Secretary under para- related to debt collection practices. graph (2) or (3). Page 275 TITLE 19—CUSTOMS DUTIES § 1641

(2) Licenses for individuals who is licensed under subsection (b)(2) of The Secretary may grant an individual a this section to exercise responsible super- customs broker’s license only if that individ- vision and control over the customs business ual is a citizen of the United States. Before conducted by that person in that district. granting the license, the Secretary may re- (2) Exception quire an applicant to show any facts deemed If a person granted a customs broker’s li- necessary to establish that the applicant is of cense under subsection (b) of this section can good moral character and qualified to render demonstrate to the satisfaction of the Sec- valuable service to others in the conduct of retary that— customs business. In assessing the qualifica- (A) he regularly employs in the region in tions of an applicant, the Secretary may con- which that district is located at least one in- duct an examination to determine the appli- dividual who is licensed under subsection cant’s knowledge of customs and related laws, (b)(2) of this section, and regulations and procedures, bookkeeping, ac- (B) that sufficient procedures exist within counting, and all other appropriate matters. the company for the person employed in that region to exercise responsible supervision (3) Licenses for corporations, etc. and control over the customs business con- The Secretary may grant a customs broker’s ducted by that person in that district, license to any corporation, association, or the Secretary may waive the requirement in partnership that is organized or existing under paragraph (1)(B). the laws of any of the several States of the United States if at least one officer of the cor- (3) Lapse of permit poration or association, or one member of the The failure of a customs broker granted a partnership, holds a valid customs broker’s li- permit under paragraph (1) to employ, for any cense granted under paragraph (2). continuous period of 180 days, at least one in- (4) Duties dividual who is licensed under subsection (b)(2) of this section within the district or region (if A customs broker shall exercise responsible paragraph (2) applies) for which a permit was supervision and control over the customs busi- issued shall, in addition to causing the broker ness that it conducts. to be subject to any other sanction under this (5) Lapse of license section (including any in subsection (d) of this The failure of a customs broker that is li- section), result in the revocation by operation censed as a corporation, association, or part- of law of the permit. nership under paragraph (3) to have, for any (4) Appointment of subagents continuous period of 120 days, at least one offi- Notwithstanding subsection (c)(1) of this cer of the corporation or association, or at section, upon the implementation by the Sec- least one member of the partnership, validly retary under section 1413(b)(2) of this title of licensed under paragraph (2) shall, in addition the component of the National Customs Auto- to causing the broker to be subject to any mation Program referred to in section other sanction under this section (including 1411(a)(2)(B) of this title, a licensed broker paragraph (6)), result in the revocation by op- may appoint another licensed broker holding a eration of law of its license. permit in a customs district to act on its be- (6) Prohibited acts half as its subagent in that district if such activity relates to the filing of information that Any person who intentionally transacts cus- is permitted by law or regulation to be filed toms business, other than solely on the behalf electronically. A licensed broker appointing a of that person, without holding a valid cus- subagent pursuant to this paragraph shall re- toms broker’s license granted to that person main liable for any and all obligations arising under this subsection shall be liable to the under bond and any and all duties, taxes, and United States for a monetary penalty not to fees, as well as any other liabilities imposed exceed $10,000 for each such transaction as well by law, and shall be precluded from delegating as for each violation of any other provision of to a subagent such liability. this section. This penalty shall be assessed in the same manner and under the same proce- (d) Disciplinary proceedings dures as the monetary penalties provided for (1) General rule in subsection (d)(2)(A) of this section. The Secretary may impose a monetary pen- (c) Customs broker’s permits alty in all cases with the exception of the in- fractions described in clause (iii) of subpara- (1) In general graph (B) of this subsection, or revoke or sus- Each person granted a customs broker’s li- pend a license or permit of any customs cense under subsection (b) of this section shall broker, if it is shown that the broker— be issued, in accordance with such regulations (A) has made or caused to be made in any as the Secretary shall prescribe, either or both application for any license or permit under of the following: this section, or report filed with the Cus- (A) A national permit for the conduct of toms Service, any statement which was, at such customs business as the Secretary pre- the time and in light of the circumstances scribes by regulation. under which it was made, false or misleading (B) A permit for each customs district in with respect to any material fact, or has which that person conducts customs busi- omitted to state in any such application or ness and, except as provided in paragraph report any material fact which was required (2), regularly employs at least 1 individual to be stated therein; § 1641 TITLE 19—CUSTOMS DUTIES Page 276

(B) has been convicted at any time after complaint, and shall allow the customs the filing of an application for license under broker 30 days to respond. If no response is subsection (b) of this section of any felony filed, or the Customs Service determines or misdemeanor which the Secretary finds— that the revocation or suspension is still (i) involved the importation or expor- warranted, it shall notify the customs tation of merchandise; broker in writing of a hearing to be held (ii) arose out of the conduct of its cus- within 30 days, or at a later date if the toms business; or broker requests an extension and shows good (iii) involved larceny, theft, robbery, ex- cause therefor, before an administrative law tortion, forgery, counterfeiting, fraudulent judge appointed pursuant to section 3105 of concealment, embezzlement, fraudulent title 5 who shall serve as the hearing officer. conversion, or misappropriation of funds; If the customs broker waives the hearing, or (C) has violated any provision of any law the broker or his designated representative enforced by the Customs Service or the rules fails to appear at the appointed time and or regulations issued under any such provi- place, the hearing officer shall make find- sion; ings and recommendations based on the (D) has counseled, commanded, induced, record submitted by the parties. At the hear- procured, or knowingly aided or abetted the ing, the customs broker may be represented violations by any other person of any provi- by counsel, and all proceedings, including sion of any law enforced by the Customs the proof of the charges and the response Service, or the rules or regulations issued thereto shall be presented with testimony under any such provision; taken under oath and the right of cross-ex- (E) has knowingly employed, or continues amination accorded to both parties. A tran- to employ, any person who has been con- script of the hearing shall be made and a victed of a felony, without written approval copy will be provided to the Customs Service of such employment from the Secretary; or and the customs broker; which shall there- (F) has, in the course of its customs busi- after be provided reasonable opportunity to ness, with intent to defraud, in any manner file a post-hearing brief. Following the con- willfully and knowingly deceived, misled or clusion of the hearing, the hearing officer threatened any client or prospective client. shall transmit promptly the record of the hearing along with the findings of fact and (2) Procedures recommendations to the Secretary for deci- (A) Monetary penalty sion. The Secretary will issue a written deci- Unless action has been taken under sub- sion, based solely on the record, setting paragraph (B), the appropriate customs offi- forth the findings of fact and the reasons for cer shall serve notice in writing upon any the decision. Such decision may provide for customs broker to show cause why the the sanction contained in the notice to show broker should not be subject to a monetary cause or any lesser sanction authorized by penalty not to exceed $30,000 in total for a this subsection, including a monetary pen- violation or violations of this section. The alty not to exceed $30,000, than was con- notice shall advise the customs broker of the tained in the notice to show cause. allegations or complaints against him and (3) Settlement and compromise shall explain that the broker has a right to The Secretary may settle and compromise respond to the allegations or complaints in any disciplinary proceeding which has been in- writing within 30 days of the date of the no- stituted under this subsection according to the tice. Before imposing a monetary penalty, terms and conditions agreed to by the parties, the customs officer shall consider the allega- including but not limited to the reduction of tions or complaints and any timely response any proposed suspension or revocation to a made by the customs broker and issue a monetary penalty. written decision. A customs broker against whom a monetary penalty has been issued (4) Limitation of actions under this section shall have a reasonable Notwithstanding section 1621 of this title, no opportunity under section 1618 of this title proceeding under this subsection or subsection to make representations seeking remission (b)(6) of this section shall be commenced un- or mitigation of the monetary penalty. Fol- less such proceeding is instituted by the ap- lowing the conclusion of any proceeding propriate service of written notice within 5 under section 1618 of this title, the appro- years from the date the alleged violation was priate customs officer shall provide to the committed; except that if the alleged viola- customs broker a written statement which tion consists of fraud, the 5-year period of lim- sets forth the final determination and the itation shall commence running from the time findings of fact and conclusions of law on such alleged violation was discovered. which such determination is based. (e) Judicial appeal (B) Revocation or suspension (1) In general The Customs Service may, for good and A customs broker, applicant, or other person sufficient reason, serve notice in writing directly affected may appeal any decision of upon any customs broker to show cause why the Secretary denying or revoking a license or a license or permit issued under this section permit under subsection (b) or (c) of this sec- should not be revoked or suspended. The no- tion, or revoking or suspending a license or tice shall be in the form of a statement spe- permit or imposing a monetary penalty in lieu cifically setting forth the grounds of the thereof under subsection (d)(2)(B) of this sec- Page 277 TITLE 19—CUSTOMS DUTIES § 1641

tion, by filing in the Court of International the United States, and to carry out the provi- Trade, within 60 days after the issuance of the sions of this section, including rules and regula- decision or order, a written petition request- tions governing the licensing of or issuance of ing that the decision or order be modified or permits to customs brokers, the keeping of set aside in whole or in part. A copy of the pe- books, accounts, and records by customs bro- tition shall be transmitted promptly by the kers, and documents and correspondence, and clerk of the court to the Secretary or his des- the furnishing by customs brokers of any other ignee. In cases involving revocation or suspen- information relating to their customs business sion of a license or permit or imposition of a to any duly accredited officer or employee of the monetary penalty in lieu thereof under sub- Customs Service. The Secretary may not pro- section (d)(2)(B) of this section, after receipt of hibit customs brokers from limiting their liabil- the petition, the Secretary shall file in court ity to other persons in the conduct of customs the record upon which the decision or order business. For purposes of this subsection or any complained of was entered, as provided in sec- other provision of this chapter pertaining to rection 2635(d) of title 28. ordkeeping, all data required to be retained by a (2) Consideration of objections customs broker may be kept on microfilm, optical disc, magnetic tapes, disks or drums, video The court shall not consider any objection files or any other electrically generated me- to the decision or order of the Secretary, or to dium. Pursuant to such regulations as the Sec- the introduction of evidence or testimony, un- retary shall prescribe, the conversion of data to less that objection was raised before the hear- such storage medium may be accomplished at ing officer in suspension or revocation pro- any time subsequent to the relevant customs ceedings unless there were reasonable grounds transaction and the data may be retained in a for failure to do so. centralized basis according to such broker’s (3) Conclusiveness of findings business system. The findings of the Secretary as to the facts, (g) Triennial reports by customs brokers if supported by substantial evidence, shall be (1) In general conclusive. On February 1, 1985, and on February 1 of (4) Additional evidence each third year thereafter, each person who is If any party applies to the court for leave to licensed under subsection (b) of this section present additional evidence and the court is shall file with the Secretary of the Treasury a satisfied that the additional evidence is mate- report as to— rial and that reasonable grounds existed for (A) whether such person is actively en- the failure to present the evidence in the pro- gaged in business as a customs broker; and ceedings before the hearing officer, the court (B) the name under, and the address at, may order the additional evidence to be taken which such business is being transacted. before the hearing officer and to be presented (2) Suspension and revocation in a manner and upon the terms and conditions prescribed by the court. The Secretary If a person licensed under subsection (b) of may modify the findings of facts on the basis this section fails to file the required report by of the additional evidence presented. The Sec- March 1 of the reporting year, the license is retary shall then file with the court any new suspended, and may be thereafter revoked sub- or modified findings of fact which shall be con- ject to the following procedures: clusive if supported by substantial evidence, (A) The Secretary shall transmit written together with a recommendation, if any, for notice of suspension to the licensee no later the modification or setting aside of the origi- than March 31 of the reporting year. nal decision or order. (B) If the licensee files the required report within 60 days of receipt of the Secretary’s (5) Effect of proceedings notice, the license shall be reinstated. The commencement of proceedings under (C) In the event the required report is not this subsection shall, unless specifically or- filed within the 60-day period, the license dered by the court, operate as a stay of the de- shall be revoked without prejudice to the fil- cision of the Secretary except in the case of a ing of an application for a new license. denial of a license or permit. (h) Fees and charges (6) Failure to appeal The Secretary may prescribe reasonable fees If an appeal is not filed within the time lim- and charges to defray the costs of the Customs its specified in this section, the decision by Service in carrying out the provisions of this the Secretary shall be final and conclusive. In section, including, but not limited to, a fee for the case of a monetary penalty imposed under licenses issued under subsection (b) of this sec- subsection (d)(2)(B) of this section, if the tion and fees for any test administered by him amount is not tendered within 60 days after or under his direction; except that no separate the decision becomes final, the license shall fees shall be imposed to defray the costs of an automatically be suspended until payment is individual audit or of individual disciplinary made to the Customs Service. proceedings of any nature. (f) Regulations by the Secretary (June 17, 1930, ch. 497, title IV, § 641, 46 Stat. 759; The Secretary may prescribe such rules and Aug. 26, 1935, ch. 689, §§ 3–5, 49 Stat. 864, 865; Pub. regulations relating to the customs business of L. 85–791, § 8, Aug. 28, 1958, 72 Stat. 945; Pub. L. customs brokers as the Secretary considers nec- 91–271, title III, § 301(jj), June 2, 1970, 84 Stat. 291; essary to protect importers and the revenue of Pub. L. 95–410, title I, § 113, Oct. 3, 1978, 92 Stat. § 1641 TITLE 19—CUSTOMS DUTIES Page 278

898; Pub. L. 96–417, title VI, § 611, Oct. 10, 1980, 94 customs officer’’, in third sentence, substituted ‘‘Cus- Stat. 1746; Pub. L. 98–573, title II, § 212(a), Oct. 30, toms Service’’ for ‘‘appropriate customs officer’’, ‘‘it 1984, 98 Stat. 2978; Pub. L. 99–514, title XVIII, shall notify’’ for ‘‘he shall notify’’, and ‘‘30’’ for ‘‘15’’, in § 1888(8), Oct. 22, 1986, 100 Stat. 2925; Pub. L. sixth sentence, substituted ‘‘the Customs Service and the customs broker; which’’ for ‘‘the appropriate cus- 103–182, title VI, § 648, Dec. 8, 1993, 107 Stat. 2207; toms officer and the customs broker; they’’, in the sev- Pub. L. 104–295, § 21(e)(11), Oct. 11, 1996, 110 Stat. enth sentence, substituted ‘‘the findings of fact’’ for 3531; Pub. L. 105–258, title III, § 302(b), Oct. 14, ‘‘his findings of fact’’, and in the eighth sentence, sub- 1998, 112 Stat. 1916.) stituted ‘‘for the decision’’ for ‘‘for his decision’’. Subsec. (f). Pub. L. 103–182, § 648(5), substituted ‘‘Cus- PRIOR PROVISIONS toms Service. The Secretary may not prohibit customs This section relates to the same subject matter as act brokers from limiting their liability to other persons in June 10, 1910, ch. 283, §§ 1–5, 36 Stat. 464, 465 (incor- the conduct of customs business. For purposes of this porated into the Code as former sections 415 to 419 of subsection or any other provision of this Act pertaining this title); and those sections were expressly repealed to recordkeeping, all data required to be retained by a by paragraph (e) of this section which read as follows: customs broker may be kept on microfilm, optical disc, ‘‘(e) Licenses under Act of June 10, 1910.—The Act enti- magnetic tapes, disks or drums, video files or any other tled ‘An Act to license customhouse brokers,’ approved electrically generated medium. Pursuant to such regu- June 10, 1910, is hereby repealed, except that any li- lations as the Secretary shall prescribe, the conversion cense issued under such Act shall continue in force and of data to such storage medium may be accomplished effect, subject to suspension and revocation in the same at any time subsequent to the relevant customs trans- manner and upon the same conditions as licenses issued action and the data may be retained in a centralized pursuant to subdivision (a) of this section.’’ basis according to such broker’s business system.’’ for Act June 10, 1910, ch. 283, § 1, 36 Stat. 464, prior to its ‘‘United States Customs Service.’’ incorporation into the Code, referred to the collector or 1986—Subsec. (i). Pub. L. 99–514 added subsec. (i). chief officer of the customs ‘‘at any port of entry or de- 1984—Pub. L. 98–573 amended section generally, sub- livery.’’ Ports of delivery, not specifically mentioned as stituting provisions relating to customs broker’s li- ports of entry, were abolished in the reorganization of censes and permits for provisions relating to licensing the customs service by the President (see notes to sec- of customhouse brokers. tion 1 of this title). 1980—Subsec. (b). Pub. L. 96–417, in second par., sub- Act June 10, 1910, ch. 283, § 3, 36 Stat. 465, prior to its stituted in second sentence ‘‘filing, in the Court of incorporation into the Code, referred to the United International Trade’’ for ‘‘filing, in the circuit court of States Circuit Court instead of the District Court. Sec- appeals of the United States within any circuit wherein tion 291 of the act of Mar. 3, 1911, provided that any ref- such person resides or has his principal place of busi- erence, in any law not embraced in that act, to the Cir- ness, or in the United States Court of Appeals for the cuit Courts, or any power or duty conferred upon them, District of Columbia’’ and struck out penultimate sen- should be deemed to refer to, and to confer such power tence which read as follows: ‘‘The judgment and decree and duty upon, the District Courts. of the court affirming, modifying, or setting aside, in whole or in part, any such order of the Secretary of the AMENDMENTS Treasury shall be final, subject to review by the Su- 1998—Subsec. (i). Pub. L. 105–258 struck out subsec. (i) preme Court of the United States upon certiorari or which prohibited conference or group of two or more certification as provided in 1254 of title 28.’’ ocean common carriers from denying any member the 1978—Subsec. (e). Pub. L. 95–410 added subsec. (e). right to take independent action on any level of com- 1970—Subsec. (b). Pub. L. 91–271 substituted ref- pensation paid to an ocean freight forwarder who was erences to appropriate officer of the customs for ref- also a customs broker, and from agreeing to limit pay- erences to collector or chief officer of customs wher- ment to such a forwarder to less than 1.25 percent of ag- ever appearing. gregate of tariff rates and charges, and set out provi- 1958—Subsec. (b). Pub. L. 85–791 in third sentence of sions relating to administration of provisions, remedies second par., substituted ‘‘transmitted by the clerk of for violations, and definitions. the court to’’ for ‘‘served upon’’, struck out ‘‘upon’’ be- 1996—Subsec. (d)(2)(B). Pub. L. 104–295 substituted fore ‘‘any officer’’, ‘‘certify and’’ before ‘‘file in the ‘‘the findings of fact’’ for ‘‘his findings of fact’’ in court’’, ‘‘a transcript of’’ before ‘‘the record upon’’ and penultimate sentence. inserted ‘‘as provided in section 2112 of title 28’’, and in 1993—Subsec. (a)(2). Pub. L. 103–182, § 648(1), inserted fourth sentence of second par., substituted ‘‘petition’’ at end ‘‘It also includes the preparation of documents for ‘‘transcript’’. or forms in any format and the electronic transmission 1935—Subsec. (a). Act Aug. 26, 1935, § 3, substituted of documents, invoices, bills, or parts thereof, intended ‘‘(c)’’ for ‘‘(e)’’ in last sentence. to be filed with the Customs Service in furtherance of Subsecs. (b) to (d). Act Aug. 26, 1935, § 4, amended sub- such activities, whether or not signed or filed by the secs. (b) to (d) generally. preparer, or activities relating to such preparation, but Subsec. (e). Act Aug. 26, 1935, § 5, repealed subsec. (e) does not include the mere electronic transmission of which related to licenses under the act of June 10, 1910. data received for transmission to Customs.’’ EFFECTIVE DATE OF 1998 AMENDMENT Subsec. (c)(1). Pub. L. 103–182, § 648(2), amended par. (1) generally. Prior to amendment, par. (1) read as fol- Pub. L. 105–258, § 2, Oct. 14, 1998, 112 Stat. 1902, pro- lows: ‘‘Each person granted a customs broker’s license vided that: ‘‘Except as otherwise expressly provided in under subsection (b) of this section shall— this Act [see Tables for classification], this Act and the ‘‘(A) be issued a permit, in accordance with regula- amendments made by this Act take effect May 1, 1999.’’ tions prescribed under this section, for each customs EFFECTIVE DATE OF 1984 AMENDMENT district in which that person conducts customs business; and Amendment by Pub. L. 98–573 effective on close of ‘‘(B) except as provided in paragraph (2), regularly 180th day following Oct. 30, 1984, with certain excep- employ in each customs district for which a permit is tions, except that subsec. (c)(1)(B), (2) of this section so issued at least one individual who is licensed under shall take effect three years after Oct. 30, 1984, see sec- subsection (b)(2) of this section to exercise respon- tion 214(d) of Pub. L. 98–573, set out as a note under sec- sible supervision and control over the customs busi- tion 1304 of this title. ness conducted by that person in that district.’’ EFFECTIVE DATE OF 1980 AMENDMENT Subsec. (c)(4). Pub. L. 103–182, § 648(3), added par. (4). Subsec. (d)(2)(B). Pub. L. 103–182, § 648(4), in first sen- Amendment by Pub. L. 96–417 applicable with respect tence, substituted ‘‘Customs Service’’ for ‘‘appropriate to civil actions commenced on or after Nov. 1, 1980, see Page 279 TITLE 19—CUSTOMS DUTIES § 1644a section 701(b)(2) of Pub. L. 96–417, set out as a note (June 17, 1930, ch. 497, title IV, § 644, 46 Stat. 761; under section 251 of Title 28, Judiciary and Judicial Pub. L. 96–467, § 21(2), (3), Oct. 17, 1980, 94 Stat. Procedure. 2228; Pub. L. 98–473, title II, § 322, Oct. 12, 1984, 98 EFFECTIVE DATE OF 1970 AMENDMENT Stat. 2056.) For effective date of amendment by Pub. L. 91–271, REFERENCES IN TEXT see section 203 of Pub. L. 91–271, set out as a note under The Anti-Smuggling Act of 1935, referred to in subsec. section 1500 of this title. (a), probably means the Anti-Smuggling Act which is act Aug. 5, 1935, ch. 438, 49 Stat. 517, as amended, which TRANSFER OF FUNCTIONS is classified principally to chapter 5 (§ 1701 et seq.) of For transfer of functions, personnel, assets, and li- this title. For complete classification of this Act to the abilities of the United States Customs Service of the Code, see section 1711 of this title and Tables. Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- CODIFICATION retary of Homeland Security, and for treatment of re- In subsec. (a), ‘‘section 1644a(b)(1) of this title’’ sub- lated references, see sections 203(1), 551(d), 552(d), and stituted for ‘‘section 1109 of the Federal Aviation Act of 557 of Title 6, Domestic Security, and the Department 1958 (49 U.S.C. 1509)’’ on authority of Pub. L. 103–272, of Homeland Security Reorganization Plan of Novem- § 6(b), July 5, 1994, 108 Stat. 1378, the first section of ber 25, 2002, as modified, set out as a note under section which enacted subtitles II, III, and V to X of Title 49, 542 of Title 6. Transportation.

PLAN AMENDMENTS NOT REQUIRED UNTIL AMENDMENTS JANUARY 1, 1989 1984—Subsec. (a). Pub. L. 98–473 substituted reference For provisions directing that if any amendments to section 1509 of title 49, Appendix, for reference to made by subtitle A or subtitle C of title XI [§§ 1101–1147 section 177 of former title 49, struck out reference to and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. the Commissioner of Customs, and inserted reference 99–514 require an amendment to any plan, such plan to the Anti-Smuggling Act of 1935. amendment shall not be required to be made before the Subsec. (b). Pub. L. 98–473 reenacted subsec. (b) with- first plan year beginning on or after Jan. 1, 1989, see out change. section 1140 of Pub. L. 99–514, as amended, set out as a 1980—Pub. L. 96–467 designated existing provisions as note under section 401 of Title 26, Internal Revenue subsec. (a) and added subsec. (b). Code. § 1644a. Ports of entry § 1642. Omitted (a) Definitions

CODIFICATION The definitions in section 40102(a) of title 49 apply to this section. In compliance with a request from the President on July 2, 1932, the survey authorized by this section, act (b) Secretary of the Treasury June 17, 1930, ch. 497, title IV, § 642, 46 Stat. 760, was (1) The Secretary of the Treasury may— made and submitted to the President on February 28, (A) designate ports of entry in the United 1933. See Tariff Commission Reports, No. 70, Second Se- States for civil aircraft arriving in the United ries. States from a place outside the United States § 1643. Application of customs reorganization act and property transported on that aircraft; (B) detail to ports of entry officers and em- The rights, privileges, powers, and duties vest- ployees of the United States Customs Service ed in or imposed upon the Secretary of the the Secretary considers necessary; Treasury by this chapter shall be subject to the (C) give an officer or employee of the United provisions of subdivision (a) of section 2073 of States Government stationed at a port of this title. entry (with the consent of the head of the de- (June 17, 1930, ch. 497, title IV, § 643, 46 Stat. 761.) partment, agency, or instrumentality of the Government with jurisdiction over the officer REFERENCES IN TEXT or employee) duties and powers of officers or Subdivision (a) of section 2073 of this title, referred to employees of the Customs Service; in text, was repealed by act Sept. 3, 1954, ch. 1263, § 10, (D) by regulation, apply to civil air naviga- 68 Stat. 1229. tion the laws and regulations on carrying out the customs laws, to the extent and under con- § 1644. Application of section 1644a(b)(1) of this ditions the Secretary considers necessary; and title and section 1518(d) of title 33 (E) by regulation, apply to civil aircraft the (a) The authority vested by section 1644a(b)(1) laws and regulations on entry and clearance of of this title in the Secretary of the Treasury, by vessels, to the extent and under conditions the regulation to provide for the application to civil Secretary considers necessary. air navigation of the laws and regulations relat- (2) A person violating a customs regulation ing to the administration of customs, and of the prescribed under paragraph (1)(A)–(D) of this laws and regulations relating to the entry and subsection or a public health or customs law or clearance of vessels, shall extend to the applica- regulation made applicable to aircraft by a regu- tion in like manner of any of the provisions of lation under paragraph (1)(A)–(D) is liable to the this chapter, or of the Anti-Smuggling Act of Government for a civil penalty of $5,000 for each 1935 [19 U.S.C. 1701 et seq.], or of any regulations violation. An aircraft involved in the violation promulgated hereunder. may be seized and forfeited under the customs (b) For purposes of section 1518(d) of title 33, laws. The Secretary of the Treasury may remit the term ‘‘customs laws administered by the or mitigate a penalty and forfeiture under this Secretary of the Treasury’’ shall mean this paragraph. chapter and any other provisions of law classi- (3) A person violating a regulation made appli- fied to this title. cable under paragraph (1)(E) of this subsection § 1645 TITLE 19—CUSTOMS DUTIES Page 280 or an immigration regulation prescribed under (f) Collection of civil penalties paragraph (1)(E) is liable to the Government for A civil penalty under this section may be col- a civil penalty of $5,000 for each violation. The lected by bringing a civil action against the per- Secretary of the Treasury or the Attorney Gen- son subject to the penalty, a civil action in rem eral may remit or mitigate a penalty under this against an aircraft subject to a lien for a pen- paragraph. alty, or both. The action shall conform as nearly (4) In addition to any other penalty, when a as practicable to a civil action in admiralty, re- controlled substance described in section 1584 of gardless of the place an aircraft in a civil action this title is found on, or to have been unloaded in rem is seized. However, a party may demand from, an aircraft to which this subsection ap- a trial by jury of an issue of fact if the value of plies, the owner of, or individual commanding, the matter in controversy is more than $20. An the aircraft is liable to the Government for the issue of fact tried by jury may be reexamined penalties provided in section 1584 of this title for only under common law rules. each violation unless the owner or individual, by a preponderance of the evidence, demonstrates (g) Authorization of appropriations that the owner or individual did not know, and Necessary amounts may be appropriated to by exercising the highest degree of care and dili- allow the head of a department, agency, or in- gence, could not have known, that a controlled strumentality of the Government to acquire substance was on the aircraft. space at a public airport (as defined in section (5) If a violation under this subsection is by 47102 of title 49) when the head decides the space the owner or operator of, or individual com- is necessary to carry out inspections, clearance, manding, the aircraft, the aircraft is subject to collection of taxes or duties, or a similar respon- a lien for the penalty. sibility of the head, related to transporting pas- (c) Secretary of Agriculture sengers or property in air commerce. The head (1) The Secretary of Agriculture by regulation must consult with the Secretary of Transpor- may apply laws and regulations on animal and tation before making a decision on space. plant quarantine (including laws and regula- (Pub. L. 103–272, § 2, July 5, 1994, 108 Stat. 1358.) tions on importing, exporting, transporting, and quarantining animals, plants, animal and plant CODIFICATION products, insects, bacterial and fungus cultures, Section was not enacted as part of the Tariff Act of viruses, and serums) to civil air navigation to 1930 which comprises this chapter. the extent and under conditions the Secretary Section is based on sections 1474 and 1509(b)–(e) of considers necessary. former Title 49, Transportation, which were repealed (2) A person violating a law or regulation and restated as this section by Pub. L. 103–272, §§ 2, 7(b), July 5, 1994, 108 Stat. 1358, 1379. made applicable under paragraph (1) of this subsection is liable for the penalties provided under TRANSFER OF FUNCTIONS that law or regulation. For transfer of functions, personnel, assets, and li- (d) Remission and mitigation of penalties abilities of the United States Customs Service of the A decision to remit or mitigate a civil penalty Department of the Treasury, including functions of the under this section is final. When libel proceed- Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- ings are pending during a proceeding to remit or lated references, see sections 203(1), 551(d), 552(d), and mitigate a penalty, the appropriate Secretary 557 of Title 6, Domestic Security, and the Department shall notify the Attorney General of the remis- of Homeland Security Reorganization Plan of Novem- sion or mitigation proceeding. ber 25, 2002, set out as a note under section 542 of Title (e) Summary seizure of aircraft 6. (1) An aircraft subject to a lien under this sec- § 1645. Transportation and interment of remains tion may be seized summarily by and placed in of deceased employees in foreign countries; the custody of a person authorized by regula- travel or shipping expenses incurred on for- tions of the appropriate Secretary or the Attor- eign ships ney General. A report of the case shall be sent to the Attorney General. The Attorney General (a) Transfers in foreign countries shall bring promptly a civil action in rem to en- The expense of transporting the remains of force the lien or notify the appropriate Sec- customs officers and employees who die while in retary that the action will not be brought. or in transit to foreign countries in the dis- (2) An aircraft seized under this section shall charge of their official duties, to their former be released from custody when— homes in this country for interment, and the or- (A) the civil penalty or amount not remitted dinary and necessary expenses for such inter- or mitigated is paid; ment, at their posts of duty or at home, are au- (B) the aircraft is seized under process of a thorized to be paid upon the written order of the court in a civil action in rem to enforce the Secretary of the Treasury. The expenses author- lien; ized by this subdivision shall be paid from the (C) the Attorney General gives notice that a appropriation for the collection of the revenue civil action will not be brought under para- from customs. graph (1) of this subsection; or (D) a bond is deposited with the appropriate (b) Transportation on foreign ships Secretary or the Attorney General in an Notwithstanding the provisions of section 601 amount and with a surety the appropriate Sec- of the Merchant Marine Act, 1928, or of any retary or the Attorney General prescribes, other law, any allowance, within the limitations conditioned on payment of the penalty or prescribed by law, for travel or shipping ex- amount not remitted or mitigated. penses incurred on a foreign ship by any officer Page 281 TITLE 19—CUSTOMS DUTIES § 1646c or employee of the Bureau of Customs or the supervision of customs officers, such supervision Customs Service, shall be credited if the Sec- may be directed and continuous or by occasional retary of the Treasury certifies to the Comptrol- verification as may be required by regulations of ler General that transportation on such foreign the Secretary of the Treasury, or, in the absence ship was necessary to protect the revenue. of such regulations for a particular case, as the principal customs officer concerned shall direct. (June 17, 1930, ch. 497, title IV, § 645(a), (c), 46 Stat. 761; Aug. 2, 1946, ch. 744, § 2, 60 Stat. 807.) (June 17, 1930, ch. 497, title IV, § 646, as added Aug. 8, 1953, ch. 397, § 22, 67 Stat. 520.) REFERENCES IN TEXT EFFECTIVE DATE Section 601 of the Merchant Marine Act, 1928, referred to in subsec. (b), was classified to section 891r of former Section effective on and after thirtieth day following Title 46, Shipping, and was repealed by the Merchant Aug. 8, 1953, see Effective Date of 1953 Amendments Marine Act, 1936 (approved June 29, 1936, ch. 858, § 903(c), note set out under section 1304 of this title. 49 Stat. 2016), but was reenacted in substance by section 901 of that Act, which was classified to section 1241 of § 1646b. Random customs inspections for stolen the former Appendix to Title 46, Shipping. Section 901 automobiles being exported of the Merchant Marine Act, 1936 was subsequently re- The Commissioner of Customs shall direct cus- pealed and restated in sections 55302, 55303, and 55305 of Title 46, Shipping, by Pub. L. 109–304, §§ 8(c), 19, Oct. 6, toms officers to conduct at random inspections 2006, 120 Stat. 1586, 1710. For disposition of sections of of automobiles, and of shipping containers that the former Appendix to Title 46, see Disposition Table may contain automobiles that are being ex- preceding section 101 of Title 46. ported, for purposes of determining whether such automobiles were stolen. CODIFICATION (June 17, 1930, ch. 497, title IV, § 646A, as added Section is comprised of subsecs. (a) and (c) of section 645 of act June 17, 1930. Subsec. (b) of section 645 re- Pub. L. 102–519, title IV, § 401, Oct. 25, 1992, 106 pealed in part section 48 of this title. Stat. 3400.) TRANSFER OF FUNCTIONS AMENDMENTS For transfer of functions, personnel, assets, and li- 1946—Subsec. (a). Act Aug. 2, 1946, eff. Nov. 1, 1946, re- abilities of the United States Customs Service of the pealed first sentence relating to traveling expenses of Department of the Treasury, including functions of the transferred employees. See section 5729 of Title 5, Gov- Secretary of the Treasury relating thereto, to the Sec- ernment Organization and Employees. retary of Homeland Security, and for treatment of re- CHANGE OF NAME lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department Bureau of Customs redesignated United States Cus- of Homeland Security Reorganization Plan of Novem- toms Service by Treasury Department Order 165–23, ber 25, 2002, as modified, set out as a note under section Apr. 4, 1973, eff. Aug. 1, 1973, 38 F.R. 13037. See, also, sec- 542 of Title 6. tion 308 of Title 31, Money and Finance. PILOT STUDY AUTHORIZING UTILITY OF TRANSFER OF FUNCTIONS NONDESTRUCTIVE EXAMINATION SYSTEM For transfer of functions, personnel, assets, and li- Section 402 of Pub. L. 102–519 provided that: ‘‘The abilities of the United States Customs Service of the Secretary of the Treasury, acting through the Commis- Department of the Treasury, including functions of the sioner of Customs, shall conduct a pilot study of the Secretary of the Treasury relating thereto, to the Sec- utility of a nondestructive examination system to be retary of Homeland Security, and for treatment of re- used for inspection of containers that may contain lated references, see sections 203(1), 551(d), 552(d), and automobiles leaving the country for the purpose of de- 557 of Title 6, Domestic Security, and the Department termining whether such automobiles have been stolen.’’ of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section § 1646c. Export reporting requirement 542 of Title 6. The Commissioner of Customs shall require all Functions of all officers of Department of the Treas- ury and functions of all agencies and employees of such persons or entities exporting used automobiles, Department transferred, with certain exceptions, to including automobiles exported for personal use, Secretary of the Treasury, with power vested in him to by air or ship to provide to the Customs Service, authorize their performance or performance of any of at least 72 hours before the export, the vehicle his functions, by any of those officers, agencies, and identification number of each such automobile employees, by Reorg. Plan No. 26, of 1950, §§ 1, 2, eff. and proof of ownership of such automobile. The July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in Commissioner shall establish specific criteria the Appendix to Title 5, Government Organization and for randomly selecting used automobiles sched- Employees. Bureau of Customs and Customs Service, referred to in text, were under Department of the uled to be exported, consistent with the risk of Treasury. stolen automobiles being exported and shall check the vehicle identification number of each § 1646. Repealed. June 25, 1948, ch. 646, § 39, 62 automobile selected pursuant to such criteria Stat. 992, eff. Sept. 1, 1948 against the information in the National Crime Information Center to determine whether such Section, act June 17, 1930, ch. 497, title IV, § 646, 46 automobile has been reported stolen. At the re- Stat. 762, related to tenure and retirement of judges of United States Court of Customs and Patent Appeals. quest of the Director of the Federal Bureau of See sections 213, 371, and 372 of Title 28, Judiciary and Investigation, the Commissioner shall make Judicial Procedure. available to the Director all vehicle identification numbers obtained under this section. § 1646a. Supervision by customs officers (June 17, 1930, ch. 497, title IV, § 646B, as added Wherever in this chapter any action or thing Pub. L. 102–519, title IV, § 401, Oct. 25, 1992, 106 is required to be done or maintained under the Stat. 3400.) § 1647 TITLE 19—CUSTOMS DUTIES Page 282

TRANSFER OF FUNCTIONS (1) The Tariff Act of 1922, except that the re- For transfer of functions, personnel, assets, and li- peal of sections 304 and 482 (relating to mark- abilities of the United States Customs Service of the ing of imported articles and to certified in- Department of the Treasury, including functions of the voices, respectively) shall take effect sixty Secretary of the Treasury relating thereto, to the Sec- days after the enactment of this chapter; retary of Homeland Security, and for treatment of re- (2) Section 16 of the Act entitled ‘‘An Act to lated references, see sections 203(1), 551(d), 552(d), and remove certain burdens on the American mer- 557 of Title 6, Domestic Security, and the Department chant marine and encourage the American for- of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section eign carrying trade, and for other purposes’’, 542 of Title 6. approved June 26, 1884, as amended (relating to supplies for certain vessels); § 1647. Repealed. June 25, 1948, ch. 646, § 39, 62 (3) The Joint Resolution entitled ‘‘Joint Res- Stat. 992, eff. Sept. 1, 1948 olution Authorizing certain customs officials to administer oaths’’, approved April 2, 1928; Section, act June 17, 1930, ch. 497, title IV, § 647, 46 Stat. 762, which repealed that part of section 195 of act and Mar. 3, 1911, ch. 231, that read as follows: ‘‘in any case (4) Section 2804 of the Revised Statutes, as in which there is drawn in question the construction of amended (relating to limitations on importa- the Constitution of the United States, or any part tion packages of cigars). thereof, or of any treaty made pursuant thereto, or in (b) General repeal any other case when the Attorney General of the United States shall, before the decision of the Court of All Acts and parts of Acts inconsistent with Customs Appeals is rendered, file with the court a cer- the provisions of this chapter are repealed. tificate to the effect that the case is of such impor- (c) Rights and liabilities under acts repealed or tance as to render expedient its review by the Supreme modified Court,’’ was repealed by act June 25, 1948, which repealed section 195 of act Mar. 3, 1911, ch. 231. The repeal of existing laws or modifications or reenactments thereof embraced in this chapter § 1648. Uncertified checks, United States notes, shall not affect any act done, or any right accru- and national bank notes receivable for cus- ing or accrued, or any suit or proceeding had or toms duties commenced in any civil or criminal case prior to Customs officers may receive uncertified such repeal, modifications, or reenactments, but checks, United States notes, and circulating all liabilities under such laws shall continue and notes of national banking associations in pay- may be enforced in the same manner as if such ment of duties on imports, during such time and repeal, modifications, or reenactments had not under such rules and regulations as the Sec- been made. All offenses committed and all pen- retary of the Treasury shall prescribe; but if a alties, under any statute embraced in, or check so received is not paid the person by changed, modified, or repealed by this chapter, whom such check has been tendered shall re- may be prosecuted and punished in the same main liable for the payment of the duties and manner and with the same effect as if this chap- for all legal penalties and additions to the same ter had not been passed. No Acts of limitation extent as if such check had not been tendered. now in force, whether applicable to civil causes and proceedings, or to the prosecution of of- (June 17, 1930, ch. 497, title IV, § 648, 46 Stat. 762; fenses or for the recovery of penalties or forfeit- Pub. L. 91–271, title III, § 301(kk), June 2, 1970, 84 ures embraced in, modified, changed, or repealed Stat. 291.) by this chapter shall be affected thereby so far AMENDMENTS as they affect any suits, proceedings, or prosecutions, whether civil or criminal, for causes aris- 1970—Pub. L. 91–271 substituted reference to customs ing or acts done or committed prior to June 18, officers for reference to collectors of customs. 1930, which may be commenced and prosecuted EFFECTIVE DATE OF 1970 AMENDMENT within the same time and with the same effect For effective date of amendment by Pub. L. 91–271, as if this chapter had not been passed. see section 203 of Pub. L. 91–271, set out as a note under (d) Certain acts not affected section 1500 of this title. Nothing in this chapter shall be construed to § 1649. Change in designation of customs amend or repeal any of the following provisions attache´s of law: (1) Section 60501 or 60502 of title 46; On and after June 17, 1930, customs attache´s (2) Subsection 2 of paragraph N of Section IV shall be known as ‘‘Treasury attache´s.’’ of such Act of October 3, 1913, ch. 16 (relating (June 17, 1930, ch. 497, title IV, § 649, 46 Stat. 762.) to the manufacture of alcohol for de- naturization only); § 1650. Transferred (3) Section 296 of title 5 (providing for an As- CODIFICATION sistant Attorney General in charge of customs matters); Section, act June 17, 1930, ch. 497, title IV, § 650, 46 (4) The Act entitled ‘‘An Act relating to the Stat. 762, is set out as a part of section 2072 of this title. use or disposal of vessels or vehicles forfeited § 1651. Repeals to the United States for violation of the customs laws or the National Prohibition Act, (a) Specific repeals and for other purposes’’, approved March 3, The following Acts and parts of Acts are re- 1925; nor pealed, subject to the limitations provided in (5) The Antidumping Act, 1921 [19 U.S.C. 160 subdivision (c) of this section: et seq.]. Page 283 TITLE 19—CUSTOMS DUTIES § 1654

(June 17, 1930, ch. 497, title IV, § 651, 46 Stat. 762.) Title of 1978 Amendment note set out under section 1654 of this title], or the application thereof to any person REFERENCES IN TEXT or circumstances, is held invalid, the remainder of the The Tariff Act of 1922, referred to in subsec. (a)(1), is provisions of this Act and the application of such provi- act Sept. 21, 1922, ch. 356, 42 Stat. 858, as amended. For sions to other persons or circumstances shall not be af- complete classification of this act to the Code, see fected thereby.’’ Tables. Section 304 of that act was classified, prior to its repeal, to sections 132 and 133 of this title, and sec- § 1653. Effective date of chapter tion 482 of that act was classified, prior to its repeal, to Except as otherwise provided, this chapter sections 334 to 337, 342, and 343 of this title. shall take effect on June 18, 1930. Section 16 of the act approved June 26, 1884, referred to in subsec. (a)(2), is section 16 of act June 26, 1884, ch. (June 17, 1930, ch. 497, title IV, § 653, 46 Stat. 763.) 121, 23 Stat. 57, and was classified, prior to its repeal, to section 145 of this title. See section 1309 of this title. § 1653a. Transferred Section 2804 of the Revised Statutes, referred to in CODIFICATION subsec. (a)(4), was classified, prior to its repeal, to section 192 of this title. Section, act June 25, 1938, ch. 679, § 37, 52 Stat. 1094, Subsection 2 of paragraph N of Section IV of act of related to the effective date of the Customs Adminis- October 3, 1913, ch. 16, referred to in subsec. (d)(2), trative Act of 1938, and is set out as a note under sec- which appears at 38 Stat. 199 and which was classified tion 1401 of this title. to sections 487 and 488 of former Title 26, Internal Reve- Section was not part of Tariff Act of 1930 which con- nue, was repealed by act Feb. 10, 1939, ch. 2, § 4, 53 Stat. stitutes this chapter. 1, which enacted the Internal Revenue Code of 1939. Section 296 of title 5, referred to in subsec. (d)(3), was § 1654. Short title repealed in the general revision of Title 5, Government Organization and Employees, by Pub. L. 89–554, § 8(a), This chapter may be cited as the ‘‘Tariff Act Sept. 6, 1966, 80 Stat. 636. The office of the Assistant At- of 1930.’’ torney General in charge of customs matters was abol- (June 17, 1930, ch. 497, title IV, § 654, 46 Stat. 763.) ished by Reorg. Plan No. 4 of 1953, § 2, eff. June 20, 1953. Act of March 3, 1925, referred to in subsec. (d)(4), was SHORT TITLE OF 2008 AMENDMENT repealed by act Aug. 27, 1935, ch. 740, § 308, 49 Stat. 880. Act June 17, 1930, ch. 497, title VIII, § 801(a), as added The Antidumping Act, 1921, referred to in subsec. Pub. L. 110–246, title III, § 3301(a), June 18, 2008, 122 Stat. (d)(5), is act May 27, 1921, ch. 14, title II, 42 Stat. 11, as 1844, provided that: ‘‘This title [enacting subtitle VI of amended, which was classified generally to sections 160 this chapter] may be cited as the ‘Softwood Lumber to 171 of this title, and was repealed by Pub. L. 96–39, Act of 2008’.’’ title I, § 106(a), July 26, 1979, 93 Stat. 193. [Another section 801 of act June 17, 1930, is classified CODIFICATION to section 1681 of this title.] In subsec. (d)(1), ‘‘Section 60501 or 60502 of title 46’’ SHORT TITLE OF 2006 AMENDMENT substituted for ‘‘Subsections 1, 2, and 3 of paragraph J Pub. L. 109–280, title XIV, § 1401(a), Aug. 17, 2006, 120 of Section IV of the Act entitled ‘An Act to reduce tar- Stat. 1110, provided that: ‘‘This title [amending sec- iff duties and to provide revenue for the Government, tions 58c, 1466, 1484, 1514, 1520, 1557, 1559, 1562, 1629, 2155, and for other purposes,’ approved October 3, 1913 (relat- 2317, 2401, 3807, and 4034 of this title, enacting provi- ing to restrictions on importations in foreign vessels or sions set out as notes under sections 1466 and 1675 of through contiguous countries), as modified by the Act this title, and amending provisions set out as a note of March 4, 1915, chapter 171’’ on authority of Pub. L. under section 7101 of Title 7, Agriculture] may be cited 109–304, § 18(c), Oct. 6, 2006, 120 Stat. 1709, which Act en- as the ‘Miscellaneous Trade and Technical Corrections acted sections 60501 and 60502 of Title 46, Shipping. Act of 2006’.’’

PRIOR PROVISIONS SHORT TITLE OF 2004 AMENDMENT Provisions similar to those in subd. (c) of this section Pub. L. 108–429, § 1, Dec. 3, 2004, 118 Stat. 2434, provided were contained in act Sept. 21, 1922, ch. 356, title IV, that: ‘‘This Act [amending sections 58c, 1313, 1330, 1337, § 641, 42 Stat. 989. That section was superseded by sec- 1401, 1466, 1484, 1501, 1504, 1505, 1514, 1515, 1520, 1583, 1593a, tion 651 of act June 17, 1930, comprising this section, 1629, 2155, 2171, 2271, 2272, 2298, 2318, 2346, 2395, 2401e, 2414, and repealed by section 651(a)(1) of the 1930 act. 2415, 2451, 2451a, 2463, 2703, 3203, 3721, 3802, 3803, 3805, and 3813 of this title, section 70b of Title 15, Commerce and § 1652. Separability Trade, and sections 5382 and 6103 of Title 26, Internal If any provision of this chapter, or the applica- Revenue Code, repealing section 72 of Title 15, enacting tion thereof to any person or circumstances, is provisions set out as notes under sections 1313, 1401, 1466, 1504, 1629, 2155, 2434, 2463, 2703, 3203, 3701, and 3721 held invalid, the remainder of the chapter, and of this title, section 7101 of Title 7, Agriculture, sec- the application of such provision to other per- tions 70b and 72 of Title 15, and section 5382 of Title 26, sons or circumstances, shall not be affected amending provisions set out as notes under sections thereby. 2401, 2465, 3701, and 3805 of this title and section 7101 of Title 7, and repealing provisions set out as a note under (June 17, 1930, ch. 497, title IV, § 652, 46 Stat. 763.) section 1629 of this title] may be cited as the ‘Mis- cellaneous Trade and Technical Corrections Act of PRIOR PROVISIONS 2004’.’’ Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 645, 42 SHORT TITLE OF 2002 AMENDMENT Stat. 990. That section was superseded by section 652 of Pub. L. 107–210, div. A, title III, § 301, Aug. 6, 2002, 116 act June 17, 1930, comprising this section, and repealed Stat. 972, provided that: ‘‘This Act [probably means by section 651(a)(1) of the 1930 act. ‘‘This title’’, enacting sections 1431a and 1583 of this title, amending sections 58c, 482, 1318, 1330, 1411, 1505, CUSTOMS PROCEDURAL REFORM AND SIMPLIFICATION 1509, 2075, and 2171 of this title, and enacting provisions ACT OF 1978 set out as notes under sections 58c, 482, 1583, 1625, 2071, Pub. L. 95–410, title IV, § 401, Oct. 3, 1978, 92 Stat. 905, 2075, and 2082 of this title] may be cited as the ‘Customs provided that: ‘‘If any provision of this Act [see Short Border Security Act of 2002’.’’ § 1654 TITLE 19—CUSTOMS DUTIES Page 284

SHORT TITLE OF 2000 AMENDMENTS sections 1590, 1628, 1629, and 2081 of this title, amending sections 507, 1401, 1433, 1436, 1454, 1459, 1497, 1509, 1584 to Pub. L. 106–476, § 1, Nov. 9, 2000, 114 Stat. 2101, pro- 1586, 1594 to 1595a, 1613, 1613b, 1619, and 1622 of this title, vided that: ‘‘This Act [enacting subtitle V of this chap- section 959 of Title 21, Food and Drugs, section 5316 of ter and section 1308 of this title, amending sections 58c, Title 31, Money and Finance, and section 12109 of Title 1313, 1433, 1434, 1441, 1484, 1505, and 1555 of this title, sec- 46, Shipping, repealing section 1460 of this title, and en- tion 5314 of Title 5, Government Organization and Em- acting provisions set out as a note under section 1613b ployees, section 69 of Title 15, Commerce and Trade, of this title] may be cited as the ‘Customs Enforcement and sections 5704, 5754, and 5761 of Title 26, Internal Act of 1986’.’’ Revenue Code, and section 91 of Title 46, Appendix, Shipping, and enacting provisions set out as notes SHORT TITLE OF 1984 AMENDMENT under this section and sections 58c, 1308, 1313, 1484, 1681, and 2434 of this title, sections 1, 5704, and 5761 of Title Pub. L. 98–573, § 1, Oct. 30, 1984, 98 Stat. 2948, provided 26, and section 1113 of Title 31, Money and Finance] in part that this Act (see Tables for classification) may may be cited as the ‘Tariff Suspension and Trade Act be cited as the ‘‘Trade and Tariff Act of 1984’’. of 2000’.’’ SHORT TITLE OF 1978 AMENDMENT Pub. L. 106–476, title I, § 1441, Nov. 9, 2000, 114 Stat. 2163, provided that: ‘‘This chapter [chapter 3 Pub. L. 95–410, § 1, Oct. 3, 1978, 92 Stat. 888, provided: (§§ 1441–1443) of subtitle B of title I of Pub. L. 106–476, ‘‘That this Act [enacting sections 58a, 1496a, 1504, 1508, enacting section 1308 of this title, amending section 69 1625, and 2075 of this title, amending sections 467, 1202, of Title 15, Commerce and Trade, and enacting provi- 1315, 1321, 1466, 1483, 1484, 1491, 1505, 1509, 1510, 1520, 1526, sions set out as notes under section 1308 of this title], 1557, 1559, 1584, 1592, 1599, 1603, 1607, 1610, 1612, 1613, 1615, may be cited as the ‘Dog and Cat Protection Act of 1621, and 1641 of this title, section 1124 of Title 15, Com- 2000’.’’ merce and Trade, and section 883 of Title 46, Appendix, Pub. L. 106–387, § 1(a) [title X, § 1001], Oct. 28, 2000, 114 Shipping, repealing sections 58 and 1511 of this title and Stat. 1549, 1549A–72, provided that: ‘‘This title [enacting sections 329, 330, and 333 of former Title 46, and enact- section 1675c of this title and provisions set out as ing provisions set out as notes under sections 1202, 1434, notes under section 1675c of this title] may be cited as 1496a, 1504, 1557, 1592, and 1652 of this title] may be cited the ‘Continued Dumping and Subsidy Offset Act of as the ‘Customs Procedural Reform and Simplification 2000’.’’ Act of 1978’.’’

SHORT TITLE OF 1999 AMENDMENT SHORT TITLE OF 1970 AMENDMENT Pub. L. 106–36, § 1(a), June 25, 1999, 113 Stat. 127, pro- Section 201 of Pub. L. 91–271, June 2, 1970, 84 Stat. 282, vided that: ‘‘This Act [enacting section 1484b of this provided that: ‘‘Titles II and III of this Act [amending title, amending sections 58c, 81c, 81i, 1304, 1313, 1411, sections 2, 6, 31, 32, 58, 66, 81c, 151, 161, 167 to 169, 261, 267, 1441, 1505, 1514, 1515, 1520, 1555, 1557, 1558, 1584, 1592, 1631, 282, 293, 341, 528, 1305, 1311, 1315, 1401, 1402, 1432, 1434, 1675, 2171, 2194, 2293, 2436, 2463, 2492, 2494, and 2495 of this 1435b, 1438, 1441, 1443 to 1451, 1452 to 1455, 1457, 1467, 1482, title, sections 620 and 620c of Title 16, Conservation, 1484, 1485, 1490 to 1493, 1496, 1499 to 1503, 1505, 1506, 1509 sections 262n–2, 286gg, 1978, and 5712 of Title 22, Foreign to 1516, 1520, 1521, 1523, 1555, 1557, 1560, 1562 to 1565, 1584, Relations and Intercourse, sections 351, 357, 358, 362, 368, 1586, 1595, 1602 to 1610, 1612 to 1614, 1617, 1618, 1623, 1641, 584, and 1031 of Title 26, Internal Revenue Code, section and 1648 of this title, repealing sections 5, 5a, 7 to 11, 36, 891e of Title 33, Navigation and Navigable Waters, sec- 37, 51, 63, and 1488 of this title, and enacting provisions tions 2296b, 2296b–6, and 6374 of Title 42, The Public set out as notes under this section] may be cited as Health and Welfare, and section 50103 of Title 49, Trans- ‘The Customs Administrative Act of 1970’.’’ portation, repealing sections 1708 and 2441 of this title, and enacting provisions set out as notes under sections SHORT TITLE OF 1966 AMENDMENT 58c, 1304, 1313, 1484b, 1514, and 2434 of this title and sec- Section 1(a) of Pub. L. 89–651, Oct. 14, 1966, 80 Stat. tion 351 of Title 26] may be cited as the ‘Miscellaneous 897, provided: ‘‘That this Act [enacting section 1544 of Trade and Technical Corrections Act of 1999’.’’ Title 28, Judiciary and Judicial Procedure, amending Schedules 2, 7, and 8 of the Tariff Schedules of the SHORT TITLE OF 1998 AMENDMENT United States and section 2602 of Title 28, and enacting Pub. L. 105–258, § 1, Oct. 14, 1998, 112 Stat. 1902, pro- provisions set out as a note preceding section 1202 and vided that: ‘‘This Act [see Tables for classification] under section 1981 of this title] may be cited as the may be cited as the ‘Ocean Shipping Reform Act of ‘Educational, Scientific, and Cultural Materials Impor- 1998’.’’ tation Act of 1966’.’’

SHORT TITLE OF 1996 AMENDMENT SHORT TITLE OF 1965 AMENDMENT Pub. L. 104–295, § 1(a), Oct. 11, 1996, 110 Stat. 3514, pro- Section 1(a) of Pub. L. 89–241, Oct. 7, 1965, 79 Stat. 933, vided that: ‘‘This Act [amending sections 58c, 81c, 293, provided: ‘‘That this Act [amending section 1202 of this 294, 1304, 1313, 1321, 1337, 1401, 1413, 1431, 1436, 1441, 1484, title and Schedules 1 to 8 and Appendix to Schedules, 1490, 1491, 1504, 1505, 1508, 1509, 1514, 1515, 1516a, 1555, 1592, and enacting provisions set out as notes preceding sec- 1592a, 1625, 1631, 1641, 1671a, 1671b, 1671d, 1673a, 1673d, tion 1202 and under section 1981 of this title] may be 1673f, 1675b, 1677, 1677–1, 1677n, 2171, 2192, 2252, 2411, 2414, cited as the ‘Tariff Schedules Technical Amendments 2416, 2462, 2514, 2515, 2518, 2532, 2541, 2543 to 2547, 2552, Act of 1965’.’’ 2553, 2561, 2571, 2573, 2578a, 2707, 2905, 3007, 3010, 3332, 3358, Section 1(c) of Pub. L. 89–241, Oct. 7, 1965, 79 Stat. 933, 3381, 3432, 3437, 3451, 3552, 3571, 3572, 3591, 3592, and 3602 provided that: ‘‘Title I of the Tariff Act of 1930 [subtitle of this title, section 1854 of Title 7, Agriculture, section I of this chapter], as in effect on or after August 31, 104A of Title 17, Copyrights, and section 154 of Title 35, 1963, may be cited as the ‘Tariff Schedules of the United Patents, repealing sections 1707 and 2440 of this title, States’.’’ enacting provisions set out as notes under sections 58c, 81c, 1304, 1321, 1505, and 2462 of this title, and amending SHORT TITLE OF 1962 AMENDMENT provisions set out as notes under sections 1466, 1553, and Section 1 of Pub. L. 87–456, May 24, 1962, 76 Stat. 72, 2465 of this title] may be cited as the ‘Miscellaneous provided: ‘‘That this Act [amending section 1312 of this Trade and Technical Corrections Act of 1996’.’’ title, section 1856 of Title 7, Agriculture, section 41 of Title 21, Food and Drugs, sections 4501 and 6418 of Title SHORT TITLE OF 1986 AMENDMENT 26, Internal Revenue Code, section 474 of former Title Pub. L. 99–570, title III, subtitle B, § 3101, Oct. 27, 1986, 40, Public Buildings, Property, and Works, and section 100 Stat. 3207–79, provided that: ‘‘This subtitle [subtitle 2201 of Title 42, The Public Health and Welfare, repeal- B (§§ 3101–3161) of title III of Pub. L. 99–570, enacting ing sections 193 to 195, 196a, 420, 1301a, 1308, 1367, 1489, Page 285 TITLE 19—CUSTOMS DUTIES § 1671

1504, and 1508 of this title and section 2383 of Title 10, 1528 of this title, amending sections 1001, 1201, 1304, 1308, Armed Forces, and enacting provisions set out as notes 1309, 1315, 1317, 1401, 1402, 1451, 1459, 1460, 1484, 1485, 1491, preceding section 1202 of this title and under section 1499, 1501, 1516, 1520, 1524, 1553, 1557 to 1559, 1562, 1563, 1861 of this title and section 4501 of Title 26] may be 1603, 1607, 1609, 1613, 1623, 1709 of this title, and section cited as the ‘Tariff Classification Act of 1962’.’’ 331 of former Title 46, Shipping, and enacting provisions set out as a note under section 1516 of this title] SHORT TITLE OF 1958 AMENDMENT may be cited as the ‘Customs Administrative Act of Section 1 of Pub. L. 85–686, Aug. 20, 1958, 72 Stat. 673, 1938’.’’ provided: ‘‘That this Act [enacting section 1335 of this title, amending sections 1333, 1336, 1337, 1351, 1352a, 1360, SUBTITLE IV—COUNTERVAILING AND and 1364 of this title, and enacting provisions set out as ANTIDUMPING DUTIES notes under sections 1351 and 1352 of this title] may be cited as the ‘Trade Agreements Extension Act of 1958’.’’ PART I—IMPOSITION OF COUNTERVAILING DUTIES CODIFICATION SHORT TITLE OF 1956 AMENDMENT The designations ‘‘SUBTITLE IV’’ and ‘‘PART I’’ were Section 1 of act Aug. 2, 1956, ch. 887, 70 Stat. 943, pro- in the original ‘‘TITLE VII’’ and ‘‘Subtitle A’’ respec- vided: ‘‘That this Act [enacting section 1401a of this tively, and were editorially changed in order to con- title, amending sections 1001, 1402, 1500, and 1583 of this form the numbering format of this subtitle to the us- title, and section 372 of former Title 31, Money and Fi- ages employed in the codification of the remainder of nance, repealing sections 12 to 18, 21, 24, 26 to 28, 30, 40, the Tariff Act of 1930 as originally enacted. 53 to 57, 59, 61, 62, 67, 376, 379, 390, 494, 526, 541, 542, 549, and 579 of this title, and section 711 of former Title 31, § 1671. Countervailing duties imposed and enacting provisions set out as notes under sections 2, 160, 1351, 1401a, and 1402 of this title] may be cited as (a) General rule the ‘Customs Simplification Act of 1956’.’’ If— (1) the administering authority determines SHORT TITLE OF 1955 AMENDMENT that the government of a country or any pub- Section 1 of act June 21, 1955, ch. 169, 69 Stat. 162, pro- lic entity within the territory of a country is vided: ‘‘That this Act [amending sections 1351, 1352, providing, directly or indirectly, a counter- 1352a, 1363, and 1364 of this title] may be cited as the vailable subsidy with respect to the manufac- ‘Trade Agreements Extension Act of 1955’.’’ ture, production, or export of a class or kind of SHORT TITLE OF 1954 AMENDMENT merchandise imported, or sold (or likely to be Section 1 of act Sept. 1, 1954, ch. 1213, 68 Stat. 1136, sold) for importation, into the United States, provided: ‘‘That this Act [enacting sections 1301a and and 1595a of this title, amending sections 161, 1001, 1201, (2) in the case of merchandise imported from 1441, 1451, 1581, 1605, 1607, 1610, 1612 of this title, section a Subsidies Agreement country, the Commis- 545 of Title 18, Crimes and Criminal Procedure, section sion determines that— 91 of Title 46, Appendix, Shipping, sections 1421e, 1644 of (A) an industry in the United States— Title 48, Territories and Insular Possessions, and enact- (i) is materially injured, or ing provisions set out as notes under sections 160 and (ii) is threatened with material injury, 1332 of this title] may be cited as the ‘Customs Sim- or plification Act of 1954’.’’ (B) the establishment of an industry in the SHORT TITLE OF 1953 AMENDMENTS United States is materially retarded, Section 1 of act Aug. 8, 1953, ch. 397, 67 Stat. 507, pro- by reason of imports of that merchandise or by vided in part: ‘‘That this Act [amending sections 268, 1001, 1201, 1304, 1308, 1309, 1313, 1315, 1317, 1321, 1431, 1439, reason of sales (or the likelihood of sales) of 1440, 1482, 1484, 1486, 1487, 1489, 1498, 1501, 1503, 1508, 1520, that merchandise for importation, 1523, 1557, and 1562 of this title, enacting sections 1322 then there shall be imposed upon such merchan- and 1646a of this title, and repealing sections 33–35, 39, dise a countervailing duty, in addition to any 42–45, 273, 274, 472–475, 1320, and 1503a of this title] may other duty imposed, equal to the amount of the be cited as the ‘Customs Simplification Act of 1953’.’’ Section 1 of act Aug. 7, 1953, ch. 348, 67 Stat. 472, pro- net countervailable subsidy. For purposes of this vided: ‘‘That this Act [amending sections 1330, 1352, and subsection and section 1671d(b)(1) of this title, a 1364 of this title, section 624 of Title 7, Agriculture, and reference to the sale of merchandise includes the provisions set out as notes under sections 1351, 1364, and entering into of any leasing arrangement re- section 1366 of this title] may be cited as the ‘Trade garding the merchandise that is equivalent to Agreements Extension Act of 1953’.’’ the sale of the merchandise. SHORT TITLE OF 1951 AMENDMENT (b) Subsidies Agreement country Section 1 of act June 16, 1951, ch. 141, 65 Stat. 72, pro- For purposes of this subtitle, the term ‘‘Sub- vided: ‘‘That this Act [enacting sections 1360 to 1367 of sidies Agreement country’’ means— this title, amending sections 1352 and 1354 of this title, (1) a WTO member country, provisions set out as a note under section 1516 of this (2) a country which the President has deter- title, and section 624 of Title 7, Agriculture] may be mined has assumed obligations with respect to cited as the ‘Trade Agreements Extension Act of 1951’.’’ the United States which are substantially SHORT TITLE OF 1949 AMENDMENT equivalent to the obligations under the Sub- sidies Agreement, or Section 1 of act Sept. 26, 1949, ch. 585, 63 Stat. 697, (3) a country with respect to which the provided: ‘‘That this Act [amending sections 1351, 1352, and 1354 of this title and repealing sections 1357 to 1359 President determines that— of this title] may be cited as the ‘Trade Agreements Ex- (A) there is an agreement in effect between tension Act of 1949’.’’ the United States and that country which— (i) was in force on December 8, 1994, and SHORT TITLE OF 1938 AMENDMENT (ii) requires unconditional most-favored- Section 1 of act June 25, 1938, ch. 679, 52 Stat. 1077, nation treatment with respect to articles provided: ‘‘That this Act [enacting sections 1321, 1467, imported into the United States, and § 1671 TITLE 19—CUSTOMS DUTIES Page 286

(B) the agreement described in subpara- L. 103–465, title II, §§ 233(a)(5)(A), 261(d)(1)(B)(iii), graph (A) does not expressly permit— 262, 270(b)(1)(A), Dec. 8, 1994, 108 Stat. 4899, 4910, (i) actions required or permitted by the 4917.) GATT 1947 or GATT 1994, as defined in sec- AMENDMENTS tion 3501(1) of this title, or required by the Congress, or 1994—Subsecs. (a) to (c). Pub. L. 103–465, § 262, amend- (ii) nondiscriminatory prohibitions or re- ed subsecs. (a) to (c) generally, substituting present strictions on importation which are de- provisions for provisions which generally authorized the imposition of countervailing duties, defined ‘‘coun- signed to prevent deceptive or unfair prac- try under the Agreement’’, and provided for revocation tices. of status as country under the Agreement. (c) Countervailing duty investigations involving Subsec. (d). Pub. L. 103–465, § 270(b)(1)(A), substituted imports not entitled to a material injury de- ‘‘countervailable subsidies’’ for ‘‘subsidies’’ wherever termination appearing. Pub. L. 103–465, § 233(a)(5)(A), substituted ‘‘subject In the case of any article or merchandise im- merchandise’’ for ‘‘a class or kind of merchandise sub- ported from a country which is not a Subsidies ject to a countervailing duty investigation’’. Agreement country— Subsec. (f). Pub. L. 103–465, § 261(d)(1)(B)(iii), struck (1) no determination by the Commission out subsec. (f) which provided for cross reference to sec- under section 1671b(a), 1671c, or 1671d(b) of this tion 1303 of this title for provisions of law applicable in title shall be required, the case of merchandise which was product of country other than country under the Agreement. (2) an investigation may not be suspended 1988—Subsec. (c). Pub. L. 100–418, § 1314(2), added sub- under section 1671c(c) or 1671c(l) of this title, sec. (c). Former subsec. (c) relating to upstream sub- (3) no determination as to the presence of sidies redesignated (d). critical circumstances shall be made under Subsec. (d). Pub. L. 100–647 redesignated subsec. (d), section 1671b(e) or 1671d(a)(2) of this title, relating to cross reference, as (f). (4) section 1671e(c) of this title shall not Pub. L. 100–418, § 1315(2), added subsec. (d) relating to apply, treatment of international consortia. Former subsec. (d), relating to upstream subsidies, redesignated (e). (5) any reference to a determination de- Pub. L. 100–418, § 1314(1), redesignated subsec. (c), re- scribed in paragraph (1) or (3), or to the sus- lating to upstream subsidies, as (d). pension of an investigation under section Subsec. (e). Pub. L. 100–418, § 1315(1), redesignated sub- 1671c(c) or 1671c(l) of this title, shall be dis- sec. (d), relating to upstream subsidies, as (e). regarded, and Subsec. (f). Pub. L. 100–647 redesignated subsec (d), re- (6) section 1675(c) of this title shall not lating to cross reference, as (f). apply. 1986—Subsecs. (c), (d), (g). Pub. L. 99–514 redesignated subsecs. (g) and (c) as (c) and (d), respectively. (d) Treatment of international consortia 1984—Subsec. (a). Pub. L. 98–573, § 602(a)(1)(C), inserted For purposes of this part, if the members (or last sentence which provided that for purposes of this other participating entities) of an international subsection and section 1671d(b)(1) of this title, a ref- consortium that is engaged in the production of erence to the sale of merchandise includes the entering into of any leasing arrangement regarding the mer- subject merchandise receive countervailable chandise that is equivalent to the sale of the merchan- subsidies from their respective home countries dise. to assist, permit, or otherwise enable their par- Subsec. (a)(1). Pub. L. 98–573, § 602(a)(1)(A), inserted ticipation in that consortium through produc- ‘‘, or sold (or likely to be sold) for importation,’’ in tion or manufacturing operations in their re- provisions following subpar. (B). spective home countries, then the administering Subsec. (a)(2). Pub. L. 98–573, § 602(a)(1)(B), inserted authority shall cumulate all such counter- ‘‘or by reason of sales (or the likelihood of sales) of that merchandise for importation’’ in provisions fol- vailable subsidies, as well as countervailable lowing subpar. (B). subsidies provided directly to the international Subsec. (g). Pub. L. 98–573, § 613(b), added subsec. (g). consortium, in determining any countervailing duty upon such merchandise. EFFECTIVE DATE OF 1994 AMENDMENT (e) Upstream subsidies Amendment by section 261(d)(1)(B)(iii) of Pub. L. 103–465 effective on the effective date of title II of Pub. Whenever the administering authority has L. 103–465, Jan. 1, 1995, see section 261(d)(2) of Pub. L. reasonable grounds to believe or suspect that an 103–465, set out as a note under section 1315 of this title. upstream subsidy, as defined in section Section 291 of title II of Pub. L. 103–465 provided that: 1677–1(a)(1) 1 of this title, is being paid or be- ‘‘(a) IN GENERAL.—Except as provided in section 261 stowed, the administering authority shall inves- [amending this section and sections 1315, 1337, 1677i, tigate whether an upstream subsidy has in fact 2192, and 2194 of this title, repealing section 1303 of this title, enacting provisions set out as notes under sec- been paid or bestowed, and if so, shall include tions 1303 and 1315 of this title, and amending provi- the amount of the upstream subsidy as provided sions set out as a note under section 1303 of this title], in section 1677–1(a)(3) 2 of this title. the amendments made by this title [see Tables for clas- (June 17, 1930, ch. 497, title VII, § 701, as added sification] shall take effect on the date described in subsection (b) and apply with respect to— Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. ‘‘(1) investigations initiated— 151; amended Pub. L. 98–573, title VI, §§ 602(a)(1), ‘‘(A) on the basis of petitions filed under section 613(b), Oct. 30, 1984, 98 Stat. 3024, 3035; Pub. L. 702(b), 732(b), or 783(b) of the Tariff Act of 1930 [19 99–514, title XVIII, § 1886(a)(1), Oct. 22, 1986, 100 U.S.C. 1671a(b), 1673a(b), or 1677n(b)] after the date Stat. 2921; Pub. L. 100–418, title I, §§ 1314, 1315, described in subsection (b), or Aug. 23, 1988, 102 Stat. 1185; Pub. L. 100–647, title ‘‘(B) by the administering authority under sec- IX, § 9001(a)(9), Nov. 10, 1988, 102 Stat. 3807; Pub. tion 702(a) or 732(a) of such Act after such date, ‘‘(2) reviews initiated under section 751 of such Act [19 U.S.C. 1675]— 1 So in original. Probably should be section ‘‘1677–1(a)’’. ‘‘(A) by the administering authority or the Com- 2 So in original. Probably should be section ‘‘1677–1(c)’’. mission on their own initiative after such date, or Page 287 TITLE 19—CUSTOMS DUTIES § 1671

‘‘(B) pursuant to a request filed after such date, ‘‘(a) Except as provided in subsections (b) and (c), this ‘‘(3) investigations initiated under section 753 of Act [probably should be ‘‘this title’’], and the amend- such Act [19 U.S.C. 1675b] after such date, ments made by it [enacting sections 1671h, 1677–1, and ‘‘(4) petitions filed under section 780 of such Act [19 1677h of this title, amending this section and sections U.S.C. 1677i] after such date, and 1671b to 1671e, 1673c, 1673d, 1677a to 1677f, and 1677g of ‘‘(5) inquiries initiated under section 781 of such Act this title, and repealing sections 1673h and 1673i of this [19 U.S.C. 1677j]— title], shall take effect on the date of the enactment of ‘‘(A) by the administering authority on its own this Act [Oct. 30, 1984]. initiative after such date, or ‘‘(b)(1) The amendments made by sections 602, 609, ‘‘(B) pursuant to a request filed after such date. 611, 612, and 620 [enacting sections 1676, 1676a, and ‘‘(b) DATE DESCRIBED.—The date described in this sub- 1677f–1 of this title and amending this section and sec- section is the date on which the WTO Agreement (as tions 1514, 1671c, 1671d, 1673, 1673a, 1673c, 1673d, 1675, 1677, defined in section 2(9) [19 U.S.C. 3501(9)]) enters into and 1677b of this title, section 2631 of Title 28, Judiciary force with respect to the United States [Jan. 1, 1995].’’ and Judicial Procedure, and provisions set out as a EFFECTIVE DATE OF 1988 AMENDMENTS note under this section] shall apply with respect to in- Amendment by Pub. L. 100–647 applicable as if such vestigations initiated by petition or by the administer- amendment took effect on Aug. 23, 1988, see section ing authority under subtitles A and B of title VII of the 9001(b) of Pub. L. 100–647, set out as an Effective and Tariff Act of 1930 [parts I and II of this subtitle], and Termination Dates of 1988 Amendments note under sec- to reviews begun under section 751 of that Act [section tion 58c of this title. 1675 of this title], on or after such effective date. Section 1337 of Pub. L. 100–418, as amended by Pub. L. ‘‘(2) The amendments made by section 623 [amending 100–647, title IX, § 9001(a)(6), Nov. 10, 1988, 102 Stat. 3807, section 1516a of this title and sections 2636 and 2647 of provided that: Title 28] shall apply with respect to civil actions pend- ‘‘(a) IN GENERAL.—Except as otherwise provided in ing on, or filed on or after, the date of the enactment this section, the amendments made by this part [part of this Act [Oct. 30, 1984]. 2 (§§ 1311–1337) of subtitle C of title I of Pub. L. 100–418, ‘‘(3) The administering authority may delay imple- enacting sections 1673h, 1677–2, 1677i to 1677k of this mentation of any of the amendments referred to in subtitle, amending this section and sections 1516, 1671a to sections (a) and (b)(1) with respect to any investigation 1671d, 1673a to 1673e, 1675, 1677, 1677b, 1677e, 1677f, and in progress on the date of enactment of this Act [Oct. 1677h of this section, and amending provisions set out 30, 1984] if the administering authority determines that as a note under section 2253 of this title] shall take ef- immediate implementation would prevent compliance fect on the date of enactment of this Act [Aug. 23, 1988]. with a statutory deadline in title VII of the Tariff Act ‘‘(b) INVESTIGATIONS AND REVIEWS AFTER ENACT- of 1930 [this subtitle] that is applicable to that inves- MENT.—The amendments made by sections 1312, 1315, tigation. 1316, 1318, 1325, 1326, 1327, 1328, 1329, 1331, and 1332 ‘‘(4) The amendment made by section 621 [amending [amending this section and sections 1516, 1671a to 1671c, section 1677g of this title] shall apply with respect to 1673a to 1673c, 1673e, 1677, 1677b, 1677e, and 1677f of this merchandise that is unliquidated on or after November title] shall only apply with respect to— 4, 1984. ‘‘(1) investigations initiated after the date of enact- ‘‘(c)(1) No provision of title VII of the Tariff Act of ment of this Act [Aug. 23, 1988], and 1930 [this subtitle] shall be interpreted to prevent the ‘‘(2) reviews initiated under section 736(c) or 751 of refiling of a petition under section 702 or 732 of that the Tariff Act of 1930 [19 U.S.C. 1673e(c) or 1675] after title [sections 1671a and 1673a of this title] that was the date of enactment of this Act [Aug. 23, 1988]. filed before the date of the enactment of this title, if ‘‘(c) INVESTIGATIONS AFTER ENACTMENT.—The amend- the purpose of such refiling is to avail the petitioner of ments made by sections 1324 and 1330 [amending sec- the amendment made by section 612(a)(1) [amending tions 1671a, 1671b, 1671d, 1673a, 1673b, 1673d, and 1677 of section 1677(4)(A) of this title]. this title] shall only apply with respect to investiga- ‘‘(2) The amendment made by section 612(a)(1) shall tions initiated after the date of enactment of this Act not apply with respect to petitions filed (or refiled [Aug. 23, 1988]. under paragraph (1)) under section 702 or 732 of the Tar- ‘‘(d) PREVENTION OF CIRCUMVENTION OF DUTIES; DRAW- iff Act of 1930 after September 30, 1986.’’ BACK.—The provisions of section 781 of the Tariff Act of 1930, as added by section 1321(a) [19 U.S.C. 1677j], and EFFECTIVE DATE the amendments made by section 1334 [amending sec- Section 107 of title I of Pub. L. 96–39 provided that: tion 1677h of this title] shall apply with respect to arti- ‘‘Except as otherwise provided in this title, this title cles entered, or withdrawn from warehouse for con- and the amendments made by it [enacting this subtitle, sumption, on or after the date of enactment of this Act amending sections 1303, 1337, 2033, and 2251 of this title, [Aug. 23, 1988]. repealing sections 160 to 171 of this title, and enacting ‘‘(e) GOVERNMENTAL IMPORTATIONS; STEEL.—The provisions set out as notes under this section and sec- amendments made by sections 1322 [amending provi- tions 160 and 1303 of this title] shall take effect on Jan- sions set out as a note under section 2253 of this title] uary 1, 1980, if— and 1335 [amending section 1677 of this title] shall apply ‘‘(1) the Agreement on Interpretation and Applica- with respect to entries, and withdrawals from ware- tion of Articles VI, XVI, and XXIII of the General house for consumption, that are liquidated on or after Agreement on Tariffs and Trade (relating to subsidies the date of enactment of this Act [Aug. 23, 1988]. and countervailing measures), and ‘‘(f) FICTITIOUS MARKETS.—The amendment made by ‘‘(2) the Agreement on Implementation of Article section 1319 [amending section 1677b of this title] shall VI of the General Agreement on Tariffs and Trade only apply with respect to— ‘‘(1) reviews initiated under section 736(c) or 751 of (relating to antidumping measures), the Tariff Act of 1930 [19 U.S.C. 1673e(c) or 1675] after approved by the Congress under section 2(a) of this Act the date of enactment of this Act [Aug. 23, 1988], and [section 2503(a) of this title] have entered into force ‘‘(2) reviews initiated under such sections— with respect to the United States as of that date.’’ ‘‘(A) which are pending on the date of enactment [These agreements entered into force with respect to of this Act, and the United States on Dec. 17, 1979.] ‘‘(B) in which a request for revocation is pending DELEGATION OF FUNCTIONS on the date of enactment of this Act.’’ Functions of President under subsec. (b) of this sec- EFFECTIVE DATE OF 1984 AMENDMENT tion delegated to United States Trade Representative, Section 626 of title VI of Pub. L. 98–573, as amended see section 1–103(b) of Ex. Ord. No. 12188, Jan. 2, 1980, 45 by Pub. L. 99–514, title XVIII, § 1886(b), Oct. 22, 1986, 100 F.R. 990, set out as a note under section 2171 of this Stat. 2922, provided that: title. § 1671 TITLE 19—CUSTOMS DUTIES Page 288

PLAN AMENDMENTS NOT REQUIRED UNTIL tions 160 to 171 of this title], were a preliminary de- JANUARY 1, 1989 termination under section 733 of that title [section 1673b of this title] made on the effective date of title For provisions directing that if any amendments VII of the Tariff Act of 1930 [see Effective Date note made by subtitle A or subtitle C of title XI [§§ 1101–1147 set out above]. and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. ‘‘(c) PENDING INVESTIGATIONS OF INJURY.—If, on the 99–514 require an amendment to any plan, such plan effective date of the application of title VII of the Tar- amendment shall not be required to be made before the iff Act of 1930 [see Effective Date note set out above] to first plan year beginning on or after Jan. 1, 1989, see imports from a country, the United States Inter- section 1140 of Pub. L. 99–514, as amended, set out as a national Trade Commission is conducting an investiga- note under section 401 of Title 26, Internal Revenue tion under section 303 of the Tariff Act of 1930 [section Code. 1303 of this title] or section 201(a) of the Antidumping INVESTIGATIONS PENDING ON JANUARY 1, 1980 Act, 1921 [section 160(a) of this title], as to whether an industry in the United States is being, or is likely to Section 102 of Pub. L. 96–39 provided that: be injured, or is prevented from being established, it ‘‘(a) PENDING INVESTIGATIONS OF BOUNTIES OR shall terminate any such investigation and initiate an GRANTS.—If, on the effective date of the application of investigation, under subtitle A or B of title VII of the title VII of the Tariff Act of 1930 [see Effective Date Tariff Act of 1930 [part I or II of this subtitle], which note set out above] to imports from a country, there is shall be completed within 75 days, and— an investigation in progress under section 303 of that ‘‘(1) treat any final determination of the Secretary Act [section 1303 of this title] as to whether a bounty of the Treasury under section 303 [section 1303 of this or grant is being paid or bestowed on imports from such title] as a final determination under section 705(a) of country, then: the Tariff Act of 1930 [section 1671d(a) of this title] ‘‘(1) If the Secretary of the Treasury has not yet and consider the net amount of the bounty or grant made a preliminary determination under section 303 estimated or determined under section 303 [section of that Act [section 1303 of this title] as to whether 1303 of this title] as the net subsidy amount under a bounty or grant is being paid or bestowed, he shall subtitle A of that title [part I of this subtitle]; and terminate the investigation under section 303 [section ‘‘(2) treat any final determination of the Secretary 1303 of this title] and the matter previously under in- of the Treasury under the Antidumping Act, 1921 [sec- vestigation shall be subject to this title [this sub- tions 160 to 171 of this title], as a final determination title] as if the affirmative determination called for in under section 735(a) of the Tariff Act of 1930 [section section 702 of that Act [section 1671a of this title] 1673d(a) of this title].’’ were made with respect to that matter on the effective date of the application of title VII of that Act TRANSITION RULES FOR COUNTERVAILING DUTY ORDERS [this subtitle] to such country. Section 104 of Pub. L. 96–39, as amended by Pub. L. ‘‘(2) If the Secretary has made a preliminary deter- 98–573, title VI, § 611(c), Oct. 30, 1984, 98 Stat. 3033, pro- mination under such section 303 [section 1303 of this vided that: title], but not a final determination, as to whether a ‘‘(a) WAIVED COUNTERVAILING DUTY ORDERS.— bounty or grant is being paid or bestowed, he shall ‘‘(1) NOTIFICATION OF COMMISSION.—The administer- terminate the investigation under such section 303 ing authority shall notify the United States Inter- [section 1303 of this title] and the matter previously national Trade Commission by January 7, 1980, of any under investigation shall be subject to the provisions countervailing duty order in effect on January 1, of title VII of that Act [this subtitle] as if the pre- 1980— liminary determination under section 303 [section ‘‘(A)(i) for which the Secretary of the Treasury 1303 of this title] were a preliminary determination has waived the imposition of countervailing duties under section 703 of that title [section 1671b of this under section 303(d) of the Tariff Act of 1930 (19 title] made on the effective date of the application of U.S.C. 1303(d)), and that title [this subtitle] to such country. ‘‘(ii) which applies to merchandise other than ‘‘(b) PENDING INVESTIGATIONS OF LESS-THAN-FAIR- quota cheese (as defined in section 701(c)(1) of this VALUE SALES.—If, on the effective date of title VII of Act) [subsec. (c)(1) of this section], which is a prod- the Tariff Act of 1930 [see Effective Date note set out uct of a country under the Agreement, above], there is an investigation in progress under the ‘‘(B) published on or after the date of the enact- Antidumping Act, 1921 [sections 160 to 171 of this title], ment of this Act [July 26, 1979], and before January as to whether imports from a country are being, or are 1, 1980, with respect to products of a country under likely to be, sold in the United States or elsewhere at the Agreement (as defined in section 701(b) of the less than fair value, then: Tariff Act of 1930) [subsec. (b) of this section], or ‘‘(1) If the Secretary has not yet made a prelimi- ‘‘(C) applicable to frozen, boneless beef from the nary determination under the Antidumping Act, 1921 European Communities under Treasury Decision [sections 160 to 171 of this title], as to the question of 76–109, less-than-fair-value sales, he shall terminate the in- and shall furnish to the Commission the most current vestigation and the United States International information it has with respect to the net subsidy Trade Commission shall terminate any investigation benefitting the merchandise subject to the counter- under section 201(c)(2) of the Antidumping Act, 1921 vailing duty order. [section 160(c)(2) of this title], and the matter pre- ‘‘(2) DETERMINATION BY THE COMMISSION.—Within 180 viously under investigation shall be subject to the days after the date on which it receives the informa- provisions of title VII of the Tariff Act of 1930 [this tion from the administering authority under para- subtitle] as if the affirmative determination called graph (1), the Commission shall make a determina- for in section 732 [section 1673a of this title] were tion of whether— made with respect to such matter on the effective ‘‘(A) an industry in the United States— date of title VII of the Tariff Act of 1930. ‘‘(i) is materially injured, or ‘‘(2) If the Secretary has made under the Antidump- ‘‘(ii) is threatened with material injury, or ing Act, 1921 [sections 160 to 171 of this title], a pre- ‘‘(B) the establishment of an industry in the liminary determination, but not a final determina- United States is materially retarded, tion, that imports from such country are being or are by reason of imports of the merchandise subject to likely to be sold in the United States or elsewhere at the order. less than fair value, the investigation shall be termi- ‘‘(3) EFFECT OF DETERMINATION.— nated and the matter previously under investigation ‘‘(A) AFFIRMATIVE DETERMINATION.—Upon being shall be subject to the provisions of title VII of the notified by the Commission of an affirmative deter- Tariff Act of 1930 [this subtitle] as if the preliminary mination under paragraph (2), the administering determination under the Antidumping Act, 1921 [sec- authority shall terminate the waiver of imposition Page 289 TITLE 19—CUSTOMS DUTIES § 1671a

of countervailing duties for merchandise subject to (2) by the Commission, the administering authority the order, if any. The countervailing duty order shall revoke the countervailing duty order then in under section 303 of the Tariff Act of 1930 [section effect, publish notice thereof in the Federal Reg- 1303 of this title] which applies to that merchandise ister, and refund, without payment of interest, any shall remain in effect until revoked, in whole or in estimated countervailing duties collected during part, under section 751(d) of such Act [section the period of suspension of liquidation. 1675(d) of this title]. ‘‘(c) ALL OUTSTANDING COUNTERVAILING DUTY OR- ‘‘(B) NEGATIVE DETERMINATION.—Upon being noti- DERS.—Subject to the provisions of subsections (a) and fied by the Commission of a negative determination (b), any countervailing duty order issued under section under paragraph (2), the administering authority 303 of the Tariff Act of 1930 [section 1303 of this title] shall revoke the countervailing duty order, and which is— publish notice in the Federal Register of the rev- ‘‘(1) in effect on the effective date of title VII of the ocation. Tariff Act of 1930 [see Effective Date note set out ‘‘(b) OTHER COUNTERVAILING DUTY ORDERS.— above] (as added by section 101 of this Act), or ‘‘(1) REVIEW BY COMMISSION UPON REQUEST.—In the ‘‘(2) issued pursuant to court order in a proceeding case of a countervailing duty order issued under sec- brought before that date under section 516(d) of the tion 303 of the Tariff Act of 1930 (19 U.S.C. 1303)— Tariff Act of 1930 [section 1516(d) of this title], ‘‘(A) which is not a countervailing duty order to shall remain in effect after that date and shall be sub- which subsection (a) applies, ject to review under section 751 of the Tariff Act of 1930 ‘‘(B) which applies to merchandise which is the [section 1675 of this title]. product of a country under the Agreement, and ‘‘(C) which is in effect on January 1, 1980, or ‘‘(d) PUBLICATION OF NOTICE OF DETERMINATIONS.— which is issued pursuant to court order in an action Whenever the Commission makes a determination brought under section 516(d) of that Act [section under subsection (a) or (b), it shall publish notice of 1516(d) of this title] before that date, that determination in the Federal Register and notify the Commission, upon the request of the government the administering authority of its determination. of such a country or of exporters accounting for a sig- ‘‘(e) DEFINITIONS.—Whenever any term which is de- nificant proportion of exports to the United States of fined in section 771 of the Tariff Act of 1930 [section 1677 merchandise which is covered by the order, submitted of this title] is used in this section, it has the same within 3 years after the effective date of title VII of meaning as when it is used in title VII of that Act [this the Tariff Act of 1930 [see Effective Date note set out subtitle].’’ above] shall make a determination under paragraph (2) of this subsection. § 1671a. Procedures for initiating a countervail- ‘‘(2) DETERMINATION BY THE COMMISSION.—In a case ing duty investigation described in paragraph (1) with respect to which it has received a request for review, the Commission (a) Initiation by administering authority shall commence an investigation to determine wheth- A countervailing duty investigation shall be er— initiated whenever the administering authority ‘‘(A) an industry in the United States— ‘‘(i) would be materially injured, or determines, from information available to it, ‘‘(ii) would be threatened with material injury, that a formal investigation is warranted into or the question of whether the elements necessary ‘‘(B) the establishment of an industry in the for the imposition of a duty under section United States would be materially retarded, 1671(a) of this title exist. by reason of imports of the merchandise covered by the countervailing duty order if the order were to be (b) Initiation by petition revoked. A negative determination by the Commis- (1) Petition requirements sion under this paragraph shall not be based, in whole or in part, on any export taxes, duties, or other A countervailing duty proceeding shall be charges levied on the export of merchandise to the initiated whenever an interested party de- United States specifically intended to offset the subscribed in subparagraph (C), (D), (E), (F), or sidy received. (G) of section 1677(9) of this title files a peti- ‘‘(3) SUSPENSION OF LIQUIDATION; INVESTIGATION TIME tion with the administering authority, on be- LIMITS.—Whenever the Commission receives a request half of an industry, which alleges the elements under paragraph (1), it shall promptly notify the administering authority and the administering author- necessary for the imposition of the duty imity shall suspend liquidation of entries of the affected posed by section 1671(a) of this title, and which merchandise made on or after the date of receipt of is accompanied by information reasonably the Commission’s notification, or in the case of but- available to the petitioner supporting those ter from Australia, entries of merchandise subject to allegations. The petition may be amended at the assessment of countervailing duties under Treas- such time, and upon such conditions, as the ury Decision 42937, as amended, and collect estimated administering authority and the Commission countervailing duties pending the determination of may permit. the Commission. The Commission shall issue its determination in any investigation under this sub- (2) Simultaneous filing with Commission section not later than 3 years after the date of com- The petitioner shall file a copy of the peti- mencement of such investigation. ‘‘(4) EFFECT OF DETERMINATION.— tion with the Commission on the same day as ‘‘(A) AFFIRMATIVE DETERMINATION.—Upon being it is filed with the administering authority. notified of an affirmative determination under (3) Petition based upon a derogation of an paragraph (2) by the Commission, the administering authority shall liquidate entries of merchandise the international undertaking on official ex- liquidation of which was suspended under para- port credits graph (3) of this subsection and impose countervail- If the sole basis of a petition filed under ing duties in the amount of the estimated duties re- paragraph (1) is the derogation of an inter- quired to be deposited. The countervailing duty national undertaking on official export cred- order shall remain in effect until revoked, in whole its, the Administering Authority shall imme- or in part, under section 751(c) of the Tariff Act of 1930 [section 1675(c) of this title]. diately notify the Secretary of the Treasury ‘‘(B) NEGATIVE DETERMINATION.—Upon being noti- who shall, in consultation with the Admin- fied of a negative determination under paragraph istering Authority, within 5 days after the § 1671a TITLE 19—CUSTOMS DUTIES Page 290

date on which the administering authority ini- (C) Time limits where petition involves same tiates an investigation under subsection (c) of merchandise as an order that has been this section, determine the existence and esti- revoked mated value of the derogation, if any, and If a petition is filed under this section shall publish such determination in the Fed- with respect to merchandise that was the eral Register. subject merchandise of— (4) Action with respect to petitions (i) a countervailing duty order that was (A) Notification of governments revoked under section 1675(d) of this title Upon receipt of a petition filed under para- in the 24 months preceding the date the pe- graph (1), the administering authority tition is filed, or shall— (ii) a suspended investigation that was (i) notify the government of any export- terminated under section 1675(d) of this ing country named in the petition by de- title in the 24 months preceding the date livering a public version of the petition to the petition is filed, an appropriate representative of such the administering authority and the Com- country; and mission shall, to the maximum extent prac- (ii) provide the government of any ex- ticable, expedite any investigation initiated porting country named in the petition that under this section with respect to the peti- is a Subsidies Agreement country an option. portunity for consultations with respect to (2) Affirmative determinations the petition. (B) Acceptance of communications If the determinations under clauses (i) and (ii) of paragraph (1)(A) are affirmative, the ad- The administering authority shall not ac- ministering authority shall initiate an inves- cept any unsolicited oral or written commu- tigation to determine whether a counter- nication from any person other than an in- vailable subsidy is being provided with respect terested party described in section 1677(9)(C), to the subject merchandise. (D), (E), (F), or (G) of this title before the ad- (3) Negative determinations ministering authority makes its decision whether to initiate an investigation, except If the determination under clause (i) or (ii) as provided in subparagraph (A)(ii) and sub- of paragraph (1)(A) is negative, the admin- section (c)(4)(D) of this section, and except istering authority shall dismiss the petition, for inquiries regarding the status of the ad- terminate the proceeding, and notify the peti- ministering authority’s consideration of the tioner in writing of the reasons for the deter- petition. mination. (C) Nondisclosure of certain information (4) Determination of industry support The administering authority and the Com- (A) General rule mission shall not disclose information with For purposes of this subsection, the admin- regard to any draft petition submitted for istering authority shall determine that the review and comment before it is filed under petition has been filed by or on behalf of the paragraph (1). industry, if— (c) Petition determination (i) the domestic producers or workers (1) In general who support the petition account for at least 25 percent of the total production of (A) Time for initial determination the domestic like product, and Except as provided in subparagraph (B), (ii) the domestic producers or workers within 20 days after the date on which a pe- who support the petition account for more tition is filed under subsection (b) of this than 50 percent of the production of the section, the administering authority shall— domestic like product produced by that (i) after examining, on the basis of portion of the industry expressing support sources readily available to the admin- for or opposition to the petition. istering authority, the accuracy and ade- (B) Certain positions disregarded quacy of the evidence provided in the petition, determine whether the petition al- (i) Producers related to foreign producers leges the elements necessary for the impo- In determining industry support under sition of a duty under section 1671(a) of subparagraph (A), the administering au- this title and contains information reason- thority shall disregard the position of do- ably available to the petitioner supporting mestic producers who oppose the petition, the allegations, and if such producers are related to foreign (ii) determine if the petition has been producers, as defined in section filed by or on behalf of the industry. 1677(4)(B)(ii) of this title, unless such do- (B) Extension of time mestic producers demonstrate that their interests as domestic producers would be In any case in which the administering au- adversely affected by the imposition of a thority is required to poll or otherwise de- countervailing duty order. termine support for the petition by the industry under paragraph (4)(D), the admin- (ii) Producers who are importers istering authority may, in exceptional cir- The administering authority may dis- cumstances, apply subparagraph (A) by sub- regard the position of domestic producers stituting ‘‘a maximum of 40 days’’ for ‘‘20 of a domestic like product who are import- days’’. ers of the subject merchandise. Page 291 TITLE 19—CUSTOMS DUTIES § 1671a

(C) Special rule for regional industries of the subject merchandise and shall transmit If the petition alleges that the industry is such information to the administering authority a regional industry, the administering au- at such times as the administering authority thority shall determine whether the petition shall direct (at least once every 30 days), until a has been filed by or on behalf of the industry final determination is made under section by applying subparagraph (A) on the basis of 1671d(a) of this title, the investigation is termi- production in the region. nated, or the administering authority withdraws the request. (D) Polling the industry (June 17, 1930, ch. 497, title VII, § 702, as added If the petition does not establish support Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. of domestic producers or workers accounting 151; amended Pub. L. 98–181, title VI, § 650(a), for more than 50 percent of the total produc- Nov. 30, 1983, 97 Stat. 1266; Pub. L. 99–514, title tion of the domestic like product, the ad- XVIII, § 1886(a)(2), Oct. 22, 1986, 100 Stat. 2921; ministering authority shall— Pub. L. 100–418, title I, §§ 1324(a)(1), 1326(d)(1), (i) poll the industry or rely on other in- Aug. 23, 1988, 102 Stat. 1199, 1204; Pub. L. 103–465, formation in order to determine if there is title II, §§ 211(a), 212(a)(1), (b)(1)(E), 233(a)(5)(B), support for the petition as required by sub- (6)(A)(i), (ii), 270(a)(1)(A), (d), Dec. 8, 1994, 108 paragraph (A), or Stat. 4842, 4843, 4848, 4899, 4901, 4917, 4918; Pub. L. (ii) if there is a large number of produc- 104–295, § 20(b)(3), Oct. 11, 1996, 110 Stat. 3527.) ers in the industry, the administering authority may determine industry support AMENDMENTS for the petition by using any statistically 1996—Subsec. (c)(5). Pub. L. 104–295 substituted valid sampling method to poll the indus- ‘‘(b)(1)’’ for ‘‘(b)(1)(A)’’. try. 1994—Subsecs. (a), (b)(1). Pub. L. 103–465, (E) Comments by interested parties § 233(a)(6)(A)(i), (ii), substituted ‘‘initiated’’ for ‘‘commenced’’. Before the administering authority makes Subsec. (b)(3). Pub. L. 103–465, §§ 211(a)(1), 212(b)(1)(E), a determination with respect to initiating substituted ‘‘paragraph (1)’’ for ‘‘subsection (b)(1) of an investigation, any person who would this section’’ and ‘‘5 days after the date on which the qualify as an interested party under section administering authority initiates an investigation 1677(9) of this title if an investigation were under subsection (c) of this section,’’ for ‘‘twenty initiated, may submit comments or informa- days’’. Subsec. (b)(4). Pub. L. 103–465, § 211(a)(2), added par. tion on the issue of industry support. After (4). the administering authority makes a deter- Subsec. (c). Pub. L. 103–465, § 212(a)(1), amended head- mination with respect to initiating an inves- ing and text of subsec. (c) generally. Prior to amend- tigation, the determination regarding indus- ment, text read as follows: ‘‘Within 20 days after the try support shall not be reconsidered. date on which a petition is filed under subsection (b) of this section, the administering authority shall— (5) ‘‘Domestic producers or workers’’ defined ‘‘(1) determine whether the petition alleges the ele- For purposes of this subsection, the term ments necessary for the imposition of a duty under ‘‘domestic producers or workers’’ means those section 1671(a) of this title and contains information interested parties who are eligible to file a pe- reasonably available to the petitioner supporting the tition under subsection (b)(1) of this section. allegations, ‘‘(2) if the determination is affirmative, commence (d) Notification to Commission of determination an investigation to determine whether a subsidy is The administering authority shall— being provided with respect to the class or kind of (1) notify the Commission immediately of merchandise described in the petition, and provide for the publication of notice of the determination to any determination it makes under subsection commence an investigation in the Federal Register, (a) or (c) of this section, and and (2) if the determination is affirmative, make ‘‘(3) if the determination is negative, dismiss the available to the Commission such information petition, terminate the proceeding, notify the peti- as it may have relating to the matter under tioner in writing of the reasons for the determina- investigation, under such procedures as the tion, and provide for the publication of notice of the administering authority and the Commission determination in the Federal Register.’’ may establish to prevent disclosure, other Subsec. (e). Pub. L. 103–465, § 270(a)(1)(A), (d), substituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’ and than with the consent of the party providing it ‘‘Subsidies Agreement’’ for ‘‘Agreement’’. or under protective order, of any information Pub. L. 103–465, § 233(a)(5)(B), substituted ‘‘subject to which confidential treatment has been merchandise’’ for ‘‘class or kind of merchandise that is given by the administering authority. the subject of the investigation’’ in two places. (e) Information regarding critical circumstances 1988—Subsec. (b)(1). Pub. L. 100–418, § 1326(d)(1), substituted ‘‘(F), or (G)’’ for ‘‘or (F)’’. If, at any time after the initiation of an inves- Subsec. (e). Pub. L. 100–418, § 1324(a)(1), added subsec. tigation under this part, the administering au- (e). thority finds a reasonable basis to suspect that 1986—Subsec. (b)(1). Pub. L. 99–514 inserted reference the alleged countervailable subsidy is inconsist- to subpar. (F) of section 1677(9) of this title. ent with the Subsidies Agreement, the admin- 1983—Subsec. (b)(3). Pub. L. 98–181 added par. (3). istering authority may request the Commis- EFFECTIVE DATE OF 1994 AMENDMENT sioner of Customs to compile information on an Amendment by Pub. L. 103–465 effective, except as expedited basis regarding entries of the subject otherwise provided, on the date on which the WTO merchandise. Upon receiving such request, the Agreement enters into force with respect to the United Commissioner of Customs shall collect informa- States [Jan. 1, 1995], and applicable with respect to in- tion regarding the volume and value of entries vestigations, reviews, and inquiries initiated and peti- § 1671b TITLE 19—CUSTOMS DUTIES Page 292 tions filed under specified provisions of this chapter Commission receives notice from the ad- after such date, see section 291 of Pub. L. 103–465, set ministering authority of initiation of the out as a note under section 1671 of this title. investigation, and EFFECTIVE DATE OF 1988 AMENDMENT (B) in the case of an investigation initi- Amendment by section 1324(a)(1) of Pub. L. 100–418 ap- ated under section 1671a(a) of this title, plicable with respect to investigations initiated after within 45 days after the date on which the Aug. 23, 1988, and amendment by section 1326(d)(1) of Commission receives notice from the admin- Pub. L. 100–418 applicable with respect to investigations istering authority that an investigation has initiated after Aug. 23, 1988, and to reviews initiated been initiated under such section. under section 1673e(c) or 1675 of this title after Aug. 23, 1988, see section 1337(b), (c) of Pub. L. 100–418, set out as (b) Preliminary determination by administering a note under section 1671 of this title. authority; expedited determinations; waiver of verification TRANSFER OF FUNCTIONS (1) Within 65 days after the date on which the For transfer of functions, personnel, assets, and li- administering authority initiates an investiga- abilities of the United States Customs Service of the tion under section 1671a(c) of this title, or an in- Department of the Treasury, including functions of the vestigation is initiated under section 1671a(a) of Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- this title, but not before an affirmative deter- lated references, see sections 203(1), 551(d), 552(d), and mination by the Commission under subsection 557 of Title 6, Domestic Security, and the Department (a) of this section, the administering authority of Homeland Security Reorganization Plan of Novem- shall make a determination, based upon the in- ber 25, 2002, as modified, set out as a note under section formation available to it at the time of the de- 542 of Title 6. termination, of whether there is a reasonable PLAN AMENDMENTS NOT REQUIRED UNTIL basis to believe or suspect that a counter- JANUARY 1, 1989 vailable subsidy is being provided with respect to the subject merchandise. For provisions directing that if any amendments (2) Notwithstanding paragraph (1), when the made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. petition is one subject to section 1671a(b)(3) of 99–514 require an amendment to any plan, such plan this title, the Administering Authority shall, amendment shall not be required to be made before the taking into account the nature of the counter- first plan year beginning on or after Jan. 1, 1989, see vailable subsidy concerned, make the deter- section 1140 of Pub. L. 99–514, as amended, set out as a mination required by paragraph (1) on an expe- note under section 401 of Title 26, Internal Revenue dited basis and within 65 days after the date on Code. which the administering authority initiates an § 1671b. Preliminary determinations investigation under section 1671a(c) of this title unless the provisions of subsection (c) of this (a) Determination by Commission of reasonable section apply. indication of injury (3) Within 55 days after the initiation of an in- (1) General rule vestigation the administering authority shall cause an official designated for such purpose to Except in the case of a petition dismissed by review the information concerning the case re- the administering authority under section ceived during the first 50 days of the investiga- 1671a(c)(3) of this title, the Commission, with- tion, and, if there appears to be sufficient infor- in the time specified in paragraph (2), shall de- mation available upon which the determination termine, based on the information available to can reasonably be based, to disclose to the peti- it at the time of the determination, whether tioner and any interested party, then a party to there is a reasonable indication that— the proceedings that requests such disclosure, (A) an industry in the United States— all available nonconfidential information and (i) is materially injured, or all other information which is disclosed pursu- (ii) is threatened with material injury, ant to section 1677f of this title. Within 3 days or (not counting Saturdays, Sundays, or legal pub- (B) the establishment of an industry in the lic holidays) after such disclosure, the petitioner United States is materially retarded, and each party which is an interested party de- by reason of imports of the subject merchan- scribed in subparagraph (C), (D), (E), (F), or (G) dise and that imports of the subject merchan- of section 1677(9) of this title to whom such dis- dise are not negligible. If the Commission closure was made may furnish to the admin- finds that imports of the subject merchandise istering authority an irrevocable written waiver are negligible or otherwise makes a negative of verification of the information received by determination under this paragraph, the in- the authority, and an agreement that it is will- vestigation shall be terminated. ing to have a determination made on the basis of the record then available to the authority. If (2) Time for Commission determination a timely waiver and agreement have been re- The Commission shall make the determina- ceived from the petitioner and each party which tion described in paragraph (1)— is an interested party described in subparagraph (A) in the case of a petition filed under (C), (D), (E), (F), or (G) of section 1677(9) of this section 1671a(b) of this title— title to whom the disclosure was made, and the (i) within 45 days after the date on which authority finds that sufficient information is the petition is filed, or then available upon which the preliminary de- (ii) if the time has been extended pursu- termination can reasonably be based, a prelimi- ant to section 1671a(c)(1)(B) of this title, nary determination shall be made on an expe- within 25 days after the date on which the dited basis on the basis of the record established Page 293 TITLE 19—CUSTOMS DUTIES § 1671b during the first 50 days after the investigation the determination must be made under sub- was initiated. section (b) of this section, or (4) DE MINIMIS COUNTERVAILABLE SUBSIDY.— (B) the administering authority concludes (A) GENERAL RULE.—In making a determina- that the parties concerned are cooperating tion under this subsection, the administering and determines that— authority shall disregard any de minimis (i) the case is extraordinarily com- countervailable subsidy. For purposes of the plicated by reason of— preceding sentence, a countervailable subsidy (I) the number and complexity of the is de minimis if the administering authority alleged countervailable subsidy prac- determines that the aggregate of the net tices; countervailable subsidies is less than 1 percent (II) the novelty of the issues presented; ad valorem or the equivalent specific rate for (III) the need to determine the extent the subject merchandise. to which particular countervailable sub- (B) EXCEPTION FOR DEVELOPING COUNTRIES.— sidies are used by individual manufac- In the case of subject merchandise imported turers, producers, and exporters; or from a Subsidies Agreement country (other (IV) the number of firms whose activi- than a country to which subparagraph (C) ap- ties must be investigated; and plies) designated by the Trade Representative (ii) additional time is necessary to make as a developing country in accordance with the preliminary determination, section 1677(36) of this title, a countervailable subsidy is de minimis if the administering au- then the administering authority may post- thority determines that the aggregate of the pone making the preliminary determination net countervailable subsidies does not exceed 2 under subsection (b) of this section until not percent ad valorem or the equivalent specific later than the 130th day after the date on rate for the subject merchandise. which the administering authority initiates (C) CERTAIN OTHER DEVELOPING COUNTRIES.— an investigation under section 1671a(c) of this In the case of subject merchandise imported title, or an investigation is initiated under from a Subsidies Agreement country that is— section 1671a(a) of this title. (i) a least developed country, as deter- (2) Notice of postponement mined by the Trade Representative in ac- The administering authority shall notify the cordance with section 1677(36) of this title, or parties to the investigation, not later than 20 (ii) a developing country with respect to days before the date on which the preliminary which the Trade Representative has notified determination would otherwise be required the administering authority that the coun- under subsection (b) of this section, if it in- try has eliminated its export subsidies on an tends to postpone making the preliminary de- expedited basis within the meaning of Arti- termination under paragraph (1). The notifica- cle 27.11 of the Subsidies Agreement, tion shall include an explanation of the rea- subparagraph (B) shall be applied by substitut- sons for the postponement. Notice of the posting ‘‘3 percent’’ for ‘‘2 percent’’. ponement shall be published in the Federal (D) LIMITATIONS ON APPLICATION OF SUBPARA- Register. GRAPH (C).— (d) Effect of determination by the administering (i) IN GENERAL.—In the case of a country authority described in subparagraph (C)(i), the provi- If the preliminary determination of the ad- sions of subparagraph (C) shall not apply ministering authority under subsection (b) of after the date that is 8 years after the date this section is affirmative, the administering the WTO Agreement enters into force. authority— (ii) SPECIAL RULE FOR SUBPARAGRAPH (C)(ii) (1)(A) shall— COUNTRIES.—In the case of a country de- (i) determine an estimated individual scribed in subparagraph (C)(ii), the provi- countervailable subsidy rate for each ex- sions of subparagraph (C) shall not apply porter and producer individually inves- after the earlier of— tigated, and, in accordance with section (I) the date that is 8 years after the date 1671d(c)(5) of this title, an estimated all-oth- the WTO Agreement enters into force, or (II) the date on which the Trade Rep- ers rate for all exporters and producers not resentative notifies the administering au- individually investigated and for new ex- thority that such country is providing an porters and producers within the meaning of export subsidy. section 1675(a)(2)(B) of this title, or (ii) if section 1677f–1(e)(2)(B) of this title (5) NOTIFICATION OF ARTICLE 8 VIOLATION.—If applies, determine a single estimated coun- the only subsidy under investigation is a subsidy try-wide subsidy rate, applicable to all ex- with respect to which the administering author- porters and producers, and ity received notice from the Trade Representa- tive of a violation of Article 8 of the Subsidies (B) shall order the posting of a cash deposit, Agreement, paragraph (1) shall be applied by bond, or other security, as the administering substituting ‘‘60 days’’ for ‘‘65 days’’. authority deems appropriate, for each entry of the subject merchandise in an amount based (c) Extension of period in extraordinarily com- on the estimated individual countervailable plicated cases subsidy rate, the estimated all-others rate, or (1) In general the estimated country-wide subsidy rate, If— whichever is applicable, (A) the petitioner makes a timely request (2) shall order the suspension of liquidation for an extension of the period within which of all entries of merchandise subject to the de- § 1671b TITLE 19—CUSTOMS DUTIES Page 294

termination which are entered, or withdrawn clusions on which its determination is based. from warehouse, for consumption on or after Not later than 5 days after the date on which the later of— the determination is required to be made under (A) the date on which notice of the deter- subsection (a)(2) of this section, the Commission mination is published in the Federal Reg- shall transmit to the administering authority ister, or the facts and conclusions on which its deter- (B) the date that is 60 days after the date mination is based. on which notice of the determination to ini- (g) Time period where upstream subsidization is tiate the investigation is published in the involved Federal Register, and (1) In general (3) shall make available to the Commission Whenever the administering authority con- all information upon which its determination cludes prior to a preliminary determination was based and which the Commission consid- under subsection (b) of this section, that there ers relevant to its injury determination, under is a reasonable basis to believe or suspect that such procedures as the administering author- an upstream subsidy is being bestowed, the ity and the Commission may establish to pre- time period within which a preliminary deter- vent disclosure, other than with the consent of mination must be made shall be extended to the party providing it or under protective 250 days after the filing of a petition under order, of any information to which confiden- section 1671a(b) of this title or initiation of an tial treatment has been given by the admin- investigation under section 1671a(a) of this istering authority. title (310 days in cases declared extraordinarily complicated under subsection (c) of The instructions of the administering authority this section), if the administering authority under paragraphs (1) and (2) may not remain in concludes that such additional time is nec- effect for more than 4 months. essary to make the required determination (e) Critical circumstances determinations concerning upstream subsidization. (1) In general (2) Exceptions If a petitioner alleges critical circumstances Whenever the administering authority con- in its original petition, or by amendment at cludes, after a preliminary determination any time more than 20 days before the date of under subsection (b) of this section, that there a final determination by the administering au- is a reasonable basis to believe or suspect that thority, then the administering authority an upstream subsidy is being bestowed— shall promptly (at any time after the initi- (A) in cases in which the preliminary de- ation of the investigation under this part) determination was negative, the time period termine, on the basis of the information avail- within which a final determination must be able to it at that time, whether there is a rea- made shall be extended to 165 or 225 days, as sonable basis to believe or suspect that— appropriate, under section 1671d(a)(1) of this (A) the alleged countervailable subsidy is title; or inconsistent with the Subsidies Agreement, (B) in cases in which the preliminary de- and termination is affirmative, the determina- (B) there have been massive imports of the tion concerning upstream subsidization— subject merchandise over a relatively short (i) need not be made until the conclusion period. of the first annual review under section 1675 of this title of any eventual Counter- (2) Suspension of liquidation vailing Duty Order, or, at the option of the If the determination of the administering petitioner, or authority under paragraph (1) is affirmative, (ii) will be made in the investigation and then any suspension of liquidation ordered the time period within which a final deter- under subsection (d)(2) of this section shall mination must be made shall be extended apply, or, if notice of such suspension of liq- to 165 or 225 days, as appropriate, under uidation is already published, be amended to section 1671d(a)(1) of this title, as appro- apply, to unliquidated entries of merchandise priate,1 except that the suspension of liq- entered, or withdrawn from warehouse, for uidation ordered in the preliminary deter- consumption on or after the later of— mination shall terminate at the end of 120 (A) the date which is 90 days before the days from the date of publication of that date on which the suspension of liquidation determination and not be resumed unless was first ordered, or and until the publication of a Countervail- (B) the date on which notice of the deter- ing Duty Order under section 1671e(a) of mination to initiate the investigation is this title. published in the Federal Register. There may be an extension of time for the (f) Notice of determination making of a final determination under this Whenever the Commission or the administer- subsection only if the administering authority ing authority makes a determination under this determines that such additional time is nec- section, the Commission or the administering essary to make the required determination authority, as the case may be, shall notify the concerning upstream subsidization. petitioner, and other parties to the investiga- (June 17, 1930, ch. 497, title VII, § 703, as added tion, and the Commission or the administering Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. authority (whichever is appropriate) of its determination. The administering authority shall in- 1 So in original. The words ‘‘as appropriate,’’ probably should clude with such notification the facts and con- not appear. Page 295 TITLE 19—CUSTOMS DUTIES § 1671b

152; amended Pub. L. 98–181, title VI, § 650(b), which a petition is filed under section 1671a(b) of this Nov. 30, 1983, 97 Stat. 1266; Pub. L. 98–573, title title’’ and ‘‘initiated’’ for ‘‘commenced’’. VI, §§ 603, 613(c), Oct. 30, 1984, 98 Stat. 3024, 3036; Subsec. (c)(1)(B)(i). Pub. L. 103–465, § 270(a)(1)(D), Pub. L. 99–514, title XVIII, § 1886(a)(3), Oct. 22, (b)(1)(B), substituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’ in subcl. (I) and ‘‘countervailable subsidies’’ 1986, 100 Stat. 2921; Pub. L. 100–418, title I, for ‘‘subsidies’’ in subcl. (III). §§ 1324(a)(2), 1326(d)(1), Aug. 23, 1988, 102 Stat. Subsec. (d). Pub. L. 103–465, § 215(a)(1)(B), inserted 1200, 1204; Pub. L. 103–465, title II, §§ 212(b)(1)(A), concluding provisions. (C), (D), (F), 214(a)(1), 215(a), 233(a)(5)(C), Subsec. (d)(1). Pub. L. 103–465, § 264(a)(4), added par. (6)(A)(iii), (iv), (B), 263(a), 264(a), (c)(1), (2), (1). Former par. (1) redesignated (2). 270(a)(1)(B)–(D), (b)(1)(B), 283(a), Dec. 8, 1994, 108 Pub. L. 103–465, § 215(a)(1)(A), substituted ‘‘warehouse, Stat. 4847, 4848, 4850, 4852, 4899, 4901, 4911, 4912, for consumption on or after the later of—’’ and subpars. 4914, 4917, 4930; Pub. L. 104–295, § 20(b)(5), Oct. 11, (A) and (B), for ‘‘warehouse, for consumption on or after the date of publication of the notice of the deter- 1996, 110 Stat. 3527.) mination in the Federal Register,’’. AMENDMENTS Subsec. (d)(2). Pub. L. 103–465, § 264(a)(1)–(3), redesignated par. (1) as (2), inserted ‘‘and’’ at end, and struck 1996—Subsec. (b)(1). Pub. L. 104–295 amended Pub. L. out former par. (2) which read as follows: ‘‘shall order 103–465, § 212(b)(1)(C)(i)(I). See 1994 Amendment note the posting of a cash deposit, bond, or other security, below. as it deems appropriate, for each entry of the merchan- 1994—Subsec. (a). Pub. L. 103–465, § 212(b)(1)(A), dise concerned equal to the estimated amount of the amended heading and text of subsec. (a) generally. net subsidy, and’’. Prior to amendment, text read as follows: ‘‘Except in Subsec. (e)(1). Pub. L. 103–465, § 214(a)(1), in introduc- the case of a petition dismissed by the administering tory provisions, struck out ‘‘best’’ before ‘‘informa- authority under section 1671a(c)(3) of this title, the tion’’ and amended subpars. (A) and (B) generally. Prior Commission, within 45 days after the date on which a to amendment, subpars. (A) and (B) read as follows: petition is filed under section 1671a(b) of this title or on ‘‘(A) the alleged subsidy is inconsistent with the which it receives notice from the administering author- Agreement, and ity of an investigation commenced under section ‘‘(B) there have been massive imports of the class or 1671a(a) of this title, shall make a determination, based kind of merchandise which is the subject of the inves- upon the best information available to it at the time of tigation over a relatively short period.’’ the determination, of whether there is a reasonable in- Subsec. (e)(2). Pub. L. 103–465, §§ 215(a)(2), 264(c)(2), dication that— substituted ‘‘subsection (d)(2)’’ for ‘‘subsection (d)(1)’’ ‘‘(1) an industry in the United States— and ‘‘warehouse, for consumption on or after the later ‘‘(A) is materially injured, or of—’’ and subpars. (A) and (B) for ‘‘warehouse, for con- ‘‘(B) is threatened with material injury, or sumption on or after the date which is 90 days before ‘‘(2) the establishment of an industry in the United the date on which suspension of liquidation was first States is materially retarded, ordered.’’ by reason of imports of the merchandise which is the Subsec. (f). Pub. L. 103–465, § 212(b)(1)(F), amended subject of the investigation by the administering au- heading and text of subsec. (f) generally. Prior to thority. If that determination is negative, the inves- amendment, text read as follows: ‘‘Whenever the Com- tigation shall be terminated.’’ mission or the administering authority makes a deter- Subsec. (b)(1). Pub. L. 103–465, § 270(a)(1)(B), sub- mination under this section, it shall notify the peti- stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. tioner, other parties to the investigation, and the other Pub. L. 103–465, § 233(a)(5)(B), (6)(A)(iii), substituted agency of its determination and of the facts and con- ‘‘initiated’’ for ‘‘commenced’’ and ‘‘subject merchan- clusions of law upon which the determination is based, dise’’ for ‘‘merchandise which is the subject of the in- and it shall publish notice of its determination in the vestigation’’. Federal Register.’’ Pub. L. 103–465, § 212(b)(1)(C)(i)(II), (III), substituted Subsec. (g)(1). Pub. L. 103–465, § 233(a)(6)(B), sub- ‘‘based upon the information’’ for ‘‘based upon the best stituted ‘‘initiation’’ for ‘‘commencement’’. information’’ and struck out at end ‘‘If the determina- 1988—Subsec. (b)(3). Pub. L. 100–418, § 1326(d)(1), sub- tion of the administering authority under this substituted ‘‘(F), or (G)’’ for ‘‘or (F)’’ in two places. section is affirmative, the determination shall include Subsec. (e)(1). Pub. L. 100–418, § 1324(a)(2), inserted an estimate of the net subsidy.’’ ‘‘(at any time after the initiation of the investigation Pub. L. 103–465, § 212(b)(1)(C)(i)(I), as amended by Pub. under this part)’’ after ‘‘promptly’’ in introductory pro- L. 104–295, substituted ‘‘65 days after the date on which visions. the administering authority initiates an investigation 1986—Subsecs. (g), (h). Pub. L. 99–514 redesignated under section 1671a(c) of this title’’ for ‘‘85 days after subsec. (h) as (g) and substituted ‘‘or 225 days, as appro- the date on which a petition is filed under section priate, under section 1671d(a)(1) of this title’’ for ‘‘days 1671a(b) of this title’’. Subsec. (b)(2). Pub. L. 103–465, § 270(a)(1)(C), sub- under section 1671d(a)(1) of this title or 225 days under stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. section 1671d(a)(2) of this title, as appropriate’’ in par. Pub. L. 103–465, § 264(c)(1), substituted ‘‘paragraph (1)’’ (2)(A), and ‘‘or 225 days, as appropriate, under section for ‘‘subsection (b)(1) of this section’’ in two places and 1671d(a)(1) of this title’’ for ‘‘days under section made technical amendments to references to section 1671d(a)(2) of this title’’ in par. (2)(B)(ii). 1671a(b)(3) of this title and subsection (c) of this section 1984—Subsec. (b)(3). Pub. L. 98–573, § 603, added par. to correct references to corresponding provisions of (3). original act. Subsec. (h). Pub. L. 98–573, § 613(c), added subsec. (h). Pub. L. 103–465, § 212(b)(1)(C)(ii), substituted ‘‘65 days 1983—Subsec. (b). Pub. L. 98–181 designated existing after the date on which the administering authority provisions as par. (1) and added par. (2). initiates an investigation under section 1671a(c) of this EFFECTIVE DATE OF 1994 AMENDMENT title’’ for ‘‘85 days after the date on which the petition is filed under section 1671a(b) of this title’’. Amendment by Pub. L. 103–465 effective, except as Subsec. (b)(4). Pub. L. 103–465, § 263(a), added par. (4). otherwise provided, on the date on which the WTO Subsec. (b)(5). Pub. L. 103–465, § 283(a), added par. (5). Agreement enters into force with respect to the United Subsec. (c)(1). Pub. L. 103–465, §§ 212(b)(1)(D), States [Jan. 1, 1995], and applicable with respect to in- 233(a)(6)(A)(iv), in concluding provisions, substituted vestigations, reviews, and inquiries initiated and peti- ‘‘130th day after the date on which the administering tions filed under specified provisions of this chapter authority initiates an investigation under section after such date, see section 291 of Pub. L. 103–465, set 1671a(c) of this title’’ for ‘‘150th day after the date on out as a note under section 1671 of this title. § 1671c TITLE 19—CUSTOMS DUTIES Page 296

EFFECTIVE DATE OF 1988 AMENDMENT in which the countervailable subsidy prac- Amendment by section 1324(a)(2) of Pub. L. 100–418 ap- tice is alleged to occur, an understanding or plicable with respect to investigations initiated after other kind of agreement to limit the volume Aug. 23, 1988, and amendment by section 1326(d)(1) of of imports into the United States of the sub- Pub. L. 100–418 applicable with respect to investigations ject merchandise unless the administering initiated after Aug. 23, 1988, and to reviews initiated authority is satisfied that termination on under section 1673e(c) or 1675 of this title after Aug. 23, the basis of that agreement is in the public 1988, see section 1337(b), (c) of Pub. L. 100–418, set out as interest. a note under section 1671 of this title. (B) Public interest factors EFFECTIVE DATE OF 1984 AMENDMENT In making a decision under subparagraph Amendment by Pub. L. 98–573 effective Oct. 30, 1984, (A) regarding the public interest, the admin- see section 626(a) of Pub. L. 98–573, set out as a note under section 1671 of this title. istering authority shall take into account— (i) whether, based upon the relative im- URUGUAY ROUND AGREEMENTS: ENTRY INTO FORCE pact on consumer prices and the availabil- The Uruguay Round Agreements, including the World ity of supplies of the merchandise, the Trade Organization Agreement and agreements an- agreement would have a greater adverse nexed to that Agreement, as referred to in section impact on United States consumers than 3511(d) of this title, entered into force with respect to the imposition of countervailing duties; the United States on Jan. 1, 1995. See note set out (ii) the relative impact on the inter- under section 3511 of this title. national economic interests of the United PLAN AMENDMENTS NOT REQUIRED UNTIL States; and JANUARY 1, 1989 (iii) the relative impact on the competi- For provisions directing that if any amendments tiveness of the domestic industry produc- made by subtitle A or subtitle C of title XI [§§ 1101–1147 ing the like merchandise, including any and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. such impact on employment and invest- 99–514 require an amendment to any plan, such plan ment in that industry. amendment shall not be required to be made before the (C) Prior consultations first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a Before making a decision under subpara- note under section 401 of Title 26, Internal Revenue graph (A) regarding the public interest, the Code. administering authority shall, to the extent practicable, consult with— § 1671c. Termination or suspension of investiga- (i) potentially affected consuming indus- tion tries; and (a) Termination of investigation upon with- (ii) potentially affected producers and drawal of petition workers in the domestic industry produc- (1) In general ing the like merchandise, including producers and workers not party to the inves- (A) Withdrawal of petition tigation. Except as provided in paragraphs (2) and (3) Limitation on termination by Commission (3), an investigation under this part may be terminated by either the administering au- The Commission may not terminate an in- thority or the Commission, after notice to vestigation under paragraph (1) before a pre- all parties to the investigation, upon with- liminary determination is made by the admin- drawal of the petition by the petitioner or istering authority under section 1671b(b) of by the administering authority if the inves- this title. tigation was initiated under section 1671a(a) (b) Agreements to eliminate or offset completely of this title. a countervailable subsidy or to cease exports (B) Refiling of petition of subject merchandise If, within 3 months after the withdrawal of The administering authority may suspend an a petition under subparagraph (A), a new pe- investigation if the government of the country tition is filed seeking the imposition of du- in which the countervailable subsidy practice is ties on both the subject merchandise of the alleged to occur agrees, or exporters who ac- withdrawn petition and the subject mer- count for substantially all of the imports of the chandise from another country, the admin- subject merchandise agree— istering authority and the Commission may (1) to eliminate the countervailable subsidy use in the investigation initiated pursuant completely or to offset completely the amount to the new petition any records compiled in of the net countervailable subsidy, with re- an investigation conducted pursuant to the spect to that merchandise exported directly or withdrawn petition. This subparagraph ap- indirectly to the United States, within 6 plies only with respect to the first with- months after the date on which the investiga- drawal of a petition. tion is suspended, or (2) Special rules for quantitative restriction (2) to cease exports of that merchandise to agreements the United States within 6 months after the date on which the investigation is suspended. (A) In general (c) Agreements eliminating injurious effect Subject to subparagraphs (B) and (C), the administering authority may not terminate (1) General rule an investigation under paragraph (1) by ac- If the administering authority determines cepting, with the government of the country that extraordinary circumstances are present Page 297 TITLE 19—CUSTOMS DUTIES § 1671c

in a case, it may suspend an investigation (a)(2)(B)(i), (ii), and (iii) of this section as they upon the acceptance of an agreement from a apply to the proposed suspension and agree- government described in subsection (b) of this ment, after consulting with the appropriate section, or from exporters described in sub- consuming industries, producers, and workers section (b) of this section, if the agreement referred to in subsection (a)(2)(C)(i) and (ii) of will eliminate completely the injurious effect this section. of exports to the United States of the subject (2) Exports of merchandise to United States merchandise. not to increase during interim period (2) Certain additional requirements The administering authority may not accept Except in the case of an agreement by a for- any agreement under subsection (b) of this eign government to restrict the volume of im- section unless that agreement provides a ports of the subject merchandise into the means of ensuring that the quantity of the United States, the administering authority merchandise covered by that agreement ex- may not accept an agreement under this sub- ported to the United States during the period section unless— provided for elimination or offset of the (A) the suppression or undercutting of countervailable subsidy or cessation of exports price levels of domestic products by imports does not exceed the quantity of such merchan- of that merchandise will be prevented, and dise exported to the United States during the (B) at least 85 percent of the net counter- most recent representative period determined vailable subsidy will be offset. by the administering authority. (3) Quantitative restrictions agreements (3) Regulations governing entry or withdraw- The administering authority may accept an als agreement with a foreign government under In order to carry out an agreement con- this subsection to restrict the volume of im- cluded under subsection (b) or (c) of this sec- ports of subject merchandise into the United tion, the administering authority is author- States, but it may not accept such an agree- ized to prescribe regulations governing the ment with exporters. entry, or withdrawal from warehouse, for con- (4) Definition of extraordinary circumstances sumption of subject merchandise. (A) Extraordinary circumstances (e) Suspension of investigation procedure For purposes of this subsection, the term Before an investigation may be suspended ‘‘extraordinary circumstances’’ means cir- under subsection (b) or (c) of this section the ad- cumstances in which— ministering authority shall— (i) suspension of an investigation will be (1) notify the petitioner of, and consult with more beneficial to the domestic industry the petitioner concerning, its intention to sus- than continuation of the investigation, pend the investigation, and notify other par- and ties to the investigation and the Commission (ii) the investigation is complex. not less than 30 days before the date on which (B) Complex it suspends the investigation, (2) provide a copy of the proposed agreement For purposes of this paragraph, the term to the petitioner at the time of the notifica- ‘‘complex’’ means— tion, together with an explanation of how the (i) there are a large number of alleged agreement will be carried out and enforced (in- countervailable subsidy practices and the cluding any action required of foreign govern- practices are complicated, ments), and of how the agreement will meet (ii) the issues raised are novel, or the requirements of subsections (b) and (d) or (iii) the number of exporters involved is (c) and (d) of this section, and large. (3) permit all interested parties described in (d) Additional rules and conditions section 1677(9) of this title to submit com- (1) Public interest; monitoring ments and information for the record before The administering authority shall not ac- the date on which notice of suspension of the cept an agreement under subsection (b) or (c) investigation is published under subsection of this section unless— (f)(1)(A) of this section. (A) it is satisfied that suspension of the in- (f) Effects of suspension of investigation vestigation is in the public interest, and (1) In general (B) effective monitoring of the agreement If the administering authority determines to by the United States is practicable. suspend an investigation upon acceptance of Where practicable, the administering author- an agreement described in subsection (b) or (c) ity shall provide to the exporters who would of this section, then— have been subject to the agreement the rea- (A) it shall suspend the investigation, pub- sons for not accepting the agreement and, to lish notice of suspension of the investiga- the extent possible, an opportunity to submit tion, and issue an affirmative preliminary comments thereon. In applying subparagraph determination under section 1671b(b) of this (A) with respect to any quantitative restric- title with respect to the subject merchan- tion agreement under subsection (c) of this dise, unless it has previously issued such a section, the administering authority shall determination in the same investigation, take into account, in addition to such other (B) the Commission shall suspend any in- factors as are considered necessary or appro- vestigation it is conducting with respect to priate, the factors set forth in subsection that merchandise, and § 1671c TITLE 19—CUSTOMS DUTIES Page 298

(C) the suspension of investigation shall (1) the government of the country in which take effect on the day on which such notice the countervailable subsidy practice is alleged is published. to occur, or (2) Liquidation of entries (2) an interested party described in subpara- (A) Cessation of exports; complete elimi- graph (C), (D), (E), (F), or (G) of section 1677(9) nation of net countervailable subsidy of this title which is a party to the investigation, If the agreement accepted by the administering authority is an agreement described then the administering authority and the Com- in subsection (b) of this section, then— mission shall continue the investigation. (i) notwithstanding the affirmative pre- (h) Review of suspension liminary determination required under (1) In general paragraph (1)(A), the liquidation of entries of subject merchandise shall not be sus- Within 20 days after the suspension of an in- pended under section 1671b(d)(2) of this vestigation under subsection (c) of this sec- title, tion, an interested party which is a party to (ii) if the liquidation of entries of such the investigation and which is described in merchandise was suspended pursuant to a subparagraph (C), (D), (E), (F), or (G) of sec- previous affirmative preliminary deter- tion 1677(9) of this title may, by petition filed mination in the same case with respect to with the Commission and with notice to the such merchandise, that suspension of liq- administering authority, ask for a review of uidation shall terminate, and the suspension. (iii) the administering authority shall (2) Commission investigation refund any cash deposit and release any Upon receipt of a review petition under para- bond or other security deposited under sec- graph (1), the Commission shall, within 75 days tion 1671b(d)(1)(B) of this title. after the date on which the petition is filed (B) Other agreements with it, determine whether the injurious effect If the agreement accepted by the admin- of imports of the subject merchandise is elimi- istering authority is an agreement described nated completely by the agreement. If the in subsection (c) of this section, then the liq- Commission’s determination under this sub- uidation of entries of the subject merchan- section is negative, the investigation shall be dise shall be suspended under section resumed on the date of publication of notice of 1671b(d)(2) of this title, or, if the liquidation such determination as if the affirmative pre- of entries of such merchandise was sus- liminary determination under section 1671b(b) pended pursuant to a previous affirmative of this title had been made on that date. preliminary determination in the same case, (3) Suspension of liquidation to continue dur- that suspension of liquidation shall continue ing review period in effect, subject to subsection (h)(3) of this section, but the security required under sec- The suspension of liquidation of entries of tion 1671b(d)(1)(B) of this title may be ad- the subject merchandise shall terminate at justed to reflect the effect of the agreement. the close of the 20-day period beginning on the day after the date on which notice of suspen- (3) Where investigation is continued sion of the investigation is published in the If, pursuant to subsection (g) of this section, Federal Register, or, if a review petition is the administering authority and the Commis- filed under paragraph (1) with respect to the sion continue an investigation in which an suspension of the investigation, in the case of agreement has been accepted under subsection an affirmative determination by the Commis- (b) or (c) of this section, then— sion under paragraph (2), the date on which (A) if the final determination by the ad- notice of the affirmative determination by the ministering authority or the Commission Commission is published. If the determination under section 1671d of this title is negative, of the Commission under paragraph (2) is af- the agreement shall have no force or effect firmative, then the administering authority and the investigation shall be terminated, or shall— (B) if the final determinations by the ad- (A) terminate the suspension of liquida- ministering authority and the Commission tion under section 1671b(d)(2) of this title, under such section are affirmative, the and agreement shall remain in force, but the ad- (B) release any bond or other security, and ministering authority shall not issue a coun- refund any cash deposit, required under sec- tervailing duty order in the case so long as— tion 1671b(d)(1)(B) of this title. (i) the agreement remains in force, (ii) the agreement continues to meet the (i) Violation of agreement requirements of subsections (b) and (d) or (1) In general (c) and (d) of this section, and If the administering authority determines (iii) the parties to the agreement carry that an agreement accepted under subsection out their obligations under the agreement (b) or (c) of this section is being, or has been, in accordance with its terms. violated, or no longer meets the requirements (g) Investigation to be continued upon request of such subsection (other than the require- If the administering authority, within 20 days ment, under subsection (c)(1) of this section, of after the date of publication of the notice of sus- elimination of injury) and subsection (d) of pension of an investigation, receives a request this section, then, on the date of publication for the continuation of the investigation from— of its determination, it shall— Page 299 TITLE 19—CUSTOMS DUTIES § 1671c

(A) suspend liquidation under section this title, the administering authority shall 1671b(d)(2) of this title of unliquidated en- offer exporters of the subject merchandise who tries of the merchandise made on or after account for substantially all exports of that the later of— merchandise for sale in the region concerned (i) the date which is 90 days before the the opportunity to enter into an agreement date of publication of the notice of suspen- described in subsection (b) or (c) of this sec- sion of liquidation, or tion. (ii) the date on which the merchandise, (2) Requirements for suspension agreements the sale or export to the United States of which was in violation of the agreement, Any agreement described in paragraph (1) or under an agreement which no longer shall be subject to all the requirements im- meets the requirements of subsections (b) posed under this section for other agreements and (d) or (c) and (d) of this section, was under subsection (b) or (c) of this section, ex- first entered, or withdrawn from ware- cept that if the Commission makes a regional house, for consumption, industry determination described in paragraph (1) in the final affirmative determination (B) if the investigation was not completed, under section 1671d(b) of this title but not in resume the investigation as if its affirmative the preliminary affirmative determination preliminary determination under section under section 1671b(a) of this title, any agree- 1671b(b) of this title were made on the date ment described in paragraph (1) may be ac- of its determination under this paragraph, cepted within 60 days after the countervailing (C) if the investigation was completed duty order is published under section 1671e of under subsection (g) of this section, issue a this title. countervailing duty order under section 1671e(a) of this title effective with respect to (3) Effect of suspension agreement on counter- entries of merchandise the liquidation of vailing duty order which was suspended, If an agreement described in paragraph (1) is (D) if it considers the violation to be in- accepted after the countervailing duty order is tentional, notify the Commissioner of Cus- published, the administering authority shall toms who shall take appropriate action rescind the order, refund any cash deposit and under paragraph (2), and release any bond or other security deposited (E) notify the petitioner, interested par- under section 1671b(d)(1)(B) of this title, and ties who are or were parties to the investiga- instruct the Customs Service that entries of tion, and the Commission of its action under the subject merchandise that were made dur- this paragraph. ing the period that the order was in effect (2) Intentional violation to be punished by civil shall be liquidated without regard to counter- penalty vailing duties. Any person who intentionally violates an (June 17, 1930, ch. 497, title VII, § 704, as added agreement accepted by the administering au- Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. thority under subsection (b) or (c) of this sec- 154; amended Pub. L. 98–573, title VI, §§ 604(a), tion shall be subject to a civil penalty assessed 612(b)(2), Oct. 30, 1984, 98 Stat. 3025, 3034; Pub. L. in the same amount, in the same manner, and 99–514, title XVIII, § 1886(a)(4), Oct. 22, 1986, 100 under the same procedure, as the penalty im- Stat. 2921; Pub. L. 100–418, title I, § 1326(d)(2), posed for a fraudulent violation of section Aug. 23, 1988, 102 Stat. 1204; Pub. L. 103–465, title 1592(a) of this title. II, §§ 216(a), 217(a), 218(a)(1), 233(a)(5)(D)–(M), (j) Determination not to take agreement into ac- 264(c)(3)–(6), 270(a)(1)(E), (2)(A), (c)(1), Dec. 8, count 1994, 108 Stat. 4853, 4854, 4899, 4914, 4917.) In making a final determination under section AMENDMENTS 1671d of this title, or in conducting a review 1994—Subsec. (a)(1). Pub. L. 103–465, § 217(a), des- under section 1675 of this title, in a case in ignated existing provisions as subpar. (A), inserted which the administering authority has termi- heading, realigned margin, and added subpar. (B). nated a suspension of investigation under sub- Subsec. (a)(2)(A). Pub. L. 103–465, §§ 233(a)(5)(D), section (i)(1) of this section, or continued an in- 270(a)(1)(E), substituted ‘‘countervailable subsidy’’ for vestigation under subsection (g) of this section, ‘‘subsidy’’ and ‘‘subject merchandise’’ for ‘‘merchandise that is subject to the investigation’’. the Commission and the administering author- Subsec. (b). Pub. L. 103–465, § 270(a)(2)(A), (c)(1), in ity shall consider all of the subject merchandise, heading, substituted ‘‘countervailable subsidy’’ for without regard to the effect of any agreement ‘‘subsidy’’ and ‘‘subject merchandise’’ for ‘‘subsidized under subsection (b) or (c) of this section. merchandise’’. (k) Termination of investigations initiated by ad- Pub. L. 103–465, §§ 233(a)(5)(E), 270(a)(1)(E), in introductory provisions, substituted ‘‘countervailable subsidy’’ ministering authority for ‘‘subsidy’’ and ‘‘subject merchandise’’ for ‘‘mer- The administering authority may terminate chandise which is the subject of the investigation’’. any investigation initiated by the administering Subsec. (b)(1). Pub. L. 103–465, § 270(a)(1)(E), sub- authority under section 1671a(a) of this title stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’ in after providing notice of such termination to all two places. Subsec. (c)(1), (2). Pub. L. 103–465, § 233(a)(5)(F), (G), parties to the investigation. substituted ‘‘subject merchandise’’ for ‘‘merchandise (l) Special rule for regional industry investiga- which is the subject of the investigation’’. tions Subsec. (c)(2)(B). Pub. L. 103–465, § 270(a)(1)(E), sub- (1) Suspension agreements stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. Subsec. (c)(3). Pub. L. 103–465, § 233(a)(5)(H), sub- If the Commission makes a regional indus- stituted ‘‘subject merchandise’’ for ‘‘merchandise try determination under section 1677(4)(C) of which is the subject of an investigation’’. § 1671d TITLE 19—CUSTOMS DUTIES Page 300

Subsec. (c)(4)(B)(i). Pub. L. 103–465, § 270(a)(1)(E), sub- which provided that exports of merchandise to the stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. United States were not to increase during the interim Subsec. (d)(1). Pub. L. 103–465, § 216(a), in concluding period. provisions, substituted ‘‘Where practicable, the admin- Subsec. (e)(3). Pub. L. 98–573, § 604(a)(3), substituted istering authority shall provide to the exporters who ‘‘all interested parties described in section 1677(9) of would have been subject to the agreement the reasons this title’’ for ‘‘all parties to the investigation’’. for not accepting the agreement and, to the extent pos- Subsecs. (g)(2), (h)(1). Pub. L. 98–573, § 612(b)(2), sub- sible, an opportunity to submit comments thereon. In stituted reference to subpar. ‘‘(C), (D), (E), and (F)’’ for applying’’ for ‘‘In applying’’. ‘‘(C), (D), or (E)’’ of section 1677(9) of this title. Subsec. (d)(2). Pub. L. 103–465, § 270(a)(1)(E), sub- Subsec. (i)(1)(D), (E). Pub. L. 98–573, § 604(a)(4)(A)–(C), stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. added subpar. (D) and redesignated former subpar. (D) Subsec. (d)(3). Pub. L. 103–465, § 233(a)(5)(I), sub- as (E). stituted ‘‘subject merchandise’’ for ‘‘merchandise cov- Subsec. (k). Pub. L. 98–573, § 604(a)(5), added subsec. ered by such agreement’’. (k). Subsec. (f)(1)(A). Pub. L. 103–465, § 233(a)(5)(J), substituted ‘‘subject merchandise’’ for ‘‘merchandise EFFECTIVE DATE OF 1994 AMENDMENT which is the subject of the investigation’’. Subsec. (f)(2)(A). Pub. L. 103–465, § 270(a)(1)(E), sub- Amendment by Pub. L. 103–465 effective, except as stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’ in otherwise provided, on the date on which the WTO heading. Agreement enters into force with respect to the United Subsec. (f)(2)(A)(i), (iii). Pub. L. 103–465, §§ 233(a)(5)(K), States [Jan. 1, 1995], and applicable with respect to in- 264(c)(3), in cl. (i), substituted ‘‘subject merchandise’’ vestigations, reviews, and inquiries initiated and peti- for ‘‘merchandise which is the subject of the investigations filed under specified provisions of this chapter tion’’ and ‘‘1671b(d)(2)’’ for ‘‘1671b(d)(1)’’, and in cl. (iii), after such date, see section 291 of Pub. L. 103–465, set substituted ‘‘1671b(d)(1)(B)’’ for ‘‘1671b(d)(1)’’. out as a note under section 1671 of this title. Subsec. (f)(2)(B). Pub. L. 103–465, §§ 233(a)(5)(K), EFFECTIVE DATE OF 1988 AMENDMENT 264(c)(4), substituted ‘‘subject merchandise’’ for ‘‘merchandise which is the subject of the investigation’’, Amendment by Pub. L. 100–418 applicable with re- ‘‘1671b(d)(2)’’ for ‘‘1671b(d)(1)’’, and ‘‘1671b(d)(1)(B)’’ for spect to investigations initiated after Aug. 23, 1988, and ‘‘1671b(d)(2)’’. to reviews initiated under section 1673e(c) or 1675 of Subsec. (g)(1). Pub. L. 103–465, § 270(a)(1)(E), sub- this title after Aug. 23, 1988, see section 1337(b) of Pub. stituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. L. 100–418, set out as a note under section 1671 of this Subsec. (h)(2). Pub. L. 103–465, § 233(a)(5)(L), subtitle. stituted ‘‘subject merchandise’’ for ‘‘merchandise which is the subject of the investigation’’. EFFECTIVE DATE OF 1984 AMENDMENT Subsec. (h)(3). Pub. L. 103–465, §§ 233(a)(5)(L), 264(c)(5), Amendment by section 604(a) of Pub. L. 98–573 effec- in introductory provisions, substituted ‘‘subject mer- tive Oct. 30, 1984, and amendment by section 612(b)(2) of chandise’’ for ‘‘merchandise which is the subject of the Pub. L. 98–573 applicable with respect to investigations investigation’’, in subpar. (A), substituted ‘‘1671b(d)(2)’’ initiated by petition or by the administering authority for ‘‘1671b(d)(1)’’, and in subpar. (B), substituted under parts I and II of this subtitle, and to reviews ‘‘1671b(d)(1)(B)’’ for ‘‘1671b(d)(2)’’. Subsec. (i)(1)(A). Pub. L. 103–465, § 264(c)(6), sub- begun under section 1675 of this title, on or after Oct. stituted ‘‘1671b(d)(2)’’ for ‘‘1671b(d)(1)’’ in introductory 30, 1984, see section 626(a), (b)(1) of Pub. L. 98–573, as provisions. amended, set out as a note under section 1671 of this Subsec. (j). Pub. L. 103–465, § 233(a)(5)(M), substituted title. ‘‘subject merchandise’’ for ‘‘merchandise which is the TRANSFER OF FUNCTIONS subject of the investigation’’. Subsec. (l). Pub. L. 103–465, § 218(a)(1), added subsec. For transfer of functions, personnel, assets, and li- (l). abilities of the United States Customs Service of the 1988—Subsecs. (g)(2), (h)(1). Pub. L. 100–418 sub- Department of the Treasury, including functions of the stituted ‘‘subparagraph (C), (D), (E), (F), or (G) of sec- Secretary of the Treasury relating thereto, to the Sec- tion 1677(9) of this title’’ for ‘‘subparagraph (C), (D), (E), retary of Homeland Security, and for treatment of re- and (F) of section 1677(9) of this title’’. lated references, see sections 203(1), 551(d), 552(d), and 1986—Subsec. (d)(2), (3). Pub. L. 99–514, § 1886(a)(4)(A), 557 of Title 6, Domestic Security, and the Department added par. (2) and redesignated former par. (2) as (3). of Homeland Security Reorganization Plan of Novem- Subsec. (i)(1)(D). Pub. L. 99–514, § 1886(a)(4)(B), sub- ber 25, 2002, as modified, set out as a note under section stituted ‘‘intentional’’ for ‘‘international’’. 542 of Title 6. 1984—Subsec. (a). Pub. L. 98–573, § 604(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) PLAN AMENDMENTS NOT REQUIRED UNTIL read as follows: ‘‘An investigation under this part may JANUARY 1, 1989 be terminated by either the administering authority or the Commission after notice to all parties to the inves- For provisions directing that if any amendments tigation, upon withdrawal of the petition by the peti- made by subtitle A or subtitle C of title XI [§§ 1101–1147 tioner. The Commission may not terminate an inves- and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. tigation under the preceding sentence before a prelimi- 99–514 require an amendment to any plan, such plan nary determination is made by the administering au- amendment shall not be required to be made before the thority under section 1671b(b) of this title.’’ first plan year beginning on or after Jan. 1, 1989, see Subsec. (d)(1). Pub. L. 98–573, § 604(a)(2)(A), inserted section 1140 of Pub. L. 99–514, as amended, set out as a provision, following subpar. (B), that in applying sub- note under section 401 of Title 26, Internal Revenue par. (A) with respect to any quantitative restriction Code. agreement under subsec. (c) of this section, the administering authority shall take into account, in addition § 1671d. Final determinations to such other factors as are considered necessary or ap- (a) Final determination by administering author- propriate, the factors set forth in subsec. (a)(2)(B)(i), (ii), and (iii) of this section as they apply to the pro- ity posed suspension and agreement, after consulting with (1) In general the appropriate consuming industries, producers, and workers referred to in subsec. (a)(2)(C)(i) and (ii) of this Within 75 days after the date of the prelimi- section. nary determination under section 1671b(b) of Subsec. (d)(2), (3). Pub. L. 98–573, § 604(a)(2)(B), (C), re- this title, the administering authority shall designated par. (3) as (2) and struck out former par. (2) make a final determination of whether or not Page 301 TITLE 19—CUSTOMS DUTIES § 1671d

a countervailable subsidy is being provided (3) Period for injury determination following with respect to the subject merchandise; ex- negative preliminary determination by ad- cept that when an investigation under this ministering authority part is initiated simultaneously with an inves- If the preliminary determination by the ad- tigation under part II of this subtitle, which ministering authority under section 1671b(b) of involves imports of the same class or kind of this title is negative, and its final determina- merchandise from the same or other countries, tion under subsection (a) of this section is af- the administering authority, if requested by firmative, then the final determination by the the petitioner, shall extend the date of the Commission under this subsection shall be final determination under this paragraph to made within 75 days after the date of that af- the date of the final determination of the ad- firmative final determination. ministering authority in such investigation (4) Certain additional findings initiated under part II of this subtitle. (2) Critical circumstances determinations (A) COMMISSION STANDARD FOR RETROACTIVE APPLICATION.— If the final determination of the administer- (i) IN GENERAL.—If the finding of the ad- ing authority is affirmative, then that deter- ministering authority under subsection mination, in any investigation in which the (a)(2) of this section is affirmative, then the presence of critical circumstances has been al- final determination of the Commission shall leged under section 1671b(e) of this title, shall include a finding as to whether the imports also contain a finding as to whether— subject to the affirmative determination (A) the countervailable subsidy is incon- under subsection (a)(2) of this section are sistent with the Subsidies Agreement, and likely to undermine seriously the remedial (B) there have been massive imports of the effect of the countervailing duty order to be subject merchandise over a relatively short issued under section 1671e of this title. period. (ii) FACTORS TO CONSIDER.—In making the Such findings may be affirmative even though evaluation under clause (i), the Commission the preliminary determination under section shall consider, among other factors it con- 1671b(e)(1) of this title was negative. siders relevant— (3) De minimis countervailable subsidy (I) the timing and the volume of the im- In making a determination under this sub- ports, (II) any rapid increase in inventories of section, the administering authority shall dis- the imports, and regard any countervailable subsidy that is de (III) any other circumstances indicating minimis as defined in section 1671b(b)(4) of this that the remedial effect of the countervail- title. ing duty order will be seriously under- (b) Final determination by Commission mined. (1) In general (B) If the final determination of the Com- The Commission shall make a final deter- mission is that there is no material injury but mination of whether— that there is threat of material injury, then (A) an industry in the United States— its determination shall also include a finding (i) is materially injured, or as to whether material injury by reason of im- (ii) is threatened with material injury, ports of the merchandise with respect to which or the administering authority has made an af- (B) the establishment of an industry in the firmative determination under subsection (a) United States is materially retarded, of this section would have been found but for by reason of imports, or sales (or the likeli- any suspension of liquidation of entries of that hood of sales) for importation, of the merchan- merchandise. dise with respect to which the administering (c) Effect of final determinations authority has made an affirmative determina- (1) Effect of affirmative determination by the tion under subsection (a) of this section. If the administering authority Commission determines that imports of the If the determination of the administering subject merchandise are negligible, the inves- authority under subsection (a) of this section tigation shall be terminated. is affirmative, then— (2) Period for injury determination following (A) the administering authority shall affirmative preliminary determination by make available to the Commission all infor- administering authority mation upon which such determination was If the preliminary determination by the ad- based and which the Commission considers ministering authority under section 1671b(b) of relevant to its determination, under such this title is affirmative, then the Commission procedures as the administering authority shall make the determination required by and the Commission may establish to pre- paragraph (1) before the later of— vent disclosure, other than with the consent (A) the 120th day after the day on which of the party providing it or under protective the administering authority makes its af- order, of any information to which confiden- firmative preliminary determination under tial treatment has been given by the admin- section 1671b(b) of this title, or istering authority, (B) the 45th day after the day on which the (B)(i) the administering authority shall— administering authority makes its affirma- (I) determine an estimated individual tive final determination under subsection (a) countervailable subsidy rate for each ex- of this section. porter and producer individually inves- § 1671d TITLE 19—CUSTOMS DUTIES Page 302

tigated, and, in accordance with paragraph title were both affirmative, continue the ret- (5), an estimated all-others rate for all ex- roactive suspension of liquidation and the porters and producers not individually in- posting of a cash deposit, bond, or other se- vestigated and for new exporters and pro- curity previously ordered under section ducers within the meaning of section 1671b(e)(2) of this title; 1675(a)(2)(B) of this title, or (B) in cases where the preliminary deter- (II) if section 1677f–1(e)(2)(B) of this title mination by the administering authority applies, determine a single estimated under section 1671b(b) of this title was af- country-wide subsidy rate, applicable to firmative, but the preliminary determina- all exporters and producers, tion under section 1671b(e)(1) of this title (ii) shall order the posting of a cash de- was negative, shall modify any suspension of posit, bond, or other security, as the admin- liquidation and security requirement pre- istering authority deems appropriate, for viously ordered under section 1671b(d) of this each entry of the subject merchandise in an title to apply to unliquidated entries of mer- amount based on the estimated individual chandise entered, or withdrawn from ware- countervailable subsidy rate, the estimated house, for consumption on or after the date all-others rate, or the estimated country- which is 90 days before the date on which wide subsidy rate, whichever is applicable, suspension of liquidation was first ordered; and or (C) in cases where the preliminary deter- (C) in cases where the preliminary determination by the administering authority mination by the administering authority under section 1671b(b) of this title was nega- under section 1671b(b) of this title was negative, the administering authority shall order tive, shall apply any suspension of liquida- the suspension of liquidation under para- tion and security requirement ordered under graph (2) of section 1671b(d) of this title. subsection (c)(1)(B) of this section to unliquidated entries of merchandise entered, or (2) Issuance of order; effect of negative deter- withdrawn from warehouse, for consumption mination on or after the date which is 90 days before If the determinations of the administering the date on which suspension of liquidation authority and the Commission under sub- is first ordered. sections (a)(1) and (b)(1) of this section are af- (5) Method for determining the all-others rate firmative, then the administering authority and the country-wide subsidy rate shall issue a countervailing duty order under section 1671e(a) of this title. If either of such (A) All-others rate determinations is negative, the investigation (i) General rule shall be terminated upon the publication of For purposes of this subsection and sec- notice of that negative determination and the tion 1671b(d) of this title, the all-others administering authority shall— rate shall be an amount equal to the (A) terminate the suspension of liquida- weighted average countervailable subsidy tion under section 1671b(d)(2) of this title, rates established for exporters and produc- and ers individually investigated, excluding (B) release any bond or other security and any zero and de minimis countervailable refund any cash deposit required under sec- subsidy rates, and any rates determined tion 1671b(d)(1)(B) of this title. entirely under section 1677e of this title. (3) Effect of negative determinations under subsections (a)(2) and (b)(4)(A) of this sec- (ii) Exception tion If the countervailable subsidy rates es- If the determination of the administering tablished for all exporters and producers authority or the Commission under subsection individually investigated are zero or de (a)(2) and (b)(4)(A) of this section, respectively, minimis rates, or are determined entirely is negative, then the administering authority under section 1677e of this title, the admin- shall— istering authority may use any reasonable (A) terminate any retroactive suspension method to establish an all-others rate for of liquidation required under paragraph (4) exporters and producers not individually or section 1671b(e)(2) of this title, and investigated, including averaging the (B) release any bond or other security, and weighted average countervailable subsidy refund any cash deposit required, under sec- rates determined for the exporters and tion 1671b(d)(1)(B) of this title with respect producers individually investigated. to entries of the merchandise the liquidation (B) Country-wide subsidy rate of which was suspended retroactively under The administering authority may cal- section 1671b(e)(2) of this title. culate a single country-wide subsidy rate, (4) Effect of affirmative determination under applicable to all exporters and producers, if subsection (a)(2) of this section the administering authority limits its exam- If the determination of the administering ination pursuant to section 1677f–1(e)(2)(B) of authority under subsection (a)(2) of this sec- this title. The estimated country-wide rate tion is affirmative, then the administering au- determined under section 1671b(d)(1)(A)(ii) of thority shall— this title or paragraph (1)(B)(i)(II) of this (A) in cases where the preliminary deter- subsection shall be based on industry-wide minations by the administering authority data regarding the use of subsidies deter- under sections 1671b(b) and 1671b(e)(1) of this mined to be countervailable. Page 303 TITLE 19—CUSTOMS DUTIES § 1671e

(d) Publication of notice of determinations Subsec. (c)(3)(B). Pub. L. 103–465, § 264(c)(8), sub- Whenever the administering authority or the stituted ‘‘1671b(d)(1)(B)’’ for ‘‘1671b(d)(2)’’. Subsec. (c)(5). Pub. L. 103–465, § 264(b)(2), added par. Commission makes a determination under this (5). section, it shall notify the petitioner, other par- 1988—Subsec. (b)(4)(A). Pub. L. 100–418, § 1324(a)(3), ties to the investigation, and the other agency amended subpar. (A) generally. Prior to amendment, of its determination and of the facts and conclu- subpar. (A) read as follows: ‘‘If the finding of the ad- sions of law upon which the determination is ministering authority under subsection (a)(2) of this based, and it shall publish notice of its deter- section is affirmative, then the final determination of mination in the Federal Register. the Commission shall include findings as to whether— ‘‘(i) there is material injury which will be difficult (e) Correction of ministerial errors to repair, and The administering authority shall establish ‘‘(ii) the material injury was by reason of such mas- procedures for the correction of ministerial er- sive imports of the subsidized merchandise over a rel- rors in final determinations within a reasonable atively short period.’’ time after the determinations are issued under Subsec. (e). Pub. L. 100–418, § 1333(a), added subsec. (e). this section. Such procedures shall ensure op- 1984—Subsec. (a)(1). Pub. L. 98–573, § 606, inserted provision that when an investigation under this part is ini- portunity for interested parties to present their tiated simultaneously with an investigation under part views regarding any such errors. As used in this II of this subtitle, which involves imports of the same subsection, the term ‘‘ministerial error’’ in- class or kind of merchandise from the same or other cludes errors in addition, subtraction, or other countries, the administering authority, if requested by arithmetic function, clerical errors resulting the petitioner, shall extend the date of the final deter- from inaccurate copying, duplication, or the mination under this paragraph to the date of the final like, and any other type of unintentional error determination of the administering authority in such which the administering authority considers investigation initiated under part II of this subtitle. Subsec. (a)(2). Pub. L. 98–573, § 605(a)(1), inserted pro- ministerial. vision after subpar. (B) that such findings may be af- (June 17, 1930, ch. 497, title VII, § 705, as added firmative even though the preliminary determination Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. under section 1671b(e)(1) of this title was negative. 159; amended Pub. L. 98–573, title VI, §§ 602(a)(2), Subsec. (b)(1). Pub. L. 98–573, § 602(a)(2), inserted ‘‘, or 605(a), 606, Oct. 30, 1984, 98 Stat. 3024, 3028, 3029; sales (or the likelihood of sales for importation,’’ in provision after subpar. (B). Pub. L. 100–418, title I, §§ 1324(a)(3), 1333(a), Aug. Subsec. (c)(3)(A). Pub. L. 98–573, § 605(a)(3), inserted 23, 1988, 102 Stat. 1200, 1209; Pub. L. 103–465, title reference to par. (4). II, §§ 212(b)(1)(B), 214(a)(2), 233(a)(5)(N), 263(b), Subsec. (c)(4). Pub. L. 98–573, § 605(a)(2), added par. (4). 264(b), (c)(7), (8), 270(a)(1)(F), (G), Dec. 8, 1994, 108 Stat. 4848, 4850, 4899, 4912–4914, 4917; Pub. L. EFFECTIVE DATE OF 1994 AMENDMENT 104–295, § 20(b)(15), Oct. 11, 1996, 110 Stat. 3527.) Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO AMENDMENTS Agreement enters into force with respect to the United 1996—Subsec. (c)(1)(B)(i)(II). Pub. L. 104–295 inserted States [Jan. 1, 1995], and applicable with respect to in- ‘‘section’’ after ‘‘if’’. vestigations, reviews, and inquiries initiated and peti- 1994—Subsec. (a)(1). Pub. L. 103–465, §§ 233(a)(5)(N), tions filed under specified provisions of this chapter 270(a)(1)(F), substituted ‘‘countervailable subsidy’’ for after such date, see section 291 of Pub. L. 103–465, set ‘‘subsidy’’ and ‘‘the subject merchandise’’ for ‘‘the mer- out as a note under section 1671 of this title. chandise’’. Subsec. (a)(2)(A). Pub. L. 103–465, §§ 214(a)(2)(A)(i), EFFECTIVE DATE OF 1988 AMENDMENT 270(a)(1)(G), substituted ‘‘countervailable subsidy’’ for Amendment by section 1333(a) of Pub. L. 100–418 effec- ‘‘subsidy’’ and ‘‘Subsidies Agreement’’ for ‘‘Agree- tive Aug. 23, 1988, and amendment by section 1324(a)(3) ment’’. of Pub. L. 100–418 applicable with respect to investiga- Subsec. (a)(2)(B). Pub. L. 103–465, § 214(a)(2)(A)(ii), sub- tions initiated after Aug. 23, 1988, see section 1337(a), (c) stituted ‘‘subject merchandise’’ for ‘‘class or kind of of Pub. L. 100–418, set out as a note under section 1671 merchandise involved’’. of this title. Subsec. (a)(3). Pub. L. 103–465, § 263(b), added par. (3). Subsec. (b)(1). Pub. L. 103–465, § 212(b)(1)(B), inserted EFFECTIVE DATE OF 1984 AMENDMENT at end of concluding provisions ‘‘If the Commission determines that imports of the subject merchandise are Amendment by section 602(a)(2) of Pub. L. 98–573 ap- negligible, the investigation shall be terminated.’’ plicable with respect to investigations initiated by pe- Subsec. (b)(4)(A). Pub. L. 103–465, § 214(a)(2)(B), amend- tition or by the administering authority under parts I ed subpar. (A) generally, substituting present provi- and II of this subtitle, and to reviews begun under sec- sions for provisions requiring, in the case of an affirmation 1675 of this title, on or after Oct. 30, 1984, and tive critical circumstances determination, an addi- amendment by sections 605(a) and 606 of Pub. L. 98–573 tional finding as to whether retroactive imposition of a effective Oct. 30, 1984, see section 626(a), (b)(1) of Pub. countervailing duty would be necessary to prevent re- L. 98–573, as amended, set out as a note under section currence of material injury caused by massive imports 1671 of this title. of subject merchandise over a relatively short period of time. § 1671e. Assessment of duty Subsec. (c)(1). Pub. L. 103–465, § 264(b)(1), struck out (a) Publication of countervailing duty order ‘‘and’’ at end of subpar. (A), added subpar. (B), and redesignated former subpar. (B) as (C) and substituted Within 7 days after being notified by the Com- ‘‘the suspension of liquidation under paragraph (2) of mission of an affirmative determination under section 1671b(d) of this title’’ for ‘‘under paragraphs (1) section 1671d(b) of this title, the administering and (2) of section 1671b(d) of this title the suspension of authority shall publish a countervailing duty liquidation and the posting of a cash deposit, bond, or order which— other security’’. Subsec. (c)(2). Pub. L. 103–465, § 264(c)(7), in subpar. (1) directs customs officers to assess a coun- (A), substituted ‘‘1671b(d)(2)’’ for ‘‘1671b(d)(1)’’ and in tervailing duty equal to the amount of the net subpar. (B), substituted ‘‘1671b(d)(1)(B)’’ for countervailable subsidy determined or esti- ‘‘1671b(d)(2)’’. mated to exist, within 6 months after the date § 1671f TITLE 19—CUSTOMS DUTIES Page 304

on which the administering authority receives concerned, the administering authority shall satisfactory information upon which the as- direct that duties be assessed on the subject sessment may be based, but in no event later merchandise of the new exporter or producer than 12 months after the end of the annual ac- consistent with the provisions of section counting period of the manufacturer or ex- 1675(a)(2)(B) of this title. porter within which the merchandise is en- (June 17, 1930, ch. 497, title VII, § 706, as added tered, or withdrawn from warehouse, for con- Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. sumption, 160; amended Pub. L. 98–573, title VI, § 607, Oct. (2) includes a description of the subject mer- 30, 1984, 98 Stat. 3029; Pub. L. 99–514, title XVIII, chandise, in such detail as the administering § 1886(a)(5), Oct. 22, 1986, 100 Stat. 2922; Pub. L. authority deems necessary, and 103–465, title II, §§ 218(b)(1), 233(a)(5)(O), 264(c)(9), (3) requires the deposit of estimated counter- 265, 270(a)(1)(H), Dec. 8, 1994, 108 Stat. 4855, 4899, vailing duties pending liquidation of entries of 4914, 4917.) merchandise at the same time as estimated AMENDMENTS normal customs duties on that merchandise are deposited. 1994—Subsec. (a)(1). Pub. L. 103–465, § 270(a)(1)(H), substituted ‘‘countervailable subsidy’’ for ‘‘subsidy’’. (b) Imposition of duties Subsec. (a)(2) to (4). Pub. L. 103–465, §§ 233(a)(5)(O), 265, (1) General rule redesignated par. (3) as (2) and substituted ‘‘subject merchandise’’ for ‘‘class or kind of merchandise to If the Commission, in its final determination which it applies’’, redesignated par. (4) as (3), and under section 1671d(b) of this title, finds mate- struck out former par. (2) which read as follows: rial injury or threat of material injury which, ‘‘(2) shall presumptively apply to all merchandise of but for the suspension of liquidation under such class or kind exported from the country inves- section 1671b(d)(2) of this title, would have led tigated, except that if— ‘‘(A) the administering authority determines there to a finding of material injury, then entries of is a significant differential between companies re- the merchandise subject to the countervailing ceiving subsidy benefits, or duty order, the liquidation of which has been ‘‘(B) a State-owned enterprise is involved, suspended under section 1671b(d)(2) of this the order may provide for differing countervailing du- title, shall be subject to the imposition of ties,’’. Subsec. (b)(1). Pub. L. 103–465, § 264(c)(9), substituted countervailing duties under section 1671(a) of ‘‘1671b(d)(2)’’ for ‘‘1671b(d)(1)’’ in two places. this title. Subsec. (c). Pub. L. 103–465, § 218(b)(1), added subsec. (2) Special rule (c). 1986—Subsec. (a)(2). Pub. L. 99–514 realigned the mar- If the Commission, in its final determination gins in provisions following subpar. (B), which realign- under section 1671d(b) of this title, finds threat ment had been editorially supplied, thereby requiring of material injury, other than threat of mate- no change in text. rial injury described in paragraph (1), or mate- 1984—Subsec. (a)(2) to (4). Pub. L. 98–573 added par. (2) rial retardation of the establishment of an in- and redesignated pars. (2) and (3) as (3) and (4), respectively. dustry in the United States, then merchandise subject to a countervailing duty order which EFFECTIVE DATE OF 1994 AMENDMENT is entered, or withdrawn from warehouse, for Amendment by Pub. L. 103–465 effective, except as consumption on or after the date of publica- otherwise provided, on the date on which the WTO tion of notice of an affirmative determination Agreement enters into force with respect to the United of the Commission under section 1671d(b) of States [Jan. 1, 1995], and applicable with respect to in- this title shall be subject to the imposition of vestigations, reviews, and inquiries initiated and petitions filed under specified provisions of this chapter countervailing duties under section 1671(a) of after such date, see section 291 of Pub. L. 103–465, set this title, and the administering authority out as a note under section 1671 of this title. shall release any bond or other security, and refund any cash deposit made, to secure the EFFECTIVE DATE OF 1984 AMENDMENT payment of countervailing duties with respect Amendment by Pub. L. 98–573 effective Oct. 30, 1984, to entries of the merchandise entered, or with- see section 626(a) of Pub. L. 98–573, set out as a note drawn from warehouse, for consumption before under section 1671 of this title. that date. PLAN AMENDMENTS NOT REQUIRED UNTIL (c) Special rule for regional industries JANUARY 1, 1989 (1) In general For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 In an investigation under this part in which and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. the Commission makes a regional industry de- 99–514 require an amendment to any plan, such plan termination under section 1677(4)(C) of this amendment shall not be required to be made before the title, the administering authority shall, to the first plan year beginning on or after Jan. 1, 1989, see maximum extent possible, direct that duties section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue be assessed only on the subject merchandise of Code. the specific exporters or producers that exported the subject merchandise for sale in the § 1671f. Treatment of difference between deposit region concerned during the period of inves- of estimated countervailing duty and final tigation. assessed duty under countervailing duty or- (2) Exception for new exporters and producers ders After publication of the countervailing duty (a) Deposit of estimated countervailing duty order, if the administering authority finds under section 1671b(d)(1)(B) of this title that a new exporter or producer is exporting If the amount of a cash deposit, or the amount the subject merchandise for sale in the region of any bond or other security, required as secu- Page 305 TITLE 19—CUSTOMS DUTIES § 1671h rity for an estimated countervailing duty under § 1886(a)(6)(A), Oct. 22, 1986, 100 Stat. 2922; Pub. L. section 1671b(d)(1)(B) of this title is different 103–465, title II, § 264(c)(11), Dec. 8, 1994, 108 Stat. from the amount of the countervailing duty de- 4914.) termined under a countervailing duty order issued under section 1671e of this title, then the AMENDMENTS difference for entries of merchandise entered, or 1994—Pub. L. 103–465 substituted ‘‘1671b(d)(1)(B)’’ for withdrawn from warehouse, for consumption be- ‘‘1671b(d)(2)’’. fore notice of the affirmative determination of 1986—Pub. L. 99–514 added section catchline. the Commission under section 1671d(b) of this title is published shall be— EFFECTIVE DATE OF 1994 AMENDMENT (1) disregarded, to the extent that the cash Amendment by Pub. L. 103–465 effective, except as deposit, bond, or other security is lower than otherwise provided, on the date on which the WTO the duty under the order, or Agreement enters into force with respect to the United (2) refunded or released, to the extent that States [Jan. 1, 1995], and applicable with respect to in- the cash deposit, bond, or other security is vestigations, reviews, and inquiries initiated and petitions filed under specified provisions of this chapter higher than the duty under the order. after such date, see section 291 of Pub. L. 103–465, set (b) Deposit of estimated countervailing duty out as a note under section 1671 of this title. under section 1671e(a)(3) of this title PLAN AMENDMENTS NOT REQUIRED UNTIL If the amount of an estimated countervailing JANUARY 1, 1989 duty deposited under section 1671e(a)(3) of this title is different from the amount of the coun- For provisions directing that if any amendments tervailing duty determined under a countervail- made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. ing duty order issued under section 1671e of this 99–514 require an amendment to any plan, such plan title, then the difference for entries of merchan- amendment shall not be required to be made before the dise entered, or withdrawn from warehouse, for first plan year beginning on or after Jan. 1, 1989, see consumption after notice of the affirmative de- section 1140 of Pub. L. 99–514, as amended, set out as a termination of the Commission under section note under section 401 of Title 26, Internal Revenue 1671d(b) of this title is published shall be— Code. (1) collected, to the extent that the deposit under section 1671e(a)(3) of this title is lower § 1671h. Conditional payment of countervailing than the duty determined under the order, or duties (2) refunded, to the extent that the deposit under section 1671e(a)(3) of this title is higher (a) In general than the duty determined under the order, For all entries, or withdrawals from warehouse, for consumption of merchandise subject together with interest as provided by section to a countervailing duty order on or after the 1677g of this title. date of publication of such order, no customs of- (June 17, 1930, ch. 497, title VII, § 707, as added ficer may deliver merchandise of that class or Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. kind to the person by whom or for whose ac- 161; amended Pub. L. 103–465, title II, § 264(c)(10), count it was imported unless that person com- Dec. 8, 1994, 108 Stat. 4914.) plies with the requirement of subsection (b) of this section and deposits with the appropriate AMENDMENTS customs officer an estimated countervailing 1994—Subsec. (a). Pub. L. 103–465 substituted duty in an amount determined by the admin- ‘‘1671b(d)(1)(B)’’ for ‘‘1671b(d)(2)’’ in heading and text. istering authority. EFFECTIVE DATE OF 1994 AMENDMENT (b) Importer requirements Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO In order to meet the requirements of this sub- Agreement enters into force with respect to the United section, a person shall— States [Jan. 1, 1995], and applicable with respect to in- (1) furnish, or arrange to have furnished, to vestigations, reviews, and inquiries initiated and peti- the appropriate customs officer such informa- tions filed under specified provisions of this chapter tion as the administering authority deems after such date, see section 291 of Pub. L. 103–465, set necessary for ascertaining any countervailing out as a note under section 1671 of this title. duty to be imposed under this part, § 1671g. Effect of derogation of Export-Import (2) maintain and furnish to the customs offi- Bank financing cer such records concerning such merchandise as the administering authority, by regulation, Nothing in this subtitle shall be interpreted as requires, and superseding the provisions of section 635a–3 of (3) pay, or agree to pay on demand, to the title 12, except that in the event of an assess- customs officer the amount of countervailing ment of duty based on a derogation under sec- duty imposed under this part on that mer- tion 1671e of this title or action under section chandise. 1671b(d)(1)(B) of this title, the Secretary of the Treasury shall not authorize the Bank to pro- (June 17, 1930, ch. 497, title VII, § 709, as added vide guarantees, insurance and credits to com- Pub. L. 98–573, title VI, § 608, Oct. 30, 1984, 98 peting United States sellers pursuant to section Stat. 3029.) 635a–3 of title 12. EFFECTIVE DATE (June 17, 1930, ch. 497, title VII, § 708, as added Section effective Oct. 30, 1984, see section 626(a) of Pub. L. 98–181, title VI, § 650(c), Nov. 30, 1983, 97 Pub. L. 98–573, set out as an Effective Date of 1984 Stat. 1266; amended Pub. L. 99–514, title XVIII, Amendment note under section 1671 of this title. § 1673 TITLE 19—CUSTOMS DUTIES Page 306

PART II—IMPOSITION OF ANTIDUMPING DUTIES and to reviews begun under section 1675 of this title, on or after Oct. 30, 1984, see section 626(b)(1) of Pub. L. CODIFICATION 98–573, as amended, set out as a note under section 1671 The designation ‘‘PART II’’ was in the original ‘‘Sub- of this title. title B’’ and was editorially changed in order to con- EFFECTIVE DATE form the numbering format of this subtitle to the us- ages employed in the codification of the remainder of Part effective Jan. 1, 1980, see section 107 of Pub. L. the Tariff Act of 1930 as originally enacted. 96–39, set out as a note under section 1671 of this title. § 1673. Imposition of antidumping duties § 1673a. Procedures for initiating an antidumping duty investigation If— (1) the administering authority determines (a) Initiation by administering authority that a class or kind of foreign merchandise is (1) In general being, or is likely to be, sold in the United An antidumping duty investigation shall be States at less than its fair value, and initiated whenever the administering author- (2) the Commission determines that— ity determines, from information available to (A) an industry in the United States— it, that a formal investigation is warranted (i) is materially injured, or into the question of whether the elements nec- (ii) is threatened with material injury, essary for the imposition of a duty under sec- or tion 1673 of this title exist. (B) the establishment of an industry in the (2) Cases involving persistent dumping United States is materially retarded, (A) Monitoring by reason of imports of that merchandise or by The administering authority may estab- reason of sales (or the likelihood of sales) of lish a monitoring program with respect to that merchandise for importation, imports of a class or kind of merchandise then there shall be imposed upon such merchan- from any additional supplier country for a dise an antidumping duty, in addition to any period not to exceed one year if— other duty imposed, in an amount equal to the (i) more than one antidumping order is amount by which the normal value exceeds the in effect with respect to that class or kind export price (or the constructed export price) for of merchandise; the merchandise. For purposes of this section (ii) in the judgment of the administering and section 1673d(b)(1) of this title, a reference authority there is reason to believe or sus- to the sale of foreign merchandise includes the pect an extraordinary pattern of persistent entering into of any leasing arrangement re- injurious dumping from one or more addi- garding the merchandise that is equivalent to tional supplier countries; and the sale of the merchandise. (iii) in the judgment of the administering authority this extraordinary pattern is (June 17, 1930, ch. 497, title VII, § 731, as added causing a serious commercial problem for Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. the domestic industry. 162; amended Pub. L. 98–573, title VI, § 602(b), Oct. 30, 1984, 98 Stat. 3024; Pub. L. 103–465, title (B) Initiation of investigation II, § 233(a)(1)(A), (2)(A)(i), Dec. 8, 1994, 108 Stat. If during the period of monitoring referred 4898.) to in subparagraph (A), the administering authority determines that there is sufficient AMENDMENTS information to initiate a formal investiga- 1994—Pub. L. 103–465 substituted ‘‘normal value ex- tion under this subsection regarding an addi- ceeds the export price (or the constructed export tional supplier country, the administering price)’’ for ‘‘foreign market value exceeds the United authority shall immediately initiate such an States price’’ in concluding provisions. 1984—Pub. L. 98–573 inserted ‘‘or by reason of sales (or investigation. the likelihood of sales) of that merchandise for impor- (C) Definition tation’’ after ‘‘by reason of imports of that merchandise’’ in par. (2), and inserted sentence at end providing For purposes of this paragraph, the term that for purposes of this section and section 1673d(b)(1) ‘‘additional supplier country’’ means a coun- of this title, a reference to the sale of foreign merchan- try regarding which no antidumping inves- dise includes the entering into of any leasing arrange- tigation is currently pending, and no anti- ment regarding the merchandise that is equivalent to dumping duty order is currently in effect, the sale of the merchandise. with respect to imports of the class or kind EFFECTIVE DATE OF 1994 AMENDMENT of merchandise covered by subparagraph (A). Amendment by Pub. L. 103–465 effective, except as (D) Expeditious action otherwise provided, on the date on which the WTO The administering authority and the Com- Agreement enters into force with respect to the United mission, to the extent practicable, shall ex- States [Jan. 1, 1995], and applicable with respect to in- pedite proceedings under this part under- vestigations, reviews, and inquiries initiated and peti- taken as a result of a formal investigation tions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set initiated under subparagraph (B). out as a note under section 1671 of this title. (b) Initiation by petition

EFFECTIVE DATE OF 1984 AMENDMENT (1) Petition requirements Amendment by Pub. L. 98–573 applicable with respect An antidumping proceeding shall be initi- to investigations initiated by petition or by the admin- ated whenever an interested party described in istering authority under parts I and II of this subtitle, subparagraph (C), (D), (E), (F), or (G) of sec- Page 307 TITLE 19—CUSTOMS DUTIES § 1673a

tion 1677(9) of this title files a petition with cumstances, apply subparagraph (A) by sub- the administering authority, on behalf of an stituting ‘‘a maximum of 40 days’’ for ‘‘20 industry, which alleges the elements nec- days’’. essary for the imposition of the duty imposed (C) Time limits where petition involves same by section 1673 of this title, and which is ac- merchandise as an order that has been companied by information reasonably avail- revoked able to the petitioner supporting those allega- If a petition is filed under this section tions. The petition may be amended at such with respect to merchandise that was the time, and upon such conditions, as the admin- subject merchandise of— istering authority and the Commission may (i) an antidumping duty order or finding permit. that was revoked under section 1675(d) of (2) Simultaneous filing with Commission this title in the 24 months preceding the The petitioner shall file a copy of the peti- date the petition is filed, or (ii) a suspended investigation that was tion with the Commission on the same day as terminated under section 1675(d) of this it is filed with the administering authority. title in the 24 months preceding the date (3) Action with respect to petitions the petition is filed, (A) Notification of governments the administering authority and the Com- Upon receipt of a petition filed under para- mission shall, to the maximum extent prac- graph (1), the administering authority shall ticable, expedite any investigation initiated notify the government of any exporting under this section with respect to the peti- country named in the petition by delivering tion. a public version of the petition to an appro- (2) Affirmative determinations priate representative of such country. If the determinations under clauses (i) and (B) Acceptance of communications (ii) of paragraph (1)(A) are affirmative, the ad- The administering authority shall not ac- ministering authority shall initiate an inves- cept any unsolicited oral or written commu- tigation to determine whether the subject nication from any person other than an in- merchandise is being, or is likely to be, sold in terested party described in section 1677(9)(C), the United States at less than its fair value. (D), (E), (F), or (G) of this title before the ad- (3) Negative determinations ministering authority makes its decision If the determination under clause (i) or (ii) whether to initiate an investigation, except of paragraph (1)(A) is negative, the admin- as provided in subsection (c)(4)(D) of this istering authority shall dismiss the petition, section, and except for inquiries regarding terminate the proceeding, and notify the peti- the status of the administering authority’s tioner in writing of the reasons for the deter- consideration of the petition. mination. (C) Nondisclosure of certain information (4) Determination of industry support The administering authority and the Com- (A) General rule mission shall not disclose information with For purposes of this subsection, the admin- regard to any draft petition submitted for istering authority shall determine that the review and comment before it is filed under petition has been filed by or on behalf of the paragraph (1). industry, if— (c) Petition determination (i) the domestic producers or workers who support the petition account for at (1) In general least 25 percent of the total production of (A) Time for initial determination the domestic like product, and Except as provided in subparagraph (B), (ii) the domestic producers or workers within 20 days after the date on which a pe- who support the petition account for more tition is filed under subsection (b) of this than 50 percent of the production of the section, the administering authority shall— domestic like product produced by that (i) after examining, on the basis of portion of the industry expressing support sources readily available to the admin- for or opposition to the petition. istering authority, the accuracy and ade- (B) Certain positions disregarded quacy of the evidence provided in the peti- (i) Producers related to foreign producers tion, determine whether the petition al- In determining industry support under leges the elements necessary for the impo- subparagraph (A), the administering au- sition of a duty under section 1673 of this thority shall disregard the position of do- title and contains information reasonably mestic producers who oppose the petition, available to the petitioner supporting the if such producers are related to foreign allegations, and producers, as defined in section (ii) determine if the petition has been 1677(4)(B)(ii) of this title, unless such do- filed by or on behalf of the industry. mestic producers demonstrate that their (B) Extension of time interests as domestic producers would be In any case in which the administering au- adversely affected by the imposition of an thority is required to poll or otherwise de- antidumping duty order. termine support for the petition by the in- (ii) Producers who are importers dustry under paragraph (4)(D), the admin- The administering authority may dis- istering authority may, in exceptional cir- regard the position of domestic producers § 1673a TITLE 19—CUSTOMS DUTIES Page 308

of a domestic like product who are import- should have known, that the exporter was sellers of the subject merchandise. ing the subject merchandise at less than its (C) Special rule for regional industries fair value, If the petition alleges the industry is a re- the administering authority may request the gional industry, the administering authority Commissioner of Customs to compile informa- shall determine whether the petition has tion on an expedited basis regarding entries of been filed by or on behalf of the industry by the subject merchandise. Upon receiving such applying subparagraph (A) on the basis of request, the Commissioner of Customs shall col- production in the region. lect information regarding the volume and value (D) Polling the industry of entries of the subject merchandise and shall transmit such information to the administering If the petition does not establish support authority at such times as the administering au- of domestic producers or workers accounting thority shall direct (at least once every 30 days), for more than 50 percent of the total produc- until a final determination is made under section of the domestic like product, the ad- tion 1673d(a) of this title, the investigation is ministering authority shall— terminated, or the administering authority (i) poll the industry or rely on other in- withdraws the request. formation in order to determine if there is support for the petition as required by sub- (June 17, 1930, ch. 497, title VII, § 732, as added paragraph (A), or Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. (ii) if there is a large number of produc- 162; amended Pub. L. 98–573, title VI, § 609, Oct. ers in the industry, the administering au- 30, 1984, 98 Stat. 3030; Pub. L. 99–514, title XVIII, thority may determine industry support § 1886(a)(2), Oct. 22, 1986, 100 Stat. 2921; Pub. L. for the petition by using any statistically 100–418, title I, §§ 1324(b)(1), 1326(d)(1), Aug. 23, valid sampling method to poll the indus- 1988, 102 Stat. 1200, 1204; Pub. L. 103–465, title II, try. §§ 211(b), 212(a)(2), 233(a)(5)(P)–(R), (6)(A)(v)–(vii), (C), Dec. 8, 1994, 108 Stat. 4843, 4845, 4900, 4901; (E) Comments by interested parties Pub. L. 104–295, § 20(b)(4), (8), (9), Oct. 11, 1996, 110 Before the administering authority makes Stat. 3527.) a determination with respect to initiating AMENDMENTS an investigation, any person who would qualify as an interested party under section 1996—Subsec. (a)(2)(B). Pub. L. 104–295, § 20(b)(9), 1677(9) of this title if an investigation were amended directory language of Pub. L. 103–465, initiated, may submit comments or informa- § 233(a)(6)(C). See 1994 Amendment note below. Subsec. (c)(5). Pub. L. 104–295, § 20(b)(4), substituted tion on the issue of industry support. After ‘‘(b)(1)’’ for ‘‘(b)(1)(A)’’. the administering authority makes a deter- Subsec. (e)(1). Pub. L. 104–295, § 20(b)(8), substituted mination with respect to initiating an inves- ‘‘the’’ for ‘‘the the’’ before ‘‘subject merchandise’’. tigation, the determination regarding indus- 1994—Subsec. (a)(1). Pub. L. 103–465, § 233(a)(6)(A)(v), try support shall not be reconsidered. substituted ‘‘initiated’’ for ‘‘commenced’’. Subsec. (a)(2)(B). Pub. L. 103–465, § 233(a)(6)(C), as (5) ‘‘Domestic producers or workers’’ defined amended by Pub. L. 104–295, § 20(b)(9), substituted ‘‘ini- For purposes of this subsection, the term tiate’’ for ‘‘commerce’’ in two places. ‘‘domestic producers or workers’’ means those Subsec. (a)(2)(D). Pub. L. 103–465, § 233(a)(6)(A)(vi), interested parties who are eligible to file a pe- substituted ‘‘initiated’’ for ‘‘commenced’’. tition under subsection (b)(1) of this section. Subsec. (b)(1). Pub. L. 103–465, § 233(a)(6)(A)(vii), substituted ‘‘initiated’’ for ‘‘commenced’’. (d) Notification to Commission of determination Subsec. (b)(3). Pub. L. 103–465, § 211(b), added par. (3). The administering authority shall— Subsec. (c). Pub. L. 103–465, § 212(a)(2), amended head- (1) notify the Commission immediately of ing and text of subsec. (c) generally. Prior to amendment, text read as follows: ‘‘Within 20 days after the any determination it makes under subsection date on which a petition is filed under subsection (b) of (a) or (c) of this section, and this section, the administering authority shall— (2) if the determination is affirmative, make ‘‘(1) determine whether the petition alleges the ele- available to the Commission such information ments necessary for the imposition of a duty under as it may have relating to the matter under section 1673 of this title and contains information investigation, under such procedures as the reasonably available to the petitioner supporting the administering authority and the Commission allegations, ‘‘(2) if the determination is affirmative, commence may establish to prevent disclosure, other an investigation to determine whether the class or than with the consent of the party providing it kind of merchandise described in the petition is or under protective order, of any information being, or is likely to be, sold in the United States at to which confidential treatment has been less than its fair value, and provide for the publica- given by the administering authority. tion of notice of the determination in the Federal (e) Information regarding critical circumstances Register, and ‘‘(3) if the determination is negative, dismiss the If, at any time after the initiation of an inves- petition, terminate the proceeding, notify the peti- tigation under this part, the administering au- tioner in writing of the reasons for the determina- thority finds a reasonable basis to suspect tion, and provide for the publication of notice of the that— determination in the Federal Register.’’ (1) there is a history of dumping in the Subsec. (e). Pub. L. 103–465, § 233(a)(5)(R), in concluding provisions, substituted ‘‘subject merchandise’’ for United States or elsewhere of the subject mer- ‘‘class or kind of merchandise that is the subject of the chandise, or investigation’’ in two places. (2) the person by whom, or for whose ac- Subsec. (e)(1). Pub. L. 103–465, § 233(a)(5)(P), sub- count, the merchandise was imported knew, or stituted ‘‘the subject merchandise’’ for ‘‘class or kind Page 309 TITLE 19—CUSTOMS DUTIES § 1673b of the merchandise which is the subject of the inves- it at the time of the determination, whether tigation’’. there is a reasonable indication that— Subsec. (e)(2). Pub. L. 103–465, § 233(a)(5)(Q), sub- (A) an industry in the United States— stituted ‘‘subject merchandise’’ for ‘‘merchandise (i) is materially injured, or which is the subject of the investigation’’. 1988—Subsec. (b)(1). Pub. L. 100–418, § 1326(d)(1), sub- (ii) is threatened with material injury, stituted ‘‘(F), or (G)’’ for ‘‘or (F)’’. or Subsec. (e). Pub. L. 100–418, § 1324(b)(1), added subsec. (B) the establishment of an industry in the (e). United States is materially retarded, 1986—Subsec. (b)(1). Pub. L. 99–514 inserted reference to subpar. (F) of section 1677(9) of this title. by reason of imports of the subject merchan- 1984—Subsec. (a). Pub. L. 98–573 designated existing dise and that imports of the subject merchan- provisions as par. (1) and added par. (2). dise are not negligible. If the Commission EFFECTIVE DATE OF 1994 AMENDMENT finds that imports of the subject merchandise are negligible or otherwise makes a negative Amendment by Pub. L. 103–465 effective, except as determination under this paragraph, the in- otherwise provided, on the date on which the WTO Agreement enters into force with respect to the United vestigation shall be terminated. States [Jan. 1, 1995], and applicable with respect to in- (2) Time for Commission determination vestigations, reviews, and inquiries initiated and petitions filed under specified provisions of this chapter The Commission shall make the determina- after such date, see section 291 of Pub. L. 103–465, set tion described in paragraph (1)— out as a note under section 1671 of this title. (A) in the case of a petition filed under section 1673a(b) of this title— EFFECTIVE DATE OF 1988 AMENDMENT (i) within 45 days after the date on which Amendment by section 1324(b)(1) of Pub. L. 100–418 ap- the petition is filed, or plicable with respect to investigations initiated after (ii) if the time has been extended pursu- Aug. 23, 1988, and amendment by section 1326(d)(1) of ant to section 1673a(c)(1)(B) of this title, Pub. L. 100–418 applicable with respect to investigations within 25 days after the date on which the initiated after Aug. 23, 1988, and to reviews initiated Commission receives notice from the ad- under section 1673e(c) or 1675 of this title after Aug. 23, 1988, see section 1337(b), (c) of Pub. L. 100–418, set out as ministering authority of initiation of the a note under section 1671 of this title. investigation, and

EFFECTIVE DATE OF 1984 AMENDMENT (B) in the case of an investigation initiated under section 1673a(a) of this title, Amendment by Pub. L. 98–573 applicable with respect within 45 days after the date on which the to investigations initiated by petition or by the admin- Commission receives notice from the administering authority under parts I and II of this subtitle, and to reviews begun under section 1675 of this title, on istering authority that an investigation has or after Oct. 30, 1984, see section 626(b)(1) of Pub. L. been initiated under such section. 98–573, as amended, set out as a note under section 1671 (b) Preliminary determination by administering of this title. authority TRANSFER OF FUNCTIONS (1) Period of antidumping duty investigation For transfer of functions, personnel, assets, and li- (A) In general abilities of the United States Customs Service of the Except as provided in subparagraph (B), Department of the Treasury, including functions of the within 140 days after the date on which the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- administering authority initiates an inves- lated references, see sections 203(1), 551(d), 552(d), and tigation under section 1673a(c) of this title, 557 of Title 6, Domestic Security, and the Department or an investigation is initiated under section of Homeland Security Reorganization Plan of Novem- 1673a(a) of this title, but not before an af- ber 25, 2002, as modified, set out as a note under section firmative determination by the Commission 542 of Title 6. under subsection (a) of this section, the ad- PLAN AMENDMENTS NOT REQUIRED UNTIL ministering authority shall make a deter- JANUARY 1, 1989 mination, based upon the information available to it at the time of the determination, For provisions directing that if any amendments of whether there is a reasonable basis to be- made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. lieve or suspect that the merchandise is 99–514 require an amendment to any plan, such plan being sold, or is likely to be sold, at less amendment shall not be required to be made before the than fair value. first plan year beginning on or after Jan. 1, 1989, see (B) If certain short life cycle merchandise in- section 1140 of Pub. L. 99–514, as amended, set out as a volved note under section 401 of Title 26, Internal Revenue Code. If a petition filed under section 1673a(b) of this title, or an investigation initiated under § 1673b. Preliminary determinations section 1673a(a) of this title, concerns short (a) Determination by Commission of reasonable life cycle merchandise that is included in a indication of injury product category established under section 1673h(a) of this title, subparagraph (A) shall (1) General rule be applied— Except in the case of a petition dismissed by (i) by substituting ‘‘100 days’’ for ‘‘140 the administering authority under section days’’ if manufacturers that are second of- 1673a(c)(3) of this title, the Commission, with- fenders account for a significant propor- in the time specified in paragraph (2), shall de- tion of the merchandise under investiga- termine, based on the information available to tion, and § 1673b TITLE 19—CUSTOMS DUTIES Page 310

(ii) by substituting ‘‘80 days’’ for ‘‘140 (3) De minimis dumping margin days’’ if manufacturers that are multiple In making a determination under this sub- offenders account for a significant propor- section, the administering authority shall dis- tion of the merchandise under investiga- regard any weighted average dumping margin tion. that is de minimis. For purposes of the preceding sentence, a weighted average dumping (C) Definitions of offenders margin is de minimis if the administering au- For purposes of subparagraph (B)— thority determines that it is less than 2 per- (i) The term ‘‘second offender’’ means a cent ad valorem or the equivalent specific rate manufacturer that is specified in 2 affirm- for the subject merchandise. ative dumping determinations (within the (c) Extension of period in extraordinarily com- meaning of section 1673h of this title) as plicated cases the manufacturer of short life cycle mer- (1) In general chandise that is— (I) specified in both such determina- If— tions, and (A) the petitioner makes a timely request (II) within the scope of the product for an extension of the period within which category referred to in subparagraph (B). the determination must be made under subsection (b)(1) of this section, or (ii) The term ‘‘multiple offender’’ means (B) the administering authority concludes a manufacturer that is specified in 3 or that the parties concerned are cooperating more affirmative dumping determinations and determines that— (within the meaning of section 1673h of (i) the case is extraordinarily com- this title) as the manufacturer of short life plicated by reason of— cycle merchandise that is— (I) the number and complexity of the (I) specified in each of such determina- transactions to be investigated or ad- tions, and justments to be considered, (II) within the scope of the product (II) the novelty of the issues presented, category referred to in subparagraph (B). or (III) the number of firms whose activi- (2) Preliminary determination under waiver of ties must be investigated, and verification (ii) additional time is necessary to make Within 75 days after the initiation of an in- the preliminary determination, vestigation, the administering authority shall then the administering authority may post- cause an official designated for such purpose pone making the preliminary determination to review the information concerning the case under subsection (b)(1) of this section until received during the first 60 days of the inves- not later than the 190th day after the date on tigation, and, if there appears to be sufficient which the administering authority initiates information available upon which the prelimi- an investigation under section 1673a(c) of this nary determination can reasonably be based, title, or an investigation is initiated under to disclose to the petitioner and any inter- section 1673a(a) of this title. No extension of a ested party, then a party to the proceedings determination date may be made under this that requests such disclosure, all available paragraph for any investigation in which a de- nonconfidential information and all other in- termination date provided for in subsection formation which is disclosed pursuant to sec- (b)(1)(B) of this section applies unless the petition 1677f of this title. Within 3 days (not tioner submits written notice to the admin- counting Saturdays, Sundays, or legal public istering authority of its consent to the exten- holidays) after such disclosure, the petitioner sion. and each party which is an interested party described in subparagraph (C), (D), (E), (F), or (2) Notice of postponement (G) of section 1677(9) of this title to whom such The administering authority shall notify the disclosure was made may furnish to the ad- parties to the investigation, not later than 20 ministering authority an irrevocable written days before the date on which the preliminary waiver of verification of the information re- determination would otherwise be required ceived by the authority, and an agreement under subsection (b)(1) of this section, if it in- that it is willing to have a preliminary deter- tends to postpone making the preliminary de- mination made on the basis of the record then termination under paragraph (1). The notifica- available to the authority. If a timely waiver tion shall include an explanation of the rea- and agreement have been received from the pe- sons for the postponement, and notice of the titioner and each party which is an interested postponement shall be published in the Fed- party described in subparagraph (C), (D), (E), eral Register. (F), or (G) of section 1677(9) of this title to (d) Effect of determination by the administering whom the disclosure was made, and the au- authority thority finds that sufficient information is If the preliminary determination of the ad- then available upon which the preliminary de- ministering authority under subsection (b) of termination can reasonably be based, a pre- this section is affirmative, the administering liminary determination shall be made within authority— 90 days after the initiation of the investiga- (1)(A) shall— tion on the basis of the record established dur- (i) determine an estimated weighted aver- ing the first 60 days after the investigation age dumping margin for each exporter and was initiated. producer individually investigated, and Page 311 TITLE 19—CUSTOMS DUTIES § 1673b

(ii) determine, in accordance with section under subparagraph (A) in any investigation 1673d(c)(5) of this title, an estimated all-oth- to which subsection (b)(1)(B) of this section is ers rate for all exporters and producers not applied. individually investigated, and (2) Suspension of liquidation (B) shall order the posting of a cash deposit, If the determination of the administering bond, or other security, as the administering authority under paragraph (1) is affirmative, authority deems appropriate, for each entry of then any suspension of liquidation ordered the subject merchandise in an amount based under subsection (d)(2) of this section shall on the estimated weighted average dumping apply, or, if notice of such suspension of liq- margin or the estimated all-others rate, uidation is already published, be amended to whichever is applicable, apply, to unliquidated entries of merchandise (2) shall order the suspension of liquidation entered, or withdrawn from warehouse, for of all entries of merchandise subject to the de- consumption on or after the later of— termination which are entered, or withdrawn (A) the date which is 90 days before the from warehouse, for consumption on or after date on which the suspension of liquidation the later of— was first ordered, or (A) the date on which notice of the deter- (B) the date on which notice of the determination is published in the Federal Reg- mination to initiate the investigation is ister, or published in the Federal Register. (B) the date that is 60 days after the date (f) Notice of determination on which notice of the determination to ini- Whenever the Commission or the administer- tiate the investigation is published in the ing authority makes a determination under this Federal Register, and section, the Commission or the administering (3) shall make available to the Commission authority, as the case may be, shall notify the all information upon which such determina- petitioner, and other parties to the investigation was based and which the Commission con- tion, and the Commission or the administering siders relevant to its injury determination, authority (whichever is appropriate) of its deter- under such procedures as the administering mination. The administering authority shall in- authority and the Commission may establish clude with such notification the facts and con- to prevent disclosure, other than with the conclusions on which its determination is based. sent of the party providing it or under protec- Not later than 5 days after the date on which tive order, of any information to which con- the determination is required to be made under fidential treatment has been given by the ad- subsection (a)(2) of this section, the Commission ministering authority. shall transmit to the administering authority The instructions of the administering authority the facts and conclusions on which its deter- under paragraphs (1) and (2) may not remain in mination is based. effect for more than 4 months, except that the (June 17, 1930, ch. 497, title VII, § 733, as added administering authority may, at the request of Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. exporters representing a significant proportion 163; amended Pub. L. 99–514, title XVIII, of exports of the subject merchandise, extend § 1886(a)(2), Oct. 22, 1986, 100 Stat. 2921; Pub. L. that 4-month period to not more than 6 months. 100–418, title I, §§ 1323(b), 1324(b)(2), 1326(d)(1), (e) Critical circumstances determinations Aug. 23, 1988, 102 Stat. 1198, 1201, 1204; Pub. L. (1) In general 103–465, title II, §§ 212(b)(2)(A), (C)–(E), 213(a), 214(b)(1), 215(b), 219(a), (c)(1), If a petitioner alleges critical circumstances 233(a)(6)(A)(viii)–(x), (B), Dec. 8, 1994, 108 Stat. in its original petition, or by amendment at 4848–4852, 4855, 4857, 4901.) any time more than 20 days before the date of a final determination by the administering au- AMENDMENTS thority, then the administering authority 1994—Subsec. (a). Pub. L. 103–465, § 212(b)(2)(A), shall promptly (at any time after the initi- amended heading and text of subsec. (a) generally. ation of the investigation under this part) de- Prior to amendment, text read as follows: ‘‘Except in termine, on the basis of the information avail- the case of a petition dismissed by the administering able to it at that time, whether there is a rea- authority under section 1673a(c)(3) of this title, the Commission, within 45 days after the date on which a sonable basis to believe or suspect that— petition is filed under section 1673a(b) of this title or on (A)(i) there is a history of dumping and which it receives notice from the administering author- material injury by reason of dumped imports ity of an investigation commenced under section in the United States or elsewhere of the sub- 1673a(a) of this title, shall make a determination, based ject merchandise, or upon the best information available to it at the time of (ii) the person by whom, or for whose ac- the determination, of whether there is a reasonable in- count, the merchandise was imported knew dication that— or should have known that the exporter was ‘‘(1) an industry in the United States— ‘‘(A) is materially injured, or selling the subject merchandise at less than ‘‘(B) is threatened with material injury, or its fair value and that there was likely to be ‘‘(2) the establishment of an industry in the United material injury by reason of such sales, and States is materially retarded, (B) there have been massive imports of the by reason of imports of the merchandise which is the subject merchandise over a relatively short subject of the investigation by the administering au- period. thority. If that determination is negative, the investigation shall be terminated.’’ The administering authority shall be treated Subsec. (b)(1)(A). Pub. L. 103–465, § 219(a)(2), struck as having made an affirmative determination out at end ‘‘If the determination of the administering § 1673c TITLE 19—CUSTOMS DUTIES Page 312 authority under this subsection is affirmative, the de- which a petition is filed under section 1673a(b) of this termination shall include the estimated average title, or an investigation is commenced under section amount by which the foreign market value exceeds the 1673a(a) of this title, but not before an affirmative de- United States price.’’ termination by the Commission under subsection (a) of Pub. L. 103–465, §§ 212(b)(2)(C)(i), 233(a)(6)(A)(viii), sub- this section, the administering authority shall make a stituted ‘‘140 days after the date on which the admin- determination, based upon the best information avail- istering authority initiates an investigation under sec- able to it at the time of the determination, of whether tion 1673a(c) of this title’’ for ‘‘160 days after the date there is a reasonable basis to believe or suspect that on which a petition is filed under section 1673a(b) of the merchandise is being sold, or is likely to be sold at this title’’, ‘‘initiated’’ for ‘‘commenced’’, and ‘‘infor- less than fair value. If the determination of the admin- mation’’ for ‘‘best information’’. istering authority under this subsection is affirmative, Subsec. (b)(1)(B). Pub. L. 103–465, §§ 212(b)(2)(C)(ii), the determination shall include the estimated average 233(a)(6)(A)(viii), in introductory provisions, sub- amount by which the foreign market value exceeds the stituted ‘‘initiated’’ for ‘‘commenced’’, in cl. (i), sub- United States price.’’ stituted ‘‘100’’ for ‘‘120’’ and ‘‘140’’ for ‘‘160’’, and in cl. Subsec. (b)(2). Pub. L. 100–418, § 1326(d)(1), substituted (ii), substituted ‘‘80’’ for ‘‘100’’ and ‘‘140’’ for ‘‘160’’. ‘‘(F), or (G)’’ for ‘‘or (F)’’ in two places. Subsec. (b)(2). Pub. L. 103–465, § 233(a)(6)(A)(ix), (B), Subsec. (c)(1). Pub. L. 100–418, § 1323(b)(2), inserted substituted ‘‘initiation’’ for ‘‘commencement’’ after ‘‘90 sentence at end relating to notice for extensions under days after the’’ and ‘‘initiated’’ for ‘‘commenced’’. subsec. (b)(1)(B). Subsec. (b)(3). Pub. L. 103–465, § 213(a), added par. (3). Subsec. (e)(1). Pub. L. 100–418, § 1324(b)(2), inserted Subsec. (c)(1). Pub. L. 103–465, §§ 212(b)(2)(D), ‘‘(at any time after the initiation of the investigation 233(a)(6)(A)(x), in concluding provisions, substituted under this part)’’ after ‘‘promptly’’ in introductory pro- ‘‘190th day after the date on which the administering visions. authority initiates an investigation under section Pub. L. 100–418, § 1323(b)(3), inserted sentence at end 1673a(c) of this title’’ for ‘‘210th day after the date on relating to investigations in which subsec. (b)(1)(B) is which a petition is filed under section 1673a(b) of this applied. title’’ and ‘‘initiated’’ for ‘‘commenced’’. 1986—Subsec. (b)(2). Pub. L. 99–514 inserted reference Subsec. (d). Pub. L. 103–465, § 215(b)(1)(B), inserted to subpar. (F) of section 1677(9) of this title in two concluding provisions. places. Subsec. (d)(1). Pub. L. 103–465, § 219(a)(1)(D), added par. (1). Former par. (1) redesignated (2). EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–465, § 215(b)(1)(A), substituted ‘‘warehouse, Amendment by Pub. L. 103–465 effective, except as for consumption on or after the later of—’’ and subpars. otherwise provided, on the date on which the WTO (A) and (B) for ‘‘warehouse, for consumption on or after Agreement enters into force with respect to the United the date of publication of the notice of the determina- States [Jan. 1, 1995], and applicable with respect to in- tion in the Federal Register,’’. vestigations, reviews, and inquiries initiated and peti- Subsec. (d)(2). Pub. L. 103–465, § 219(a)(1)(A)–(C), redes- tions filed under specified provisions of this chapter ignated par. (1) as (2), inserted ‘‘and’’ at end, and struck after such date, see section 291 of Pub. L. 103–465, set out former par. (2) which read as follows: ‘‘shall order out as a note under section 1671 of this title. the posting of a cash deposit, bond, or other security, as it deems appropriate, for each entry of the merchan- EFFECTIVE DATE OF 1988 AMENDMENT dise concerned equal to the estimated average amount by which the foreign market value exceeds the United Amendment by section 1323(b) of Pub. L. 100–418 effec- States price, and’’. tive Aug. 23, 1988, amendment by section 1324(b)(2) of Subsec. (e)(1). Pub. L. 103–465, § 214(b)(1), in introduc- Pub. L. 100–418 applicable with respect to investigations tory provisions, substituted ‘‘information’’ for ‘‘best in- initiated after Aug. 23, 1988, and amendment by section formation’’ and amended subpars. (A) and (B) generally. 1326(d)(1) of Pub. L. 100–418 applicable with respect to Prior to amendment, subpars. (A) and (B) read as fol- investigations initiated after Aug. 23, 1988, and to re- lows: views initiated under section 1673e(c) or 1675 of this ‘‘(A)(i) there is a history of dumping in the United title after Aug. 23, 1988, see section 1337(a) to (c) of Pub. States or elsewhere of the class or kind of the merchan- L. 100–418, set out as a note under section 1671 of this dise which is the subject of the investigation, or title. ‘‘(ii) the person by whom, or for whose account, the PLAN AMENDMENTS NOT REQUIRED UNTIL merchandise was imported knew or should have known JANUARY 1, 1989 that the exporter was selling the merchandise which is the subject of the investigation at less than its fair For provisions directing that if any amendments value, and made by subtitle A or subtitle C of title XI [§§ 1101–1147 ‘‘(B) there have been massive imports of the class or and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. kind of merchandise which is the subject of the inves- 99–514 require an amendment to any plan, such plan tigation over a relatively short period.’’ amendment shall not be required to be made before the Subsec. (e)(2). Pub. L. 103–465, §§ 215(b)(2), 219(c)(1), first plan year beginning on or after Jan. 1, 1989, see substituted ‘‘subsection (d)(2)’’ for ‘‘subsection (d)(1)’’ section 1140 of Pub. L. 99–514, as amended, set out as a and ‘‘warehouse, for consumption on or after the later note under section 401 of Title 26, Internal Revenue of—’’ and subpars. (A) and (B) for ‘‘warehouse, for con- Code. sumption on or after the date which is 90 days before the date on which suspension of liquidation was first § 1673c. Termination or suspension of investiga- ordered.’’ tion Subsec. (f). Pub. L. 103–465, § 212(b)(2)(E), amended heading and text of subsec. (f) generally. Prior to (a) Termination of investigation upon with- amendment, text read as follows: ‘‘Whenever the Com- drawal of petition mission or the administering authority makes a deter- (1) In general mination under this section, it shall notify the petitioner, other parties to the investigation, and the other (A) Withdrawal of petition agency of its determination and of the facts and con- Except as provided in paragraphs (2) and clusions of law upon which the determination is based, (3), an investigation under this part may be and it shall publish notice of its determination in the Federal Register.’’ terminated by either the administering au- 1988—Subsec. (b)(1). Pub. L. 100–418, § 1323(b)(1), thority or the Commission, after notice to amended par. (1) generally. Prior to amendment, par. all parties to the investigation, upon with- (1) read as follows: ‘‘Within 160 days after the date on drawal of the petition by the petitioner or Page 313 TITLE 19—CUSTOMS DUTIES § 1673c

by the administering authority if the inves- (b) Agreements to eliminate completely sales at tigation was initiated under section 1673a(a) less than fair value or to cease exports of of this title. merchandise (B) Refiling of petition The administering authority may suspend an investigation if the exporters of the subject mer- If, within 3 months after the withdrawal of chandise who account for substantially all of a petition under subparagraph (A), a new pe- the imports of that merchandise agree— tition is filed seeking the imposition of du- (1) to cease exports of the merchandise to ties on both the subject merchandise of the the United States within 6 months after the withdrawn petition and the subject mer- date on which the investigation is suspended, chandise from another country, the admin- or istering authority and the Commission may (2) to revise their prices to eliminate com- use in the investigation initiated pursuant pletely any amount by which the normal value to the new petition any records compiled in of the merchandise which is the subject of the an investigation conducted pursuant to the agreement exceeds the export price (or the withdrawn petition. This subparagraph ap- constructed export price) of that merchandise. plies only with respect to the first with- (c) Agreements eliminating injurious effect drawal of a petition. (1) General rule (2) Special rules for quantitative restriction If the administering authority determines agreements that extraordinary circumstances are present (A) In general in a case, it may suspend an investigation upon the acceptance of an agreement to revise Subject to subparagraphs (B) and (C), the prices from exporters of the subject merchan- administering authority may not terminate dise who account for substantially all of the an investigation under paragraph (1) by ac- imports of that merchandise into the United cepting an understanding or other kind of States, if the agreement will eliminate com- agreement to limit the volume of imports pletely the injurious effect of exports to the into the United States of the subject mer- United States of that merchandise and if— chandise unless the administering authority (A) the suppression or undercutting of is satisfied that termination on the basis of price levels of domestic products by imports that agreement is in the public interest. of that merchandise will be prevented, and (B) Public interest factors (B) for each entry of each exporter the amount by which the estimated normal In making a decision under subparagraph value exceeds the export price (or the con- (A) regarding the public interest the admin- structed export price) will not exceed 15 per- istering authority shall take into account— cent of the weighted average amount by (i) whether, based upon the relative im- which the estimated normal value exceeded pact on consumer prices and the availabil- the export price (or the constructed export ity of supplies of the merchandise, the price) for all less-than-fair-value entries of agreement would have a greater adverse the exporter examined during the course of impact on United States consumers than the investigation. the imposition of antidumping duties; (2) ‘‘Extraordinary circumstances’’ defined (ii) the relative impact on the international economic interests of the United (A) Extraordinary circumstances States; and For purposes of this subsection, the term (iii) the relative impact on the competi- ‘‘extraordinary circumstances’’ means cir- tiveness of the domestic industry produc- cumstances in which— ing the like merchandise, including any (i) suspension of an investigation will be such impact on employment and invest- more beneficial to the domestic industry ment in that industry. than continuation of the investigation, and (C) Prior consultations (ii) the investigation is complex. Before making a decision under subpara- (B) ‘‘Complex’’ defined graph (A) regarding the public interest, the For purposes of this paragraph, the term administering authority shall, to the extent ‘‘complex’’ means— practicable, consult with— (i) there are a large number of trans- (i) potentially affected consuming indus- actions to be investigated or adjustments tries; and to be considered, (ii) potentially affected producers and (ii) the issues raised are novel, or workers in the domestic industry produc- (iii) the number of firms involved is ing the like merchandise, including pro- large. ducers and workers not party to the investigation. (d) Additional rules and conditions The administering authority may not accept (3) Limitation on termination by Commission an agreement under subsection (b) or (c) of this The Commission may not terminate an in- section unless— vestigation under paragraph (1) before a pre- (1) it is satisfied that suspension of the in- liminary determination is made by the admin- vestigation is in the public interest, and istering authority under section 1673b(b) of (2) effective monitoring of the agreement by this title. the United States is practicable. § 1673c TITLE 19—CUSTOMS DUTIES Page 314

Where practicable, the administering authority bond or other security deposited under sec- shall provide to the exporters who would have tion 1673b(d)(1)(B) of this title. been subject to the agreement the reasons for (B) Other agreements not accepting the agreement and, to the extent possible, an opportunity to submit comments If the agreement accepted by the admin- thereon. istering authority is an agreement described in subsection (c) of this section, the liquida- (e) Suspension of investigation procedure tion of entries of the subject merchandise Before an investigation may be suspended shall be suspended under section 1673b(d)(2) under subsection (b) or (c) of this section the ad- of this title, or, if the liquidation of entries ministering authority shall— of such merchandise was suspended pursuant (1) notify the petitioner of, and consult with to a previous affirmative preliminary deter- the petitioner concerning, its intention to sus- mination in the same case, that suspension pend the investigation, and notify other par- of liquidation shall continue in effect, sub- ties to the investigation and the Commission ject to subsection (h)(3) of this section, but not less than 30 days before the date on which the security required under section it suspends the investigation, 1673b(d)(1)(B) of this title may be adjusted to (2) provide a copy of the proposed agreement reflect the effect of the agreement. to the petitioner at the time of the notifica- (3) Where investigation is continued tion, together with an explanation of how the agreement will be carried out and enforced, If, pursuant to subsection (g) of this section, and of how the agreement will meet the re- the administering authority and the Commis- quirements of subsections (b) and (d) or (c) and sion continue an investigation in which an (d) of this section, and agreement has been accepted under subsection (3) permit all interested parties described in (b) or (c) of this section, then— section 1677(9) of this title to submit com- (A) if the final determination by the ad- ments and information for the record before ministering authority or the Commission the date on which notice of suspension of the under section 1673d of this title is negative, investigation is published under subsection the agreement shall have no force or effect (f)(1)(A) of this section. and the investigation shall be terminated, or (B) if the final determinations by the ad- (f) Effects of suspension of investigation ministering authority and the Commission (1) In general under such section are affirmative, the If the administering authority determines to agreement shall remain in force, but the ad- suspend an investigation upon acceptance of ministering authority shall not issue an an agreement described in subsection (b) or (c) antidumping duty order in the case so long of this section, then— as— (A) it shall suspend the investigation, pub- (i) the agreement remains in force, lish notice of suspension of the investiga- (ii) the agreement continues to meet the tion, and issue an affirmative preliminary requirements of subsections (b) and (d), or determination under section 1673b(b) of this (c) and (d) of this section, and title with respect to the subject merchan- (iii) the parties to the agreement carry dise, unless it has previously issued such a out their obligations under the agreement determination in the same investigation, in accordance with its terms. (B) the Commission shall suspend any in- (g) Investigation to be continued upon request vestigation it is conducting with respect to If the administering authority, within 20 days that merchandise, and after the date of publication of the notice of sus- (C) the suspension of investigation shall pension of an investigation, receives a request take effect on the day on which such notice for the continuation of the investigation from— is published. (1) an exporter or exporters accounting for a (2) Liquidation of entries significant proportion of exports to the United (A) Cessation of exports; complete elimi- States of the subject merchandise, or nation of dumping margin (2) an interested party described in subparagraph (C), (D), (E), (F), or (G) of section 1677(9) If the agreement accepted by the admin- of this title which is a party to the investiga- istering authority is an agreement described tion, in subsection (b) of this section, then— (i) notwithstanding the affirmative pre- then the administering authority and the Com- liminary determination required under mission shall continue the investigation. paragraph (1)(A), the liquidation of entries (h) Review of suspension of subject merchandise shall not be suspended under section 1673b(d)(2) of this (1) In general title, Within 20 days after the suspension of an in- (ii) if the liquidation of entries of such vestigation under subsection (c) of this sec- merchandise was suspended pursuant to a tion, an interested party which is a party to previous affirmative preliminary deter- the investigation and which is described in mination in the same case with respect to subparagraph (C), (D), (E), (F), or (G) of sec- such merchandise, that suspension of liq- tion 1677(9) of this title may, by petition filed uidation shall terminate, and with the Commission and with notice to the (iii) the administering authority shall administering authority, ask for a review of refund any cash deposit and release any the suspension. Page 315 TITLE 19—CUSTOMS DUTIES § 1673c

(2) Commission investigation antidumping duty order under section Upon receipt of a review petition under para- 1673e(a) of this title effective with respect to graph (1), the Commission shall, within 75 days entries of merchandise liquidation of which after the date on which the petition is filed was suspended, with it, determine whether the injurious effect (D) if it considers the violation to be in- of imports of the subject merchandise is elimi- tentional, notify the Commissioner of Cus- nated completely by the agreement. If the toms who shall take appropriate action Commission’s determination under this sub- under paragraph (2), and section is negative, the investigation shall be (E) notify the petitioner, interested par- resumed on the date of publication of notice of ties who are or were parties to the investiga- such determination as if the affirmative pre- tion, and the Commission of its action under liminary determination under section 1673b(b) this paragraph. of this title had been made on that date. (2) Intentional violation to be punished by civil (3) Suspension of liquidation to continue dur- penalty ing review period Any person who intentionally violates an The suspension of liquidation of entries of agreement accepted by the administering au- the subject merchandise shall terminate at thority under subsection (b) or (c) of this sec- the close of the 20-day period beginning on the tion shall be subject to a civil penalty assessed day after the date on which notice of suspen- in the same amount, in the same manner, and sion of the investigation is published in the under the same procedures, as the penalty im- Federal Register, or, if a review petition is posed for a fraudulent violation of section filed under paragraph (1) with respect to the 1592(a) of this title. suspension of the investigation, in the case of an affirmative determination by the Commis- (j) Determination not to take agreement into ac- sion under paragraph (2), the date on which count notice of an affirmative determination by the In making a final determination under section Commission is published. If the determination 1673d of this title, or in conducting a review of the Commission under paragraph (2) is af- under section 1675 of this title, in a case in firmative, then the administering authority which the administering authority has termi- shall— nated a suspension of investigation under sub- (A) terminate the suspension of liquida- section (i)(1) of this section, or continued an in- tion under section 1673b(d)(2) of this title, vestigation under subsection (g) of this section, and the Commission and the administering author- (B) release any bond or other security, and ity shall consider all of the subject merchandise refund any cash deposit, required under sec- without regard to the effect of any agreement tion 1673b(d)(1)(B) of this title. under subsection (b) or (c) of this section. (i) Violation of agreement (1) In general (k) Termination of investigation initiated by administering authority If the administering authority determines that an agreement accepted under subsection The administering authority may terminate (b) or (c) of this section is being, or has been, any investigation initiated by the administering violated, or no longer meets the requirements authority under section 1673a(a) of this title of such subsection (other than the require- after providing notice of such termination to all ment, under subsection (c)(1) of this section, of parties to the investigation. elimination of injury) and subsection (d) of (l) Special rule for nonmarket economy countries this section, then, on the date of publication of its determination, it shall— (1) In general (A) suspend liquidation under section The administering authority may suspend 1673b(d)(2) of this title of unliquidated en- an investigation under this part upon accept- tries of the merchandise made on the later ance of an agreement with a nonmarket econ- of— omy country to restrict the volume of imports (i) the date which is 90 days before the into the United States of the merchandise date of publication of the notice of suspen- under investigation only if the administering sion of liquidation, or authority determines that— (ii) the date on which the merchandise, (A) such agreement satisfies the require- the sale or export to the United States of ments of subsection (d) of this section, and which was in violation of the agreement, (B) will prevent the suppression or under- or under an agreement which no longer cutting of price levels of domestic products meets the requirements of subsections (b) by imports of the merchandise under inves- and (d), or (c) and (d) of this section, was tigation. first entered, or withdrawn from warehouse, for consumption, (2) Failure of agreements (B) if the investigation was not completed, If the administering authority determines resume the investigation as if its affirmative that an agreement accepted under this sub- preliminary determination were made on the section no longer prevents the suppression or date of its determination under this para- undercutting of domestic prices of merchan- graph, dise manufactured in the United States, the (C) if the investigation was completed provisions of subsection (i) of this section under subsection (g) of this section, issue an shall apply. § 1673c TITLE 19—CUSTOMS DUTIES Page 316

(m) Special rule for regional industry investiga- ket value’’ in two places and ‘‘export price (or the con- tions structed export price)’’ for ‘‘United States price’’ in two places. (1) Suspension agreements Subsec. (d). Pub. L. 103–465, § 216(b), inserted conclud- If the Commission makes a regional indus- ing provisions. try determination under section 1677(4)(C) of Subsec. (f)(1)(A). Pub. L. 103–465, § 233(a)(5)(T), sub- this title, the administering authority shall stituted ‘‘subject merchandise’’ for ‘‘merchandise which is the subject of the investigation’’. offer exporters of the subject merchandise who Subsec. (f)(2)(A)(i). Pub. L. 103–465, §§ 219(c)(2)(A), account for substantially all exports of that 233(a)(5)(T), substituted ‘‘subject merchandise’’ for merchandise for sale in the region concerned ‘‘merchandise which is the subject of the investiga- the opportunity to enter into an agreement tion’’ and ‘‘1673b(d)(2)’’ for ‘‘1673b(d)(1)’’. described in subsection (b), (c), or (l) of this Subsec. (f)(2)(A)(iii). Pub. L. 103–465, § 219(c)(2)(B), subsection. stituted ‘‘1673b(d)(1)(B)’’ for ‘‘1673b(d)(2)’’. Subsec. (f)(2)(B). Pub. L. 103–465, §§ 219(c)(3), (2) Requirements for suspension agreements 233(a)(5)(U), substituted ‘‘subject merchandise’’ for Any agreement described in paragraph (1) ‘‘merchandise subject to the investigation’’, shall be subject to all the requirements im- ‘‘1673b(d)(2)’’ for ‘‘1673b(d)(1)’’, and ‘‘1673b(d)(1)(B)’’ for posed under this section for other agreements ‘‘1673b(d)(2)’’. under subsection (b), (c), or (l) of this section, Subsecs. (g)(1), (h)(2). Pub. L. 103–465, § 233(a)(5)(T), substituted ‘‘subject merchandise’’ for ‘‘merchandise except that if the Commission makes a re- which is the subject of the investigation’’. gional industry determination described in Subsec. (h)(3). Pub. L. 103–465, §§ 219(c)(4), 233(a)(5)(T), paragraph (1) in the final affirmative deter- in introductory provisions, substituted ‘‘subject mer- mination under section 1673d(b) of this title chandise’’ for ‘‘merchandise which is the subject of the but not in the preliminary affirmative deter- investigation’’, in subpar. (A), substituted ‘‘1673b(d)(2)’’ mination under section 1673b(a) of this title, for ‘‘1673b(d)(1)’’, and in subpar. (B), substituted any agreement described in paragraph (1) may ‘‘1673b(d)(1)(B)’’ for ‘‘1673b(d)(2)’’. Subsec. (i)(1)(A). Pub. L. 103–465, § 219(c)(5), sub- be accepted within 60 days after the antidump- stituted ‘‘1673b(d)(2)’’ for ‘‘1673b(d)(1)’’ in introductory ing order is published under section 1673e of provisions. this title. Subsec. (j). Pub. L. 103–465, § 233(a)(5)(T), substituted (3) Effect of suspension agreement on anti- ‘‘subject merchandise’’ for ‘‘merchandise which is the dumping duty order subject of the investigation’’. Subsec. (m). Pub. L. 103–465, § 218(a)(2), added subsec. If an agreement described in paragraph (1) is (m). accepted after the antidumping duty order is 1988—Subsecs. (g)(2), (h)(1). Pub. L. 100–418, § 1326(d)(2), published, the administering authority shall substituted ‘‘(F), or (G)’’ for ‘‘and (F)’’. rescind the order, refund any cash deposit and Subsec. (l). Pub. L. 100–418, § 1316(c), added subsec. (l). release any bond or other security deposited 1984—Subsec. (a). Pub. L. 98–573, § 604(b)(1), amended subsec. (a) generally, which prior to amendment read as under section 1673b(d)(1)(B) of this title, and follows: ‘‘An investigation under this part may be ter- instruct the Customs Service that entries of minated by either the administering authority or the the subject merchandise that were made dur- Commission after notice to all parties to the investiga- ing the period that the order was in effect tion, upon withdrawal of the petition by the petitioner. shall be liquidated without regard to anti- The Commission may not terminate an investigation dumping duties. under the preceding sentence before a preliminary determination is made by the administering authority (June 17, 1930, ch. 497, title VII, § 734, as added under section 1673b(b) of this title.’’ Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. Subsec. (d). Pub. L. 98–573, § 604(b)(2), struck out des- 165; amended Pub. L. 98–573, title VI, §§ 604(b), ignation ‘‘(1)’’ preceding first sentence, substituted 612(b)(2), Oct. 30, 1984, 98 Stat. 3026, 3034; Pub. L. ‘‘may not accept’’ for ‘‘shall not accept’’, redesignated 100–418, title I, §§ 1316(c), 1326(d)(2), Aug. 23, 1988, former subpars. (A) and (B) as pars. (1) and (2), respec- 102 Stat. 1187, 1204; Pub. L. 103–465, title II, tively, and struck out former par. (2), which had provided that exports of merchandise to the United States §§ 216(b), 217(b), 218(a)(2), 219(c)(2)–(5), 233(a)(1)(B), were not to increase during the interim period. (2)(A)(ii), (5)(S)–(U), Dec. 8, 1994, 108 Stat. 4853, Subsec. (e)(3). Pub. L. 98–573, § 604(b)(3), substituted 4854, 4857, 4898, 4900.) ‘‘all interested parties described in section 1677(9) of this title’’ for ‘‘all parties to the investigation’’. AMENDMENTS Subsecs. (g)(2), (h)(1). Pub. L. 98–573, § 612(b)(2), sub- 1994—Subsec. (a)(1). Pub. L. 103–465, § 217(b), des- stituted reference to subpar. ‘‘(C), (D), (E), and (F)’’ for ignated existing provisions as subpar. (A), inserted ‘‘(C), (D), or (E)’’ of section 1677(9) of this title. heading and realigned margin, and added subpar. (B). Subsec. (i)(1)(D), (E). Pub. L. 98–573, § 604(b)(4), added Subsec. (a)(2)(A). Pub. L. 103–465, § 233(a)(5)(S), sub- subpar. (D) and redesignated former subpar. (D) as (E). stituted ‘‘subject merchandise’’ for ‘‘merchandise that Subsec. (k). Pub. L. 98–573, § 604(b)(5), added subsec. is subject to the investigation’’. (k). Subsec. (b). Pub. L. 103–465, § 233(a)(5)(T), substituted EFFECTIVE DATE OF 1994 AMENDMENT ‘‘subject merchandise’’ for ‘‘merchandise which is the subject of the investigation’’ in introductory provi- Amendment by Pub. L. 103–465 effective, except as sions. otherwise provided, on the date on which the WTO Subsec. (b)(2). Pub. L. 103–465, § 233(a)(1)(B), (2)(A)(ii), Agreement enters into force with respect to the United substituted ‘‘normal value’’ for ‘‘foreign market value’’ States [Jan. 1, 1995], and applicable with respect to in- and ‘‘export price (or the constructed export price)’’ for vestigations, reviews, and inquiries initiated and peti- ‘‘United States price’’. tions filed under specified provisions of this chapter Subsec. (c)(1). Pub. L. 103–465, § 233(a)(5)(T), sub- after such date, see section 291 of Pub. L. 103–465, set stituted ‘‘subject merchandise’’ for ‘‘merchandise out as a note under section 1671 of this title. which is the subject of the investigation’’ in introduc- EFFECTIVE DATE OF 1988 AMENDMENT tory provisions. Subsec. (c)(1)(B). Pub. L. 103–465, § 233(a)(1)(B), Amendment by Pub. L. 100–418 applicable with re- (2)(A)(ii), substituted ‘‘normal value’’ for ‘‘foreign mar- spect to investigations initiated after Aug. 23, 1988, and Page 317 TITLE 19—CUSTOMS DUTIES § 1673d to reviews initiated under section 1673e(c) or 1675 of or should have known that the exporter was this title after Aug. 23, 1988, see section 1337(b) of Pub. selling the subject merchandise at less than L. 100–418, set out as a note under section 1671 of this its fair value and that there would be mate- title. rial injury by reason of such sales, and EFFECTIVE DATE OF 1984 AMENDMENT (B) there have been massive imports of the subject merchandise over a relatively short Amendment by section 604(b) of Pub. L. 98–573 effective Oct. 30, 1984, and amendment by section 612(b)(2) of period. Pub. L. 98–573 applicable with respect to investigations Such findings may be affirmative even though initiated by petition or by the administering authority the preliminary determination under section under parts I and II of this subtitle, and to reviews 1673b(e)(1) of this title was negative. begun under section 1675 of this title, on or after Oct. 30, 1984, see section 626(a), (b)(1) of Pub. L. 98–573, as (4) De minimis dumping margin amended, set out as a note under section 1671 of this In making a determination under this subtitle. section, the administering authority shall dis- TRANSFER OF FUNCTIONS regard any weighted average dumping margin For transfer of functions, personnel, assets, and li- that is de minimis as defined in section abilities of the United States Customs Service of the 1673b(b)(3) of this title. Department of the Treasury, including functions of the (b) Final determination by Commission Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- (1) In general lated references, see sections 203(1), 551(d), 552(d), and The Commission shall make a final deter- 557 of Title 6, Domestic Security, and the Department mination of whether— of Homeland Security Reorganization Plan of Novem- (A) an industry in the United States— ber 25, 2002, as modified, set out as a note under section (i) is materially injured, or 542 of Title 6. (ii) is threatened with material injury, § 1673d. Final determinations or (a) Final determination by administering author- (B) the establishment of an industry in the ity United States is materially retarded, (1) General rule by reason of imports, or sales (or the likelihood of sales) for importation, of the merchan- Within 75 days after the date of its prelimi- dise with respect to which the administering nary determination under section 1673b(b) of authority has made an affirmative determina- this title, the administering authority shall tion under subsection (a)(1) of this section. If make a final determination of whether the the Commission determines that imports of subject merchandise is being, or is likely to the subject merchandise are negligible, the in- be, sold in the United States at less than its vestigation shall be terminated. fair value. (2) Period for injury determination following (2) Extension of period for determination affirmative preliminary determination by The administering authority may postpone administering authority making the final determination under para- If the preliminary determination by the ad- graph (1) until not later than the 135th day ministering authority under section 1673b(b) of after the date on which it published notice of this title is affirmative, then the Commission its preliminary determination under section shall make the determination required by 1673b(b) of this title if a request in writing for paragraph (1) before the later of— such a postponement is made by— (A) the 120th day after the day on which (A) exporters who account for a significant the administering authority makes its af- proportion of exports of the merchandise firmative preliminary determination under which is the subject of the investigation, in section 1673b(b) of this title, or a proceeding in which the preliminary deter- (B) the 45th day after the day on which the mination by the administering authority administering authority makes its affirma- under section 1673b(b) of this title was af- tive final determination under subsection (a) firmative, or of this section. (B) the petitioner, in a proceeding in which the preliminary determination by the ad- (3) Period for injury determination following ministering authority under section 1673b(b) negative preliminary determination by ad- of this title was negative. ministering authority (3) Critical circumstances determinations If the preliminary determination by the administering authority under section 1673b(b) of If the final determination of the administer- this title is negative, and its final determina- ing authority is affirmative, then that deter- tion under subsection (a) of this section is af- mination, in any investigation in which the firmative, then the final determination by the presence of critical circumstances has been al- Commission under this subsection shall be leged under section 1673b(e) of this title, shall made within 75 days after the date of that af- also contain a finding of whether— firmative final determination. (A)(i) there is a history of dumping and material injury by reason of dumped imports (4) Certain additional findings in the United States or elsewhere of the sub- (A) COMMISSION STANDARD FOR RETROACTIVE ject merchandise, or APPLICATION.— (ii) the person by whom, or for whose ac- (i) IN GENERAL.—If the finding of the ad- count, the merchandise was imported knew ministering authority under subsection § 1673d TITLE 19—CUSTOMS DUTIES Page 318

(a)(3) of this section is affirmative, then the the suspension of liquidation under section final determination of the Commission shall 1673b(d)(2) of this title. include a finding as to whether the imports (2) Issuance of order; effect of negative deter- subject to the affirmative determination mination under subsection (a)(3) of this section are If the determinations of the administering likely to undermine seriously the remedial authority and the Commission under sub- effect of the antidumping duty order to be sections (a)(1) and (b)(1) of this section are af- issued under section 1673e of this title. firmative, then the administering authority (ii) FACTORS TO CONSIDER.—In making the shall issue an antidumping duty order under evaluation under clause (i), the Commission section 1673e(a) of this title. If either of such shall consider, among other factors it con- determinations is negative, the investigation siders relevant— shall be terminated upon the publication of (I) the timing and the volume of the im- notice of that negative determination and the ports, administering authority shall— (II) a rapid increase in inventories of the (A) terminate the suspension of liquida- imports, and tion under section 1673b(d)(2) of this title, (III) any other circumstances indicating and that the remedial effect of the antidump- (B) release any bond or other security, and ing order will be seriously undermined. refund any cash deposit, required under sec- (B) If the final determination of the Com- tion 1673b(d)(1)(B) of this title. mission is that there is no material injury but (3) Effect of negative determinations under that there is threat of material injury, then subsections (a)(3) and (b)(4)(A) of this sec- its determination shall also include a finding tion as to whether material injury by reason of the imports of the merchandise with respect to If the determination of the administering which the administering authority has made authority or the Commission under subsection an affirmative determination under subsection (a)(3) or (b)(4)(A) of this section, respectively, (a) of this section would have been found but is negative, then the administering authority for any suspension of liquidation of entries of shall— the merchandise. (A) terminate any retroactive suspension of liquidation required under paragraph (4) (c) Effect of final determinations or section 1673b(e)(2) of this title, and (1) Effect of affirmative determination by the (B) release any bond or other security, and administering authority refund any cash deposit required, under sec- If the determination of the administering tion 1673b(d)(1)(B) of this title with respect authority under subsection (a) of this section to entries of the merchandise the liquidation is affirmative, then— of which was suspended retroactively under (A) the administering authority shall section 1673b(e)(2) of this title. make available to the Commission all infor- (4) Effect of affirmative determination under mation upon which such determination was subsection (a)(3) of this section based and which the Commission considers If the determination of the administering relevant to its determination, under such authority under subsection (a)(3) of this sec- procedures as the administering authority tion is affirmative, then the administering au- and the Commission may establish to pre- thority shall— vent disclosure, other than with the consent (A) in cases where the preliminary deter- of the party providing it or under protective minations by the administering authority order, of any information as to which con- under sections 1673b(b) and 1673b(e)(1) of this fidential treatment has been given by the title were both affirmative, continue the ret- administering authority, roactive suspension of liquidation and the (B)(i) the administering authority shall— posting of a cash deposit, bond, or other se- (I) determine the estimated weighted av- curity previously ordered under section erage dumping margin for each exporter 1673b(e)(2) of this title; and producer individually investigated, (B) in cases where the preliminary deter- and mination by the administering authority (II) determine, in accordance with para- under section 1673b(b) of this title was af- graph (5), the estimated all-others rate for firmative, but the preliminary determina- all exporters and producers not individ- tion under section 1673b(e)(1) of this title ually investigated, and was negative, shall modify any suspension of (ii) the administering authority shall liquidation and security requirement pre- order the posting of a cash deposit, bond, or viously ordered under section 1673b(d) of this other security, as the administering author- title to apply to unliquidated entries of mer- ity deems appropriate, for each entry of the chandise entered, or withdrawn from ware- subject merchandise in an amount based on house, for consumption on or after the date the estimated weighted average dumping which is 90 days before the date on which margin or the estimated all-others rate, suspension of liquidation was first ordered; whichever is applicable, and or (C) in cases where the preliminary deter- (C) in cases where the preliminary determination by the administering authority mination by the administering authority under section 1673b(b) of this title was nega- under section 1673b(b) of this title was negative, the administering authority shall order tive, shall apply any suspension of liquida- Page 319 TITLE 19—CUSTOMS DUTIES § 1673d

tion and security requirement ordered under AMENDMENTS subsection (c)(1)(B) of this section to unliq- 1996—Subsec. (a)(3)(A)(i). Pub. L. 104–295 amended uidated entries of merchandise entered, or Pub. L. 103–465, § 214(b)(2)(A)(i). See 1994 Amendment withdrawn from warehouse, for consumption note below. on or after the date which is 90 days before 1994—Subsec. (a)(1). Pub. L. 103–465, § 233(a)(5)(V), sub- the date on which suspension of liquidation stituted ‘‘subject merchandise’’ for ‘‘merchandise is first ordered. which was the subject of the investigation’’. Subsec. (a)(3)(A)(i). Pub. L. 103–465, § 214(b)(2)(A)(i), as (5) Method for determining estimated all-oth- amended by Pub. L. 104–295, inserted ‘‘and material in- ers rate jury by reason of dumped imports’’ after ‘‘history of dumping’’ and substituted ‘‘subject merchandise’’ for (A) General rule ‘‘class or kind of merchandise which is the subject of the investigation’’. For purposes of this subsection and section Subsec. (a)(3)(A)(ii). Pub. L. 103–465, § 214(b)(2)(A)(ii), 1673b(d) of this title, the estimated all-oth- substituted ‘‘subject merchandise at less than its fair ers rate shall be an amount equal to the value and that there would be material injury by rea- weighted average of the estimated weighted son of such sales’’ for ‘‘merchandise which is the sub- average dumping margins established for ex- ject of the investigation at less than its fair value’’. porters and producers individually inves- Subsec. (a)(3)(B). Pub. L. 103–465, § 214(b)(2)(A)(iii), tigated, excluding any zero and de minimis substituted ‘‘subject merchandise’’ for ‘‘merchandise margins, and any margins determined en- which is the subject of the investigation’’. Subsec. (a)(4). Pub. L. 103–465, § 213(b), added par. (4). tirely under section 1677e of this title. Subsec. (b)(1). Pub. L. 103–465, § 212(b)(2)(B), inserted (B) Exception at end of concluding provisions ‘‘If the Commission determines that imports of the subject merchandise are If the estimated weighted average dump- negligible, the investigation shall be terminated.’’ ing margins established for all exporters and Subsec. (b)(4)(A). Pub. L. 103–465, § 214(b)(2)(B), amend- producers individually investigated are zero ed subpar. (A) generally, substituting present provi- or de minimis margins, or are determined sions for provisions requiring, in the case of an affirma- entirely under section 1677e of this title, the tive critical circumstances determination, a further administering authority may use any rea- finding as to whether retroactive imposition of antidumping duties on the subject merchandise would be sonable method to establish the estimated necessary to prevent recurrence of material injury all-others rate for exporters and producers caused by massive imports of the merchandise over a not individually investigated, including relatively short period of time. averaging the estimated weighted average Subsec. (c)(1). Pub. L. 103–465, § 219(b)(1), struck out dumping margins determined for the export- ‘‘and’’ at end of subpar. (A), added subpar. (B), and re- ers and producers individually investigated. designated former subpar. (B) as (C) and substituted ‘‘the suspension of liquidation under section 1673b(d)(2) (d) Publication of notice of determinations of this title’’ for ‘‘under paragraphs (1) and (2) of sec- Whenever the administering authority or the tion 1673b(d) of this title the suspension of liquidation and the posting of a cash deposit, bond, or other secu- Commission makes a determination under this rity’’. section, it shall notify the petitioner, other par- Subsec. (c)(2)(A). Pub. L. 103–465, § 219(c)(6), sub- ties to the investigation, and the other agency stituted ‘‘1673b(d)(2)’’ for ‘‘1671b(d)(1)’’. of its determination and of the facts and conclu- Subsec. (c)(2)(B). Pub. L. 103–465, § 219(c)(7), sub- sions of law upon which the determination is stituted ‘‘1673b(d)(1)(B)’’ for ‘‘1673b(d)(2)’’. based, and it shall publish notice of its deter- Subsec. (c)(3)(B). Pub. L. 103–465, § 219(c)(8), sub- mination in the Federal Register. stituted ‘‘1673b(d)(1)(B)’’ for ‘‘1673b(d)(2)’’. Subsec. (c)(5). Pub. L. 103–465, § 219(b)(2), added par. (e) Correction of ministerial errors (5). 1988—Subsec. (b)(4)(A). Pub. L. 100–418, § 1324(b)(3), The administering authority shall establish amended subpar. (A) generally. Prior to amendment, procedures for the correction of ministerial er- subpar. (A) read as follows: ‘‘If the finding of the ad- rors in final determinations within a reasonable ministering authority under subsection (a)(2) of this time after the determinations are issued under section is affirmative, then the final determination of this section. Such procedures shall ensure op- the Commission shall include a finding as to whether portunity for interested parties to present their the material injury is by reason of massive imports de- views regarding any such errors. As used in this scribed in subsection (a)(3) of this section to an extent that, in order to prevent such material injury from re- subsection, the term ‘‘ministerial error’’ in- curring, it is necessary to impose the duty imposed by cludes errors in addition, subtraction, or other section 1673 of this title retroactively on those im- arithmetic function, clerical errors resulting ports.’’ from inaccurate copying, duplication, or the Subsec. (e). Pub. L. 100–418, § 1333(a), added subsec. (e). like, and any other type of unintentional error 1984—Subsec. (a)(3). Pub. L. 98–573, § 605(b)(1), inserted which the administering authority considers provision that such findings may be affirmative even ministerial. though the preliminary determination under section 1673b(e)(1) of this title was negative. (June 17, 1930, ch. 497, title VII, § 735, as added Subsec. (b)(1). Pub. L. 98–573, § 602(c), inserted ‘‘, or Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. sales (or the likelihood of sales) for importation,’’ in 169; amended Pub. L. 98–573, title VI, §§ 602(c), provisions after subpar. (B). 605(b), Oct. 30, 1984, 98 Stat. 3024, 3028; Pub. L. Subsec. (c)(3)(A). Pub. L. 98–573, § 605(b)(3), inserted 100–418, title I, §§ 1324(b)(3), 1333(a), Aug. 23, 1988, reference to par. (4). Subsec. (c)(4). Pub. L. 98–573, § 605(b)(2), added par. (4). 102 Stat. 1201, 1209; Pub. L. 103–465, title II, §§ 212(b)(2)(B), 213(b), 214(b)(2), 219(b), (c)(6)–(8), EFFECTIVE DATE OF 1994 AMENDMENT 233(a)(5)(V), Dec. 8, 1994, 108 Stat. 4849–4851, 4856, Amendment by Pub. L. 103–465 effective, except as 4857, 4900; Pub. L. 104–295, § 20(b)(6), Oct. 11, 1996, otherwise provided, on the date on which the WTO 110 Stat. 3527.) Agreement enters into force with respect to the United § 1673e TITLE 19—CUSTOMS DUTIES Page 320

States [Jan. 1, 1995], and applicable with respect to in- 1673b(d)(2) of this title, shall be subject to the vestigations, reviews, and inquiries initiated and peti- imposition of antidumping duties under sections filed under specified provisions of this chapter tion 1673 of this title. after such date, see section 291 of Pub. L. 103–465, set out as a note under section 1671 of this title. (2) Special rule If the Commission, in its final determination EFFECTIVE DATE OF 1988 AMENDMENT under section 1673d(b) of this title, finds threat Amendment by section 1333(a) of Pub. L. 100–418 effec- of material injury, other than threat of mate- tive Aug. 23, 1988, and amendment by section 1324(b)(3) rial injury described in paragraph (1), or mate- of Pub. L. 100–418 applicable with respect to investiga- rial retardation of the establishment of an in- tions initiated after Aug. 23, 1988, see section 1337(a), (c) dustry in the United States, then subject mer- of Pub. L. 100–418, set out as a note under section 1671 chandise which is entered, or withdrawn from of this title. warehouse, for consumption on or after the EFFECTIVE DATE OF 1984 AMENDMENT date of publication of notice of an affirmative Amendment by section 602(c) of Pub. L. 98–573 appli- determination of the Commission under sec- cable with respect to investigations initiated by petition 1673d(b) of this title shall be subject to tion or by the administering authority under parts I the assessment of antidumping duties under and II of this subtitle, and to reviews begun under sec- section 1673 of this title, and the administer- tion 1675 of this title, on or after Oct. 30, 1984, and ing authority shall release any bond or other amendment by section 605(b) of Pub. L. 98–573 effective security, and refund any cash deposit made, to Oct. 30, 1984, see section 626(a), (b)(1) of Pub. L. 98–573, secure the payment of antidumping duties as amended, set out as a note under section 1671 of this title. with respect to entries of the merchandise entered, or withdrawn from warehouse, for con- § 1673e. Assessment of duty sumption before that date. (c) Security in lieu of estimated duty pending (a) Publication of antidumping duty order early determination of duty Within 7 days after being notified by the Com- (1) Conditions for waiver of deposit of esti- mission of an affirmative determination under mated duties section 1673d(b) of this title, the administering authority shall publish an antidumping duty The administering authority may permit, order which— for not more than 90 days after the date of (1) directs customs officers to assess an anti- publication of an order under subsection (a) of dumping duty equal to the amount by which this section, the posting of a bond or other se- the normal value of the merchandise exceeds curity in lieu of the deposit of estimated anti- the export price (or the constructed export dumping duties required under subsection price) of the merchandise, within 6 months (a)(3) of this section if— (A) the investigation has not been des- after the date on which the administering au- ignated as extraordinarily complicated by thority receives satisfactory information upon reason of— which the assessment may be based, but in no (i) the number and complexity of the event later than— transactions to be investigated or adjust- (A) 12 months after the end of the annual ments to be considered, accounting period of the manufacturer or ex- (ii) the novelty of the issues presented, porter within which the merchandise is en- or tered, or withdrawn from warehouse, for (iii) the number of firms whose activities consumption, or must be investigated, (B) in the case of merchandise not sold prior to its importation into the United (B) the final determination in the inves- States, 12 months after the end of the annual tigation has not been postponed under sec- accounting period of the manufacturer or ex- tion 1673d(a)(2)(A) of this title; (C) on the basis of information presented porter within which it is sold in the United to the administering authority by any man- States to a person who is not the exporter of ufacturer, producer, or exporter in such form that merchandise, and within such time as the administering (2) includes a description of the subject mer- authority may require, the administering chandise, in such detail as the administering authority is satisfied that a determination authority deems necessary, and will be made, within 90 days after the date of (3) requires the deposit of estimated anti- publication of an order under subsection (a) dumping duties pending liquidation of entries of this section, of the normal value and the of merchandise at the same time as estimated export price (or the constructed export normal customs duties on that merchandise price) for all merchandise of such manufac- are deposited. turer, producer, or exporter described in that (b) Imposition of duty order which was entered, or withdrawn from warehouse, for consumption on or after the (1) General rule date of publication of— If the Commission, in its final determination (i) an affirmative preliminary deter- under section 1673d(b) of this title, finds mate- mination by the administering authority rial injury or threat of material injury which, under section 1673b(b) of this title, or but for the suspension of liquidation under (ii) if its determination under section section 1673b(d)(2) of this title would have led 1673b(b) of this title was negative, an af- to a finding of material injury, then entries of firmative final determination by the ad- the subject merchandise, the liquidation of ministering authority under section which has been suspended under section 1673d(a) of this title, Page 321 TITLE 19—CUSTOMS DUTIES § 1673e

and before the date of publication of the af- (d) Special rule for regional industries firmative final determination by the Com- (1) In general mission under section 1673d(b) of this title; In an investigation in which the Commission (D) the party described in subparagraph makes a regional industry determination (C) provides credible evidence that the under section 1677(4)(C) of this title, the ad- amount by which the normal value of the ministering authority shall, to the maximum merchandise exceeds the export price (or the extent possible, direct that duties be assessed constructed export price) of the merchandise only on the subject merchandise of the specific is significantly less than the amount of such exporters or producers that exported the sub- excess specified in the antidumping duty ject merchandise for sale in the region con- order published under subsection (a) of this cerned during the period of investigation. section; and (E) the data concerning the normal value (2) Exception for new exporters and producers and the export price (or the constructed ex- After publication of the antidumping duty port price) apply to sales in the usual com- order, if the administering authority finds mercial quantities and in the ordinary that a new exporter or producer is exporting course of trade and the number of such sales the subject merchandise for sale in the region are sufficient to form an adequate basis for concerned, the administering authority shall comparison. direct that duties be assessed on the subject merchandise of the new exporter or producer (2) Notice; hearing consistent with the provisions of section If the administering authority permits the 1675(a)(2)(B) of this title. posting of a bond or other security in lieu of (June 17, 1930, ch. 497, title VII, § 736, as added the deposit of estimated antidumping duties Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. under paragraph (1), it shall— 172; amended Pub. L. 99–514, title XVIII, (A) publish notice of its action in the Fed- § 1886(a)(7), Oct. 22, 1986, 100 Stat. 2922; Pub. L. eral Register, and 100–418, title I, § 1325, Aug. 23, 1988, 102 Stat. 1201; (B) upon the request of any interested Pub. L. 103–465, title II, §§ 218(b)(2), 219(c)(9), party, hold a hearing in accordance with sec- 233(a)(1)(C), (2)(A)(iii), (5)(W)–(Y), Dec. 8, 1994, 108 tion 1677c of this title before determining Stat. 4855, 4857, 4898, 4900.) the normal value and the export price (or the constructed export price) of the mer- AMENDMENTS chandise. 1994—Subsec. (a)(1). Pub. L. 103–465, § 233(a)(1)(C), (2)(A)(iii), substituted ‘‘normal value’’ for ‘‘foreign (3) Determinations to be basis of antidumping market value’’ and ‘‘export price (or the constructed duty export price)’’ for ‘‘United States price’’. Subsec. (a)(2). Pub. L. 103–465, § 233(a)(5)(W), sub- The administering authority shall publish stituted ‘‘subject merchandise’’ for ‘‘class or kind of notice in the Federal Register of the results of merchandise to which it applies’’. its determination of normal value and export Subsec. (b)(1). Pub. L. 103–465, §§ 219(c)(9), 233(a)(5)(X), price (or the constructed export price), and substituted ‘‘1673b(d)(2)’’ for ‘‘1673b(d)(1)’’ in two places that determination shall be the basis for the and ‘‘subject merchandise’’ for ‘‘merchandise subject to assessment of antidumping duties on entries the antidumping duty order’’. of merchandise to which the notice under this Subsec. (b)(2). Pub. L. 103–465, § 233(a)(5)(Y), substituted ‘‘subject merchandise’’ for ‘‘merchandise sub- subsection applies and also shall be the basis ject to an antidumping duty order’’. for the deposit of estimated antidumping du- Subsec. (c). Pub. L. 103–465, § 233(a)(1)(C), (2)(A)(iii), ties on future entries of merchandise of manu- substituted ‘‘normal value’’ for ‘‘foreign market value’’ facturers, producers, or exporters described in and ‘‘export price (or the constructed export price)’’ for paragraph (1) to which the order issued under ‘‘United States price’’ in pars. (1)(C) to (E), (2)(B), and subsection (a) of this section applies. (3). Subsec. (d). Pub. L. 103–465, § 218(b)(2), added subsec. (4) Provision of business proprietary informa- (d). tion; written comments 1988—Subsec. (c)(1). Pub. L. 100–418, § 1325(a), amended par. (1) generally, designating existing provisions as cl. Before determining whether to permit the (C) and adding cls. (A), (B), (D), and (E). posting of bond or other security under para- Subsec. (c)(4). Pub. L. 100–418, § 1325(b), added par. (4). graph (1) in lieu of the deposit of estimated 1986—Subsec. (c)(1). Pub. L. 99–514 inserted ‘‘, and was antidumping duties, the administering author- sold to any person that is not related to such manufac- ity shall— turer, producer, or exporter,’’ before ‘‘on or after the date’’. (A) make all business proprietary information supplied to the administering authority EFFECTIVE DATE OF 1994 AMENDMENT under paragraph (1) available under a protec- Amendment by Pub. L. 103–465 effective, except as tive order in accordance with section 1677f(c) otherwise provided, on the date on which the WTO of this title to all interested parties de- Agreement enters into force with respect to the United scribed in subparagraph (C), (D), (E), (F), or States [Jan. 1, 1995], and applicable with respect to in- (G) of section 1677(9) of this title, and vestigations, reviews, and inquiries initiated and peti- (B) afford all interested parties an oppor- tions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set tunity to file written comments on whether out as a note under section 1671 of this title. the posting of bond or other security under paragraph (1) in lieu of the deposit of esti- EFFECTIVE DATE OF 1988 AMENDMENT mated antidumping duties should be per- Amendment by Pub. L. 100–418 applicable with remitted. spect to investigations initiated after Aug. 23, 1988, and § 1673f TITLE 19—CUSTOMS DUTIES Page 322 to reviews initiated under section 1673e(c) or 1675 of Subsec. (a)(1). Pub. L. 104–295, § 40(2), substituted this title after Aug. 23, 1988, see section 1337(b) of Pub. ‘‘that the cash deposit, bond, or other security’’ for L. 100–418, set out as a note under section 1671 of this ‘‘the cash deposit collected’’. title. Subsec. (a)(2). Pub. L. 104–295, § 40(3), substituted ‘‘refunded or released, to the extent that the cash deposit, PLAN AMENDMENTS NOT REQUIRED UNTIL bond, or other security’’ for ‘‘refunded, to the extent JANUARY 1, 1989 the cash deposit’’. For provisions directing that if any amendments 1994—Subsec. (a). Pub. L. 103–465 substituted ‘‘1673b(d)(1)(B)’’ for ‘‘1673b(d)(2)’’ in heading and text. made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. EFFECTIVE DATE OF 1994 AMENDMENT 99–514 require an amendment to any plan, such plan Amendment by Pub. L. 103–465 effective, except as amendment shall not be required to be made before the otherwise provided, on the date on which the WTO first plan year beginning on or after Jan. 1, 1989, see Agreement enters into force with respect to the United section 1140 of Pub. L. 99–514, as amended, set out as a States [Jan. 1, 1995], and applicable with respect to in- note under section 401 of Title 26, Internal Revenue vestigations, reviews, and inquiries initiated and peti- Code. tions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set § 1673f. Treatment of difference between deposit out as a note under section 1671 of this title. of estimated antidumping duty and final assessed duty under antidumping duty order § 1673g. Conditional payment of antidumping (a) Deposit of estimated antidumping duty under duty section 1673b(d)(1)(B) of this title (a) General rule If the amount of a cash deposit, or the amount For all entries, or withdrawals from ware- of any bond or other security, required as secu- house, for consumption of merchandise subject rity for an estimated antidumping duty under to an antidumping duty order on or after the section 1673b(d)(1)(B) of this title is different date of publication of such order, no customs of- from the amount of the antidumping duty deter- ficer may deliver merchandise of that class or mined under an antidumping duty order pub- kind to the person by whom or for whose ac- lished under section 1673e of this title, then the count it was imported unless that person com- difference for entries of merchandise entered, or plies with the requirements of subsection (b) of withdrawn from warehouse, for consumption be- this section and deposits with the appropriate fore notice of the affirmative determination of customs officer an estimated antidumping duty the Commission under section 1673d(b) of this in an amount determined by the administering title is published shall be— authority. (1) disregarded, to the extent that the cash (b) Importer requirements deposit, bond, or other security is lower than In order to meet the requirements of this sub- the duty under the order, or section, a person shall— (2) refunded or released, to the extent that (1) furnish, or arrange to have furnished, to the cash deposit, bond, or other security is the appropriate customs officer such informa- higher than the duty under the order. tion as the administering authority deems (b) Deposit of estimated antidumping duty under necessary for determining the export price (or section 1673e(a)(3) of this title the constructed export price) of the merchandise imported by or for the account of that If the amount of an estimated antidumping person, and such other information as the ad- duty deposited under section 1673e(a)(3) of this ministering authority deems necessary for as- title is different from the amount of the anti- certaining any antidumping duty to be im- dumping duty determined under an antidumping posed under this subtitle; duty order published under section 1673e of this (2) maintain and furnish to the customs offi- title, then the difference for entries of merchan- cer such records concerning the sale of the dise entered, or withdrawn from warehouse, for merchandise as the administering authority, consumption after notice of the affirmative de- by regulation, requires; termination of the Commission under section (3) state under oath before the customs offi- 1673d(b) of this title is published shall be— cer that he is not an exporter, or if he is an ex- (1) collected, to the extent that the deposit porter, declare under oath at the time of entry under section 1673e(a)(3) of this title is lower the constructed export price of the merchan- than the duty determined under the order, or dise to the customs officer if it is then known, (2) refunded, to the extent that the deposit or, if not, so declare within 30 days after the under section 1673e(a)(3) of this title is higher merchandise has been sold, or has been made than the duty determined under the order, the subject of an agreement to be sold, in the United States; and together with interest as provided by section (4) pay, or agree to pay on demand, to the 1677g of this title. customs officer the amount of antidumping (June 17, 1930, ch. 497, title VII, § 737, as added duty imposed under section 1673 of this title Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. on that merchandise. 173; amended Pub. L. 103–465, title II, § 219(c)(10), (June 17, 1930, ch. 497, title VII, § 738, as added Dec. 8, 1994, 108 Stat. 4857; Pub. L. 104–295, § 40, Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. Oct. 11, 1996, 110 Stat. 3541.) 174; amended Pub. L. 103–465, title II, § 233(a)(2)(A)(iv), (B), Dec. 8, 1994, 108 Stat. 4898.) AMENDMENTS 1996—Subsec. (a). Pub. L. 104–295, § 40(1), substituted AMENDMENTS ‘‘deposit, or the amount of any bond or other security, 1994—Subsec. (b)(1). Pub. L. 103–465, § 233(a)(2)(A)(iv), required’’ for ‘‘deposit collected’’ in introductory provi- substituted ‘‘export price (or the constructed export sions. price)’’ for ‘‘United States price’’. Page 323 TITLE 19—CUSTOMS DUTIES § 1673h

Subsec. (b)(3). Pub. L. 103–465, § 233(a)(2)(B), sub- (4) Determinations stituted ‘‘constructed export price’’ for ‘‘exporter’s sales price’’. (A) In general By no later than the date that is 90 days EFFECTIVE DATE OF 1994 AMENDMENT after the date on which a petition is filed Amendment by Pub. L. 103–465 effective, except as under paragraph (1), the Commission shall otherwise provided, on the date on which the WTO determine the scope of the product category Agreement enters into force with respect to the United into which the short life cycle merchandise States [Jan. 1, 1995], and applicable with respect to in- that is the subject of the affirmative dump- vestigations, reviews, and inquiries initiated and peti- ing determinations identified in such petitions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set tion shall be classified for purposes of this out as a note under section 1671 of this title. section. (B) Modifications not requested by petition § 1673h. Establishment of product categories for (i) In general short life cycle merchandise The Commission may, on its own initia- (a) Establishment of product categories tive, make a determination modifying the (1) Petitions scope of any product category established under subparagraph (A) at any time. (A) In general (ii) Notice and hearing An eligible domestic entity may file a petition with the Commission requesting that Determinations may be made under a product category be established with re- clause (i) only after the Commission has— spect to short life cycle merchandise at any (I) published in the Federal Register time after the merchandise becomes the sub- notice of the proposed modification, and ject of 2 or more affirmative dumping deter- (II) provided interested parties an op- minations. portunity for a hearing, and a period for the submission of written comments, on (B) Contents the classification of merchandise into A petition filed under subparagraph (A) the product categories to be affected by shall— such determination. (i) identify the short life cycle merchan- (C) Basis of determinations dise that is the subject of the affirmative dumping determinations, In making determinations under subpara- (ii) specify the short life cycle merchan- graph (A) or (B), the Commission shall en- dise that the petitioner seeks to have insure that each product category consists of cluded in the same product category as the similar short life cycle merchandise which is merchandise that is subject to the affirma- produced by similar processes under similar tive dumping determinations, circumstances and has similar uses. (iii) specify any short life cycle merchan- (b) Definitions dise the petitioner particularly seeks to For purposes of this section— have excluded from the product category, (1) Eligible domestic entity (iv) provide reasons for the inclusions and exclusions specified under clauses (ii) The term ‘‘eligible domestic entity’’ means a and (iii), and manufacturer or producer in the United (v) identify such merchandise in terms of States, or a certified union or recognized the designations used in the Harmonized union or group of workers which is representa- Tariff Schedule of the United States. tive of an industry in the United States, that manufactures or produces short life cycle mer- (2) Determinations on sufficiency of petition chandise that is— Upon receiving a petition under paragraph (A) like or directly competitive with other (1), the Commission shall— merchandise that is the subject of 2 or more (A) request the administering authority to affirmative dumping determinations, or confirm promptly the affirmative deter- (B) is similar enough to such other mer- minations on which the petition is based, chandise as to be considered for inclusion and with such merchandise in a product mon- (B) upon receipt of such confirmation, de- itoring category established under this sec- termine whether the merchandise covered by tion. the confirmed affirmative determinations is (2) Affirmative dumping determination short life cycle merchandise and whether the petitioner is an eligible domestic entity. The term ‘‘affirmative dumping determination’’ means— (3) Notice; hearings (A) any affirmative final determination If the determinations under paragraph (2)(B) made by the administering authority under are affirmative, the Commission shall— section 1673d(a) of this title during the 8- (A) publish notice in the Federal Register year period preceding the filing of the peti- that the petition has been received, and tion under this section that results in the is- (B) provide opportunity for the presen- suance of an antidumping duty order under tation of views regarding the establishment section 1673e of this title which requires the of the requested product category, including deposit of estimated antidumping duties at a a public hearing if requested by any inter- rate of not less than 15 percent ad valorem, ested person. or § 1673i TITLE 19—CUSTOMS DUTIES Page 324

(B) any affirmative preliminary deter- dumping determinations described in subsection mination that— (b)(2)(A) of this section that were made after De- (i) is made by the administering author- cember 31, 1980, and before August 23, 1988, and ity under section 1673b(b) of this title dur- all affirmative dumping determinations de- ing the 8-year period preceding the filing scribed in subsection (b)(2)(B) of this section of the petition under this section in the that were made after December 31, 1984, and be- course of an investigation for which no fore August 23, 1988, with respect to each cat- final determination is made under section egory of short life cycle merchandise of the 1673d of this title by reason of a suspension same manufacturer shall be treated as one af- of the investigation under section 1673c of firmative dumping determination with respect this title, and to that category for that manufacturer which (ii) includes a determination that the was made on the date on which the latest of estimated average amount by which the such determinations was made. normal value of the merchandise exceeds (2) No affirmative dumping determination the export price (or the constructed export that— price) of the merchandise is not less than (A) is described in subsection (b)(2)(A) of this 15 percent ad valorem. section and was made before January 1, 1981, (3) Subject of affirmative dumping determina- or tion (B) is described in subsection (b)(2)(B) of this section and was made before January 1, 1985, (A) In general Short life cycle merchandise of a manufac- may be taken into account under this section or turer shall be treated as being the subject of section 1673b(b)(1)(B) and (C) of this title. an affirmative dumping determination only (June 17, 1930, ch. 497, title VII, § 739, as added if the administering authority— Pub. L. 100–418, title I, § 1323(a), Aug. 23, 1988, 102 (i) makes a separate determination of Stat. 1195; amended Pub. L. 101–382, title I, the amount by which the normal value of § 139(a)(2), Aug. 20, 1990, 104 Stat. 653; Pub. L. such merchandise of the manufacturer ex- 103–465, title II, § 233(a)(1)(D), (2)(A)(v), Dec. 8, ceeds the export price (or the constructed 1994, 108 Stat. 4898.) export price) of such merchandise of the manufacturer, and REFERENCES IN TEXT (ii) specifically identifies the manufac- The Harmonized Tariff Schedule of the United States, turer by name with such amount in the af- referred to in subsec. (a)(1)(B)(v), is not set out in the firmative dumping determination or in an Code. See Publication of Harmonized Tariff Schedule antidumping duty order issued as a result note set out under section 1202 of this title. of the affirmative dumping determination. PRIOR PROVISIONS (B) Exclusion A prior section, act June 17, 1930, ch. 497, title VII, Short life cycle merchandise of a manufac- § 739, as added July 26, 1979, Pub. L. 96–39, title I, § 101, turer shall not be treated as being the sub- 93 Stat. 174, related to duties of customs officers, prior to repeal by Pub. L. 98–573, title VI, § 610(a), Oct. 30, ject of an affirmative dumping determina- 1984, 98 Stat. 3031. tion if— (i) such merchandise of the manufac- AMENDMENTS turer is part of a group of merchandise to 1994—Subsec. (b)(2)(B)(ii), (3)(A)(i), (B)(i). Pub. L. which the administering authority assigns 103–465 substituted ‘‘normal value’’ for ‘‘foreign market (in lieu of making separate determinations value’’ and ‘‘export price (or the constructed export described in subparagraph (A)(i)(I)) an price)’’ for ‘‘United States price’’. amount determined to be the amount by 1990—Subsec. (a)(1)(B)(v). Pub. L. 101–382 substituted which the normal value of the merchan- ‘‘Harmonized Tariff Schedule’’ for ‘‘Tariff Schedules’’. dise in such group exceeds the export price EFFECTIVE DATE OF 1994 AMENDMENT (or the constructed export price) of the merchandise in such group, and Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO (ii) the merchandise and the manufac- Agreement enters into force with respect to the United turer are not specified by name in the af- States [Jan. 1, 1995], and applicable with respect to in- firmative dumping determination or in vestigations, reviews, and inquiries initiated and peti- any antidumping duty order issued as a re- tions filed under specified provisions of this chapter sult of such affirmative dumping deter- after such date, see section 291 of Pub. L. 103–465, set mination. out as a note under section 1671 of this title. (4) Short life cycle merchandise § 1673i. Repealed. Pub. L. 98–573, title VI, The term ‘‘short life cycle merchandise’’ § 622(a)(1), Oct. 30, 1984, 98 Stat. 3039 means any product that the Commission de- Section, act June 17, 1930, ch. 497, title VII, § 740, as termines is likely to become outmoded within added July 26, 1979, Pub. L. 96–39, title I, § 101, 93 Stat. 4 years, by reason of technological advances, 175, provided that the antidumping duty imposed by after the product is commercially available. section 1673 of this title was to be treated as a normal For purposes of this paragraph, the term ‘‘out- customs duty for drawback purposes. See section 1677h moded’’ refers to a kind of style that is no of this title. longer state-of-the-art. EFFECTIVE DATE OF REPEAL (c) Transitional rules Section repealed effective Oct. 30, 1984, see section (1) For purposes of this section and section 626(a) of Pub. L. 98–573, set out as an Effective Date of 1673b(b)(1)(B) and (C) of this title, all affirmative 1984 Amendment note under section 1671 of this title. Page 325 TITLE 19—CUSTOMS DUTIES § 1675

PART III—REVIEWS; OTHER ACTIONS REGARDING chandise for sale in the region con- AGREEMENTS cerned) during the period of investigation, and CODIFICATION (II) such exporter or producer is not af- The designation ‘‘PART III’’ was in the original ‘‘Sub- filiated (within the meaning of section title C’’ and was editorially changed in order to con- 1677(33) of this title) with any exporter or form the numbering format of this subtitle to the us- producer who exported the subject mer- ages employed in the codification of the remainder of chandise to the United States (or in the the Tariff Act of 1930 as originally enacted. case of a regional industry, who exported SUBPART A—REVIEW OF AMOUNT OF DUTY AND the subject merchandise for sale in the AGREEMENTS OTHER THAN QUANTITATIVE RE- region concerned) during that period, STRICTION AGREEMENTS the administering authority shall conduct a review under this subsection to establish § 1675. Administrative review of determinations an individual weighted average dumping (a) Periodic review of amount of duty margin or an individual countervailing (1) In general duty rate (as the case may be) for such exporter or producer. At least once during each 12-month period beginning on the anniversary of the date of (ii) Time for review under clause (i) publication of a countervailing duty order The administering authority shall com- under this subtitle or under section 1303 1 of mence a review under clause (i) in the cal- this title, an antidumping duty order under endar month beginning after— this subtitle or a finding under the Antidump- (I) the end of the 6-month period begin- ing Act, 1921, or a notice of the suspension of ning on the date of the countervailing an investigation, the administering authority, duty or antidumping duty order under if a request for such a review has been received review, or and after publication of notice of such review (II) the end of any 6-month period oc- in the Federal Register, shall— curring thereafter, (A) review and determine the amount of if the request for the review is made dur- any net countervailable subsidy, ing that 6-month period. (B) review, and determine (in accordance with paragraph (2)), the amount of any anti- (iii) Posting bond or security dumping duty, and The administering authority shall, at (C) review the current status of, and com- the time a review under this subparagraph pliance with, any agreement by reason of is initiated, direct the Customs Service to which an investigation was suspended, and allow, at the option of the importer, the review the amount of any net counter- posting, until the completion of the re- vailable subsidy or dumping margin involved view, of a bond or security in lieu of a cash in the agreement, deposit for each entry of the subject mer- and shall publish in the Federal Register the chandise. results of such review, together with notice of (iv) Time limits any duty to be assessed, estimated duty to be The administering authority shall make deposited, or investigation to be resumed. a preliminary determination in a review (2) Determination of antidumping duties conducted under this subparagraph within (A) In general 180 days after the date on which the review is initiated, and a final determination For the purpose of paragraph (1)(B), the within 90 days after the date the prelimi- administering authority shall determine— nary determination is issued, except that (i) the normal value and export price (or if the administering authority concludes constructed export price) of each entry of that the case is extraordinarily com- the subject merchandise, and plicated, it may extend the 180-day period (ii) the dumping margin for each such to 300 days and may extend the 90-day pe- entry. riod to 150 days. (B) Determination of antidumping or coun- (C) Results of determinations tervailing duties for new exporters and producers The determination under this paragraph shall be the basis for the assessment of coun- (i) In general tervailing or antidumping duties on entries If the administering authority receives a of merchandise covered by the determina- request from an exporter or producer of tion and for deposits of estimated duties. the subject merchandise establishing (3) Time limits that— (I) such exporter or producer did not (A) Preliminary and final determinations export the merchandise that was the The administering authority shall make a subject of an antidumping duty or coun- preliminary determination under subpara- tervailing duty order to the United graph (A), (B), or (C) of paragraph (1) within States (or, in the case of a regional in- 245 days after the last day of the month in dustry, did not export the subject mer- which occurs the anniversary of the date of publication of the order, finding, or suspen- 1 See References in Text note below. sion agreement for which the review under § 1675 TITLE 19—CUSTOMS DUTIES Page 326

paragraph (1) is requested, and a final deter- (A) a final affirmative determination that mination under paragraph (1) within 120 days resulted in an antidumping duty order under after the date on which the preliminary de- this subtitle or a finding under the Anti- termination is published. If it is not prac- dumping Act, 1921, or in a countervailing ticable to complete the review within the duty order under this subtitle or section foregoing time, the administering authority 1303 1 of this title, may extend that 245-day period to 365 days (B) a suspension agreement accepted under and may extend that 120-day period to 180 section 1671c or 1673c of this title, or days. The administering authority may ex- (C) a final affirmative determination re- tend the time for making a final determina- sulting from an investigation continued pur- tion without extending the time for making suant to section 1671c(g) or 1673c(g) of this a preliminary determination, if such final title, determination is made not later than 300 which shows changed circumstances sufficient days after the date on which the preliminary to warrant a review of such determination or determination is published. agreement, the administering authority or the (B) Liquidation of entries Commission (as the case may be) shall conduct a review of the determination or agreement If the administering authority orders any after publishing notice of the review in the liquidation of entries pursuant to a review Federal Register. under paragraph (1), such liquidation shall be made promptly and, to the greatest ex- (2) Commission review tent practicable, within 90 days after the in- In conducting a review under this sub- structions to Customs are issued. In any section, the Commission shall— case in which liquidation has not occurred (A) in the case of a countervailing duty within that 90-day period, the Secretary of order or antidumping duty order or finding, the Treasury shall, upon the request of the determine whether revocation of the order affected party, provide an explanation there- or finding is likely to lead to continuation of. or recurrence of material injury, (B) in the case of a determination made (C) Effect of pending review under section pursuant to section 1671c(h)(2) or 1673c(h)(2) 1516a of this title, determine whether the suspen- In a case in which a final determination sion agreement continues to eliminate com- under paragraph (1) is under review under pletely the injurious effects of imports of section 1516a of this title and a liquidation the subject merchandise, and of entries covered by the determination is (C) in the case of an affirmative deter- enjoined under section 1516a(c)(2) of this mination resulting from an investigation title or suspended under section continued under section 1671c(g) or 1673c(g) 1516a(g)(5)(C) of this title, the administering of this title, determine whether termination authority shall, within 10 days after the of the suspended investigation is likely to final disposition of the review under section lead to continuation or recurrence of mate- 1516a of this title, transmit to the Federal rial injury. Register for publication the final disposition (3) Burden of persuasion and issue instructions to the Customs Serv- During a review conducted by the Commis- ice with respect to the liquidation of entries sion under this subsection— pursuant to the review. In such a case, the (A) the party seeking revocation of an 90-day period referred to in subparagraph (B) order or finding described in paragraph shall begin on the day on which the admin- (1)(A) shall have the burden of persuasion istering authority issues such instructions. with respect to whether there are changed (4) Absorption of antidumping duties circumstances sufficient to warrant such revocation, and During any review under this subsection ini- (B) the party seeking termination of a sus- tiated 2 years or 4 years after the publication pended investigation or a suspension agree- of an antidumping duty order under section ment shall have the burden of persuasion 1673e(a) of this title, the administering author- with respect to whether there are changed ity, if requested, shall determine whether circumstances sufficient to warrant such antidumping duties have been absorbed by a termination. foreign producer or exporter subject to the (4) Limitation on period for review order if the subject merchandise is sold in the United States through an importer who is af- In the absence of good cause shown— filiated with such foreign producer or ex- (A) the Commission may not review a de- porter. The administering authority shall no- termination made under section 1671d(b) or tify the Commission of its findings regarding 1673d(b) of this title, or an investigation sus- such duty absorption for the Commission to pended under section 1671c or 1673c of this consider in conducting a review under subtitle, and (B) the administering authority may not section (c) of this section. review a determination made under section (b) Reviews based on changed circumstances 1671d(a) or 1673d(a) of this title, or an inves- (1) In general tigation suspended under section 1671c or Whenever the administering authority or 1673c of this title, the Commission receives information concern- less than 24 months after the date of publica- ing, or a request from an interested party for tion of notice of that determination or suspen- a review of— sion. Page 327 TITLE 19—CUSTOMS DUTIES § 1675

(c) Five-year review (4) Waiver of participation by certain inter- (1) In general ested parties (A) In general Notwithstanding subsection (b) of this section and except in the case of a transition An interested party described in section order defined in paragraph (6), 5 years after 1677(9)(A) or (B) of this title may elect not to the date of publication of— participate in a review conducted by the ad- (A) a countervailing duty order (other ministering authority under this subsection than a countervailing duty order to which and to participate only in the review con- subparagraph (B) applies or which was issued ducted by the Commission under this sub- without an affirmative determination of in- section. jury by the Commission under section 1303 1 (B) Effect of waiver of this title), an antidumping duty order, or In a review in which an interested party a notice of suspension of an investigation, waives its participation pursuant to this described in subsection (a)(1) of this section, paragraph, the administering authority (B) a notice of injury determination under shall conclude that revocation of the order section 1675b of this title with respect to a or termination of the investigation would be countervailing duty order, or likely to lead to continuation or recurrence (C) a determination under this section to of dumping or a countervailable subsidy (as continue an order or suspension agreement, the case may be) with respect to that interested party. the administering authority and the Commis- sion shall conduct a review to determine, in (5) Conduct of review accordance with section 1675a of this title, (A) Time limits for completion of review whether revocation of the countervailing or Unless the review has been completed pur- antidumping duty order or termination of the suant to paragraph (3) or paragraph (4) ap- investigation suspended under section 1671c or plies, the administering authority shall 1673c of this title would be likely to lead to make its final determination pursuant to continuation or recurrence of dumping or a section 1675a(b) or (c) of this title within 240 countervailable subsidy (as the case may be) days after the date on which a review is ini- and of material injury. tiated under this subsection. If the admin- (2) Notice of initiation of review istering authority makes a final affirmative determination, the Commission shall make Not later than 30 days before the fifth anni- its final determination pursuant to section versary of the date described in paragraph (1), 1675a(a) of this title within 360 days after the the administering authority shall publish in date on which a review is initiated under the Federal Register a notice of initiation of a this subsection. review under this subsection and request that (B) Extension of time limit interested parties submit— (A) a statement expressing their willing- The administering authority or the Com- ness to participate in the review by provid- mission (as the case may be) may extend the ing information requested by the admin- period of time for making their respective istering authority and the Commission, determinations under this subsection by not (B) a statement regarding the likely ef- more than 90 days, if the administering au- fects of revocation of the order or termi- thority or the Commission (as the case may nation of the suspended investigation, and be) determines that the review is extraor- (C) such other information or industry dinarily complicated. In a review in which the administering authority extends the data as the administering authority or the time for making a final determination, but Commission may specify. the Commission does not extend the time for (3) Responses to notice of initiation making a determination, the Commission’s (A) No response determination shall be made not later than 120 days after the date on which the final de- If no interested party responds to the no- termination of the administering authority tice of initiation under this subsection, the is published. administering authority shall issue a final determination, within 90 days after the initi- (C) Extraordinarily complicated ation of a review, revoking the order or ter- For purposes of this subsection, the admin- minating the suspended investigation to istering authority or the Commission (as the which such notice relates. For purposes of case may be) may treat a review as extraor- this paragraph, an interested party means a dinarily complicated if— party described in section 1677(9)(C), (D), (E), (i) there is a large number of issues, (F), or (G) of this title. (ii) the issues to be considered are complex, (B) Inadequate response (iii) there is a large number of firms in- If interested parties provide inadequate re- volved, sponses to a notice of initiation, the admin- (iv) the orders or suspended investiga- istering authority, within 120 days after the tions have been grouped as described in initiation of the review, or the Commission, subparagraph (D), or within 150 days after such initiation, may (v) it is a review of a transition order. issue, without further investigation, a final (D) Grouped reviews determination based on the facts available, The Commission, in consultation with the in accordance with section 1677e of this title. administering authority, may group orders § 1675 TITLE 19—CUSTOMS DUTIES Page 328

or suspended investigations for review if it date the WTO Agreement enters into force considers that such grouping is appropriate with respect to the United States, if such and will promote administrative efficiency. order is based on an investigation conducted Where orders or suspended investigations by both the administering authority and the have been grouped, the Commission shall, Commission. subject to subparagraph (B), make its final (7) Exclusions from computations determination under this subsection not (A) In general later than 120 days after the date that the administering authority publishes notice of Subject to subparagraph (B), there shall be its final determination with respect to the excluded from the computation of the 5-year last order or agreement in the group. period described in paragraph (1) and the periods described in paragraph (6) any period (6) Special transition rules during which the importation of the subject (A) Schedule for reviews of transition orders merchandise is prohibited on account of the (i) Initiation imposition, under the International Emer- The administering authority shall begin gency Economic Powers Act [50 U.S.C. 1701 its review of transition orders in the 42d et seq.] or other provision of law, of sanc- calendar month after the date such orders tions by the United States against the coun- are issued. A review of all transition or- try in which the subject merchandise origi- ders shall be initiated not later than the nates. 5th anniversary after the date such orders (B) Application of exclusion are issued. Subparagraph (A) shall apply only with re- (ii) Completion spect to subject merchandise which origi- A review of a transition order shall be nates in a country that is not a WTO mem- completed not later than 18 months after ber. the date such review is initiated. Reviews (d) Revocation of order or finding; termination of all transition orders shall be completed of suspended investigation not later than 18 months after the 5th an- (1) In general niversary of the date such orders are issued. The administering authority may revoke, in (iii) Subsequent reviews whole or in part, a countervailing duty order or an antidumping duty order or finding, or The time limits set forth in clauses (i) terminate a suspended investigation, after re- and (ii) shall be applied to all subsequent view under subsection (a) or (b) of this section. 5-year reviews of transition orders by sub- The administering authority shall not revoke, stituting ‘‘date of the determination to in whole or in part, a countervailing duty continue such orders’’ for ‘‘date such or- order or terminate a suspended investigation ders are issued’’. on the basis of any export taxes, duties, or (iv) Revocation and termination other charges levied on the export of the sub- No transition order may be revoked ject merchandise to the United States which under this subsection before the date that are specifically intended to offset the counter- is 5 years after the date the WTO Agree- vailable subsidy received. ment enters into force with respect to the (2) Five-year reviews United States. In the case of a review conducted under sub- (B) Sequence of transition reviews section (c) of this section, the administering The administering authority, in consulta- authority shall revoke a countervailing duty tion with the Commission, shall determine order or an antidumping duty order or finding, such sequence of review of transition orders or terminate a suspended investigation, un- as it deems appropriate to promote adminis- less— trative efficiency. To the extent practicable, (A) the administering authority makes a older orders shall be reviewed first. determination that dumping or a counter- (C) ‘‘Transition order’’ defined vailable subsidy, as the case may be, would For purposes of this section, the term be likely to continue or recur, and ‘‘transition order’’ means— (B) the Commission makes a determina- (i) a countervailing duty order under this tion that material injury would be likely to subtitle or under section 1303 2 of this title, continue or recur as described in section (ii) an antidumping duty order under 1675a(a) of this title. this subtitle or a finding under the Anti- (3) Application of revocation or termination dumping Act, 1921, or A determination under this section to re- (iii) a suspension of an investigation voke an order or finding or terminate a sus- under section 1671c or 1673c of this title, pended investigation shall apply with respect which is in effect on the date the WTO to unliquidated entries of the subject mer- Agreement enters into force with respect to chandise which are entered, or withdrawn the United States. from warehouse, for consumption on or after (D) Issue date for transition orders the date determined by the administering au- For purposes of this subsection, a transi- thority. tion order shall be treated as issued on the (e) Hearings Whenever the administering authority or the 2 See References in Text note below. Commission conducts a review under this sec- Page 329 TITLE 19—CUSTOMS DUTIES § 1675 tion, it shall, upon the request of an interested (3) Expedited review party, hold a hearing in accordance with section The administering authority shall conduct 1677c(b) of this title in connection with that re- reviews under this subsection on an expedited view. basis, and shall publish the results of such re- (f) Determination that basis for suspension no views in the Federal Register. longer exists (h) Correction of ministerial errors If the determination of the Commission under The administering authority shall establish subsection (b)(2)(B) of this section is negative, procedures for the correction of ministerial er- the suspension agreement shall be treated as not rors in final determinations within a reasonable accepted, beginning on the date of publication of time after the determinations are issued under the Commission’s determination, and the ad- this section. Such procedures shall ensure op- ministering authority and the Commission shall portunity for interested parties to present their proceed, under section 1671c(i) or 1673c(i) of this views regarding any such errors. As used in this title, as if the suspension agreement had been subsection, the term ‘‘ministerial error’’ in- violated on that date, except that no duty under cludes errors in addition, subtraction, or other any order subsequently issued shall be assessed arithmetic function, clerical errors resulting on merchandise entered, or withdrawn from from inaccurate copying, duplication, or the warehouse, for consumption before that date. like, and any other type of unintentional error (g) Reviews to implement results of subsidies en- which the administering authority considers forcement proceeding ministerial. (1) Violations of article 8 of the subsidies (June 17, 1930, ch. 497, title VII, § 751, as added agreement Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. 175; amended Pub. L. 98–573, title VI, § 611(a)(2), If— (3), Oct. 30, 1984, 98 Stat. 3031; Pub. L. 99–514, (A) the administering authority receives title XVIII, § 1886(a)(8), Oct. 22, 1986, 100 Stat. notice from the Trade Representative of a 2922; Pub. L. 100–418, title I, § 1333(b), Aug. 23, violation of Article 8 of the Subsidies Agree- 1988, 102 Stat. 1209; Pub. L. 103–465, title II, ment, §§ 220(a), 283(c), Dec. 8, 1994, 108 Stat. 4857, 4930; (B) the administering authority has reason Pub. L. 106–36, title II, § 2410, June 25, 1999, 113 to believe that merchandise subject to an ex- Stat. 171.) isting countervailing duty order or suspended investigation is benefiting from the REFERENCES IN TEXT subsidy or subsidy program found to have Section 1303 of this title, referred to in subsecs. (a)(1), been in violation of Article 8 of the Sub- (b)(1)(A), and (c)(1)(A), (6)(C)(i), is defined in section sidies Agreement, and 1677(26) of this title to mean section 1330 as in effect on (C) no review pursuant to subsection (a)(1) the day before Jan. 1, 1995. of this section is in progress, The Antidumping Act, 1921, referred to in subsecs. (a)(1), (b)(1)(A), and (c)(6)(C)(ii), is act May 27, 1921, ch. the administering authority shall conduct a 14, title II, 42 Stat. 11, as amended, which was classified review of the order or suspended investigation generally to sections 160 to 171 of this title, and was re- to determine whether the subject merchandise pealed by Pub. L. 96–39, title I, § 106(a), July 26, 1979, 93 benefits from the subsidy or subsidy program Stat. 193. found to have been in violation of Article 8 of The International Emergency Economic Powers Act, referred to in subsec. (c)(7)(A), is title II of Pub. L. the Subsidies Agreement. If the administering 95–223, Dec. 28, 1977, 91 Stat. 1626, as amended, which is authority determines that the subject mer- classified generally to chapter 35 (§ 1701 et seq.) of Title chandise is benefiting from the subsidy or sub- 50, War and National Defense. For complete classifica- sidy program, it shall make appropriate ad- tion of this Act to the Code, see Short Title note set justments in the estimated duty to be depos- out under section 1701 of Title 50 and Tables. ited or appropriate revisions to the terms of AMENDMENTS the suspension agreement. 1999—Subsec. (c)(7). Pub. L. 106–36 added par. (7). (2) Withdrawal of subsidy or imposition of 1994—Pub. L. 103–465, § 283(c), added subsec. (g) and re- countermeasures designated former subsec. (g) as (h). If the Trade Representative notifies the ad- Pub. L. 103–465, § 220(a), amended section generally, substituting present provisions for provisions relating ministering authority that, pursuant to Arti- to administrative review of determinations, which pro- cle 4 or Article 7 of the Subsidies Agreement— vided for periodic review of amount of duty in subsec. (A)(i) the United States has imposed coun- (a), review upon information or request in subsec. (b), termeasures, and revocation of countervailing duty order or antidumping (ii) such countermeasures are based on the duty order in subsec. (c), hearings in subsec. (d), deter- effects in the United States of imports of mination that basis for suspension no longer existed in merchandise that is the subject of a counter- subsec. (e), and correction of ministerial errors in sub- vailing duty order, or sec. (f). 1988—Subsec. (f). Pub. L. 100–418 added subsec. (f). (B) a WTO member country has withdrawn 1986—Subsec. (b)(1). Pub. L. 99–514 inserted ‘‘or coun- a countervailable subsidy provided with re- tervailing duty’’ after ‘‘antidumping’’ in two places in spect to merchandise subject to a counter- last sentence. vailing duty order, 1984—Subsec. (a)(1). Pub. L. 98–573, § 611(a)(2)(A), inserted ‘‘if a request for such a review has been received the administering authority shall conduct a and’’ in provisions preceding subpar. (A). review to determine if the amount of the esti- Subsec. (b)(1). Pub. L. 98–573, § 611(a)(2)(B), substituted mated duty to be deposited should be adjusted ‘‘1671c of this title (other than a quantitative restric- or the order should be revoked. tion agreement described in subsection (a)(2) or (c)(3)) § 1675a TITLE 19—CUSTOMS DUTIES Page 330 or 1673c of this title (other than a quantitative restric- § 1675a. Special rules for section 1675(b) and tion agreement described in subsection (a)(2))’’ for 1675(c) reviews ‘‘1671c or 1673c of this title’’, inserted reference to section 1676a(a)(1) or 1676a(a)(2) of this title, and inserted (a) Determination of likelihood of continuation provision that during an investigation by the Commis- or recurrence of material injury sion, the party seeking revocation of an antidumping (1) In general order shall have the burden of persuasion with respect to whether there are changed circumstances sufficient In a review conducted under section 1675(b) to warrant revocation of the antidumping order. or (c) of this title, the Commission shall deter- Subsec. (c). Pub. L. 98–573, § 611(a)(3), inserted provi- mine whether revocation of an order, or termi- sion that the administering authority shall not revoke, nation of a suspended investigation, would be in whole or in part, a countervailing duty order or ter- likely to lead to continuation or recurrence of minate a suspended investigation on the basis of any material injury within a reasonably foresee- export taxes, duties, or other charges levied on the ex- able time. The Commission shall consider the port of merchandise to the United States specifically intended to offset the subsidy received. likely volume, price effect, and impact of imports of the subject merchandise on the indus- EFFECTIVE DATE OF 1994 AMENDMENT try if the order is revoked or the suspended in- Amendment by Pub. L. 103–465 effective, except as vestigation is terminated. The Commission otherwise provided, on the date on which the WTO shall take into account— Agreement enters into force with respect to the United (A) its prior injury determinations, includ- States [Jan. 1, 1995], and applicable with respect to in- ing the volume, price effect, and impact of vestigations, reviews, and inquiries initiated and peti- imports of the subject merchandise on the tions filed under specified provisions of this chapter industry before the order was issued or the after such date, see section 291 of Pub. L. 103–465, set out as a note under section 1671 of this title. suspension agreement was accepted, (B) whether any improvement in the state EFFECTIVE DATE OF 1984 AMENDMENT of the industry is related to the order or the Amendment by Pub. L. 98–573 applicable with respect suspension agreement, to investigations initiated by petition or by the admin- (C) whether the industry is vulnerable to istering authority under parts I and II of this subtitle, material injury if the order is revoked or the and to reviews begun under section 1675 of this title, on suspension agreement is terminated, and or after Oct. 30, 1984, see section 626(b)(1) of Pub. L. (D) in an antidumping proceeding under 98–573, as amended, set out as a note under section 1671 section 1675(c) of this title, the findings of of this title. the administering authority regarding duty EFFECTIVE DATE absorption under section 1675(a)(4) of this Part effective Jan. 1, 1980, see section 107 of Pub. L. title. 96–39, set out as a note under section 1671 of this title. (2) Volume TRANSFER OF FUNCTIONS In evaluating the likely volume of imports For transfer of functions, personnel, assets, and li- of the subject merchandise if the order is re- abilities of the United States Customs Service of the voked or the suspended investigation is termi- Department of the Treasury, including functions of the nated, the Commission shall consider whether Secretary of the Treasury relating thereto, to the Sec- the likely volume of imports of the subject retary of Homeland Security, and for treatment of re- merchandise would be significant if the order lated references, see sections 203(1), 551(d), 552(d), and is revoked or the suspended investigation is 557 of Title 6, Domestic Security, and the Department terminated, either in absolute terms or rel- of Homeland Security Reorganization Plan of Novem- ative to production or consumption in the ber 25, 2002, as modified, set out as a note under section 542 of Title 6. United States. In so doing, the Commission shall consider all relevant economic factors, SUSPENSION OF THE AVAILABILITY OF BONDS TO NEW including— SHIPPERS (A) any likely increase in production ca- Pub. L. 109–280, title XIV, § 1632(a), Aug. 17, 2006, 120 pacity or existing unused production capac- Stat. 1165, provided that: ‘‘Clause (iii) of section ity in the exporting country, 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. (B) existing inventories of the subject mer- 1675(a)(2)(B)(iii)) shall not be effective during the period chandise, or likely increases in inventories, beginning on April 1, 2006, and ending on June 30, 2009.’’ (C) the existence of barriers to the impor- URUGUAY ROUND AGREEMENTS: ENTRY INTO FORCE tation of such merchandise into countries The Uruguay Round Agreements, including the World other than the United States, and Trade Organization Agreement and agreements an- (D) the potential for product-shifting if nexed to that Agreement, as referred to in section production facilities in the foreign country, 3511(d) of this title, entered into force with respect to which can be used to produce the subject the United States on Jan. 1, 1995. See note set out merchandise, are currently being used to under section 3511 of this title. produce other products. PLAN AMENDMENTS NOT REQUIRED UNTIL (3) Price JANUARY 1, 1989 In evaluating the likely price effects of im- For provisions directing that if any amendments ports of the subject merchandise if the order is made by subtitle A or subtitle C of title XI [§§ 1101–1147 revoked or the suspended investigation is ter- and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. minated, the Commission shall consider 99–514 require an amendment to any plan, such plan whether— amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see (A) there is likely to be significant price section 1140 of Pub. L. 99–514, as amended, set out as a underselling by imports of the subject mer- note under section 401 of Title 26, Internal Revenue chandise as compared to domestic like prod- Code. ucts, and Page 331 TITLE 19—CUSTOMS DUTIES § 1675a

(B) imports of the subject merchandise are fects of imports of the subject merchandise in likely to enter the United States at prices a case in which it determines that such im- that otherwise would have a significant de- ports are likely to have no discernible adverse pressing or suppressing effect on the price of impact on the domestic industry. domestic like products. (8) Special rule for regional industries (4) Impact on the industry In a review under section 1675(b) or (c) of In evaluating the likely impact of imports of this title involving a regional industry, the the subject merchandise on the industry if the Commission may base its determination on order is revoked or the suspended investiga- the regional industry defined in the original tion is terminated, the Commission shall con- investigation under this subtitle, another re- sider all relevant economic factors which are gion that satisfies the criteria established in likely to have a bearing on the state of the in- section 1677(4)(C) of this title, or the United dustry in the United States, including, but not States as a whole. In determining if a regional limited to— industry analysis is appropriate for the deter- (A) likely declines in output, sales, market mination in the review, the Commission shall share, profits, productivity, return on in- consider whether the criteria established in vestments, and utilization of capacity, section 1677(4)(C) of this title are likely to be (B) likely negative effects on cash flow, in- satisfied if the order is revoked or the sus- ventories, employment, wages, growth, abil- pended investigation is terminated. ity to raise capital, and investment, and (b) Determination of likelihood of continuation (C) likely negative effects on the existing or recurrence of a countervailable subsidy development and production efforts of the (1) In general industry, including efforts to develop a derivative or more advanced version of the do- In a review conducted under section 1675(c) mestic like product. of this title, the administering authority shall determine whether revocation of a counter- The Commission shall evaluate all relevant vailing duty order or termination of a sus- economic factors described in this paragraph pended investigation under section 1671c of within the context of the business cycle and this title would be likely to lead to continu- the conditions of competition that are distinc- ation or recurrence of a countervailable sub- tive to the affected industry. sidy. The administering authority shall con- (5) Basis for determination sider— The presence or absence of any factor which (A) the net countervailable subsidy deter- the Commission is required to consider under mined in the investigation and subsequent this subsection shall not necessarily give deci- reviews, and sive guidance with respect to the Commis- (B) whether any change in the program sion’s determination of whether material in- which gave rise to the net countervailable jury is likely to continue or recur within a subsidy described in subparagraph (A) has reasonably foreseeable time if the order is re- occurred that is likely to affect that net voked or the suspended investigation is termi- countervailable subsidy. nated. In making that determination, the (2) Consideration of other factors Commission shall consider that the effects of If good cause is shown, the administering au- revocation or termination may not be immi- thority shall also consider— nent, but may manifest themselves only over (A) programs determined to provide a longer period of time. countervailable subsidies in other investiga- (6) Magnitude of margin of dumping and net tions or reviews under this subtitle, but only countervailable subsidy; nature of counter- to the extent that such programs— vailable subsidy (i) can potentially be used by the export- In making a determination under section ers or producers subject to the review 1675(b) or (c) of this title, the Commission may under section 1675(c) of this title, and consider the magnitude of the margin of (ii) did not exist at the time that the dumping or the magnitude of the net counter- countervailing duty order was issued or vailable subsidy. If a countervailable subsidy the suspension agreement was accepted, is involved the Commission shall consider in- and formation regarding the nature of the counter- (B) programs newly alleged to provide vailable subsidy and whether the subsidy is a countervailable subsidies but only to the ex- subsidy described in Article 3 or 6.1 of the Sub- tent that the administering authority makes sidies Agreement. an affirmative countervailing duty deter- (7) Cumulation mination with respect to such programs and with respect to the exporters or producers For purposes of this subsection, the Commis- subject to the review. sion may cumulatively assess the volume and effect of imports of the subject merchandise (3) Net countervailable subsidy from all countries with respect to which re- The administering authority shall provide to views under section 1675(b) or (c) of this title the Commission the net countervailable sub- were initiated on the same day, if such im- sidy that is likely to prevail if the order is reports would be likely to compete with each voked or the suspended investigation is termi- other and with domestic like products in the nated. The administering authority shall nor- United States market. The Commission shall mally choose a net countervailable subsidy not cumulatively assess the volume and ef- that was determined under section 1671d of § 1675b TITLE 19—CUSTOMS DUTIES Page 332

this title or subsection (a) or (b)(1) of section mis standards applicable to reviews con- 1675 of this title. ducted under subsections (a) and (b) of sec- (4) Special rule tion 1675 of this title. (A) Treatment of zero and de minimis rates (June 17, 1930, ch. 497, title VII, § 752, as added A net countervailable subsidy described in Pub. L. 103–465, title II, § 221(a), Dec. 8, 1994, 108 paragraph (1)(A) that is zero or de minimis Stat. 4865.) shall not by itself require the administering EFFECTIVE DATE authority to determine that revocation of a Section effective, except as otherwise provided, on countervailing duty order or termination of the date on which the WTO Agreement enters into a suspended investigation would not be like- force with respect to the United States [Jan. 1, 1995], ly to lead to continuation or recurrence of a and applicable with respect to investigations, reviews, countervailable subsidy. and inquiries initiated and petitions filed under specified provisions of this chapter after such date, see sec- (B) Application of de minimis standards tion 291 of Pub. L. 103–465, set out as an Effective Date For purposes of this paragraph, the admin- of 1994 Amendment note under section 1671 of this title. istering authority shall apply the de minimis standards applicable to reviews con- § 1675b. Special rules for injury investigations ducted under subsections (a) and (b)(1) of for certain section 1303 or section 1671(c) section 1675 of this title. countervailing duty orders and investigations (c) Determination of likelihood of continuation or recurrence of dumping (a) In general (1) In general (1) Investigation by the commission upon request In a review conducted under section 1675(c) of this title, the administering authority shall In the case of a countervailing duty order determine whether revocation of an antidump- described in paragraph (2), which— ing duty order or termination of a suspended (A) applies to merchandise that is the investigation under section 1673c of this title product of a Subsidies Agreement country, would be likely to lead to continuation or re- and currence of sales of the subject merchandise at (B)(i) is in effect on the date on which such less than fair value. The administering au- country becomes a Subsidies Agreement thority shall consider— country, or (ii) is issued on a date that is after the (A) the weighted average dumping margins date described in clause (i) pursuant to a determined in the investigation and subse- court order in an action brought under sec- quent reviews, and tion 1516a of this title, (B) the volume of imports of the subject merchandise for the period before and the the Commission, upon receipt of a request period after the issuance of the antidumping from an interested party described in section duty order or acceptance of the suspension 1677(9)(C), (D), (E), (F), or (G) of this title for agreement. an injury investigation with respect to such (2) Consideration of other factors order, shall initiate an investigation and shall determine whether an industry in the United If good cause is shown, the administering au- States is likely to be materially injured by thority shall also consider such other price, reason of imports of the subject merchandise cost, market, or economic factors as it deems if the order is revoked. relevant. (2) Description of countervailing duty orders (3) Magnitude of the margin of dumping A countervailing duty order described in The administering authority shall provide to this paragraph is an order issued under section the Commission the magnitude of the margin 1303 1 of this title or section 1671(c) of this title of dumping that is likely to prevail if the with respect to which the requirement of an order is revoked or the suspended investiga- affirmative determination of material injury tion is terminated. The administering author- was not applicable at the time such order was ity shall normally choose a margin that was issued. determined under section 1673d of this title or (3) Requirements of request for investigation under subsection (a) or (b)(1) of section 1675 of this title. A request for an investigation under this subsection shall be submitted— (4) Special rule (A) in the case of an order described in (A) Treatment of zero or de minimis margins paragraph (1)(B)(i), within 6 months after A dumping margin described in paragraph the date on which the country described in (1)(A) that is zero or de minimis shall not by paragraph (1)(A) becomes a Subsidies Agree- itself require the administering authority to ment country, or determine that revocation of an antidump- (B) in the case of an order described in ing duty order or termination of a suspended paragraph (1)(B)(ii), within 6 months after investigation would not be likely to lead to the date the order is issued. continuation or recurrence of sales at less (4) Suspension of liquidation than fair value. With respect to entries of subject merchan- (B) Application of de minimis standards dise made on or after— For purposes of this paragraph, the administering authority shall apply the de mini- 1 See References in Text note below. Page 333 TITLE 19—CUSTOMS DUTIES § 1675b

(A) in the case of an order described in (3) Effect of Commission determination paragraph (1)(B)(i), the date on which the (A) Affirmative determination country described in paragraph (1)(A) be- Upon being notified by the Commission comes a Subsidies Agreement country, or that it has made an affirmative determina- (B) in the case of an order described in tion under subsection (a)(1) of this section— paragraph (1)(B)(ii), the date on which the (i) the administering authority shall order is issued, order the termination of the suspension of liquidation shall be suspended at the cash de- liquidation required pursuant to sub- posit rate in effect on the date described in section (a)(4) of this section, and subparagraph (A) or (B) (whichever is applica- (ii) the countervailing duty order shall ble). remain in effect until revoked, in whole or in part, under section 1675(d) of this title. (b) Investigation procedure and schedule For purposes of section 1675(c) of this title, a (1) Commission procedure countervailing duty order described in this (A) In general section shall be treated as issued on the date Except as otherwise provided in this sec- of publication of the Commission’s deter- tion, the provisions of this subtitle regard- mination under this subsection. ing evidence in and procedures for investiga- (B) Negative determination tions conducted under part I of this subtitle (i) In general shall apply to investigations conducted by Upon being notified by the Commission the Commission under this section. that it has made a negative determination (B) Time for Commission determination under subsection (a)(1) of this section, the Except as otherwise provided in subpara- administering authority shall revoke the graph (C), the Commission shall issue its de- countervailing duty order, and shall re- termination under subsection (a)(1) of this fund, with interest, any estimated coun- section, to the extent possible, not later tervailing duties collected during the pe- than 1 year after the date on which the in- riod liquidation was suspended pursuant to vestigation is initiated under this section. subsection (a)(4) of this section. (C) Special rule to permit administrative (ii) Limitation on negative determination flexibility A determination by the Commission that In the case of requests for investigations revocation of the order is not likely to re- received under this section within 1 year sult in material injury to an industry by after the date on which the WTO Agreement reason of imports of the subject merchan- enters into force with respect to the United dise shall not be based, in whole or in part, States, the Commission may, after consult- on any export taxes, duties, or other ing with the administering authority, initi- charges levied on the export of the subject ate its investigations in a manner that re- merchandise to the United States that sults in determinations being made in all were specifically intended to offset the such investigations during the 4-year period countervailable subsidy received. beginning on such date. (4) Countervailing duty orders with respect to which no request for injury investigation is (2) Net countervailable subsidy; nature of sub- made sidy If, with respect to a countervailing duty (A) Net countervailable subsidy order described in subsection (a) of this sec- The administering authority shall provide tion, a request for an investigation is not to the Commission the net countervailable made within the time required by subsection subsidy that is likely to prevail if the order (a)(3) of this section, the Commission shall no- which is the subject of the investigation is tify the administering authority that a nega- revoked. The administering authority nor- tive determination has been made under sub- mally shall choose a net countervailable section (a) of this section and the provisions of subsidy that was determined under section paragraph (3)(B) shall apply with respect to 1671d of this title or subsection (a) or (b)(1) the order. of section 1675 of this title. If the Commis- (c) Pending and suspended countervailing duty sion considers the magnitude of the net investigations countervailable subsidy in making its deter- If, on the date on which a country becomes a mination under this section, the Commis- Subsidies Agreement country, there is a coun- sion shall use the net countervailable sub- tervailing duty investigation in progress or sus- sidy provided by the administering author- pended under section 1303 2 of this title or sec- ity. tion 1671(c) of this title that applies to merchan- (B) Nature of subsidy dise which is a product of that country and with The administering authority shall inform respect to which the requirement of an affirma- the Commission of, and the Commission, in tive determination of material injury was not making its determination under this sec- applicable at the time the investigation was ini- tion, shall consider, the nature of the tiated, the Commission shall— countervailable subsidy and whether the (1) in the case of an investigation in countervailable subsidy is a subsidy de- progress, make a final determination under scribed in Article 3 or Article 6.1 of the Sub- sidies Agreement. 2 See References in Text note below. § 1675c TITLE 19—CUSTOMS DUTIES Page 334

section 1671d(b) of this title within 75 days ports of the subject merchandise from all after the date of an affirmative final deter- countries with respect to which such inves- mination, if any, by the administering author- tigations are treated as initiated on the same ity, day. (2) in the case of a suspended investigation (3) Time and procedure for Commission deter- to which section 1671c(i)(1)(B) of this title ap- mination plies, make a final determination under sec- The Commission shall render its determination 1671d(b) of this title within 120 days after tion in the investigation conducted under this receiving notice from the administering au- section at the same time as the Commission’s thority of the resumption of the investigation determination is made in the review under pursuant to section 1671c(i) of this title, or section 1675(c) of this title that is initiated within 45 days after the date of an affirmative pursuant to this subsection. The Commission final determination, if any, by the administer- shall in all other respects apply the procedures ing authority, whichever is later, or and standards set forth in section 1675(c) of (3) in the case of a suspended investigation this title to such section 1675(c) of this title to which section 1671c(i)(1)(C) of this title ap- reviews. plies, treat the countervailing duty order issued pursuant to such section as if it were— (June 17, 1930, ch. 497, title VII, § 753, as added (A) an order issued under subsection Pub. L. 103–465, title II, § 271(a), Dec. 8, 1994, 108 (a)(1)(B)(ii) of this section for purposes of Stat. 4918; amended Pub. L. 104–295, § 39, Oct. 11, subsection (a)(3) of this section; and 1996, 110 Stat. 3540.) (B) an order issued under subsection REFERENCES IN TEXT (a)(1)(B)(i) of this section for purposes of Section 1303 of this title, referred to in subsecs. (a)(2) subsection (a)(4) of this section. and (c), is defined in section 1677(26) of this title to (d) Publication in Federal Register mean section 1330 as in effect on the day before Jan. 1, 1995. The administering authority or the Commis- sion, as the case may be, shall publish in the AMENDMENTS Federal Register a notice of the initiation of 1996—Pub. L. 104–295, § 39(1), inserted ‘‘or section any investigation, and a notice of any deter- 1671(c)’’ after ‘‘section 1303’’ in section catchline. mination or revocation, made pursuant to this Subsecs. (a)(2), (c). Pub. L. 104–295 inserted ‘‘or sec- section. tion 1671(c) of this title’’ after ‘‘section 1303 of this title’’ and struck out ‘‘under section 1303(a)(2) of this (e) Request for simultaneous expedited review title’’ after ‘‘material injury’’. under section 1675(c) EFFECTIVE DATE (1) General rule Section effective, except as otherwise provided, on (A) Requests for reviews the date on which the WTO Agreement enters into Notwithstanding section 1675(c)(6)(A) of force with respect to the United States [Jan. 1, 1995], this title and except as provided in subpara- and applicable with respect to investigations, reviews graph (B), an interested party may request a and inquiries initiated and petitions filed under speci- review of an order under section 1675(c) of fied provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set out as an Effective Date this title at the same time the party re- of 1994 Amendment note under section 1671 of this title. quests an investigation under subsection (a) of this section, if the order involves the URUGUAY ROUND AGREEMENTS: ENTRY INTO FORCE same or comparable subject merchandise. The Uruguay Round Agreements, including the World Upon receipt of such request, the admin- Trade Organization Agreement and agreements an- istering authority, after consulting with the nexed to that Agreement, as referred to in section Commission, shall initiate a review of the 3511(d) of this title, entered into force with respect to order under section 1675(c) of this title. The the United States on Jan. 1, 1995. See note set out under section 3511 of this title. Commission shall combine such review with the investigation under this section. § 1675c. Repealed. Pub. L. 109–171, title VII, (B) Exception § 7601(a), Feb. 8, 2006, 120 Stat. 154 If the administering authority determines Section 1675c, act June 17, 1930, ch. 497, title VII, § 754, that the interested party who requested an as added Pub. L. 106–387, § 1(a) [title X, § 1003(a)], Oct. 28, investigation under this section is a related 2000, 114 Stat. 1549, 1549A–73, related to the continued party or an importer within the meaning of dumping and subsidy offset. section 1677(4)(B) of this title, the admin- EFFECTIVE DATE OF REPEAL istering authority may decline a request by Pub. L. 109–171, title VII, § 7601(a), Feb. 8, 2006, 120 such party to initiate a review of an order Stat. 154, provided that the repeal made by section under section 1675(c) of this title which in- 7601(a) is effective Feb. 8, 2006. volves the same or comparable subject mer- PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS chandise. MADE UNDER THE CONTINUED DUMPING AND SUBSIDY (2) Cumulation OFFSET ACT OF 2000. If a review under section 1675(c) of this title Pub. L. 111–5, div. B, title I, § 1701, Feb. 17, 2009, 123 is initiated under paragraph (1), such review Stat. 366, provided that: shall be treated as having been initiated on ‘‘(a) IN GENERAL.—Notwithstanding any other provi- the same day as the investigation under this sion of law, neither the Secretary of Homeland Secu- rity nor any other person may— section, and the Commission may, in accord- ‘‘(1) require repayment of, or attempt in any other ance with section 1677(7)(G) of this title, cu- way to recoup, any payments described in subsection mulatively assess the volume and effect of im- (b); or Page 335 TITLE 19—CUSTOMS DUTIES § 1676a

‘‘(2) offset any past, current, or future distributions under section 1671c(a)(2) or (c)(3) of this title, of antidumping or countervailing duties assessed the President shall enter into consultations with respect to imports from countries that are not with the government that is party to the agree- parties to the North American Free Trade Agreement in an attempt to recoup any payments described in ment for purposes of— subsection (b). (1) eliminating the countervailable subsidy ‘‘(b) PAYMENTS DESCRIBED.—Payments described in completely, or this subsection are payments of antidumping or coun- (2) reducing the net countervailable subsidy tervailing duties made pursuant to the Continued to a level that eliminates completely the inju- Dumping and Subsidy Offset Act of 2000 (section 754 of rious effect of exports to the United States of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 the merchandise. (Public Law 109–171; 120 Stat. 154))) that were— (b) Modification of agreements on basis of con- ‘‘(1) assessed and paid on imports of goods from sultations countries that are parties to the North American Free Trade Agreement; and At the direction of the President, the admin- ‘‘(2) distributed on or after January 1, 2001, and be- istering authority shall modify a quantitative fore January 1, 2006. restriction agreement as a result of consulta- ‘‘(c) PAYMENT OF FUNDS COLLECTED OR WITHHELD.— tions entered into under subsection (a) of this Not later than the date that is 60 days after the date of the enactment of this Act [Feb. 17, 2009], the Sec- section. retary of Homeland Security shall— (c) Special rule regarding agreements under sec- ‘‘(1) refund any repayments, or any other tion 1671c(c)(3) of this title recoupment, of payments described in subsection (b); and This chapter shall cease to apply to a quan- ‘‘(2) fully distribute any antidumping or counter- titative restriction agreement described in sec- vailing duties that the U.S. Customs and Border Pro- tion 1671c(c)(3) of this title at such time as that tection is withholding as an offset as described in agreement ceases to have force and effect under subsection (a)(2). section 1671c(f) of this title or violation is found ‘‘(d) LIMITATION.—Nothing in this section shall be construed to prevent the Secretary of Homeland Secu- under section 1671c(i) of this title. rity, or any other person, from requiring repayment of, (June 17, 1930, ch. 497, title VII, § 761, as added or attempting to otherwise recoup, any payments de- Pub. L. 98–573, title VI, § 611(a)(4), Oct. 30, 1984, 98 scribed in subsection (b) as a result of— ‘‘(1) a finding of false statements or other mis- Stat. 3031; amended Pub. L. 103–465, title II, conduct by a recipient of such a payment; or § 270(a)(1)(I), (b)(1)(C), (2), Dec. 8, 1994, 108 Stat. ‘‘(2) the reliquidation of an entry with respect to 4917.) which such a payment was made.’’ AMENDMENTS DISTRIBUTIONS ON CERTAIN ENTRIES 1994—Subsec. (a). Pub. L. 103–465, § 270(b)(1)(C), (2), in- Pub. L. 111–291, title VIII, § 822, Dec. 8, 2010, 124 Stat. serted ‘‘countervailable’’ before ‘‘subsidies’’ in heading. 3163, as amended by Pub. L. 111–312, title V, § 504(a), Subsec. (a)(1), (2). Pub. L. 103–465, § 270(a)(1)(I), in- Dec. 17, 2010, 124 Stat. 3308, provided that: ‘‘Notwith- serted ‘‘countervailable’’ before ‘‘subsidy’’. standing section 1701(b) [probably means 7601(b)] of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 EFFECTIVE DATE OF 1994 AMENDMENT Stat. 154 (19 U.S.C. 1675c note) [set out below]) or any Amendment by Pub. L. 103–465 effective, except as other provision of law, no payments shall be distributed under section 754 of the Tariff Act of 1930 [this sec- otherwise provided, on the date on which the WTO tion], as in effect on the day before the date of the en- Agreement enters into force with respect to the United actment of such section 1701 [probably means 7601, States [Jan. 1, 1995], and applicable with respect to in- which was approved Feb. 8, 2006], with respect to the vestigations, reviews, and inquiries initiated and peti- entries of any goods that are, on the date of the enact- tions filed under specified provisions of this chapter ment of this Act [Dec. 8, 2010]— after such date, see section 291 of Pub. L. 103–465, set ‘‘(1) unliquidated; and out as a note under section 1671 of this title. ‘‘(2)(A) not in litigation; and ‘‘(B) not under an order of liquidation from the De- EFFECTIVE DATE partment of Commerce.’’ Section applicable with respect to investigations ini- [Pub. L. 111–312, title V, § 504(b), Dec. 17, 2010, 124 Stat. tiated by petition or by the administering authority 3308, provided that: ‘‘The amendment made by sub- under parts I and II of this subtitle, and to reviews section (a) [amending section 822 of Pub. L. 111–291, set begun under section 1675 of this title, on or after Oct. out above] shall take effect as if included in the provi- 30, 1984, see section 626(b)(1) of Pub. L. 98–573, as amend- sions of the Claims Resolution Act of 2010 [Pub. L. ed, set out as an Effective Date of 1984 Amendment 111–291].’’] note under section 1671 of this title. Pub. L. 109–171, title VII, § 7601(b), Feb. 8, 2006, 120 Stat. 154, provided that: ‘‘All duties on entries of goods § 1676a. Required determinations made and filed before October 1, 2007, that would, but for subsection (a) of this section [repealing this sec- (a) In general tion], be distributed under section 754 of the Tariff Act Before the expiration date, if any, of a quan- of 1930 [this section], shall be distributed as if section 754 of the Tariff Act of 1930 had not been repealed by titative restriction agreement accepted under subsection (a).’’ section 1671c(a)(2) or 1671c(c)(3) of this title (if suspension of the related investigation is still in SUBPART B—CONSULTATIONS AND DETERMINA- effect)— TIONS REGARDING QUANTITATIVE RESTRICTION (1) the administering authority shall, at the AGREEMENTS direction of the President, initiate a proceed- § 1676. Required consultations ing to determine whether any countervailable subsidy is being provided with respect to the (a) Agreements in response to countervailable subject merchandise and, if being so provided, subsidies the net countervailable subsidy; and Within 90 days after the administering author- (2) if the administering authority initiates a ity accepts a quantitative restriction agreement proceeding under paragraph (1), the Commis- § 1677 TITLE 19—CUSTOMS DUTIES Page 336

sion shall determine whether imports of the PART IV—GENERAL PROVISIONS merchandise of the kind subject to the agree- CODIFICATION ment will, upon termination of the agreement, materially injure, or threaten with material The designation ‘‘PART IV’’ was in the original ‘‘Sub- injury, an industry in the United States or title D’’ and was editorially changed in order to conform the numbering format of this subtitle to the us- materially retard the establishment of such an ages employed in the codification of the remainder of industry. the Tariff Act of 1930 as originally enacted. (b) Determinations § 1677. Definitions; special rules The determinations required to be made by For purposes of this subtitle— the administering authority and the Commis- (1) Administering authority sion under subsection (a) of this section shall be made under such procedures as the administer- The term ‘‘administering authority’’ means ing authority and the Commission, respectively, the Secretary of Commerce, or any other offi- shall by regulation prescribe, and shall be treat- cer of the United States to whom the respon- ed as final determinations made under section sibility for carrying out the duties of the ad- 1671d of this title for purposes of judicial review ministering authority under this subtitle are under section 1516a of this title. If the deter- transferred by law. minations by each are affirmative, the admin- (2) Commission istering authority shall— The term ‘‘Commission’’ means the United (1) issue a countervailing duty order under States International Trade Commission. section 1671e of this title effective with respect (3) Country to merchandise entered on and after the date on which the agreement terminates; and The term ‘‘country’’ means a foreign coun- (2) order the suspension of liquidation of all try, a political subdivision, dependent terri- entries of subject merchandise which are en- tory, or possession of a foreign country, and, tered, or withdrawn from warehouse for con- except for the purpose of antidumping pro- sumption, on or after the date of publication ceedings, may include an association of 2 or of the order in the Federal Register. more foreign countries, political subdivisions, dependent territories, or possessions of coun- (c) Hearings tries into a customs union outside the United The determination proceedings required to be States. prescribed under subsection (b) of this section (4) Industry shall provide that the administering authority (A) In general and the Commission must, upon the request of The term ‘‘industry’’ means the producers any interested party, hold a hearing in accord- as a whole of a domestic like product, or ance with section 1677c of this title on the issues those producers whose collective output of a involved. domestic like product constitutes a major (June 17, 1930, ch. 497, title VII, § 762, as added proportion of the total domestic production Pub. L. 98–573, title VI, § 611(a)(4), Oct. 30, 1984, 98 of the product. Stat. 3032; amended Pub. L. 103–465, title II, (B) Related parties §§ 233(a)(5)(Z), (AA), 270(a)(1)(J), Dec. 8, 1994, 108 (i) If a producer of a domestic like product Stat. 4900, 4917.) and an exporter or importer of the subject merchandise are related parties, or if a pro- AMENDMENTS ducer of the domestic like product is also an 1994—Subsec. (a)(1). Pub. L. 103–465, §§ 233(a)(5)(Z), importer of the subject merchandise, the 270(a)(1)(J), inserted ‘‘countervailable’’ before ‘‘sub- producer may, in appropriate circumstances, sidy’’ in two places and substituted ‘‘subject merchan- be excluded from the industry. dise’’ for ‘‘merchandise subject to the agreement’’. (ii) For purposes of clause (i), a producer Subsec. (b)(2). Pub. L. 103–465, § 233(a)(5)(AA), substituted ‘‘subject merchandise’’ for ‘‘merchandise sub- and an exporter or importer shall be consid- ject to the order’’. ered to be related parties, if— (I) the producer directly or indirectly EFFECTIVE DATE OF 1994 AMENDMENT controls the exporter or importer, (II) the exporter or importer directly or Amendment by Pub. L. 103–465 effective, except as indirectly controls the producer, otherwise provided, on the date on which the WTO Agreement enters into force with respect to the United (III) a third party directly or indirectly States [Jan. 1, 1995], and applicable with respect to in- controls the producer and the exporter or vestigations, reviews, and inquiries initiated and peti- importer, or tions filed under specified provisions of this chapter (IV) the producer and the exporter or im- after such date, see section 291 of Pub. L. 103–465, set porter directly or indirectly control a out as a note under section 1671 of this title. third party and there is reason to believe that the relationship causes the producer EFFECTIVE DATE to act differently than a nonrelated pro- Section applicable with respect to investigations ini- ducer. tiated by petition or by the administering authority For purposes of this subparagraph, a party under parts I and II of this subtitle, or reviews begun under section 1675 of this title, on or after Oct. 30, 1984, shall be considered to directly or indirectly see section 626(b)(1) of Pub. L. 98–573, as amended, set control another party if the party is legally out as an Effective Date of 1984 Amendment note under or operationally in a position to exercise re- section 1671 of this title. straint or direction over the other party. Page 337 TITLE 19—CUSTOMS DUTIES § 1677

(C) Regional industries (II) there is a substantial coincidence In appropriate circumstances, the United of economic interest between the produc- States, for a particular product market, may ers or growers of the raw agricultural be divided into 2 or more markets and the product and the processors of the proc- producers within each market may be treat- essed agricultural product based upon ed as if they were a separate industry if— relevant economic factors, which may, (i) the producers within such market sell in the discretion of the Commission, in- all or almost all of their production of the clude price, added market value, or other domestic like product in question in that economic interrelationships (regardless market, and of whether such coincidence of economic (ii) the demand in that market is not interest is based upon any legal relation- supplied, to any substantial degree, by pro- ship). ducers of the product in question located (ii) Processing elsewhere in the United States. For purposes of this subparagraph, the In such appropriate circumstances, material processed agricultural product shall be injury, the threat of material injury, or ma- considered to be processed from a raw agri- terial retardation of the establishment of an cultural product through a single continu- industry may be found to exist with respect ous line of production if— to an industry even if the domestic industry (I) the raw agricultural product is sub- as a whole, or those producers whose collec- stantially or completely devoted to the tive output of a domestic like product con- production of the processed agricultural stitutes a major proportion of the total do- product; and mestic production of that product, is not in- (II) the processed agricultural product jured, if there is a concentration of dumped is produced substantially or completely imports or imports of merchandise benefit- from the raw product. ing from a countervailable subsidy into such an isolated market and if the producers of (iii) Relevant economic factors all, or almost all, of the production within For purposes of clause (i)(II), in addition that market are being materially injured or to such other factors it considers relevant threatened by material injury, or if the es- to the question of coincidence of economic tablishment of an industry is being materi- interest, the Commission shall— ally retarded, by reason of the dumped im- (I) if price is taken into account, con- ports or imports of merchandise benefiting sider the degree of correlation between from a countervailable subsidy. The term the price of the raw agricultural product ‘‘regional industry’’ means the domestic pro- and the price of the processed agricul- ducers within a region who are treated as a tural product; and separate industry under this subparagraph. (II) if added market value is taken into (D) Product lines account, consider whether the value of The effect of dumped imports or imports of the raw agricultural product constitutes merchandise benefiting from a counter- a significant percentage of the value of vailable subsidy shall be assessed in relation the processed agricultural product. to the United States production of a domes- (iv) Raw agricultural product tic like product if available data permit the For purposes of this subparagraph, the separate identification of production in term ‘‘raw agricultural product’’ means terms of such criteria as the production any farm or fishery product. process or the producer’s profits. If the domestic production of the domestic like prod- (v) Termination of this subparagraph uct has no separate identity in terms of such This subparagraph shall cease to have ef- criteria, then the effect of the dumped im- fect if the United States Trade Represent- ports or imports of merchandise benefiting ative notifies the administering authority from a countervailable subsidy shall be as- and the Commission that the application sessed by the examination of the production of this subparagraph is inconsistent with of the narrowest group or range of products, the international obligations of the United which includes a domestic like product, for States. which the necessary information can be pro- (5) Countervailable subsidy vided. (A) In general (E) Industry producing processed agricultural products Except as provided in paragraph (5B), a countervailable subsidy is a subsidy de- (i) In general scribed in this paragraph which is specific as Subject to clause (v), in an investigation described in paragraph (5A). involving a processed agricultural product (B) Subsidy described produced from any raw agricultural product, the producers or growers of the raw A subsidy is described in this paragraph in agricultural product may be considered the case in which an authority— part of the industry producing the proc- (i) provides a financial contribution, essed product if— (ii) provides any form of income or price (I) the processed agricultural product support within the meaning of Article XVI is produced from the raw agricultural of the GATT 1994, or product through a single continuous line (iii) makes a payment to a funding of production; and mechanism to provide a financial con- § 1677 TITLE 19—CUSTOMS DUTIES Page 338

tribution, or entrusts or directs a private tion to prevailing market conditions for the entity to make a financial contribution, if good or service being provided or the goods providing the contribution would normally being purchased in the country which is sub- be vested in the government and the prac- ject to the investigation or review. Prevail- tice does not differ in substance from prac- ing market conditions include price, quality, tices normally followed by governments, availability, marketability, transportation, to a person and a benefit is thereby con- and other conditions of purchase or sale. ferred. For purposes of this paragraph and (F) Change in ownership paragraphs (5A) and (5B), the term ‘‘author- A change in ownership of all or part of a ity’’ means a government of a country or foreign enterprise or the productive assets of any public entity within the territory of the a foreign enterprise does not by itself re- country. quire a determination by the administering (C) Other factors authority that a past countervailable sub- The determination of whether a subsidy sidy received by the enterprise no longer exists shall be made without regard to continues to be countervailable, even if the whether the recipient of the subsidy is pub- change in ownership is accomplished licly or privately owned and without regard through an arm’s length transaction. to whether the subsidy is provided directly (5A) Specificity or indirectly on the manufacture, produc- (A) In general tion, or export of merchandise. The admin- A subsidy is specific if it is an export sub- istering authority is not required to consider sidy described in subparagraph (B) or an im- the effect of the subsidy in determining port substitution subsidy described in sub- whether a subsidy exists under this paragraph. paragraph (C), or if it is determined to be specific pursuant to subparagraph (D). (D) Financial contribution (B) Export subsidy The term ‘‘financial contribution’’ means— An export subsidy is a subsidy that is, in (i) the direct transfer of funds, such as law or in fact, contingent upon export per- grants, loans, and equity infusions, or the formance, alone or as 1 of 2 or more condi- potential direct transfer of funds or liabil- tions. ities, such as loan guarantees, (C) Import substitution subsidy (ii) foregoing or not collecting revenue An import substitution subsidy is a sub- that is otherwise due, such as granting tax sidy that is contingent upon the use of do- credits or deductions from taxable income, mestic goods over imported goods, alone or (iii) providing goods or services, other as 1 of 2 or more conditions. than general infrastructure, or (iv) purchasing goods. (D) Domestic subsidy (E) Benefit conferred In determining whether a subsidy (other than a subsidy described in subparagraph (B) A benefit shall normally be treated as con- or (C)) is a specific subsidy, in law or in fact, ferred where there is a benefit to the recipi- to an enterprise or industry within the juris- ent, including— (i) in the case of an equity infusion, if diction of the authority providing the sub- the investment decision is inconsistent sidy, the following guidelines shall apply: with the usual investment practice of pri- (i) Where the authority providing the vate investors, including the practice re- subsidy, or the legislation pursuant to garding the provision of risk capital, in which the authority operates, expressly the country in which the equity infusion is limits access to the subsidy to an enter- made, prise or industry, the subsidy is specific as (ii) in the case of a loan, if there is a dif- a matter of law. ference between the amount the recipient (ii) Where the authority providing the of the loan pays on the loan and the subsidy, or the legislation pursuant to amount the recipient would pay on a com- which the authority operates, establishes parable commercial loan that the recipient objective criteria or conditions governing could actually obtain on the market, the eligibility for, and the amount of, a (iii) in the case of a loan guarantee, if subsidy, the subsidy is not specific as a there is a difference, after adjusting for matter of law, if— any difference in guarantee fees, between (I) eligibility is automatic, the amount the recipient of the guarantee (II) the criteria or conditions for eligi- pays on the guaranteed loan and the bility are strictly followed, and amount the recipient would pay for a com- (III) the criteria or conditions are parable commercial loan if there were no clearly set forth in the relevant statute, guarantee by the authority, and regulation, or other official document so (iv) in the case where goods or services as to be capable of verification. are provided, if such goods or services are For purposes of this clause, the term ‘‘ob- provided for less than adequate remunera- jective criteria or conditions’’ means cri- tion, and in the case where goods are pur- teria or conditions that are neutral and chased, if such goods are purchased for that do not favor one enterprise or indus- more than adequate remuneration. try over another. For purposes of clause (iv), the adequacy of (iii) Where there are reasons to believe remuneration shall be determined in rela- that a subsidy may be specific as a matter Page 339 TITLE 19—CUSTOMS DUTIES § 1677

of fact, the subsidy is specific if one or clusively and permanently (except when more of the following factors exist: disposed of on a commercial basis) for (I) The actual recipients of the sub- the research activity, sidy, whether considered on an enter- (III) the costs of consultancy and prise or industry basis, are limited in equivalent services used exclusively for number. the research activity, including costs for (II) An enterprise or industry is a pre- bought-in research, technical knowledge, dominant user of the subsidy. and patents, (III) An enterprise or industry receives (IV) additional overhead costs incurred a disproportionately large amount of the directly as a result of the research activ- subsidy. ity, and (IV) The manner in which the author- (V) other operating costs (such as ma- ity providing the subsidy has exercised terials and supplies) incurred directly as discretion in the decision to grant the a result of the research activity. subsidy indicates that an enterprise or (ii) Definitions industry is favored over others. For purposes of this subparagraph— In evaluating the factors set forth in sub- (I) Industrial research clauses (I), (II), (III), and (IV), the administering authority shall take into account The term ‘‘industrial research’’ means the extent of diversification of economic planned search or critical investigation activities within the jurisdiction of the au- aimed at the discovery of new knowl- thority providing the subsidy, and the edge, with the objective that such length of time during which the subsidy knowledge may be useful in developing program has been in operation. new products, processes, or services, or (iv) Where a subsidy is limited to an en- in bringing about a significant improve- terprise or industry located within a des- ment to existing products, processes, or ignated geographical region within the ju- services. risdiction of the authority providing the (II) Precompetitive development activity subsidy, the subsidy is specific. The term ‘‘precompetitive develop- For purposes of this paragraph and paragraph ment activity’’ means the translation of (5B), any reference to an enterprise or indus- industrial research findings into a plan, try is a reference to a foreign enterprise or blueprint, or design for new, modified, or foreign industry and includes a group of such improved products, processes, or serv- enterprises or industries. ices, whether intended for sale or use, including the creation of a first prototype (5B) Categories of noncountervailable sub- that would not be capable of commercial sidies use. The term also may include the con- (A) In general ceptual formulation and design of prod- Notwithstanding the provisions of para- ucts, processes, or services alternatives graphs (5) and (5A), in the case of merchan- and initial demonstration or pilot dise imported from a Subsidies Agreement projects, if these same projects cannot country, a subsidy shall be treated as non- be converted or used for industrial appli- countervailable if the administering author- cation or commercial exploitation. The ity determines in an investigation under term does not include routine or periodic part I of this subtitle or a review under part alterations to existing products, produc- III of this subtitle that the subsidy meets all tion lines, manufacturing processes, of the criteria described in subparagraph (B), services, or other ongoing operations (C), or (D), as the case may be, or the provi- even if those alterations may represent sions of subparagraph (E)(i) apply. improvements. (B) Research subsidy (iii) Calculation rules (i) In general (I) In general Except for a subsidy provided on the In the case of a research activity that manufacture, production, or export of civil spans both industrial research and pre- aircraft, a subsidy for research activities competitive development activity, the conducted by a person, or by a higher edu- allowable level of the noncountervailable cation or research establishment on a con- subsidy shall not exceed 62.5 percent of tract basis with a person, shall be treated the costs set forth in subclauses (I), (II), as noncountervailable, if the subsidy cov- (III), (IV), and (V) of clause (i). ers not more than 75 percent of the costs of (II) Total eligible costs industrial research or not more than 50 The allowable level of a noncounter- percent of the costs of precompetitive de- vailable subsidy described in clause (i) velopment activity, and such subsidy is shall be based on the total eligible costs limited exclusively to— incurred over the duration of a particu- (I) the costs of researchers, techni- lar project. cians, and other supporting staff em- (C) Subsidy to disadvantaged regions ployed exclusively in the research activity, (i) In general (II) the costs of instruments, equip- A subsidy provided, pursuant to a gen- ment, land, or buildings that are used ex- eral framework of regional development, § 1677 TITLE 19—CUSTOMS DUTIES Page 340

to a person located in a disadvantaged re- points having no, or virtually no, influ- gion within a country shall be treated as ence on the development of a region. noncountervailable, if it is not specific (II) Neutral and objective criteria (within the meaning of paragraph (5A)) The term ‘‘neutral and objective cri- within eligible regions and if the following teria’’ means criteria that do not favor conditions are met: certain regions beyond what is appro- (I) Each region identified as disadvan- priate for the elimination or reduction of taged within the territory of a country is regional disparities within the frame- a clearly designated, contiguous geo- work of the regional development policy. graphical area with a definable economic and administrative identity. (D) Subsidy for adaptation of existing facili- (II) Each region is considered a dis- ties to new environmental requirements advantaged region on the basis of neu- (i) In general tral and objective criteria indicating A subsidy that is provided to promote that the region is disadvantaged because the adaptation of existing facilities to new of more than temporary circumstances, environmental requirements that are im- and such criteria are clearly stated in posed by statute or by regulation, and that the relevant statute, regulation, or other result in greater constraints and financial official document so as to be capable of burdens on the recipient of the subsidy, verification. shall be treated as noncountervailable, if (III) The criteria described in sub- the subsidy— clause (II) include a measurement of eco- (I) is a one-time nonrecurring measure, nomic development. (II) is limited to 20 percent of the cost (IV) Programs provided within a gen- of adaptation, eral framework of regional development (III) does not cover the cost of replac- include ceilings on the amount of assisting and operating the subsidized invest- ance that can be granted to a subsidized ment, a cost that must be fully borne by project. Such ceilings are differentiated the recipient, according to the different levels of devel- (IV) is directly linked and propor- opment of assisted regions, and are ex- tionate to the recipient’s planned reduc- pressed in terms of investment costs or tion of nuisances and pollution, and does costs of job creation. Within such ceil- not cover any manufacturing cost savings, the distribution of assistance is suf- ings that may be achieved, and ficiently broad and even to avoid the (V) is available to all persons that can predominant use of a subsidy by, or the adopt the new equipment or production provision of disproportionately large processes. amounts of a subsidy to, an enterprise or (ii) Existing facilities industry as described in paragraph For purposes of this subparagraph, the (5A)(D). term ‘‘existing facilities’’ means facilities (ii) Measurement of economic development that have been in operation for at least 2 For purposes of clause (i), the measure- years before the date on which the new en- ment of economic development shall be vironmental requirements are imposed. based on one or more of the following fac- (E) Notified subsidy program tors: (i) General rule (I) Per capita income, household per If a subsidy is provided pursuant to a capita income, or per capita gross do- program that has been notified in accord- mestic product that does not exceed 85 ance with Article 8.3 of the Subsidies percent of the average for the country Agreement, the subsidy shall be treated as subject to investigation or review. noncountervailable and shall not be sub- (II) An unemployment rate that is at ject to investigation or review under this least 110 percent of the average unem- subtitle. ployment rate for the country subject to investigation or review. (ii) Exception The measurement of economic develop- Notwithstanding clause (i), a subsidy ment shall cover a 3-year period, but may shall be treated as countervailable if— (I) the Trade Representative notifies be a composite measurement and may in- the administering authority that a de- clude factors other than those set forth in termination has been made pursuant to this clause. Article 8.4 or 8.5 of the Subsidies Agree- (iii) Definitions ment that the subsidy, or the program For purposes of this subparagraph— pursuant to which the subsidy was pro- (I) General framework of regional devel- vided, does not satisfy the conditions opment and criteria of Article 8.2 of the Sub- The term ‘‘general framework of re- sidies Agreement; and gional development’’ means that the re- (II) the subsidy is specific within the gional subsidy programs are part of an meaning of paragraph (5A). internally consistent and generally ap- (F) Certain subsidies on agricultural prod- plicable regional development policy, ucts and that regional development subsidies Domestic support measures that are pro- are not granted in isolated geographical vided with respect to products listed in Page 341 TITLE 19—CUSTOMS DUTIES § 1677

Annex 1 to the Agreement on Agriculture, may be, the Commission shall explain its and that the administering authority deter- analysis of each factor considered under mines conform fully to the provisions of clause (i), and identify each factor consid- Annex 2 to that Agreement, shall be treated ered under clause (ii) and explain in full its as noncountervailable. Upon request by the relevance to the determination. administering authority, the Trade Rep- (C) Evaluation of relevant factors resentative shall provide advice regarding the interpretation and application of Annex For purposes of subparagraph (B)— 2. (i) Volume (G) Provisional application In evaluating the volume of imports of (i) Subparagraphs (B), (C), (D), and (E) merchandise, the Commission shall con- shall not apply on or after the first day of sider whether the volume of imports of the the month that is 66 months after the WTO merchandise, or any increase in that vol- Agreement enters into force, unless the pro- ume, either in absolute terms or relative visions of such subparagraphs are extended to production or consumption in the pursuant to section 3572(c) of this title. United States, is significant. (ii) Subparagraph (F) shall not apply to (ii) Price imports from a WTO member country at the In evaluating the effect of imports of end of the 9-year period beginning on Janu- such merchandise on prices, the Commis- ary 1, 1995. The Trade Representative shall sion shall consider whether— determine the precise termination date for (I) there has been significant price each WTO member country in accordance underselling by the imported merchan- with paragraph (i) of Article 1 of the Agree- dise as compared with the price of do- ment on Agriculture and such date shall be mestic like products of the United notified to the administering authority. States, and (6) Net countervailable subsidy (II) the effect of imports of such mer- For the purpose of determining the net chandise otherwise depresses prices to a countervailable subsidy, the administering au- significant degree or prevents price in- thority may subtract from the gross counter- creases, which otherwise would have oc- vailable subsidy the amount of— curred, to a significant degree. (A) any application fee, deposit, or similar (iii) Impact on affected domestic industry payment paid in order to qualify for, or to receive, the benefit of the countervailable In examining the impact required to be subsidy, considered under subparagraph (B)(i)(III), (B) any loss in the value of the counter- the Commission shall evaluate all relevant vailable subsidy resulting from its deferred economic factors which have a bearing on receipt, if the deferral is mandated by Gov- the state of the industry in the United ernment order, and States, including, but not limited to— (C) export taxes, duties, or other charges (I) actual and potential decline in out- levied on the export of merchandise to the put, sales, market share, profits, produc- United States specifically intended to offset tivity, return on investments, and utili- the countervailable subsidy received. zation of capacity, (II) factors affecting domestic prices, (7) Material injury (III) actual and potential negative ef- (A) In general fects on cash flow, inventories, employ- The term ‘‘material injury’’ means harm ment, wages, growth, ability to raise which is not inconsequential, immaterial, or capital, and investment, unimportant. (IV) actual and potential negative ef- (B) Volume and consequent impact fects on the existing development and In making determinations under sections production efforts of the domestic indus- 1671b(a), 1671d(b), 1673b(a), and 1673d(b) of try, including efforts to develop a deriva- this title, the Commission, in each case— tive or more advanced version of the do- (i) shall consider— mestic like product, and (I) the volume of imports of the subject (V) in a proceeding under part II of this merchandise, subtitle, the magnitude of the margin of (II) the effect of imports of that mer- dumping. chandise on prices in the United States The Commission shall evaluate all rel- for domestic like products, and evant economic factors described in this (III) the impact of imports of such clause within the context of the business merchandise on domestic producers of cycle and conditions of competition that domestic like products, but only in the are distinctive to the affected industry. context of production operations within (iv) Captive production the United States; and If domestic producers internally transfer (ii) may consider such other economic significant production of the domestic like factors as are relevant to the determina- product for the production of a down- tion regarding whether there is material stream article and sell significant produc- injury by reason of imports. tion of the domestic like product in the In the notification required under section merchant market, and the Commission 1671d(d) or 1673d(d) of this title, as the case finds that— § 1677 TITLE 19—CUSTOMS DUTIES Page 342

(I) the domestic like product produced in production capacity in the exporting that is internally transferred for process- country indicating the likelihood of sub- ing into that downstream article does stantially increased imports of the sub- not enter the merchant market for the ject merchandise into the United States, domestic like product, taking into account the availability of (II) the domestic like product is the other export markets to absorb any addi- predominant material input in the pro- tional exports, duction of that downstream article, and (III) a significant rate of increase of (III) the production of the domestic the volume or market penetration of im- like product sold in the merchant mar- ports of the subject merchandise indicat- ket is not generally used in the producing the likelihood of substantially in- tion of that downstream article, creased imports, then the Commission, in determining mar- (IV) whether imports of the subject ket share and the factors affecting finan- merchandise are entering at prices that cial performance set forth in clause (iii), are likely to have a significant depress- shall focus primarily on the merchant ing or suppressing effect on domestic market for the domestic like product. prices, and are likely to increase demand (D) Special rules for agricultural products for further imports, (i) The Commission shall not determine (V) inventories of the subject merchan- that there is no material injury or threat of dise, material injury to United States producers (VI) the potential for product-shifting of an agricultural commodity merely be- if production facilities in the foreign cause the prevailing market price is at or country, which can be used to produce above the minimum support price. the subject merchandise, are currently (ii) In the case of agricultural products, being used to produce other products, the Commission shall consider any increased burden on government income or price sup- (VII) in any investigation under this port programs. subtitle which involves imports of both a raw agricultural product (within the (E) Special rules meaning of paragraph (4)(E)(iv)) and any For purposes of this paragraph— product processed from such raw agricul- (i) Nature of countervailable subsidy tural product, the likelihood that there In determining whether there is a threat will be increased imports, by reason of of material injury, the Commission shall product shifting, if there is an affirma- consider information provided to it by the tive determination by the Commission administering authority regarding the na- under section 1671d(b)(1) or 1673d(b)(1) of ture of the countervailable subsidy grant- this title with respect to either the raw ed by a foreign country (particularly agricultural product or the processed ag- whether the countervailable subsidy is a ricultural product (but not both), subsidy described in Article 3 or 6.1 of the (VIII) the actual and potential nega- Subsidies Agreement) and the effects like- tive effects on the existing development ly to be caused by the countervailable sub- and production efforts of the domestic sidy. industry, including efforts to develop a (ii) Standard for determination derivative or more advanced version of The presence or absence of any factor the domestic like product, and which the Commission is required to (IX) any other demonstrable adverse evaluate under subparagraph (C) or (D) trends that indicate the probability that shall not necessarily give decisive guid- there is likely to be material injury by ance with respect to the determination by reason of imports (or sale for importa- the Commission of material injury. tion) of the subject merchandise (wheth- (F) Threat of material injury er or not it is actually being imported at the time). (i) In general In determining whether an industry in (ii) Basis for determination the United States is threatened with material injury by reason of imports (or sales The Commission shall consider the fac- for importation) of the subject merchan- tors set forth in clause (i) as a whole in dise, the Commission shall consider, making a determination of whether fur- among other relevant economic factors— ther dumped or subsidized imports are im- (I) if a countervailable subsidy is in- minent and whether material injury by volved, such information as may be pre- reason of imports would occur unless an sented to it by the administering author- order is issued or a suspension agreement ity as to the nature of the subsidy (paris accepted under this subtitle. The pres- ticularly as to whether the counter- ence or absence of any factor which the vailable subsidy is a subsidy described in Commission is required to consider under Article 3 or 6.1 of the Subsidies Agree- clause (i) shall not necessarily give deci- ment), and whether imports of the sub- sive guidance with respect to the deter- ject merchandise are likely to increase, mination. Such a determination may not (II) any existing unused production ca- be made on the basis of mere conjecture or pacity or imminent, substantial increase supposition. Page 343 TITLE 19—CUSTOMS DUTIES § 1677

(iii) Effect of dumping in third-country Basin Economic Recovery Act (19 U.S.C. markets 2701 et seq.) for purposes of making a de- (I) In general termination with respect to that country, except that the volume and effect of In investigations under part II of this imports of the subject merchandise from subtitle, the Commission shall consider such country may be cumulatively as- whether dumping in the markets of for- sessed with imports of the subject mer- eign countries (as evidenced by dumping chandise from any other country des- findings or antidumping remedies in ignated as such a beneficiary country to other WTO member markets against the the extent permitted by clause (i); or same class or kind of merchandise manu- (IV) from any country that is a party factured or exported by the same party to an agreement with the United States as under investigation) suggests a threat establishing a free trade area, which en- of material injury to the domestic indus- tered into force and effect before Janu- try. In the course of its investigation, ary 1, 1987, unless the Commission deter- the Commission shall request informa- mines that a domestic industry is mate- tion from the foreign manufacturer, ex- rially injured or threatened with mate- porter, or United States importer con- rial injury by reason of imports from cerning this issue. that country. (II) WTO member market (iii) Records in final investigations For purposes of this clause, the term ‘‘WTO member market’’ means the mar- In each final determination in which it ket of any country which is a WTO mem- cumulatively assesses the volume and ef- ber. fect of imports under clause (i), the Com- mission shall make its determinations (III) European Communities based on the record compiled in the first For purposes of this clause, the Euro- investigation in which it makes a final de- pean Communities shall be treated as a termination, except that when the admin- foreign country. istering authority issues its final deter- (G) Cumulation for determining material in- mination in a subsequently completed injury vestigation, the Commission shall permit (i) In general the parties in the subsequent investigation to submit comments concerning the sig- For purposes of clauses (i) and (ii) of sub- nificance of the administering authority’s paragraph (C), and subject to clause (ii), final determination, and shall include such the Commission shall cumulatively assess comments and the administering the volume and effect of imports of the authority’s final determination in the subject merchandise from all countries record for the subsequent investigation. with respect to which— (I) petitions were filed under section (iv) Regional industry determinations 1671a(b) or 1673a(b) of this title on the In an investigation which involves a re- same day, gional industry, and in which the Commis- (II) investigations were initiated under sion decides that the volume and effect of section 1671a(a) or 1673a(a) of this title imports should be cumulatively assessed on the same day, or under this subparagraph, such assessment (III) petitions were filed under section shall be based upon the volume and effect 1671a(b) or 1673a(b) of this title and in- of imports into the region or regions deter- vestigations were initiated under section mined by the Commission. The provisions 1671a(a) or 1673a(a) of this title on the of clause (iii) shall apply to such investiga- same day, tions. if such imports compete with each other (H) Cumulation for determining threat of and with domestic like products in the material injury United States market. To the extent practicable and subject to (ii) Exceptions subparagraph (G)(ii), for purposes of clause The Commission shall not cumulatively (i)(III) and (IV) of subparagraph (F), the assess the volume and effect of imports Commission may cumulatively assess the under clause (i)— volume and price effects of imports of the (I) with respect to which the admin- subject merchandise from all countries with istering authority has made a prelimi- respect to which— nary negative determination, unless the (i) petitions were filed under section administering authority subsequently 1671a(b) or 1673a(b) of this title on the made a final affirmative determination same day, with respect to those imports before the (ii) investigations were initiated under Commission’s final determination is section 1671a(a) or 1673a(a) of this title on made; the same day, or (II) from any country with respect to (iii) petitions were filed under section which the investigation has been termi- 1671a(b) or 1673a(b) of this title and inves- nated; tigations were initiated under section (III) from any country designated as a 1671a(a) or 1673a(a) of this title on the beneficiary country under the Caribbean same day, § 1677 TITLE 19—CUSTOMS DUTIES Page 344

if such imports compete with each other and this subparagraph is inconsistent with the with domestic like products in the United international obligations of the United States market. States. (I) Consideration of post-petition information (10) Domestic like product The Commission shall consider whether The term ‘‘domestic like product’’ means a any change in the volume, price effects, or product which is like, or in the absence of impact of imports of the subject merchan- like, most similar in characteristics and uses dise since the filing of the petition in an in- with, the article subject to an investigation vestigation under part I or II of this subtitle under this subtitle. is related to the pendency of the investiga- (11) Affirmative determinations by divided tion and, if so, the Commission may reduce Commission the weight accorded to the data for the period after the filing of the petition in mak- If the Commissioners voting on a determina- ing its determination of material injury, tion by the Commission, including a deter- threat of material injury, or material retar- mination under section 1675 of this title, are dation of the establishment of an industry in evenly divided as to whether the determina- the United States. tion should be affirmative or negative, the Commission shall be deemed to have made an (8) Subsidies Agreement; Agreement on Agri- affirmative determination. For the purpose of culture applying this paragraph when the issue before (A) Subsidies Agreement the Commission is to determine whether there The term ‘‘Subsidies Agreement’’ means is— the Agreement on Subsidies and Counter- (A) material injury to an industry in the vailing Measures referred to in section United States, 3511(d)(12) of this title. (B) threat of material injury to such an in- (B) Agreement on Agriculture dustry, or (C) material retardation of the establish- The term ‘‘Agreement on Agriculture’’ ment of an industry in the United States, means the Agreement on Agriculture referred to in section 3511(d)(2) of this title. by reason of imports of the merchandise, an (9) Interested party affirmative vote on any of the issues shall be treated as a vote that the determination The term ‘‘interested party’’ means— should be affirmative. (A) a foreign manufacturer, producer, or exporter, or the United States importer, of (12) Attribution of merchandise to country of subject merchandise or a trade or business manufacture or production association a majority of the members of For purposes of part I of this subtitle, mer- which are producers, exporters, or importers chandise shall be treated as the product of the of such merchandise, country in which it was manufactured or pro- (B) the government of a country in which duced without regard to whether it is im- such merchandise is produced or manufac- ported directly from that country and without tured or from which such merchandise is ex- regard to whether it is imported in the same ported, condition as when exported from that country (C) a manufacturer, producer, or whole- or in a changed condition by reason of re- saler in the United States of a domestic like manufacture or otherwise. product, (13) Repealed. Pub. L. 103–465, title II, (D) a certified union or recognized union § 222(i)(2), Dec. 8, 1994, 108 Stat. 4876 or group of workers which is representative of an industry engaged in the manufacture, (14) Sold or, in the absence of sales, offered for production, or wholesale in the United sale States of a domestic like product, The term ‘‘sold or, in the absence of sales, (E) a trade or business association a ma- offered for sale’’ means sold or, in the absence jority of whose members manufacture, of sales, offered— produce, or wholesale a domestic like prod- (A) to all purchasers in commercial quan- uct in the United States, tities, or (F) an association, a majority of whose (B) in the ordinary course of trade to one members is composed of interested parties or more selected purchasers in commercial described in subparagraph (C), (D), or (E) quantities at a price which fairly reflects with respect to a domestic like product, and the market value of the merchandise, (G) in any investigation under this subtitle involving an industry engaged in producing without regard to restrictions as to the dis- a processed agricultural product, as defined position or use of the merchandise by the pur- in paragraph (4)(E), a coalition or trade asso- chaser except that, where such restrictions are ciation which is representative of either— found to affect the market value of the mer- (i) processors, chandise, adjustment shall be made therefor in (ii) processors and producers, or calculating the price at which the merchan- (iii) processors and growers, dise is sold or offered for sale. but this subparagraph shall cease to have ef- (15) Ordinary course of trade fect if the United States Trade Representa- The term ‘‘ordinary course of trade’’ means tive notifies the administering authority the conditions and practices which, for a rea- and the Commission that the application of sonable time prior to the exportation of the Page 345 TITLE 19—CUSTOMS DUTIES § 1677

subject merchandise, have been normal in the bargaining between labor and manage- trade under consideration with respect to mer- ment, chandise of the same class or kind. The admin- (iii) the extent to which joint ventures istering authority shall consider the following or other investments by firms of other for- sales and transactions, among others, to be eign countries are permitted in the foreign outside the ordinary course of trade: country, (A) Sales disregarded under section (iv) the extent of government ownership 1677b(b)(1) of this title. or control of the means of production, (B) Transactions disregarded under section (v) the extent of government control 1677b(f)(2) of this title. over the allocation of resources and over (16) Foreign like product the price and output decisions of enter- The term ‘‘foreign like product’’ means mer- prises, and chandise in the first of the following cat- (vi) such other factors as the administer- egories in respect of which a determination for ing authority considers appropriate. the purposes of part II of this subtitle can be (C) Determination in effect satisfactorily made: (i) Any determination that a foreign coun- (A) The subject merchandise and other try is a nonmarket economy country shall merchandise which is identical in physical remain in effect until revoked by the admin- characteristics with, and was produced in istering authority. the same country by the same person as, (ii) The administering authority may that merchandise. make a determination under subparagraph (B) Merchandise— (i) produced in the same country and by (A) with respect to any foreign country at the same person as the subject merchan- any time. dise, (D) Determinations not in issue (ii) like that merchandise in component Notwithstanding any other provision of material or materials and in the purposes law, any determination made by the admin- for which used, and istering authority under subparagraph (A) (iii) approximately equal in commercial shall not be subject to judicial review in any value to that merchandise. investigation conducted under part II of this (C) Merchandise— subtitle. (i) produced in the same country and by (E) Collection of information the same person and of the same general class or kind as the subject merchandise, Upon request by the administering author- (ii) like that merchandise in the pur- ity, the Commissioner of Customs shall proposes for which used, and vide the administering authority a copy of (iii) which the administering authority all public and proprietary information sub- determines may reasonably be compared mitted to, or obtained by, the Commissioner with that merchandise. of Customs that the administering authority (17) Usual commercial quantities considers relevant to proceedings involving merchandise from nonmarket economy The term ‘‘usual commercial quantities’’, in countries. The administering authority shall any case in which the subject merchandise is protect proprietary information obtained sold in the market under consideration at dif- under this section from public disclosure in ferent prices for different quantities, means accordance with section 1677f of this title. the quantities in which such merchandise is there sold at the price or prices for one quan- (19) Equivalency of leases to sales tity in an aggregate volume which is greater In determining whether a lease is equivalent than the aggregate volume sold at the price or to a sale for purposes of this subtitle, the ad- prices for any other quantity. ministering authority shall consider— (18) Nonmarket economy country (A) the terms of the lease, (A) In general (B) commercial practice within the industry, The term ‘‘nonmarket economy country’’ (C) the circumstances of the transaction, means any foreign country that the admin- (D) whether the product subject to the istering authority determines does not oper- lease is integrated into the operations of the ate on market principles of cost or pricing lessee or importer, structures, so that sales of merchandise in (E) whether in practice there is a likeli- such country do not reflect the fair value of hood that the lease will be continued or re- the merchandise. newed for a significant period of time, and (B) Factors to be considered (F) other relevant factors, including In making determinations under subpara- whether the lease transaction would permit graph (A) the administering authority shall avoidance of antidumping or countervailing take into account— duties. (i) the extent to which the currency of (20) Application to governmental importations the foreign country is convertible into the currency of other countries; 1 (A) In general (ii) the extent to which wage rates in the Except as otherwise provided by this para- foreign country are determined by free graph, merchandise imported by, or for the use of, a department or agency of the United 1 So in original. The semicolon probably should be a comma. States Government (including merchandise § 1677 TITLE 19—CUSTOMS DUTIES Page 346

provided for under chapter 98 of the Har- (ii) Exception monized Tariff Schedule of the United Imports that would otherwise be neg- States) is subject to the imposition of coun- ligible under clause (i) shall not be neg- tervailing duties or antidumping duties ligible if the aggregate volume of imports under this subtitle or section 1303 of this of the merchandise from all countries de- title. scribed in clause (i) with respect to which (B) Exceptions investigations were initiated on the same Merchandise imported by, or for the use of, day exceeds 7 percent of the volume of all the Department of Defense shall not be sub- such merchandise imported into the ject to the imposition of countervailing or United States during the applicable 12- antidumping duties under this subtitle if— month period. (i) the merchandise is acquired by, or for (iii) Determination of aggregate volume use of, such Department— (I) from a country with which such De- In determining aggregate volume under partment had a Memorandum of Under- clause (ii) or (iv), the Commission shall standing which was in effect on January not consider imports from any country 1, 1988, and has continued to have a com- specified in paragraph (7)(G)(ii). parable agreement (including renewals) (iv) Negligibility in threat analysis or superceding agreements, and Notwithstanding clauses (i) and (ii), the (II) in accordance with terms of the Commission shall not treat imports as Memorandum of Understanding in effect negligible if it determines that there is a at the time of importation, or potential that imports from a country de- (ii) the merchandise has no substantial scribed in clause (i) will imminently ac- nonmilitary use. count for more than 3 percent of the vol- (21) United States-Canada Agreement ume of all such merchandise imported into the United States, or that the aggregate The term ‘‘United States-Canada Agree- volumes of imports from all countries de- ment’’ means the United States-Canada Free- scribed in clause (ii) will imminently ex- Trade Agreement. ceed 7 percent of the volume of all such (22) NAFTA merchandise imported into the United The term ‘‘NAFTA’’ means the North Amer- States. The Commission shall consider ican Free Trade Agreement. such imports only for purposes of deter- (23) Entry mining threat of material injury. The term ‘‘entry’’ includes, in appropriate (B) Negligibility for certain countries in circumstances as determined by the admin- countervailing duty investigations istering authority, a reconciliation entry cre- In the case of an investigation under sec- ated under a reconciliation process, defined in tion 1671 of this title, subparagraph (A) shall section 1401(s) of this title, that is initiated by be applied to imports of subject merchandise an importer. The liability of an importer from developing countries by substituting ‘‘4 under an antidumping or countervailing duty percent’’ for ‘‘3 percent’’ in subparagraph proceeding for entries of merchandise subject (A)(i) and by substituting ‘‘9 percent’’ for ‘‘7 to the proceeding will attach to the cor- percent’’ in subparagraph (A)(ii). responding reconciliation entry or entries. (C) Computation of import volumes Suspension of liquidation of the reconciliation entry or entries, for the purpose of enforcing In computing import volumes for purposes this subtitle, is equivalent to the suspension of subparagraphs (A) and (B), the Commis- of liquidation of the corresponding individual sion may make reasonable estimates on the entries; but the suspension of liquidation of basis of available statistics. the reconciliation entry or entries for such (D) Regional industries purpose does not preclude liquidation for any In an investigation in which the Commis- other purpose. sion makes a regional industry determina- (24) Negligible imports tion under paragraph (4)(C), the Commis- (A) In general sion’s examination under subparagraphs (A) (i) Less than 3 percent and (B) shall be based upon the volume of Except as provided in clauses (ii) and subject merchandise exported for sale in the (iv), imports from a country of merchan- regional market in lieu of the volume of all dise corresponding to a domestic like prod- subject merchandise imported into the uct identified by the Commission are ‘‘neg- United States. ligible’’ if such imports account for less (25) Subject merchandise than 3 percent of the volume of all such The term ‘‘subject merchandise’’ means the merchandise imported into the United class or kind of merchandise that is within the States in the most recent 12-month period scope of an investigation, a review, a suspen- for which data are available that pre- sion agreement, an order under this subtitle or cedes— section 1303 of this title, or a finding under the (I) the filing of the petition under sec- Antidumping Act, 1921. tion 1671a(b) or 1673a(b) of this title, or (II) the initiation of the investigation, (26) Section 1303 if the investigation was initiated under The terms ‘‘section 1303’’ and ‘‘1303’’ mean section 1671a(a) or 1673a(a) of this title. section 1303 of this title as in effect on the day Page 347 TITLE 19—CUSTOMS DUTIES § 1677

before the effective date of title II of the Uru- (35) Dumping margin; weighted average dump- guay Round Agreements Act. ing margin (27) Suspension agreement (A) Dumping margin The term ‘‘suspension agreement’’ means an The term ‘‘dumping margin’’ means the agreement described in section 1671c(b), amount by which the normal value exceeds 1671c(c), 1673c(b), 1673c(c), or 1673c(l) of this the export price or constructed export price title. of the subject merchandise. (28) Exporter or producer (B) Weighted average dumping margin The term ‘‘exporter or producer’’ means the The term ‘‘weighted average dumping mar- exporter of the subject merchandise, the pro- gin’’ is the percentage determined by divid- ducer of the subject merchandise, or both ing the aggregate dumping margins deter- where appropriate. For purposes of section mined for a specific exporter or producer by 1677b of this title, the term ‘‘exporter or pro- the aggregate export prices and constructed ducer’’ includes both the exporter of the sub- export prices of such exporter or producer. ject merchandise and the producer of the same subject merchandise to the extent necessary (C) Magnitude of the margin of dumping to accurately calculate the total amount in- The magnitude of the margin of dumping curred and realized for costs, expenses, and used by the Commission shall be— profits in connection with production and sale (i) in making a preliminary determina- of that merchandise. tion under section 1673b(a) of this title in (29) WTO Agreement an investigation (including any investiga- The term ‘‘WTO Agreement’’ means the tion in which the Commission cumula- Agreement defined in section 3501(9) of this tively assesses the volume and effect of title. imports under paragraph (7)(G)(i)), the dumping margin or margins published by (30) WTO member and WTO member country the administering authority in its notice The terms ‘‘WTO member’’ and ‘‘WTO mem- of initiation of the investigation; ber country’’ mean a state, or separate cus- (ii) in making a final determination toms territory (within the meaning of Article under section 1673d(b) of this title, the XII of the WTO Agreement), with respect to dumping margin or margins most recently which the United States applies the WTO published by the administering authority Agreement. prior to the closing of the Commission’s (31) GATT 1994 administrative record; The term ‘‘GATT 1994’’ means the General (iii) in a review under section 1675(b)(2) Agreement on Tariffs and Trade annexed to of this title, the most recent dumping the WTO Agreement. margin or margins determined by the ad- (32) Trade representative ministering authority under section 1675a(c)(3) of this title, if any, or under sec- The term ‘‘Trade Representative’’ means the tion 1673b(b) or 1673d(a) of this title; and United States Trade Representative. (iv) in a review under section 1675(c) of (33) Affiliated persons this title, the dumping margin or margins The following persons shall be considered to determined by the administering author- be ‘‘affiliated’’ or ‘‘affiliated persons’’: ity under section 1675a(c)(3) of this title. (A) Members of a family, including broth- (36) Developing and least developed country ers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descend- (A) Developing country ants. The term ‘‘developing country’’ means a (B) Any officer or director of an organiza- country designated as a developing country tion and such organization. by the Trade Representative. (C) Partners. (D) Employer and employee. (B) Least developed country (E) Any person directly or indirectly own- The term ‘‘least developed country’’ means ing, controlling, or holding with power to a country which the Trade Representative vote, 5 percent or more of the outstanding determines is— voting stock or shares of any organization (i) a country referred to as a least devel- and such organization. oped country within the meaning of para- (F) Two or more persons directly or indi- graph (a) of Annex VII to the Subsidies rectly controlling, controlled by, or under Agreement, or common control with, any person. (ii) any other country listed in Annex (G) Any person who controls any other VII to the Subsidies Agreement, but only person and such other person. if the country has a per capita gross na- For purposes of this paragraph, a person shall tional product of less than $1,000 per be considered to control another person if the annum as measured by the most recent person is legally or operationally in a position data available from the World Bank. to exercise restraint or direction over the (C) Publication of list other person. The Trade Representative shall publish in (34) Dumped; dumping the Federal Register, and update as nec- The terms ‘‘dumped’’ and ‘‘dumping’’ refer essary, a list of— to the sale or likely sale of goods at less than (i) developing countries that have elimi- fair value. nated their export subsidies on an expe- § 1677 TITLE 19—CUSTOMS DUTIES Page 348

dited basis within the meaning of Article AMENDMENTS 27.11 of the Subsidies Agreement, and 1996—Par. (16)(C)(i). Pub. L. 104–295, § 20(b)(7), which (ii) countries determined by the Trade directed substitution of ‘‘subject merchandise’’ for Representative to be least developed or de- ‘‘merchandise which is the subject of the investiga- veloping countries. tion’’ in subpar. (B)(i), was executed by making the substitution in subpar. (C)(i) to reflect the probable in- (D) Factors to consider tent of Congress. In determining whether a country is a de- Par. (30). Pub. L. 104–295, § 20(b)(14), substituted veloping country under subparagraph (A), ‘‘Agreement’’ for ‘‘agreement’’ after ‘‘applies the the Trade Representative shall consider such WTO’’. economic, trade, and other factors which the 1994—Par. (1). Pub. L. 103–465, § 233(b)(2), substituted ‘‘Secretary of Commerce’’ for ‘‘Secretary of the Treas- Trade Representative considers appropriate, ury’’. including the level of economic development Par. (4)(A). Pub. L. 103–465, § 222(a)(1), amended head- of such country (the assessment of which ing and text of subpar. (A) generally. Prior to amend- shall include a review of the country’s per ment, text read as follows: ‘‘The term ‘industry’ means capita gross national product) and the coun- the domestic producers as a whole of a like product, or try’s share of world trade. those producers whose collective output of the like product constitutes a major proportion of the total do- (E) Limitation on designation mestic production of that product; except that in the A determination that a country is a devel- case of wine and grape products subject to investiga- oping or least developed country pursuant to tion under this subtitle, the term also means the do- this paragraph shall be for purposes of this mestic producers of the principal raw agricultural subtitle only and shall not affect the deter- product (determined on either a volume or value basis) which is included in the like domestic product, if those mination of a country’s status as a develop- producers allege material injury, or threat of material ing or least developed country with respect injury, as a result of imports of such wine and grape to any other law. products.’’ (June 17, 1930, ch. 497, title VII, § 771, as added Par. (4)(B). Pub. L. 103–465, § 222(a)(1), amended heading and text of subpar. (B) generally. Prior to amend- Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. ment, text read as follows: ‘‘When some producers are 176; amended Pub. L. 98–573, title VI, § 612(a), related to the exporters or importers, or are themselves Oct. 30, 1984, 98 Stat. 3033; Pub. L. 99–514, title importers of the allegedly subsidized or dumped mer- XVIII, § 1886(a)(9), Oct. 22, 1986, 100 Stat. 2922; chandise, the term ‘industry’ may be applied in appro- Pub. L. 100–418, title I, §§ 1312, 1316(b), 1326(a)–(c), priate circumstances by excluding such producers from 1327–1330, 1335, Aug. 23, 1988, 102 Stat. 1184, 1187, those included in that industry.’’ 1203–1206, 1210; Pub. L. 100–449, title IV, § 403(d), Par. (4)(C). Pub. L. 103–465, § 270(c)(2), in concluding Sept. 28, 1988, 102 Stat. 1887; Pub. L. 100–647, title provisions, substituted ‘‘dumped imports or imports of merchandise benefiting from a countervailable sub- IX, § 9001(a)(5), Nov. 10, 1988, 102 Stat. 3807; Pub. sidy’’ for ‘‘subsidized or dumped imports’’ in two L. 101–382, title I, § 139(a)(3), title II, § 224(a), (b), places. Aug. 20, 1990, 104 Stat. 653, 659, 660; Pub. L. Pub. L. 103–465, §§ 222(a)(2), 233(a)(3)(A)(i), substituted 103–182, title IV, § 412(b), title VI, § 637(b), Dec. 8, ‘‘domestic like product’’ for ‘‘like product’’ in cl. (i) 1993, 107 Stat. 2146, 2203; Pub. L. 103–465, title II, and concluding provisions, and inserted at end of con- §§ 221(b), 222, 229(b), 233(a)(3), (4), (5)(BB)–(FF), cluding provisions ‘‘The term ‘regional industry’ means (b), 251, 266, 267, 270(c)(2), (e), Dec. 8, 1994, 108 the domestic producers within a region who are treated as a separate industry under this subparagraph.’’ Stat. 4869, 4890, 4898–4902, 4915, 4917, 4918; Pub. L. Par. (4)(D). Pub. L. 103–465, §§ 233(a)(3)(A)(i), 270(c)(2), 104–295, § 20(b)(7), (14), Oct. 11, 1996, 110 Stat. substituted ‘‘domestic like product’’ for ‘‘like product’’ 3527.) wherever appearing and ‘‘dumped imports or imports of merchandise benefiting from a countervailable sub- REFERENCES IN TEXT sidy’’ for ‘‘subsidized or dumped imports’’ in two The Caribbean Basin Economic Recovery Act, re- places. ferred to in par. (7)(G)(ii)(III), is title II of Pub. L. 98–67, Pars. (5) to (5B). Pub. L. 103–465, § 251(a), added pars. Aug. 5, 1983, 97 Stat. 384, as amended, which is classified (5) to (5B), and struck out former par. (5) which defined principally to chapter 15 (§ 2701 et seq.) of this title. For ‘‘subsidy’’. complete classification of this Act to the Code, see Par. (6). Pub. L. 103–465, § 251(b), inserted ‘‘counter- Short Title note set out under section 2701 of this title vailable’’ before ‘‘subsidy’’ wherever appearing in head- and Tables. ing and text. The Harmonized Tariff Schedule of the United States, Par. (7)(B)(i)(I). Pub. L. 103–465, § 233(a)(5)(BB), sub- referred to in par. (20)(A), is not set out in the Code. stituted ‘‘subject merchandise’’ for ‘‘merchandise See Publication of Harmonized Tariff Schedule note set which is the subject of the investigation’’. out under section 1202 of this title. Par. (7)(B)(i)(II), (III), (C)(ii)(I). Pub. L. 103–465, Section 1303 of this title, referred to in pars. (20)(A), § 233(a)(3)(B), substituted ‘‘domestic like products’’ for (25), and (26), was repealed, effective Jan. 1, 1995, by ‘‘like products’’. Pub. L. 103–465, title II, § 261(a), Dec. 8, 1994, 108 Stat. Par. (7)(C)(iii). Pub. L. 103–465, § 222(b)(3), substituted 4908. For savings provisions and treatment of references ‘‘subparagraph (B)(i)(III)’’ for ‘‘subparagraph (B)(iii)’’ to section 1303 in other laws, see section 261(b), (d)(1)(C) in introductory provisions. of Pub. L. 103–465, set out as notes under section 1303 of Par. (7)(C)(iii)(IV). Pub. L. 103–465, § 233(a)(3)(A)(ii), this title. substituted ‘‘domestic like product’’ for ‘‘like product’’. The Antidumping Act, 1921, referred to in par. (25), is Par. (7)(C)(iii)(V). Pub. L. 103–465, § 222(b)(1), added act May 27, 1921, ch. 14, title II, 42 Stat. 11, as amended, subcl. (V). which was classified generally to sections 160 to 171 of Par. (7)(C)(iv). Pub. L. 103–465, § 222(b)(2), added cl. (iv) this title, and was repealed by Pub. L. 96–39, title I, and struck out former cl. (iv) which directed that Com- § 106(a), July 26, 1979, 93 Stat. 193. mission cumulatively assess volume and effect of im- For the effective date of title II of the Uruguay ports from two or more countries of like products sub- Round Agreements Act, referred to in par. (26), as Jan. ject to investigation if such imports compete with each 1, 1995, see Effective Date of 1994 Amendment note set other and with like products of domestic industry in out under section 1671 of this title. United States market, with an exception for imports Page 349 TITLE 19—CUSTOMS DUTIES § 1677 which are products of country designated as beneficiary which is the subject of an investigation under this sub- country under Caribbean Basin Economic Recovery title’’ and inserted ‘‘producers, exporters, or’’ before Act. ‘‘importers’’. Par. (7)(C)(v). Pub. L. 103–465, § 222(d)(1), struck out Par. (9)(B). Pub. L. 103–465, § 222(g)(2), inserted ‘‘or heading and text of cl. (v). Prior to amendment, text from which such merchandise is exported’’ after ‘‘man- read as follows: ‘‘The Commission is not required to ufactured’’. apply clause (iv) or subparagraph (F)(iv) in any case in Par. (9)(C) to (F). Pub. L. 103–465, § 233(a)(3)(A)(iii), which the Commission determines that imports of the substituted ‘‘domestic like product’’ for ‘‘like product’’. merchandise subject to investigation are negligible and Par. (10). Pub. L. 103–465, § 233(a)(3)(A)(iii), substituted have no discernable adverse impact on the domestic in- ‘‘domestic like product’’ for ‘‘like product’’ in heading dustry. For purposes of making such determination, and text. the Commission shall evaluate all relevant economic Par. (11). Pub. L. 103–465, § 221(b), inserted factors regarding the imports, including, but not lim- ‘‘, including a determination under section 1675 of this ited to, whether— title,’’ after ‘‘determination by the Commission’’ in in- ‘‘(I) the volume and market share of the imports troductory provisions. are negligible, Par. (13). Pub. L. 103–465, § 222(i)(2), struck out head- ‘‘(II) sales transactions involving the imports are ing and text of par. (13). Text read as follows: ‘‘For the isolated and sporadic, and purpose of determining United States price, the term ‘‘(III) the domestic market for the like product is ‘exporter’ includes the person by whom or for whose ac- price sensitive by reason of the nature of the product, count the merchandise is imported into the United so that a small quantity of imports can result in States if— price suppression or depression. ‘‘(A) such person is the agent or principal of the ex- For purposes of this clause, the Commission may treat porter, manufacturer, or producer; as negligible and having no discernable adverse impact ‘‘(B) such person owns or controls, directly or indi- on the domestic industry imports that are the product rectly, through stock ownership or control or other- of any country that is a party to a free trade area wise, any interest in the business of the exporter, agreement with the United States which entered into manufacturer, or producer; force and effect before January 1, 1987, if the Commis- ‘‘(C) the exporter, manufacturer, or producer owns sion determines that the domestic industry is not being or controls, directly or indirectly, through stock materially injured by reason of such imports.’’ ownership or control or otherwise, any interest in Par. (7)(E)(i). Pub. L. 103–465, § 266, amended heading any business conducted by such person; or and text of cl. (i) generally. Prior to amendment, text ‘‘(D) any person or persons, jointly or severally, di- read as follows: ‘‘In determining whether there is a rectly or indirectly, through stock ownership or con- threat of material injury, the Commission shall control or otherwise, own or control in the aggregate 20 sider such information as may be presented to it by the percent or more of the voting power or control in the administering authority as to the nature of the subsidy business carried on by the person by whom or for (particularly as to whether the subsidy is an export whose account the merchandise is imported into the subsidy inconsistent with the Agreement) provided by United States, and also 20 percent or more of such a foreign country and the effects likely to be caused by power or control in the business of the exporter, man- the subsidy.’’ ufacturer, or producer.’’ Par. (7)(F)(i), (ii). Pub. L. 103–465, § 222(c), amended Par. (15). Pub. L. 103–465, § 222(h), substituted ‘‘subject cls. (i) and (ii) generally, substituting present provi- merchandise’’ for ‘‘merchandise which is the subject of sions for provisions which listed factors in determining an investigation’’ and inserted at end ‘‘The administer- as well as basis for determining that an industry is ing authority shall consider the following sales and threatened with material injury by reason of imports transactions, among others, to be outside the ordinary (or sales for importation) of the subject merchandise. course of trade: Par. (7)(F)(iii)(I), (II). Pub. L. 103–465, § 233(b)(1)(A), in ‘‘(A) Sales disregarded under section 1677b(b)(1) of subcl. (I), substituted ‘‘WTO member’’ for ‘‘GATT mem- this title. ber’’, and in subcl. (II), substituted ‘‘WTO member’’ for ‘‘(B) Transactions disregarded under section ‘‘GATT member’’ in heading and text before ‘‘market’’, 1677b(f)(2) of this title.’’ and ‘‘WTO member.’’ for ‘‘signatory to The Agreement Par. (16). Pub. L. 103–465, § 233(a)(4), substituted ‘‘For- on Implementation of Article VI of the General Agree- eign like product’’ for ‘‘Such or similar merchandise’’ ment on Tariffs and Trade (relating to antidumping as heading and ‘‘foreign like product’’ for ‘‘such or measures).’’ similar merchandise’’ in introductory provisions. Par. (7)(F)(iv). Pub. L. 103–465, § 222(e)(1), struck out Par. (16)(A). Pub. L. 103–465, § 233(a)(5)(DD), subheading and text of cl. (iv). Prior to amendment, text stituted ‘‘subject merchandise’’ for ‘‘merchandise read as follows: ‘‘To the extent practicable and subject which is the subject of an investigation’’. to subparagraph (C)(iv)(II) and (v), for purposes of Par. (16)(B)(i). Pub. L. 103–465, § 233(a)(5)(EE), which clause (i)(III) and (IV) the Commission may cumula- directed the substitution of ‘‘subject merchandise’’ for tively assess the volume and price effects of imports ‘‘merchandise which is the subject of an investigation’’, from two or more countries if such imports— was executed by making the substitution for text ‘‘(I) compete with each other, and with like prod- which contained the words ‘‘the investigation’’ rather ucts of the domestic industry, in the United States than ‘‘an investigation’’, to reflect the probable intent market, and of Congress. ‘‘(II) are subject to any investigation under section Par. (17). Pub. L. 103–465, § 233(a)(5)(FF), substituted 1303, 1671, or 1673 of this title.’’ ‘‘subject merchandise’’ for ‘‘merchandise which is the Par. (7)(G), (H). Pub. L. 103–465, § 222(e)(2), added sub- subject of the investigation’’. pars. (G) and (H). Par. (24). Pub. L. 103–465, § 222(d)(2), added par. (24). Par. (7)(I). Pub. L. 103–465, § 222(f), added subpar. (I). Pars. (25) to (34). Pub. L. 103–465, § 222(i)(1), added pars. Par. (8). Pub. L. 103–465, § 270(e), amended heading and (25) to (34). text of par. (8) generally. Prior to amendment, text Par. (35). Pub. L. 103–465, § 229(b), added par. (35). read as follows: ‘‘The terms ‘Agreement on Subsidies Par. (36). Pub. L. 103–465, § 267, added par. (36). and Countervailing Measures’ and ‘Agreement’ mean 1993—Pars. (18), (21). Pub. L. 103–182, § 412(b)(1), redes- the Agreement on Interpretation and Application of ignated par. (18), relating to United States-Canada Articles VI, XVI, and XXIII of the General Agreement Agreement, as (21). on Tariffs and Trade (relating to subsidies and counter- Par. (22). Pub. L. 103–182, § 412(b)(2), added (22). vailing measures) approved under section 2503(a) of this Par. (23). Pub. L. 103–182, § 637(b), added par. (23). title.’’ 1990—Par. (7)(C)(iv). Pub. L. 101–382, § 224(a), amended Par. (9)(A). Pub. L. 103–465, §§ 222(g)(1), 233(a)(5)(CC), cl. (iv) generally. Prior to amendment, cl. (iv) read as substituted ‘‘subject merchandise’’ for ‘‘merchandise follows: ‘‘For purposes of clauses (i) and (ii), the Com- § 1677 TITLE 19—CUSTOMS DUTIES Page 350 mission shall cumulatively assess the volume and ef- Par. (19). Pub. L. 100–647 redesignated par. (19), relat- fect of imports from two or more countries of like prod- ing to application to governmental importations, as ucts subject to investigation if such imports compete (20). with each other and with like products of the domestic Pub. L. 100–418, § 1335, added par. (19) relating to appli- industry in the United States market.’’ cation to governmental importations. Par. (7)(F)(iv). Pub. L. 101–382, § 224(b), substituted Pub. L. 100–418, § 1327, added par. (19) relating to ‘‘(C)(iv)(II) and (v)’’ for ‘‘(C)(v)’’. equivalency of leases to sales. Par. (20)(A). Pub. L. 101–382, § 139(a)(3), substituted Par. (20). Pub. L. 100–647 redesignated par. (19), relat- ‘‘chapter 98 of the Harmonized Tariff Schedule’’ for ing to application to governmental importations, as ‘‘schedule 8 of the Tariff Schedules’’. (20). 1988—Par. (4)(E). Pub. L. 100–418, § 1326(a), added sub- 1986—Par. (7)(F)(i). Pub. L. 99–514 substituted ‘‘the par. (E). merchandise’’ for ‘‘any merchandise’’ in introductory Par. (5). Pub. L. 100–418, § 1312, amended par. (5) gener- provisions and ‘‘final orders’’ for ‘‘find orders’’ in subcl. ally. Prior to amendment, par. (5) read as follows: ‘‘The (VIII). term ‘subsidy’ has the same meaning as the term 1984—Par. (4)(A). Pub. L. 98–573, § 612(a)(1), inserted ‘bounty or grant’ as that term is used in section 1303 of provision that in the case of wine and grape products this title, and includes, but is not limited to, the fol- subject to investigation under this subtitle, the term lowing: also means the domestic producers of the principal raw ‘‘(A) Any export subsidy described in Annex A to agricultural product (determined on either a volume or the Agreement (relating to illustrative list of export value basis) which is included in the like domestic subsidies). product, if those producers allege material injury, or ‘‘(B) The following domestic subsidies, if provided threat of material injury, as a result of imports of such or required by government action to a specific enter- wine and grape products. prise or industry, or group of enterprises or indus- Par. (7)(C)(iv). Pub. L. 98–623, § 612(a)(2)(A), added cl. tries, whether publicly or privately owned, and (iv). whether paid or bestowed directly or indirectly on Par. (7)(F). Pub. L. 98–573, § 612(a)(2)(B), added subpar. the manufacture, production, or export of any class (F). or kind of merchandise: Par. (9)(F). Pub. L. 98–573, § 612(a)(3), added subpar. ‘‘(i) The provision of capital, loans, or loan guar- (F). antees on terms inconsistent with commercial con- Par. (14)(A), (B). Pub. L. 98–573, § 612(a)(4), substituted siderations. ‘‘in commercial quantities’’ for ‘‘at wholesale’’. ‘‘(ii) The provision of goods or services at pref- Par. (17). Pub. L. 98–573, § 612(a)(5), substituted ‘‘com- erential rates. mercial quantities’’ for ‘‘wholesale quantities’’. ‘‘(iii) The grant of funds or forgiveness of debt to cover operating losses sustained by a specific indus- EFFECTIVE DATE OF 1994 AMENDMENT try. Amendment by Pub. L. 103–465 effective, except as ‘‘(iv) The assumption of any costs or expenses of otherwise provided, on the date on which the WTO manufacture, production, or distribution.’’ Agreement enters into force with respect to the United Par. (7)(B). Pub. L. 100–418, § 1328(1), amended subpar. States [Jan. 1, 1995], and applicable with respect to in- (B) generally. Prior to amendment, subpar. (B) read as vestigations, reviews, and inquiries initiated and peti- follows: ‘‘In making its determinations under sections tions filed under specified provisions of this chapter 1671b(a), 1671d(b), 1673b(a), and 1673d(b) of this title, the after such date, see section 291 of Pub. L. 103–465, set Commission shall consider, among other factors— out as a note under section 1671 of this title. ‘‘(i) the volume of imports of the merchandise which is the subject of the investigation, EFFECTIVE DATE OF 1993 AMENDMENT ‘‘(ii) the effect of imports of that merchandise on Amendment by section 412(b) of Pub. L. 103–182 effec- prices in the United States for like products, and tive on the date the North American Free Trade Agree- ‘‘(iii) the impact of imports of such merchandise on ment enters into force with respect to the United domestic producers of like products.’’ States [Jan. 1, 1994], but not applicable to any final de- Par. (7)(C). Pub. L. 100–418, § 1328(2), in heading sub- termination described in section 1516a(a)(1)(B) or stituted ‘‘relevant factors’’ for ‘‘volume and of price ef- (2)(B)(i), (ii), or (iii) of this title, notice of which is pub- fects’’, in cl. (ii)(I) substituted ‘‘underselling’’ for ‘‘un- lished in the Federal Register before such date, or to a dercutting’’, and in cl. (iii) inserted ‘‘domestic’’ in determination described in section 1516a(a)(2)(B)(vi) of heading and amended text generally. Prior to amend- this title, notice of which is received by the Govern- ment, text of cl. (iii) read as follows: ‘‘In examining the ment of Canada or Mexico before such date, or to any impact on the affected industry, the Commission shall binational panel review under the United States-Can- evaluate all relevant economic factors which have a ada Free-Trade Agreement, or to any extraordinary bearing on the state of the industry, including, but not challenge arising out of any such review that was com- limited to— ‘‘(I) actual and potential decline in output, sales, menced before such date, see section 416 of Pub. L. market share, profits, productivity, return on invest- 103–182, set out as an Effective Date note under section ments, and utilization of capacity, 3431 of this title. ‘‘(II) factors affecting domestic prices, and EFFECTIVE DATE OF 1990 AMENDMENT ‘‘(III) actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability Section 224(c) of Pub. L. 101–382 provided that: ‘‘The to raise capital, and investment.’’ amendments made by subsections (a) and (b) [amending Par. (7)(C)(v). Pub. L. 100–418, § 1330(b), added cl. (v). this section] apply with respect to investigations (in- Par. (7)(F)(i)(IX). Pub. L. 100–418, § 1326(b), which di- cluding investigations regarding products of Canadian rected that par. (7)(F) be amended by adding subcl. (IX), origin) initiated under section 702 or 732 of the Tariff was executed by adding subcl. (IX) to par. (7)(F)(i) to Act of 1930 [19 U.S.C. 1671a, 1673a] on or after the date reflect the probable intent of Congress. of the enactment of this Act [Aug. 20, 1990].’’ Par. (7)(F)(i)(X). Pub. L. 100–418, § 1329(1)–(3), added EFFECTIVE AND TERMINATION DATES OF 1988 subcl. (X). AMENDMENTS Par. (7)(F)(iii). Pub. L. 100–418, § 1329(4), added cl. (iii). Par. (7)(F)(iv). Pub. L. 100–418, § 1330(a), added cl. (iv). Amendment by Pub. L. 100–647 applicable as if such Par. (9)(G). Pub. L. 100–418, § 1326(c), added subpar. (G). amendment took effect on Aug. 23, 1988, see section Par. (18). Pub. L. 100–449 added par. (18) relating to 9001(b) of Pub. L. 100–647, set out as a note under sec- United States-Canada Agreement. tion 58c of this title. Pub. L. 100–418, § 1316(b), added par. (18) relating to Amendment by Pub. L. 100–449 effective on date nonmarket economy country. United States-Canada Free-Trade Agreement enters Page 351 TITLE 19—CUSTOMS DUTIES § 1677–1 into force (Jan. 1, 1989), and to cease to have effect on PLAN AMENDMENTS NOT REQUIRED UNTIL date Agreement ceases to be in force, see section 501(a), JANUARY 1, 1989 (c) of Pub. L. 100–449, set out in a note under section For provisions directing that if any amendments 2112 of this title. made by subtitle A or subtitle C of title XI [§§ 1101–1147 Amendment by sections 1312, 1316(b), 1326(a)–(c), and and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. 1327–1329 of Pub. L. 100–418 applicable with respect to 99–514 require an amendment to any plan, such plan investigations initiated after Aug. 23, 1988, and to re- amendment shall not be required to be made before the views initiated under section 1673e(c) or 1675 of this first plan year beginning on or after Jan. 1, 1989, see title after Aug. 23, 1988, see section 1337(b) of Pub. L. section 1140 of Pub. L. 99–514, as amended, set out as a 100–418, set out as an Effective Date of 1988 Amendment note under section 401 of Title 26, Internal Revenue note under section 1671 of this title. Code. Amendment by section 1330 of Pub. L. 100–418 applicable with respect to investigations initiated after Aug. § 1677–1. Upstream subsidies 23, 1988, see section 1337(c) of Pub. L. 100–418. Amendment by section 1335 of Pub. L. 100–418 applica- (a) ‘‘Upstream subsidy’’ defined ble with respect to entries, and withdrawals from warehouse for consumption, that are liquidated on or after The term ‘‘upstream subsidy’’ means any Aug. 23, 1988, see section 1337(e) of Pub. L. 100–418. countervailable subsidy, other than an export subsidy, that— EFFECTIVE AND TERMINATION DATES OF 1984 (1) is paid or bestowed by an authority (as AMENDMENT defined in section 1677(5) of this title) with re- Amendment by Pub. L. 98–573 applicable with respect spect to a product (hereafter in this section re- to investigations initiated by petition or by the admin- ferred to as an ‘‘input product’’) that is used in istering authority under parts I and II of this subtitle, the same country as the authority in the man- and to reviews begun under section 1675 of this title, on or after Oct. 30, 1984; but provisions of this subtitle not ufacture or production of merchandise which to be interpreted to prevent refiling of a petition under is the subject of a countervailing duty pro- section 1671a or 1673a of this title that was filed before ceeding; Oct. 30, 1984, if the purpose of refiling was to avail peti- (2) in the judgment of the administering au- tioner of amendment of par. (4)(A) of this section by thority bestows a competitive benefit on the Pub. L. 98–573, and such amendment of par. (4)(A) inap- merchandise; and plicable to petitions filed (or refiled) under section (3) has a significant effect on the cost of 1671a or 1673a of this title after Sept. 30, 1986, see sec- manufacturing or producing the merchandise. tion 626(b)(1), (c)(1), (2) of Pub. L. 98–573, as amended, set out as an Effective Date of 1984 Amendment note In applying this subsection, an association of under section 1671 of this title. two or more foreign countries, political subdivi- EFFECTIVE DATE sions, dependent territories, or possessions of foreign countries organized into a customs Part effective Jan. 1, 1980, see section 107 of Pub. L. 96–39, set out as a note under section 1671 of this title. union outside the United States shall be treated as being one country if the countervailable sub- TRANSFER OF FUNCTIONS sidy is provided by the customs union. For transfer of functions, personnel, assets, and li- (b) Determination of competitive benefit abilities of the United States Customs Service of the Department of the Treasury, including functions of the (1) In general Secretary of the Treasury relating thereto, to the Sec- Except as provided in paragraph (2), the ad- retary of Homeland Security, and for treatment of re- ministering authority shall decide that a com- lated references, see sections 203(1), 551(d), 552(d), and petitive benefit has been bestowed when the 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- price for the input product referred to in sub- ber 25, 2002, as modified, set out as a note under section section (a)(1) of this section for such use is 542 of Title 6. lower than the price that the manufacturer or All functions of the Secretary of the Treasury under producer of merchandise which is the subject this subtitle were transferred to the Secretary of Com- of a countervailing duty proceeding would merce pursuant to Reorg. Plan No. 3 of 1979, § 5(a)(1)(C), otherwise pay for the product in obtaining it 44 F.R. 69275, 93 Stat. 1381, eff. Jan. 2, 1980, as provided from another seller in an arms-length trans- by section 1–107(a) of Ex. Ord. No. 12188, Jan. 2, 1980, 45 action. F.R. 993, set out as notes under section 2171 of this title, except that the Customs Service of the Depart- (2) Adjustments ment of the Treasury was to accept such deposits, If the administering authority has deter- bonds, or other security as deemed appropriate by the mined in a previous proceeding that a counter- Secretary of Commerce, assess and collect such duties as directed by the Secretary of Commerce, and furnish vailable subsidy is paid or bestowed on the such of its important records or copies thereof as re- input product that is used for comparison quested by the Secretary incident to the functions under paragraph (1), the administering author- transferred. ity may (A) where appropriate, adjust the price that the manufacturer or producer of URUGUAY ROUND AGREEMENTS: ENTRY INTO FORCE merchandise which is the subject of such pro- The Uruguay Round Agreements, including the World ceeding would otherwise pay for the product to Trade Organization Agreement and agreements an- reflect the effects of the countervailable sub- nexed to that Agreement, as referred to in section 3511(d) of this title, entered into force with respect to sidy, or (B) select in lieu of that price a price the United States on Jan. 1, 1995. See note set out from another source. under section 3511 of this title. (c) Inclusion of amount of countervailable sub- EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS sidy For provisions relating to effect of termination of If the administering authority decides, during NAFTA country status on the provisions of sections 401 the course of a countervailing duty proceeding to 416 of Pub. L. 103–182, see section 3451 of this title. that an upstream countervailable subsidy is § 1677–2 TITLE 19—CUSTOMS DUTIES Page 352 being or has been paid or bestowed regarding the first plan year beginning on or after Jan. 1, 1989, see subject merchandise, the administering author- section 1140 of Pub. L. 99–514, as amended, set out as a ity shall include in the amount of any counter- note under section 401 of Title 26, Internal Revenue vailing duty imposed on the merchandise an Code. amount equal to the amount of the competitive § 1677–2. Calculation of countervailable subsidies benefit referred to in subparagraph (1)(B),1 ex- on certain processed agricultural products cept that in no event shall the amount be greater than the amount of the countervailable sub- In the case of an agricultural product proc- sidy determined with respect to the upstream essed from a raw agricultural product in which— (1) the demand for the prior stage product is product. substantially dependent on the demand for the (June 17, 1930, ch. 497, title VII, § 771A, as added latter stage product, and Pub. L. 98–573, title VI, § 613(a), Oct. 30, 1984, 98 (2) the processing operation adds only lim- Stat. 3035; amended Pub. L. 99–514, title XVIII, ited value to the raw commodity, § 1886(a)(10), Oct. 22, 1986, 100 Stat. 2922; Pub. L. countervailable subsidies found to be provided 103–465, title II, §§ 233(a)(5)(GG), 268, 270(a)(1)(K), to either producers or processors of the product (L), (2)(B), (c)(3), Dec. 8, 1994, 108 Stat. 4901, 4916, shall be deemed to be provided with respect to 4917; Pub. L. 104–295, § 20(b)(2), Oct. 11, 1996, 110 the manufacture, production, or exportation of Stat. 3527.) the processed product. AMENDMENTS (June 17, 1930, ch. 497, title VII, § 771B, as added 1996—Subsec. (c). Pub. L. 104–295 amended directory Pub. L. 100–418, title I, § 1313(a), Aug. 23, 1988, 102 language of Pub. L. 103–465, § 270(a)(2)(B). See 1994 Stat. 1185; amended Pub. L. 100–647, title IX, Amendment note below. § 9001(a)(4), Nov. 10, 1988, 102 Stat. 3806; Pub. L. 1994—Subsec. (a). Pub. L. 103–465, § 268, inserted intro- 103–465, title II, § 270(b)(1)(D), (2), Dec. 8, 1994, 108 ductory provisions and struck out former introductory Stat. 4917.) provisions which read as follows: ‘‘The term ‘upstream subsidy’ means any subsidy described in section AMENDMENTS 1677(5)(B)(i), (ii), (iii), or (iv) of this title by the govern- 1994—Pub. L. 103–465 inserted ‘‘countervailable’’ be- ment of a country that—’’, and in concluding provi- fore ‘‘subsidies’’ in section catchline and concluding sions, inserted ‘‘countervailable’’ before ‘‘subsidy’’. provisions. Subsec. (a)(1). Pub. L. 103–465, § 268(1), added par. (1) 1988—Pub. L. 100–647 amended section generally. Prior and struck out former par. (1) which read as follows: ‘‘is to amendment, section read as follows: ‘‘In the case of paid or bestowed by that government with respect to a an agricultural product processed from a raw agricul- product (hereafter referred to as an ‘input product’) tural product in which (1) the demand for the prior that is used in the manufacture or production in that stage product is substantially dependent on the demand country of merchandise which is the subject of a coun- for the latter stage product, and (2) the processing op- tervailing duty proceeding;’’. eration adds only limited value to the raw commodity, Subsec. (b)(2). Pub. L. 103–465, § 270(a)(1)(K), inserted subsidies found to be provided to either producers or ‘‘countervailable’’ before ‘‘subsidy’’ in two places. processors of the product shall be deemed to be pro- Subsec. (c). Pub. L. 103–465, § 270(a)(2)(B), as amended vided with respect to the manufacture, production, or by Pub. L. 104–295, inserted ‘‘countervailable’’ before exportation of the processed product.’’ ‘‘subsidy’’ in heading. EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–465, § 270(a)(1)(L), (c)(3), inserted ‘‘countervailable’’ after ‘‘upstream’’ and substituted ‘‘the Amendment by Pub. L. 103–465 effective, except as countervailable subsidy determined’’ for ‘‘subsidization otherwise provided, on the date on which the WTO determined’’. Agreement enters into force with respect to the United Pub. L. 103–465, § 233(a)(5)(GG), substituted ‘‘subject States [Jan. 1, 1995], and applicable with respect to in- merchandise’’ for ‘‘merchandise under investigation’’. vestigations, reviews, and inquiries initiated and peti- 1986—Subsec. (a). Pub. L. 99–514 substituted ‘‘(ii), (iii), tions filed under specified provisions of this chapter or (iv)’’ for ‘‘(ii), or (iii)’’ in introductory provisions. after such date, see section 291 of Pub. L. 103–465, set out as a note under section 1671 of this title. EFFECTIVE DATE OF 1994 AMENDMENT EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO Amendment by Pub. L. 100–647 applicable as if such Agreement enters into force with respect to the United amendment took effect on Aug. 23, 1988, see section States [Jan. 1, 1995], and applicable with respect to in- 9001(b) of Pub. L. 100–647, set out as an Effective and vestigations, reviews, and inquiries initiated and peti- Termination Dates of 1988 Amendments note under sections filed under specified provisions of this chapter tion 58c of this title. after such date, see section 291 of Pub. L. 103–465, set out as a note under section 1671 of this title. § 1677a. Export price and constructed export price EFFECTIVE DATE (a) Export price Section effective Oct. 30, 1984, see section 626(a) of Pub. L. 98–573, set out as an Effective Date of 1984 The term ‘‘export price’’ means the price at Amendment note under section 1671 of this title. which the subject merchandise is first sold (or agreed to be sold) before the date of importation PLAN AMENDMENTS NOT REQUIRED UNTIL by the producer or exporter of the subject mer- JANUARY 1, 1989 chandise outside of the United States to an un- For provisions directing that if any amendments affiliated purchaser in the United States or to made by subtitle A or subtitle C of title XI [§§ 1101–1147 an unaffiliated purchaser for exportation to the and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. United States, as adjusted under subsection (c) 99–514 require an amendment to any plan, such plan of this section. amendment shall not be required to be made before the (b) Constructed export price

1 So in original. Probably should be ‘‘subsection (a)(2) of this The term ‘‘constructed export price’’ means section,’’. the price at which the subject merchandise is Page 353 TITLE 19—CUSTOMS DUTIES § 1677a first sold (or agreed to be sold) in the United (3) the profit allocated to the expenses de- States before or after the date of importation by scribed in paragraphs (1) and (2). or for the account of the producer or exporter of (e) Special rule for merchandise with value such merchandise or by a seller affiliated with added after importation the producer or exporter, to a purchaser not affiliated with the producer or exporter, as ad- Where the subject merchandise is imported by justed under subsections (c) and (d) of this sec- a person affiliated with the exporter or pro- tion. ducer, and the value added in the United States by the affiliated person is likely to exceed sub- (c) Adjustments for export price and constructed stantially the value of the subject merchandise, export price the administering authority shall determine the The price used to establish export price and constructed export price for such merchandise constructed export price shall be— by using one of the following prices if there is a (1) increased by— sufficient quantity of sales to provide a reason- (A) when not included in such price, the able basis for comparison and the administering cost of all containers and coverings and all authority determines that the use of such sales other costs, charges, and expenses incident is appropriate: to placing the subject merchandise in condi- (1) The price of identical subject merchan- tion packed ready for shipment to the dise sold by the exporter or producer to an un- United States, affiliated person. (B) the amount of any import duties im- (2) The price of other subject merchandise posed by the country of exportation which sold by the exporter or producer to an unaffili- have been rebated, or which have not been ated person. collected, by reason of the exportation of the subject merchandise to the United States, If there is not a sufficient quantity of sales to and provide a reasonable basis for comparison under (C) the amount of any countervailing duty paragraph (1) or (2), or the administering au- imposed on the subject merchandise under thority determines that neither of the prices depart I of this subtitle to offset an export subscribed in such paragraphs is appropriate, then sidy, and the constructed export price may be determined (2) reduced by— on any other reasonable basis. (A) except as provided in paragraph (1)(C), (f) Special rule for determining profit the amount, if any, included in such price, (1) In general attributable to any additional costs, charges, or expenses, and United States im- For purposes of subsection (d)(3) of this sec- port duties, which are incident to bringing tion, profit shall be an amount determined by the subject merchandise from the original multiplying the total actual profit by the ap- place of shipment in the exporting country plicable percentage. to the place of delivery in the United States, (2) Definitions and For purposes of this subsection: (B) the amount, if included in such price, of any export tax, duty, or other charge im- (A) Applicable percentage posed by the exporting country on the expor- The term ‘‘applicable percentage’’ means tation of the subject merchandise to the the percentage determined by dividing the United States, other than an export tax, total United States expenses by the total ex- duty, or other charge described in section penses. 1677(6)(C) of this title. (B) Total United States expenses (d) Additional adjustments to constructed export The term ‘‘total United States expenses’’ price means the total expenses described in sub- For purposes of this section, the price used to section (d)(1) and (2) of this section. establish constructed export price shall also be reduced by— (C) Total expenses (1) the amount of any of the following ex- The term ‘‘total expenses’’ means all expenses generally incurred by or for the ac- penses in the first of the following cat- count of the producer or exporter, or the affili- egories which applies and which are incurred ated seller in the United States, in selling the by or on behalf of the foreign producer and subject merchandise (or subject merchandise foreign exporter of the subject merchandise to which value has been added)— and by or on behalf of the United States sell- (A) commissions for selling the subject er affiliated with the producer or exporter merchandise in the United States; with respect to the production and sale of (B) expenses that result from, and bear a such merchandise: direct relationship to, the sale, such as cred- (i) The expenses incurred with respect to it expenses, guarantees and warranties; the subject merchandise sold in the United (C) any selling expenses that the seller States and the foreign like product sold in pays on behalf of the purchaser; and the exporting country if such expenses (D) any selling expenses not deducted were requested by the administering au- under subparagraph (A), (B), or (C); thority for the purpose of establishing nor- (2) the cost of any further manufacture or mal value and constructed export price. assembly (including additional material and (ii) The expenses incurred with respect labor), except in circumstances described in to the narrowest category of merchandise subsection (e) of this section; and sold in the United States and the export- § 1677b TITLE 19—CUSTOMS DUTIES Page 354

ing country which includes the subject course of trade and, to the extent prac- merchandise. ticable, at the same level of trade as the (iii) The expenses incurred with respect export price or constructed export price, to the narrowest category of merchandise or sold in all countries which includes the (ii) in a case to which subparagraph (C) subject merchandise. applies, the price at which the foreign like (D) Total actual profit product is so sold (or offered for sale) for consumption in a country other than the The term ‘‘total actual profit’’ means the exporting country or the United States, total profit earned by the foreign producer, if— exporter, and affiliated parties described in (I) such price is representative, subparagraph (C) with respect to the sale of (II) the aggregate quantity (or, if quan- the same merchandise for which total ex- tity is not appropriate, value) of the for- penses are determined under such subpara- eign like product sold by the exporter or graph. producer in such other country is 5 per- (June 17, 1930, ch. 497, title VII, § 772, as added cent or more of the aggregate quantity Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. (or value) of the subject merchandise 181; amended Pub. L. 98–573, title VI, § 614, Oct. sold in the United States or for export to 30, 1984, 98 Stat. 3036; Pub. L. 103–465, title II, the United States, and § 223, Dec. 8, 1994, 108 Stat. 4876.) (III) the administering authority does not determine that the particular mar- AMENDMENTS ket situation in such other country pre- 1994—Pub. L. 103–465 amended section generally, sub- vents a proper comparison with the ex- stituting present provisions for provisions defining port price or constructed export price. ‘‘United States price’’, ‘‘purchase price’’, and ‘‘export- (C) Third country sales er’s sales price’’ and providing for adjustments to purchase price and exporter’s sales price. This subparagraph applies when— 1984—Subsec. (b). Pub. L. 98–573 inserted ‘‘a reseller (i) the foreign like product is not sold (or or’’ before ‘‘the manufacturer’’. offered for sale) for consumption in the ex- EFFECTIVE DATE OF 1994 AMENDMENT porting country as described in subparagraph (B)(i), Amendment by Pub. L. 103–465 effective, except as (ii) the administering authority deter- otherwise provided, on the date on which the WTO mines that the aggregate quantity (or, if Agreement enters into force with respect to the United States [Jan. 1, 1995], and applicable with respect to in- quantity is not appropriate, value) of the vestigations, reviews, and inquiries initiated and peti- foreign like product sold in the exporting tions filed under specified provisions of this chapter country is insufficient to permit a proper after such date, see section 291 of Pub. L. 103–465, set comparison with the sales of the subject out as a note under section 1671 of this title. merchandise to the United States, or (iii) the particular market situation in EFFECTIVE DATE OF 1984 AMENDMENT the exporting country does not permit a Amendment by Pub. L. 98–573 effective Oct. 30, 1984, proper comparison with the export price or see section 626(a) of Pub. L. 98–573, set out as a note constructed export price. under section 1671 of this title. For purposes of clause (ii), the aggregate § 1677b. Normal value quantity (or value) of the foreign like prod- (a) Determination uct sold in the exporting country shall normally be considered to be insufficient if such In determining under this subtitle whether quantity (or value) is less than 5 percent of subject merchandise is being, or is likely to be, the aggregate quantity (or value) of sales of sold at less than fair value, a fair comparison the subject merchandise to the United shall be made between the export price or con- States. structed export price and normal value. In order to achieve a fair comparison with the export (2) Fictitious markets price or constructed export price, normal value No pretended sale or offer for sale, and no shall be determined as follows: sale or offer for sale intended to establish a (1) Determination of normal value fictitious market, shall be taken into account in determining normal value. The occurrence (A) In general of different movements in the prices at which The normal value of the subject merchan- different forms of the foreign like product are dise shall be the price described in subpara- sold (or, in the absence of sales, offered for graph (B), at a time reasonably correspond- sale) in the exporting country after the issuing to the time of the sale used to determine ance of an antidumping duty order may be the export price or constructed export price considered by the administering authority as under section 1677a(a) or (b) of this title. evidence of the establishment of a fictitious (B) Price market for the foreign like product if the movement in such prices appears to reduce the The price referred to in subparagraph (A) amount by which the normal value exceeds is— the export price (or the constructed export (i) the price at which the foreign like price) of the subject merchandise. product is first sold (or, in the absence of a sale, offered for sale) for consumption in (3) Exportation from an intermediate country the exporting country, in the usual com- Where the subject merchandise is exported mercial quantities and in the ordinary to the United States from an intermediate Page 355 TITLE 19—CUSTOMS DUTIES § 1677b

country, normal value shall be determined in administering authority to be wholly or the intermediate country, except that normal partly due to— value may be determined in the country of ori- (i) the fact that the quantities in which gin of the subject merchandise if— the subject merchandise is sold or agreed (A) the producer knew at the time of the to be sold to the United States are greater sale that the subject merchandise was des- than or less than the quantities in which tined for exportation; the foreign like product is sold, agreed to (B) the subject merchandise is merely be sold, or offered for sale, transshipped through the intermediate coun- (ii) the fact that merchandise described try; in subparagraph (B) or (C) of section (C) sales of the foreign like product in the 1677(16) of this title is used in determining intermediate country do not satisfy the con- normal value, or ditions of paragraph (1)(C); or (iii) other differences in the circum- (D) the foreign like product is not pro- stances of sale. duced in the intermediate country. (7) Additional adjustments (4) Use of constructed value (A) Level of trade If the administering authority determines that the normal value of the subject merchan- The price described in paragraph (1)(B) dise cannot be determined under paragraph shall also be increased or decreased to make (1)(B)(i), then, notwithstanding paragraph due allowance for any difference (or lack (1)(B)(ii), the normal value of the subject mer- thereof) between the export price or con- chandise may be the constructed value of that structed export price and the price described merchandise, as determined under subsection in paragraph (1)(B) (other than a difference (e) of this section. for which allowance is otherwise made under this section) that is shown to be wholly or (5) Indirect sales or offers for sale partly due to a difference in level of trade If the foreign like product is sold or, in the between the export price or constructed ex- absence of sales, offered for sale through an af- port price and normal value, if the difference filiated party, the prices at which the foreign in level of trade— like product is sold (or offered for sale) by (i) involves the performance of different such affiliated party may be used in determin- selling activities; and ing normal value. (ii) is demonstrated to affect price com- (6) Adjustments parability, based on a pattern of consistent The price described in paragraph (1)(B) shall price differences between sales at different be— levels of trade in the country in which nor- (A) increased by the cost of all containers mal value is determined. and coverings and all other costs, charges, In a case described in the preceding sen- and expenses incident to placing the subject tence, the amount of the adjustment shall be merchandise in condition packed ready for based on the price differences between the shipment to the United States; two levels of trade in the country in which (B) reduced by— normal value is determined. (i) when included in the price described (B) Constructed export price offset in paragraph (1)(B), the cost of all containers and coverings and all other costs, When normal value is established at a charges, and expenses incident to placing level of trade which constitutes a more ad- the foreign like product in condition vanced stage of distribution than the level of packed ready for shipment to the place of trade of the constructed export price, but delivery to the purchaser, the data available do not provide an appro- (ii) the amount, if any, included in the priate basis to determine under subpara- price described in paragraph (1)(B), attrib- graph (A)(ii) a level of trade adjustment, utable to any additional costs, charges, normal value shall be reduced by the and expenses incident to bringing the for- amount of indirect selling expenses incurred eign like product from the original place in the country in which normal value is de- of shipment to the place of delivery to the termined on sales of the foreign like product purchaser, and but not more than the amount of such ex- (iii) the amount of any taxes imposed di- penses for which a deduction is made under rectly upon the foreign like product or section 1677a(d)(1)(D) of this title. components thereof which have been re- (8) Adjustments to constructed value bated, or which have not been collected, on Constructed value as determined under sub- the subject merchandise, but only to the section (e) of this section, may be adjusted, as extent that such taxes are added to or in- appropriate, pursuant to this subsection. cluded in the price of the foreign like product, and (b) Sales at less than cost of production (C) increased or decreased by the amount (1) Determination; sales disregarded of any difference (or lack thereof) between Whenever the administering authority has the export price or constructed export price reasonable grounds to believe or suspect that and the price described in paragraph (1)(B) sales of the foreign like product under consid- (other than a difference for which allowance eration for the determination of normal value is otherwise provided under this section) have been made at prices which represent less that is established to the satisfaction of the than the cost of production of that product, § 1677b TITLE 19—CUSTOMS DUTIES Page 356

the administering authority shall determine vide for recovery of costs within a reason- whether, in fact, such sales were made at less able period of time. than the cost of production. If the administer- (3) Calculation of cost of production ing authority determines that sales made at For purposes of this part, the cost of produc- less than the cost of production— tion shall be an amount equal to the sum of— (A) have been made within an extended pe- (A) the cost of materials and of fabrication riod of time in substantial quantities, and or other processing of any kind employed in (B) were not at prices which permit recov- producing the foreign like product, during a ery of all costs within a reasonable period of period which would ordinarily permit the time, production of that foreign like product in such sales may be disregarded in the deter- the ordinary course of business; mination of normal value. Whenever such (B) an amount for selling, general, and ad- sales are disregarded, normal value shall be ministrative expenses based on actual data based on the remaining sales of the foreign pertaining to production and sales of the for- like product in the ordinary course of trade. If eign like product by the exporter in ques- no sales made in the ordinary course of trade tion; and remain, the normal value shall be based on the (C) the cost of all containers and coverings constructed value of the merchandise. of whatever nature, and all other expenses (2) Definitions and special rules incidental to placing the foreign like product in condition packed ready for shipment. For purposes of this subsection— For purposes of subparagraph (A), if the nor- (A) Reasonable grounds to believe or suspect mal value is based on the price of the foreign There are reasonable grounds to believe or like product sold for consumption in a country suspect that sales of the foreign like product other than the exporting country, the cost of were made at prices that are less than the materials shall be determined without regard cost of production of the product, if— to any internal tax in the exporting country (i) in an investigation initiated under imposed on such materials or their disposition section 1673a of this title or a review con- which are remitted or refunded upon expor- ducted under section 1675 of this title, an tation. interested party described in subparagraph (c) Nonmarket economy countries (C), (D), (E), (F), or (G) of section 1677(9) of (1) In general this title provides information, based upon observed prices or constructed prices or If— costs, that sales of the foreign like product (A) the subject merchandise is exported under consideration for the determination from a nonmarket economy country, and of normal value have been made at prices (B) the administering authority finds that which represent less than the cost of pro- available information does not permit the duction of the product; or normal value of the subject merchandise to (ii) in a review conducted under section be determined under subsection (a) of this 1675 of this title involving a specific ex- section, porter, the administering authority dis- the administering authority shall determine regarded some or all of the exporter’s sales the normal value of the subject merchandise pursuant to paragraph (1) in the investiga- on the basis of the value of the factors of pro- tion or if a review has been completed, in duction utilized in producing the merchandise the most recently completed review. and to which shall be added an amount for (B) Extended period of time general expenses and profit plus the cost of containers, coverings, and other expenses. Ex- The term ‘‘extended period of time’’ means cept as provided in paragraph (2), the valu- a period that is normally 1 year, but not less ation of the factors of production shall be than 6 months. based on the best available information re- (C) Substantial quantities garding the values of such factors in a market Sales made at prices below the cost of pro- economy country or countries considered to be duction have been made in substantial quan- appropriate by the administering authority. tities if— (2) Exception (i) the volume of such sales represents 20 If the administering authority finds that the percent or more of the volume of sales available information is inadequate for pur- under consideration for the determination poses of determining the normal value of sub- of normal value, or ject merchandise under paragraph (1), the ad- (ii) the weighted average per unit price ministering authority shall determine the nor- of the sales under consideration for the de- mal value on the basis of the price at which termination of normal value is less than merchandise that is— the weighted average per unit cost of pro- (A) comparable to the subject merchan- duction for such sales. dise, and (D) Recovery of costs (B) produced in one or more market econ- If prices which are below the per unit cost omy countries that are at a level of eco- of production at the time of sale are above nomic development comparable to that of the weighted average per unit cost of pro- the nonmarket economy country, duction for the period of investigation or re- is sold in other countries, including the United view, such prices shall be considered to pro- States. Page 357 TITLE 19—CUSTOMS DUTIES § 1677b

(3) Factors of production (e) Constructed value For purposes of paragraph (1), the factors of For purposes of this subtitle, the constructed production utilized in producing merchandise value of imported merchandise shall be an include, but are not limited to— amount equal to the sum of— (A) hours of labor required, (1) the cost of materials and fabrication or (B) quantities of raw materials employed, other processing of any kind employed in pro- (C) amounts of energy and other utilities ducing the merchandise, during a period which consumed, and would ordinarily permit the production of the (D) representative capital cost, including merchandise in the ordinary course of busi- depreciation. ness; (4) Valuation of factors of production (2)(A) the actual amounts incurred and real- The administering authority, in valuing fac- ized by the specific exporter or producer being tors of production under paragraph (1), shall examined in the investigation or review for utilize, to the extent possible, the prices or selling, general, and administrative expenses, costs of factors of production in one or more and for profits, in connection with the produc- market economy countries that are— tion and sale of a foreign like product, in the (A) at a level of economic development ordinary course of trade, for consumption in comparable to that of the nonmarket econ- the foreign country, or omy country, and (B) if actual data are not available with re- (B) significant producers of comparable spect to the amounts described in subpara- merchandise. graph (A), then— (i) the actual amounts incurred and real- (d) Special rule for certain multinational cor- ized by the specific exporter or producer porations being examined in the investigation or re- Whenever, in the course of an investigation view for selling, general, and administrative under this subtitle, the administering authority expenses, and for profits, in connection with determines that— the production and sale, for consumption in (1) subject merchandise exported to the the foreign country, of merchandise that is United States is being produced in facilities in the same general category of products as which are owned or controlled, directly or in- the subject merchandise, directly, by a person, firm, or corporation (ii) the weighted average of the actual which also owns or controls, directly or indi- amounts incurred and realized by exporters rectly, other facilities for the production of or producers that are subject to the inves- the foreign like product which are located in tigation or review (other than the exporter another country or countries, or producer described in clause (i)) for sell- (2) subsection (a)(1)(C) of this section ap- ing, general, and administrative expenses, plies, and and for profits, in connection with the pro- (3) the normal value of the foreign like prod- duction and sale of a foreign like product, in uct produced in one or more of the facilities the ordinary course of trade, for consump- outside the exporting country is higher than tion in the foreign country, or the normal value of the foreign like product (iii) the amounts incurred and realized for produced in the facilities located in the ex- selling, general, and administrative exporting country, penses, and for profits, based on any other it shall determine the normal value of the sub- reasonable method, except that the amount ject merchandise by reference to the normal allowed for profit may not exceed the value at which the foreign like product is sold in amount normally realized by exporters or substantial quantities from one or more facili- producers (other than the exporter or pro- ties outside the exporting country. The admin- ducer described in clause (i)) in connection istering authority, in making any determina- with the sale, for consumption in the foreign tion under this paragraph, shall make adjust- country, of merchandise that is in the same ments for the difference between the cost of pro- general category of products as the subject duction (including taxes, labor, materials, and merchandise; and overhead) of the foreign like product produced (3) the cost of all containers and coverings of in facilities outside the exporting country and whatever nature, and all other expenses inci- costs of production of the foreign like product dental to placing the subject merchandise in produced in facilities in the exporting country, condition packed ready for shipment to the if such differences are demonstrated to its satis- United States. faction. For purposes of this subsection, in determining the normal value of the foreign like For purposes of paragraph (1), the cost of mate- product produced in a country outside of the ex- rials shall be determined without regard to any porting country, the administering authority internal tax in the exporting country imposed shall determine its price at the time of expor- on such materials or their disposition which are tation from the exporting country and shall remitted or refunded upon exportation of the make any adjustments required by subsection subject merchandise produced from such mate- (a) of this section for the cost of all containers rials. and coverings and all other costs, charges, and expenses incident to placing the merchandise in (f) Special rules for calculation of cost of produc- condition packed ready for shipment to the tion and for calculation of constructed value United States by reference to such costs in the For purposes of subsections (b) and (e) of this exporting country. section.— § 1677b TITLE 19—CUSTOMS DUTIES Page 358

(1) Costs tic of the merchandise, producer, or indus- (A) In general try concerned is achieved. Costs shall normally be calculated based (2) Transactions disregarded on the records of the exporter or producer of A transaction directly or indirectly between the merchandise, if such records are kept in affiliated persons may be disregarded if, in the accordance with the generally accepted ac- case of any element of value required to be counting principles of the exporting country considered, the amount representing that ele- (or the producing country, where appro- ment does not fairly reflect the amount usu- priate) and reasonably reflect the costs asso- ally reflected in sales of merchandise under ciated with the production and sale of the consideration in the market under consider- merchandise. The administering authority ation. If a transaction is disregarded under the shall consider all available evidence on the preceding sentence and no other transactions proper allocation of costs, including that are available for consideration, the determina- which is made available by the exporter or tion of the amount shall be based on the infor- producer on a timely basis, if such alloca- mation available as to what the amount would have been if the transaction had occurred be- tions have been historically used by the ex- tween persons who are not affiliated. porter or producer, in particular for establishing appropriate amortization and depre- (3) Major input rule ciation periods, and allowances for capital If, in the case of a transaction between af- expenditures and other development costs. filiated persons involving the production by (B) Nonrecurring costs one of such persons of a major input to the merchandise, the administering authority has Costs shall be adjusted appropriately for reasonable grounds to believe or suspect that those nonrecurring costs that benefit cur- an amount represented as the value of such rent or future production, or both. input is less than the cost of production of (C) Startup costs such input, then the administering authority (i) In general may determine the value of the major input on the basis of the information available re- Costs shall be adjusted appropriately for garding such cost of production, if such cost is circumstances in which costs incurred dur- greater than the amount that would be deter- ing the time period covered by the inves- mined for such input under paragraph (2). tigation or review are affected by startup operations. (June 17, 1930, ch. 497, title VII, § 773, as added Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. (ii) Startup operations 182; amended Pub. L. 98–573, title VI, §§ 615, Adjustments shall be made for startup 620(b), Oct. 30, 1984, 98 Stat. 3036, 3039; Pub. L. operations only where— 99–514, title XVIII, § 1886(a)(11), Oct. 22, 1986, 100 (I) a producer is using new production Stat. 2922; Pub. L. 100–418, title I, §§ 1316(a), 1318, facilities or producing a new product 1319, Aug. 23, 1988, 102 Stat. 1186, 1189; Pub. L. that requires substantial additional in- 103–465, title II, § 224, Dec. 8, 1994, 108 Stat. 4878.) vestment, and AMENDMENTS (II) production levels are limited by 1994—Pub. L. 103–465 amended section generally, sub- technical factors associated with the ini- stituting present provisions for provisions relating to tial phase of commercial production. foreign market value, which provided for determina- For purposes of subclause (II), the initial tion of value in subsec. (a), sales at less than cost of phase of commercial production ends at production in subsec. (b), treatment of merchandise from nonmarket economy countries in subsec. (c), spe- the end of the startup period. In determin- cial rule for certain multinational corporations in sub- ing whether commercial production levels sec. (d), determination of constructed value in subsec. have been achieved, the administering au- (e), and exportation from an intermediate country in thority shall consider factors unrelated to subsec. (f). startup operations that might affect the 1988—Subsec. (a)(5). Pub. L. 100–418, § 1319, added par. volume of production processed, such as (5). Subsec. (c). Pub. L. 100–418, § 1316(a), amended subsec. demand, seasonality, or business cycles. (c) generally, substituting provisions relating to non- (iii) Adjustment for startup operations market economy countries, for provisions relating to State-controlled economies. The adjustment for startup operations Subsec. (e)(2) to (4). Pub. L. 100–418, § 1318, substituted shall be made by substituting the unit pro- ‘‘(4)’’ for ‘‘(3)’’ wherever appearing in par. (2), added par. duction costs incurred with respect to the (3), and redesignated former par. (3) as (4) and in intro- merchandise at the end of the startup pe- ductory provisions substituted ‘‘paragraphs (2) and (3)’’ riod for the unit production costs incurred for ‘‘paragraph (2)’’. during the startup period. If the startup 1986—Subsecs. (f), (g). Pub. L. 99–514 redesignated subsec. (g) as (f). period extends beyond the period of the in- 1984—Subsec. (a)(1). Pub. L. 98–573, § 615(1), substituted vestigation or review under this subtitle, ‘‘time such merchandise is first sold within the United the administering authority shall use the States by the person for whom (or for whose account) most recent cost of production data that it the merchandise is imported to any other person who is reasonably can obtain, analyze, and verify not described in subsection (e)(3) of this section with without delaying the timely completion of respect to such person’’ for ‘‘time of exportation of the investigation or review. For purposes such merchandise to the United States’’ in provisions before subpar. (A). of this subparagraph, the startup period Subsecs. (a)(1)(A), (4)(A), (e)(1)(B). Pub. L. 98–573, ends at the point at which the level of § 615(2), substituted ‘‘commercial quantities’’ for commercial production that is characteris- ‘‘wholesale quantities’’ wherever appearing. Page 359 TITLE 19—CUSTOMS DUTIES § 1677d

Subsec. (f). Pub. L. 98–573, § 620(b), struck out subsec. (June 17, 1930, ch. 497, title VII, § 773A, as added (f) which related to the authority to use sampling tech- Pub. L. 103–465, title II, § 225(a), Dec. 8, 1994, 108 niques and to disregard insignificant adjustments. Stat. 4886.) Subsec. (g). Pub. L. 98–573, § 615(3), added subsec. (g). EFFECTIVE DATE EFFECTIVE DATE OF 1994 AMENDMENT Section effective, except as otherwise provided, on Amendment by Pub. L. 103–465 effective, except as the date on which the WTO Agreement enters into otherwise provided, on the date on which the WTO force with respect to the United States [Jan. 1, 1995], Agreement enters into force with respect to the United and applicable with respect to investigations, reviews, States [Jan. 1, 1995], and applicable with respect to in- and inquiries initiated and petitions filed under speci- vestigations, reviews, and inquiries initiated and peti- fied provisions of this chapter after such date, see sections filed under specified provisions of this chapter tion 291 of Pub. L. 103–465, set out as an Effective Date after such date, see section 291 of Pub. L. 103–465, set of 1994 Amendment note under section 1671 of this title. out as a note under section 1671 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT § 1677c. Hearings Amendment by sections 1316(a) and 1318 of Pub. L. (a) Investigation hearings 100–418 applicable with respect to investigations initiated after Aug. 23, 1988, and to reviews initiated under (1) In general section 1673e(c) or 1675 of this title after Aug. 23, 1988, Except as provided in paragraph (2), the ad- and amendment by section 1319 of Pub. L. 100–418 appli- ministering authority and the Commission cable with respect to reviews initiated under section shall each hold a hearing in the course of an 1673e(c) or 1675 of this title after Aug. 23, 1988, and to reviews initiated under such sections which are pending investigation upon the request of any party to on Aug. 23, 1988, and in which a request for revocation the investigation before making a final deter- is pending on Aug. 23, 1988, see section 1337(b), (f) of mination under section 1671d or 1673d of this Pub. L. 100–418, set out as a note under section 1671 of title. this title. (2) Exception EFFECTIVE DATE OF 1984 AMENDMENT If investigations are initiated under part I Amendment by section 615 of Pub. L. 98–573 effective and part II of this subtitle regarding the same Oct. 30, 1984, and amendment by section 620(b) of Pub. merchandise from the same country within 6 L. 98–573 applicable with respect to investigations initi- months of each other (but before a final deter- ated by petition or by the administering authority mination is made in either investigation), the under parts I and II of this subtitle, and to reviews holding of a hearing by the Commission in the begun under section 1675 of this title, on or after Oct. 30, 1984, see section 626(a), (b)(1) of Pub. L. 98–573, as course of one of the investigations shall be amended, set out as a note under section 1671 of this treated as compliance with paragraph (1) for title. both investigations, unless the Commission considers that special circumstances require PLAN AMENDMENTS NOT REQUIRED UNTIL that a hearing be held in the course of each of JANUARY 1, 1989 the investigations. During any investigation For provisions directing that if any amendments regarding which the holding of a hearing is made by subtitle A or subtitle C of title XI [§§ 1101–1147 waived under this paragraph, the Commission and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. shall allow any party to submit such addi- 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the tional written comment as it considers rel- first plan year beginning on or after Jan. 1, 1989, see evant. section 1140 of Pub. L. 99–514, as amended, set out as a (b) Procedures note under section 401 of Title 26, Internal Revenue Code. Any hearing required or permitted under this subtitle shall be conducted after notice pub- § 1677b–1. Currency conversion lished in the Federal Register, and a transcript (a) In general of the hearing shall be prepared and made available to the public. The hearing shall not be sub- In an antidumping proceeding under this subject to the provisions of subchapter II of chapter title, the administering authority shall convert 5 of title 5, or to section 702 of such title. foreign currencies into United States dollars using the exchange rate in effect on the date of (June 17, 1930, ch. 497, title VII, § 774, as added sale of the subject merchandise, except that, if Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. it is established that a currency transaction on 186; amended Pub. L. 98–573, title VI, § 616, Oct. forward markets is directly linked to an export 30, 1984, 98 Stat. 3037.) sale under consideration, the exchange rate AMENDMENTS specified with respect to such currency in the forward sale agreement shall be used to convert 1984—Subsec. (a). Pub. L. 98–573 designated existing the foreign currency. Fluctuations in exchange provisions as par. (1), inserted ‘‘Except as provided in rates shall be ignored. paragraph (2),’’, and added par. (2). (b) Sustained movement in foreign currency EFFECTIVE DATE OF 1984 AMENDMENT value Amendment by Pub. L. 98–573 effective Oct. 30, 1984, In an investigation under part II of this sub- see section 626(a) of Pub. L. 98–573, set out as a note title, if there is a sustained movement in the under section 1671 of this title. value of the foreign currency relative to the § 1677d. Countervailable subsidy practices dis- United States dollar, the administering author- covered during a proceeding ity shall allow exporters at least 60 days to adjust their export prices to reflect such sustained If, in the course of a proceeding under this movement. subtitle, the administering authority discovers § 1677e TITLE 19—CUSTOMS DUTIES Page 360 a practice which appears to be a countervailable note under section 401 of Title 26, Internal Revenue subsidy, but was not included in the matters al- Code. leged in a countervailing duty petition, or if the § 1677e. Determinations on basis of facts avail- administering authority receives notice from able the Trade Representative that a subsidy or subsidy program is in violation of Article 8 of the (a) In general Subsidies Agreement, then the administering If— authority— (1) necessary information is not available on (1) shall include the practice, subsidy, or the record, or subsidy program in the proceeding if the prac- (2) an interested party or any other person— tice, subsidy, or subsidy program appears to be (A) withholds information that has been a countervailable subsidy with respect to the requested by the administering authority or merchandise which is the subject of the pro- the Commission under this subtitle, ceeding, or (B) fails to provide such information by (2) shall transfer the information (other than the deadlines for submission of the informa- confidential information) concerning the prac- tion or in the form and manner requested, tice, subsidy, or subsidy program to the li- subject to subsections (c)(1) and (e) of sec- brary maintained under section 1677f(a)(1) of tion 1677m of this title, this title, if the practice, subsidy, or subsidy (C) significantly impedes a proceeding program appears to be a countervailable sub- under this subtitle, or sidy with respect to any other merchandise. (D) provides such information but the information cannot be verified as provided in (June 17, 1930, ch. 497, title VII, § 775, as added section 1677m(i) of this title, Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. 186; amended Pub. L. 98–573, title VI, § 617, Oct. the administering authority and the Commis- 30, 1984, 98 Stat. 3037; Pub. L. 99–514, title XVIII, sion shall, subject to section 1677m(d) of this § 1886(a)(12), Oct. 22, 1986, 100 Stat. 2922; Pub. L. title, use the facts otherwise available in reach- 103–465, title II, § 283(b), Dec. 8, 1994, 108 Stat. ing the applicable determination under this sub- 4930.) title. (b) Adverse inferences AMENDMENTS If the administering authority or the Commis- 1994—Pub. L. 103–465 substituted ‘‘Countervailable sion (as the case may be) finds that an inter- subsidy’’ for ‘‘Subsidy’’ in section catchline and amend- ested party has failed to cooperate by not acting ed text generally. Prior to amendment, text read as fol- to the best of its ability to comply with a re- lows: ‘‘If, in the course of a proceeding under this subtitle, the administering authority discovers a practice quest for information from the administering which appears to be a subsidy, but was not included in authority or the Commission, the administering the matters alleged in a countervailing duty petition, authority or the Commission (as the case may then the administering authority— be), in reaching the applicable determination ‘‘(1) shall include the practice in the proceeding if under this subtitle, may use an inference that is it appears to be a subsidy with respect to the mer- adverse to the interests of that party in select- chandise which is the subject of the proceeding, or ing from among the facts otherwise available. ‘‘(2) shall transfer the information concerning the Such adverse inference may include reliance on practice (other than confidential information) to the library maintained under section 1677f(a)(1) of this information derived from— title, if the practice appears to be a subsidy with re- (1) the petition, spect to any other merchandise.’’ (2) a final determination in the investigation 1986—Pub. L. 99–514 substituted ‘‘a proceeding’’ for under this subtitle, ‘‘an proceeding’’ in introductory provisions. (3) any previous review under section 1675 of 1984—Pub. L. 98–573 substituted ‘‘proceeding’’ for ‘‘in- this title or determination under section 1675b vestigation’’ wherever appearing. of this title, or EFFECTIVE DATE OF 1994 AMENDMENT (4) any other information placed on the record. Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO (c) Corroboration of secondary information Agreement enters into force with respect to the United When the administering authority or the Com- States [Jan. 1, 1995], and applicable with respect to in- mission relies on secondary information rather vestigations, reviews, and inquiries initiated and peti- than on information obtained in the course of an tions filed under specified provisions of this chapter investigation or review, the administering au- after such date, see section 291 of Pub. L. 103–465, set thority or the Commission, as the case may be, out as a note under section 1671 of this title. shall, to the extent practicable, corroborate EFFECTIVE DATE OF 1984 AMENDMENT that information from independent sources that Amendment by Pub. L. 98–573 effective Oct. 30, 1984, are reasonably at their disposal. see section 626(a) of Pub. L. 98–573, set out as a note (June 17, 1930, ch. 497, title VII, § 776, as added under section 1671 of this title. Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. PLAN AMENDMENTS NOT REQUIRED UNTIL 186; amended Pub. L. 98–573, title VI, § 618, Oct. JANUARY 1, 1989 30, 1984, 98 Stat. 3037; Pub. L. 100–418, title I, For provisions directing that if any amendments §§ 1326(d)(1), 1331, Aug. 23, 1988, 102 Stat. 1204, made by subtitle A or subtitle C of title XI [§§ 1101–1147 1207; Pub. L. 103–465, title II, § 231(c), Dec. 8, 1994, and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. 108 Stat. 4896.) 99–514 require an amendment to any plan, such plan AMENDMENTS amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see 1994—Pub. L. 103–465 amended section generally, subsection 1140 of Pub. L. 99–514, as amended, set out as a stituting present provisions for provisions relating to Page 361 TITLE 19—CUSTOMS DUTIES § 1677f verification of information, certification of submis- (A) interested parties or other persons pro- sions, and determinations required to be made on best viding factual information in connection information available. with a proceeding, and 1988—Subsec. (a). Pub. L. 100–418, § 1331(1), (3), added (B) the person charged with making the subsec. (a). Former subsec. (a) redesignated (b). Subsec. (b). Pub. L. 100–418, § 1331(1), (2), redesignated determination, or any person charged with former subsec. (a) as (b) and in heading substituted making a final recommendation to that per- ‘‘Verification’’ for ‘‘General rule’’. son, in connection with that proceeding, Subsec. (b)(3)(A). Pub. L. 100–418, § 1326(d)(1), which di- if information relating to that proceeding was rected the amendment of this subtitle by substituting ‘‘subparagraph (C), (D), (E), (F), or (G) of section 1677(9) presented or discussed at such meeting. The of this title’’ for ‘‘subparagraph (C), (D), (E), or (F), of record of such an ex parte meeting shall in- section 1677(9) of this title’’ was executed to subsec. clude the identity of the persons present at (b)(3)(A) of this section by substituting ‘‘section the meeting, the date, time, and place of the 1677(9)(C), (D), (E), (F), or (G) of this title’’ for ‘‘section meeting, and a summary of the matters dis- 1677(9)(C), (D), (E), or (F) of this title’’ to reflect the cussed or submitted. The record of the ex probable intent of Congress. parte meeting shall be included in the record Subsec. (c). Pub. L. 100–418, § 1331(1), redesignated of the proceeding. former subsec. (b) as (c). 1984—Subsec. (a). Pub. L. 98–573 amended subsec. (a) (4) Summaries; non-proprietary submissions generally, which prior to amendment read as follows: The administering authority and the Com- ‘‘Except with respect to information the verification of mission shall disclose— which is waived under section 1673b(b)(2) of this title, (A) any proprietary information received the administering authority shall verify all information relied upon in making a final determination in an in the course of a proceeding if it is disclosed investigation. In publishing such a determination, the in a form which cannot be associated with, administering authority shall report the methods and or otherwise be used to identify, operations procedures used to verify such information. If the ad- of a particular person, and ministering authority is unable to verify the accuracy (B) any information submitted in connec- of the information submitted, it shall use the best in- tion with a proceeding which is not des- formation available to it as the basis for its determina- ignated as proprietary by the person submit- tion, which may include the information submitted in ting it. support of the petition.’’ (b) Proprietary information EFFECTIVE DATE OF 1994 AMENDMENT (1) Proprietary status maintained Amendment by Pub. L. 103–465 effective, except as (A) In general otherwise provided, on the date on which the WTO Agreement enters into force with respect to the United Except as provided in subsection (a)(4)(A) States [Jan. 1, 1995], and applicable with respect to in- of this section and subsection (c) of this sec- vestigations, reviews, and inquiries initiated and petition, information submitted to the admin- tions filed under specified provisions of this chapter istering authority or the Commission which after such date, see section 291 of Pub. L. 103–465, set is designated as proprietary by the person out as a note under section 1671 of this title. submitting the information shall not be dis- EFFECTIVE DATE OF 1988 AMENDMENT closed to any person without the consent of Amendment by Pub. L. 100–418 applicable with re- the person submitting the information, spect to investigations initiated after Aug. 23, 1988, and other than— to reviews initiated under section 1673e(c) or 1675 of (i) to an officer or employee of the ad- this title after Aug. 23, 1988, see section 1337(b) of Pub. ministering authority or the Commission L. 100–418, set out as a note under section 1671 of this who is directly concerned with carrying title. out the investigation in connection with EFFECTIVE DATE OF 1984 AMENDMENT which the information is submitted or any review under this subtitle covering the Amendment by Pub. L. 98–573 effective Oct. 30, 1984, same subject merchandise, or see section 626(a) of Pub. L. 98–573, set out as a note under section 1671 of this title. (ii) to an officer or employee of the United States Customs Service who is di- § 1677f. Access to information rectly involved in conducting an investiga- (a) Information generally made available tion regarding fraud under this subtitle. (1) Public information function (B) Additional requirements There shall be established a library of infor- The administering authority and the Com- mation relating to foreign subsidy practices mission shall require that information for and countervailing measures. Copies of mate- which proprietary treatment is requested be rial in the library shall be made available to accompanied by— the public upon payment of the costs of pre- (i) either— paring such copies. (I) a non-proprietary summary in sufficient detail to permit a reasonable un- (2) Progress of investigation reports derstanding of the substance of the infor- The administering authority and the Com- mation submitted in confidence, or mission shall, from time to time upon request, (II) a statement that the information inform the parties to an investigation of the is not susceptible to summary accom- progress of that investigation. panied by a statement of the reasons in (3) Ex parte meetings support of the contention, and The administering authority and the Com- (ii) either— mission shall maintain a record of any ex (I) a statement which permits the ad- parte meeting between— ministering authority or the Commis- § 1677f TITLE 19—CUSTOMS DUTIES Page 362

sion to release under administrative pro- Customer names obtained during any inves- tective order, in accordance with sub- tigation which requires a determination section (c) of this section, the informa- under section 1671d(b) or 1673d(b) of this title tion submitted in confidence, or may not be disclosed by the administering (II) a statement to the administering authority under protective order until either authority or the Commission that the an order is published under section 1671e(a) business proprietary information is of a or 1673e(a) of this title as a result of the in- type that should not be released under vestigation or the investigation is suspended administrative protective order. or terminated. The Commission may delay (2) Unwarranted designation disclosure of customer names under protective order during any such investigation If the administering authority of the Com- until a reasonable time prior to any hearing mission determines, on the basis of the nature provided under section 1677c of this title. and extent of the information or its availabil- (B) Protective order ity from public sources, that designation of any information as proprietary is unwar- The protective order under which informa- ranted, then it shall notify the person who tion is made available shall contain such re- submitted it and ask for an explanation of the quirements as the administering authority reasons for the designation. Unless that person or the Commission may determine by regu- persuades the administering authority or the lation to be appropriate. The administering Commission that the designation is war- authority and the Commission shall provide ranted, or withdraws the designation, the ad- by regulation for such sanctions as the administering authority or the Commission, as ministering authority and the Commission the case may be, shall return it to the party determine to be appropriate, including dis- submitting it. In a case in which the admin- barment from practice before the agency. istering authority or the Commission returns (C) Time limitation on determinations the information to the person submitting it, The administering authority or the Com- the person may thereafter submit other mate- mission, as the case may be, shall determine rial concerning the subject matter of the re- whether to make information available turned information if the submission is made under this paragraph— within the time otherwise provided for sub- (i) not later than 14 days (7 days if the mitting such material. submission pertains to a proceeding under (3) Section 1675 reviews section 1671b(a) or 1673b(a) of this title) after the date on which the information is Notwithstanding the provisions of paragraph submitted, or (1), information submitted to the administer- (ii) if— ing authority or the Commission in connec- (I) the person that submitted the infor- tion with a review under section 1675(b) or mation raises objection to its release, or 1675(c) of this title which is designated as pro- (II) the information is unusually volu- prietary by the person submitting the infor- minous or complex, mation may, if the review results in the revocation of an order or finding (or termination not later than 30 days (10 days if the sub- of a suspended investigation) under section mission pertains to a proceeding under 1675(d) of this title, be used by the agency to section 1671b(a) or 1673b(a) of this title) which the information was originally submit- after the date on which the information is ted in any investigation initiated within 2 submitted. years after the date of the revocation or ter- (D) Availability after determination mination pursuant to a petition covering the If the determination under subparagraph same subject merchandise. (C) is affirmative, then— (c) Limited disclosure of certain proprietary in- (i) the business proprietary information formation under protective order submitted to the administering authority or the Commission on or before the date of (1) Disclosure by administering authority or the determination shall be made available, Commission subject to the terms and conditions of the (A) In general protective order, on such date; and Upon receipt of an application (before or (ii) the business proprietary information after receipt of the information requested) submitted to the administering authority which describes in general terms the infor- or the Commission after the date of the de- mation requested and sets forth the reasons termination shall be served as required by for the request, the administering authority subsection (d) of this section. or the Commission shall make all business (E) Failure to disclose proprietary information presented to, or ob- If a person submitting information to the tained by it, during a proceeding (except administering authority refuses to disclose privileged information, classified informa- business proprietary information which the tion, and specific information of a type for administering authority determines should which there is a clear and compelling need be released under a protective order de- to withhold from disclosure) available to in- scribed in subparagraph (B), the administer- terested parties who are parties to the pro- ing authority shall return the information, ceeding under a protective order described in and any nonconfidential summary thereof, subparagraph (B), regardless of when the in- to the person submitting the information formation is submitted during a proceeding. and summary and shall not consider either. Page 363 TITLE 19—CUSTOMS DUTIES § 1677f

(2) Disclosure under court order the United States-Canada Agreement, the If the administering authority denies a re- administering authority or the Commission, quest for information under paragraph (1), as appropriate, may make available to au- then application may be made to the United thorized persons, under a protective order States Customs Court for an order directing described in paragraph (2), a copy of all pro- the administering authority or the Commis- prietary material in the administrative sion to make the information available. After record made during the proceeding in ques- notification of all parties to the investigation tion. If the administering authority or the and after an opportunity for a hearing on the Commission claims a privilege as to a docu- record, the court may issue an order, under ment or portion of a document in the admin- such conditions as the court deems appro- istrative record of the proceeding in ques- priate, which shall not have the effect of stop- tion and a binational panel or extraordinary ping or suspending the investigation, directing challenge committee finds that in camera the administering authority or the Commis- inspection or limited disclosure of that doc- sion to make all or a portion of the requested ument or portion thereof is required by information described in the preceding sen- United States law, the administering au- tence available under a protective order and thority or the Commission, as appropriate, setting forth sanctions for violation of such may restrict access to such document or por- order if the court finds that, under the stand- tion thereof to the authorized persons iden- ards applicable in proceedings of the court, tified by the panel or committee as requir- such an order is warranted, and that— ing access and may require such persons to (A) the administering authority or the obtain access under a protective order de- Commission has denied access to the infor- scribed in paragraph (2). mation under subsection (b)(1) of this sec- (B) Authorized persons tion, For purposes of this subsection, the term (B) the person on whose behalf the infor- ‘‘authorized persons’’ means— mation is requested is an interested party (i) the members of, and the appropriate who is a party to the investigation in con- staff of, the binational panel or the ex- nection with which the information was ob- traordinary challenge committee, as the tained or developed, and case may be, and the Secretariat, (C) the party which submitted the infor- (ii) counsel for parties to such panel or mation to which the request relates has been committee proceeding, and employees, and notified, in advance of the hearing, of the re- persons under the direction and control, of quest made under this section and of its such counsel, right to appear and be heard. (iii) any officer or employee of the (d) Service United States Government designated by Any party submitting written information, in- the administering authority or the Com- cluding business proprietary information, to the mission, as appropriate, to whom disclo- administering authority or the Commission dur- sure is necessary in order to make recom- ing a proceeding shall, at the same time, serve mendations to the Trade Representative the information upon all interested parties who regarding the convening of extraordinary are parties to the proceeding, if the information challenge committees under chapter 19 of is covered by a protective order. The administer- the NAFTA or the Agreement, and ing authority or the Commission shall not ac- (iv) any officer or employee of the Gov- cept any such information that is not accom- ernment of a free trade area country (as panied by a certificate of service and a copy of defined in section 1516a(f)(10) of this title) the protective order version of the document designated by an authorized agency of containing the information. Business propri- such country to whom disclosure is nec- etary information shall only be served upon in- essary in order to make decisions regard- terested parties who are parties to the proceeding the convening of extraordinary chal- ing that are subject to protective order; how- lenge committees under chapter 19 of the ever, a nonconfidential summary thereof shall NAFTA or the Agreement. be served upon all other interested parties who (C) Review are parties to the proceeding. A decision concerning the disclosure or (e) Repealed. Pub. L. 103–465, title II, § 231(d)(1), nondisclosure of material under protective Dec. 8, 1994, 108 Stat. 4897 order by the administering authority or the Commission shall not be subject to judicial (f) Disclosure of proprietary information under review, and no court of the United States protective orders issued pursuant to the shall have power or jurisdiction to review North American Free Trade Agreement or such decision on any question of law or fact the United States-Canada Agreement by an action in the nature of mandamus or (1) Issuance of protective orders otherwise. (A) In general (2) Contents of protective order If binational panel review of a determina- Each protective order issued under this sub- tion under this subtitle is requested pursu- section shall be in such form and contain such ant to article 1904 of the NAFTA or the requirements as the administering authority United States-Canada Agreement, or an ex- or the Commission may determine by regula- traordinary challenge committee is con- tion to be appropriate. The administering au- vened under Annex 1904.13 of the NAFTA or thority and the Commission shall ensure that § 1677f TITLE 19—CUSTOMS DUTIES Page 364

regulations issued pursuant to this paragraph found or such sanction imposed, as provided in shall be designed to provide an opportunity for section 2112 of title 28. The findings and order participation in the binational panel proceed- of the administering authority or the Commis- ing, including any extraordinary challenge, sion shall be set aside by the court only if the equivalent to that available for judicial review court finds that such findings and order are of determinations by the administering au- not supported by substantial evidence, as pro- thority or the Commission that are not sub- vided in section 706(2) of title 5. ject to review by a binational panel. (6) Enforcement of sanctions (3) Prohibited acts If any person fails to pay an assessment of a It is unlawful for any person to violate, to civil penalty or to comply with other adminis- induce the violation of, or knowingly to re- trative sanctions after the order imposing ceive information the receipt of which con- such sanctions becomes a final and un- stitutes a violation of, any provision of a pro- appealable order, or after the United States tective order issued under this subsection or Court of International Trade has entered final to violate, to induce the violation of, or know- judgment in favor of the administering au- ingly to receive information the receipt of thority or the Commission, an action may be which constitutes a violation of, any provision filed in such court to enforce the sanctions. In of an undertaking entered into with an au- such action, the validity and appropriateness thorized agency of a free trade area country of the final order imposing the sanctions shall (as defined in section 1516a(f)(10) of this title) not be subject to review. to protect proprietary material during bina- (7) Testimony and production of papers tional panel or extraordinary challenge committee review pursuant to article 1904 of the (A) Authority to obtain information NAFTA or the United States-Canada Agree- For the purpose of conducting any hearing ment. and carrying out other functions and duties (4) Sanctions for violation of protective orders under this subsection, the administering authority and the Commission, or their duly Any person, except a judge appointed to a bi- authorized agents— national panel or an extraordinary challenge (i) shall have access to and the right to committee under section 3432(b) of this title, copy any pertinent document, paper, or who is found by the administering authority record in the possession of any individual, or the Commission, as appropriate, after no- partnership, corporation, association, or- tice and an opportunity for a hearing in ac- ganization, or other entity, cordance with section 554 of title 5 to have (ii) may summon witnesses, take testi- committed an act prohibited by paragraph (3) mony, and administer oaths, shall be liable to the United States for a civil (iii) and may require any individual or penalty and shall be subject to such other ad- entity to produce pertinent documents, ministrative sanctions, including, but not lim- books, or records. ited to, debarment from practice before the administering authority or the Commission, Any member of the Commission, and any as the administering authority or the Com- person so designated by the administering mission determines to be appropriate. The authority, may sign subpoenas, and mem- amount of the civil penalty shall not exceed bers and agents of the administering author- $100,000 for each violation. Each day of a con- ity and the Commission, when authorized by tinuing violation shall constitute a separate the administering authority or the Commis- violation. The amount of such civil penalty sion, as appropriate, may administer oaths and other sanctions shall be assessed by the and affirmations, examine witnesses, take administering authority or the Commission by testimony, and receive evidence. written notice, except that assessment shall (B) Witnesses and evidence be made by the administering authority for The attendance of witnesses who are au- violation, inducement of a violation or receipt thorized to be summoned, and the produc- of information with reason to know that such tion of documentary evidence authorized to information was disclosed in violation, of an be ordered, under subparagraph (A) may be undertaking entered into by any person with required from any place in the United States an authorized agency of a free trade area at any designated place of hearing. In the country (as defined in section 1516a(f)(10) of case of disobedience to a subpoena issued this title). under subparagraph (A), an action may be (5) Review of sanctions filed in any district or territorial court of Any person against whom sanctions are im- the United States to require the attendance posed under paragraph (4) may obtain review and testimony of witnesses and the produc- of such sanctions by filing a notice of appeal tion of documentary evidence. Such court, in the United States Court of International within the jurisdiction of which such inquiry Trade within 30 days from the date of the is carried on, may, in case of contumacy or order imposing the sanction and by simulta- refusal to obey a subpoena issued to any in- neously sending a copy of such notice by cer- dividual, partnership, corporation, associa- tified mail to the administering authority or tion, organization or other entity, issue any the Commission, as appropriate. The admin- order requiring such individual or entity to istering authority or the Commission shall appear before the administering authority or promptly file in such court a certified copy of the Commission, or to produce documentary the record upon which such violation was evidence if so ordered or to give evidence Page 365 TITLE 19—CUSTOMS DUTIES § 1677f

concerning the matter in question. Any fail- tigation, or the administering authority or the ure to obey such order of the court may be Commission makes a preliminary determina- punished by the court as a contempt thereof. tion under section 1671b or 1673b of this title, (C) Mandamus a final determination under section 1671d of this title or section 1673d of this title, a pre- Any court referred to in subparagraph (B) liminary or final determination in a review shall have jurisdiction to issue writs of man- under section 1675 of this title, a determina- damus commanding compliance with the tion to suspend an investigation under this provisions of this subsection or any order of subtitle, or a determination under section the administering authority or the Commis- 1675b of this title, the administering authority sion made in pursuance thereof. or the Commission, as the case may be, shall (D) Depositions publish the facts and conclusions supporting For purposes of carrying out any functions that determination, and shall publish notice of or duties under this subsection, the admin- that determination in the Federal Register. istering authority or the Commission may (2) Contents of notice or determination order testimony to be taken by deposition. The notice or determination published under Such deposition may be taken before any paragraph (1) shall include, to the extent ap- person designated by the administering au- plicable— thority or Commission and having power to (A) in the case of a determination of the administer oaths. Such testimony shall be administering authority— reduced to writing by the person taking the (i) the names of the exporters or produc- deposition, or under the direction of such ers of the subject merchandise or, when person, and shall then be subscribed by the providing such names is impracticable, the deponent. Any individual, partnership, cor- countries exporting the subject merchan- poration, association, organization or other dise to the United States, entity may be compelled to appear and de- (ii) a description of the subject merchan- pose and to produce documentary evidence dise that is sufficient to identify the sub- in the same manner as witnesses may be ject merchandise for customs purposes, compelled to appear and testify and produce (iii)(I) with respect to a determination in documentary evidence before the admin- an investigation under part I of this sub- istering authority or Commission, as pro- title or section 1675b of this title or in a re- vided in this paragraph. view of a countervailing duty order, the (E) Fees and mileage of witnesses amount of the countervailable subsidy es- Witnesses summoned before the admin- tablished and a full explanation of the istering authority or the Commission shall methodology used in establishing the be paid the same fees and mileage that are amount, and paid witnesses in the courts of the United (II) with respect to a determination in an States. investigation under part II of this subtitle (g) Information relating to violations of protec- or in a review of an antidumping duty tive orders and sanctions order, the weighted average dumping margins established and a full explanation of The administering authority and the Commis- the methodology used in establishing such sion may withhold from disclosure any cor- margins, and respondence, private letters of reprimand, set- (iv) the primary reasons for the deter- tlement agreements, and documents and files mination; and compiled in relation to investigations and actions involving a violation or possible violation (B) in the case of a determination of the of a protective order issued under subsection (c) Commission— or (d) of this section, and such information shall (i) considerations relevant to the deter- be treated as information described in section mination of injury, and 552(b)(3) of title 5. (ii) the primary reasons for the determination. (h) Opportunity for comment by consumers and industrial users (3) Additional requirements for final determinations The administering authority and the Commis- sion shall provide an opportunity for industrial In addition to the requirements set forth in users of the subject merchandise and, if the mer- paragraph (2)— chandise is sold at the retail level, for represent- (A) the administering authority shall in- ative consumer organizations, to submit rel- clude in a final determination described in evant information to the administering author- paragraph (1) an explanation of the basis for ity concerning dumping or a countervailable its determination that addresses relevant ar- subsidy, and to the Commission concerning ma- guments, made by interested parties who are terial injury by reason of dumped or subsidized parties to the investigation or review (as the imports. case may be), concerning the establishment of dumping or a countervailable subsidy, or (i) Publication of determinations; requirements the suspension of the investigation, with re- for final determinations spect to which the determination is made; (1) In general and Whenever the administering authority (B) the Commission shall include in a final makes a determination under section 1671a or determination of injury an explanation of 1673a of this title whether to initiate an inves- the basis for its determination that address- § 1677f TITLE 19—CUSTOMS DUTIES Page 366

es relevant arguments that are made by in- fined in section 1516a(f)(10) of this title)’’ for ‘‘agency of terested parties who are parties to the inves- Canada’’ and inserted ‘‘or extraordinary challenge com- tigation or review (as the case may be) con- mittee’’ after ‘‘binational panel’’ and ‘‘the NAFTA or’’ before ‘‘the United States-Canada Agreement’’. cerning volume, price effects, and impact on Subsec. (f)(4). Pub. L. 103–182, § 412(c)(7), (8), inserted the industry of imports of the subject mer- ‘‘, except a judge appointed to a binational panel or an chandise. extraordinary challenge committee under section (June 17, 1930, ch. 497, title VII, § 777, as added 3432(b) of this title,’’ after ‘‘Any person’’ and substituted ‘‘agency of a free trade area country (as de- Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. fined in section 1516a(f)(10) of this title)’’ for ‘‘agency of 187; amended Pub. L. 98–573, title VI, § 619, Oct. Canada’’. 30, 1984, 98 Stat. 3038; Pub. L. 99–514, title XVIII, 1990—Subsec. (c)(1)(A). Pub. L. 101–382, § 135(b)(1), in- §§ 1886(a)(13), 1889(8), Oct. 22, 1986, 100 Stat. 2922, serted at end ‘‘Customer names obtained during any in- 2926; Pub. L. 100–418, title I, § 1332, Aug. 23, 1988, vestigation which requires a determination under sec- 102 Stat. 1207; Pub. L. 100–449, title IV, § 403(c), tion 1671d(b) or 1673d(b) of this title may not be disclosed by the administering authority under protective Sept. 28, 1988, 102 Stat. 1884; Pub. L. 101–382, title order until either an order is published under section I, §§ 134(a)(4), 135(b), Aug. 20, 1990, 104 Stat. 650, 1671e(a) or 1673e(a) of this title as a result of the inves- 651; Pub. L. 103–182, title IV, § 412(c), Dec. 8, 1993, tigation or the investigation is suspended or termi- 107 Stat. 2146; Pub. L. 103–465, title II, §§ 226–228, nated. The Commission may delay disclosure of cus- 231(b), (d)(1), Dec. 8, 1994, 108 Stat. 4886–4888, 4896, tomer names under protective order during any such 4897.) investigation until a reasonable time prior to any hearing provided under section 1677c of this title.’’ AMENDMENTS Subsec. (d). Pub. L. 101–382, § 134(a)(4), redesignated 1994—Subsec. (a)(4). Pub. L. 103–465, § 231(b), sub- subsec. (d), relating to disclosure of proprietary infor- stituted ‘‘shall disclose’’ for ‘‘may disclose’’ in intro- mation, etc., as (f). Subsec. (f). Pub. L. 101–382, § 134(a)(4), redesignated ductory provisions. subsec. (d), relating to disclosure of proprietary infor- Subsec. (b)(1). Pub. L. 103–465, § 226(a)(1), amended par. mation, etc., as (f). (1) generally, designating first sentence as subpar. (A), Subsec. (f)(1)(A). Pub. L. 101–382, § 134(a)(4)(A), struck rearranging provisions for clarity, and inserting provi- out ‘‘(but not privileged material as defined by the sions in cl. (i) relating to reviews under this subtitle rules of procedure referred to in article 1904(14) of the covering same subject merchandise, and designating United States-Canada Agreement)’’ after ‘‘all propri- second sentence as subpar. (B) with corresponding re- etary material’’ and inserted at end ‘‘If the administer- designations of former subpars. as cls. and cls. as ing authority or the Commission claims a privilege as subcls. to a document or portion of a document in the adminis- Subsec. (b)(2). Pub. L. 103–465, § 226(b), inserted at end trative record of the proceeding in question and a bina- ‘‘In a case in which the administering authority or the tional panel finds that in camera inspection or limited Commission returns the information to the person sub- disclosure of that document or portion thereof is re- mitting it, the person may thereafter submit other ma- quired by United States law, the administering author- terial concerning the subject matter of the returned in- ity or the Commission, as appropriate, may restrict ac- formation if the submission is made within the time cess to such document or portion thereof to the author- otherwise provided for submitting such material.’’ ized persons identified by the panel as requiring access Subsec. (b)(3). Pub. L. 103–465, § 226(a)(2), added par. and may require such persons to obtain access under a (3). protective order described in paragraph (2).’’ Subsec. (e). Pub. L. 103–465, § 231(d)(1), struck out Subsec. (f)(1)(B)(ii) to (iv). Pub. L. 101–382, heading and text of subsec. (e). Text read as follows: § 134(a)(4)(B), inserted ‘‘, and persons under the direc- ‘‘Information shall be submitted to the administering tion and control,’’ after ‘‘employees’’ in cl. (ii), sub- authority or the Commission during the course of a stituted ‘‘make recommendations to the Trade Rep- proceeding on a timely basis and shall be subject to resentative regarding the convening of extraordinary comment by other parties within such reasonable time challenge committees under chapter 19 of the Agree- as the administering authority or the Commission shall ment, and’’ for ‘‘implement the United States-Canada provide. If information is submitted without an ade- Agreement with respect to such proceeding.’’ in cl. (iii), quate opportunity for other parties to comment there- and added cl. (iv). on, the administering authority or the Commission Subsec. (f)(3). Pub. L. 101–382, § 134(a)(4)(C), struck out may return the information to the party submitting it ‘‘or’’ after ‘‘violate,’’ in two places and inserted ‘‘or and not consider it.’’ knowingly to receive information the receipt of which Subsecs. (h), (i). Pub. L. 103–465, §§ 227, 228, added sub- constitutes a violation of,’’ after ‘‘the violation of,’’ in secs. (h) and (i). two places. 1993—Subsec. (f). Pub. L. 103–182, § 412(c)(1), inserted Subsec. (f)(4). Pub. L. 101–382, § 134(a)(4)(D), inserted ‘‘the North American Free Trade Agreement or’’ in provisions relating to receipt of information with rea- heading. son to know the information was disclosed in violation. Subsec. (f)(1)(A). Pub. L. 103–182, § 412(c)(2), (3), in- Subsec. (g). Pub. L. 101–382, § 135(b)(2), added subsec. serted ‘‘the NAFTA or’’ before ‘‘the United States-Can- (g). ada Agreement’’ in two places, in second sentence in- 1988—Subsec. (b)(1)(B)(ii). Pub. L. 100–418, § 1332(1), serted ‘‘or extraordinary challenge committee’’ after amended cl. (ii) generally. Prior to amendment, cl. (ii) ‘‘binational panel’’, and substituted ‘‘identified by the read as follows: ‘‘a statement that the information panel or committee’’ for ‘‘identified by the panel’’. should not be released under administrative protective Subsec. (f)(1)(B). Pub. L. 103–182, § 412(c)(4), in cl. (iii), order.’’ inserted ‘‘the NAFTA or’’ before ‘‘the Agreement’’ and Subsec. (c)(1)(A). Pub. L. 100–418, § 1332(2)(A), amended in cl. (iv), inserted ‘‘the NAFTA or’’ before ‘‘the Agree- subpar. (A) generally. Prior to amendment, subpar. (A) ment’’ and substituted ‘‘Government of a free trade read as follows: ‘‘Upon receipt of an application, (before area country (as defined in section 1516a(f)(10) of this or after receipt of the information requested) which de- title) designated by an authorized agency of such coun- scribes with particularity the information requested try’’ for ‘‘Government of Canada designated by an au- and sets forth the reasons for the request, the admin- thorized agency of Canada’’. istering authority and the Commission may make pro- Subsec. (f)(2). Pub. L. 103–182, § 412(c)(5), inserted prietary information submitted by any other party to ‘‘, including any extraordinary challenge,’’ after ‘‘bina- the investigation available under a protective order de- tional panel proceeding’’. scribed in subparagraph (B).’’ Subsec. (f)(3). Pub. L. 103–182, § 412(c)(6), (7), sub- Subsec. (c)(1)(C) to (E). Pub. L. 100–418, § 1332(2)(B), stituted ‘‘agency of a free trade area country (as de- added subpars. (C) to (E). Page 367 TITLE 19—CUSTOMS DUTIES § 1677f–1

Subsec. (c)(2). Pub. L. 100–418, § 1332(3), struck out ‘‘or fore such date, or to any binational panel review under the Commission denies a request for proprietary infor- the United States-Canada Free-Trade Agreement, or to mation submitted by the petitioner or an interested any extraordinary challenge arising out of any such re- party in support of the petitioner concerning the do- view that was commenced before such date, see section mestic price or cost of production of the like product,’’ 416 of Pub. L. 103–182, set out as an Effective Date note after ‘‘information under paragraph (1),’’. under section 3431 of this title. Subsec. (d). Pub. L. 100–449 added subsec. (d) relating EFFECTIVE AND TERMINATION DATES OF 1988 to disclosure of proprietary information, etc. AMENDMENTS Pub. L. 100–418, § 1332(4), added subsec. (d) relating to service. Amendment by Pub. L. 100–449 effective on date the Subsec. (e). Pub. L. 100–418, § 1332(4), added subsec. (e). United States-Canada Free-Trade Agreement enters 1986—Subsec. (a)(4). Pub. L. 99–514, § 1886(a)(13)(A), into force (Jan. 1, 1989), and to cease to have effect on substituted ‘‘non-proprietary’’ for ‘‘nonconfidential’’ in date Agreement ceases to be in force, see section 501(a), heading, and ‘‘proprietary’’ for ‘‘confidential’’ in two (c) of Pub. L. 100–449, set out in a note under section places in text. 2112 of this title. Subsec. (b). Pub. L. 99–514, § 1886(a)(13)(A), substituted Amendment by Pub. L. 100–418 applicable with re- ‘‘Proprietary’’ for ‘‘Confidential’’ in heading. spect to investigations initiated after Aug. 23, 1988, and Subsec. (b)(1). Pub. L. 99–514, § 1886(a)(13)(A), sub- to reviews initiated under section 1673e(c) or 1675 of stituted ‘‘Proprietary status’’ for ‘‘Confidentiality’’ in this title after Aug. 23, 1988, see section 1337(b) of Pub. heading, ‘‘proprietary’’ for ‘‘confidential’’ in two places L. 100–418, set out as an Effective Date of 1988 Amend- in introductory provisions, and ‘‘non-proprietary’’ for ment note under section 1671 of this title. ‘‘nonconfidential’’ in subpar. (A)(i). EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 99–514, § 1889(8), made technical correction to directory language of Pub. L. 98–573, § 619(3), requiring Amendment by Pub. L. 98–573 effective Oct. 30, 1984, no change in text. See 1984 Amendment note below. see section 626(a) of Pub. L. 98–573, set out as a note Subsec. (b)(1)(B)(i). Pub. L. 99–514, § 1886(a)(13)(B), in- under section 1671 of this title. serted ‘‘or the Commission’’ after ‘‘authority’’. TRANSFER OF FUNCTIONS Subsec. (b)(2). Pub. L. 99–514, § 1886(a)(13)(A), substituted ‘‘proprietary’’ for ‘‘confidential’’. For transfer of functions, personnel, assets, and li- Subsec. (c). Pub. L. 99–514, § 1886(a)(13)(A), substituted abilities of the United States Customs Service of the ‘‘proprietary’’ for ‘‘confidential’’ in heading and in Department of the Treasury, including functions of the pars. (1)(A) and (2). Secretary of the Treasury relating thereto, to the Sec- 1984—Subsec. (a)(3). Pub. L. 98–573, § 619(1), amended retary of Homeland Security, and for treatment of re- par. (3) generally, substituting in provisions preceding lated references, see sections 203(1), 551(d), 552(d), and subpar. (A) ‘‘of any ex parte meeting’’ for ‘‘of ex parte 557 of Title 6, Domestic Security, and the Department meetings’’, in subpar. (A) ‘‘a proceeding’’ for ‘‘an inves- of Homeland Security Reorganization Plan of Novem- tigation’’, in subpar. (B) ‘‘or any person’’ for ‘‘and any ber 25, 2002, as modified, set out as a note under section person’’ and ‘‘that proceeding,’’ for ‘‘that investiga- 542 of Title 6. tion,’’ and, in provisions following subpar. (B), ‘‘if in- EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS formation relating to that proceeding was presented or discussed at such meeting. The record of such an’’ for For provisions relating to effect of termination of ‘‘The record of the’’. NAFTA country status on the provisions of sections 401 Subsec. (b)(1). Pub. L. 98–573, § 619(2), in first sentence, to 416 of Pub. L. 103–182, see section 3451 of this title. inserted provision referring to an officer or employee of PLAN AMENDMENTS NOT REQUIRED UNTIL the United States Customs Service who is directly in- JANUARY 1, 1989 volved in conducting an investigation regarding fraud under this subtitle. For provisions directing that if any amendments Pub. L. 98–573, § 619(3), as amended by Pub. L. 99–514, made by subtitle A or subtitle C of title XI [§§ 1101–1147 § 1889(8), amended second sentence generally, and there- and 1171–1177] or title XVIII [§§ 1801–1899A] of Pub. L. by substituted ‘‘the Commission shall require’’ for ‘‘the 99–514 require an amendment to any plan, such plan Commission may require’’, designated existing provi- amendment shall not be required to be made before the sions as subpar. (A) and, in subpar. (A) as so designated, first plan year beginning on or after Jan. 1, 1989, see substituted ‘‘either— (i) a nonconfidential summary’’ section 1140 of Pub. L. 99–514, as amended, set out as a for ‘‘a non-confidential summary’’, inserted designa- note under section 401 of Title 26, Internal Revenue tion ‘‘(ii)’’, substituted ‘‘summary accompanied’’ for Code. ‘‘summary, accompanied’’, and added subpar. (B). Subsec. (c)(1)(A). Pub. L. 98–573, § 619(4), inserted ‘‘(be- § 1677f–1. Sampling and averaging; determination fore or after receipt of the information requested)’’. of weighted average dumping margin and countervailable subsidy rate EFFECTIVE DATE OF 1994 AMENDMENT (a) In general Amendment by Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO For purposes of determining the export price Agreement enters into force with respect to the United (or constructed export price) under section 1677a States [Jan. 1, 1995], and applicable with respect to in- of this title or the normal value under section vestigations, reviews, and inquiries initiated and peti- 1677b of this title, and in carrying out reviews tions filed under specified provisions of this chapter under section 1675 of this title, the administer- after such date, see section 291 of Pub. L. 103–465, set ing authority may— out as a note under section 1671 of this title. (1) use averaging and statistically valid sam- EFFECTIVE DATE OF 1993 AMENDMENT ples, if there is a significant volume of sales of Amendment by Pub. L. 103–182 effective on the date the subject merchandise or a significant num- the North American Free Trade Agreement enters into ber or types of products, and force with respect to the United States [Jan. 1, 1994], (2) decline to take into account adjustments but not applicable to any final determination described which are insignificant in relation to the price in section 1516a(a)(1)(B) or (2)(B)(i), (ii), or (iii) of this or value of the merchandise. title, notice of which is published in the Federal Reg- (b) Selection of averages and samples ister before such date, or to a determination described in section 1516a(a)(2)(B)(vi) of this title, notice of which The authority to select averages and statis- is received by the Government of Canada or Mexico be- tically valid samples shall rest exclusively with § 1677f–1 TITLE 19—CUSTOMS DUTIES Page 368 the administering authority. The administering account using a method described in para- authority shall, to the greatest extent possible, graph (1)(A)(i) or (ii). consult with the exporters and producers regard- (2) Reviews ing the method to be used to select exporters, In a review under section 1675 of this title, producers, or types of products under this sec- when comparing export prices (or constructed tion. export prices) of individual transactions to the (c) Determination of dumping margin weighted average price of sales of the foreign (1) General rule like product, the administering authority In determining weighted average dumping shall limit its averaging of prices to a period margins under section 1673b(d), 1673d(c), or not exceeding the calendar month that cor- 1675(a) of this title, the administering author- responds most closely to the calendar month ity shall determine the individual weighted of the individual export sale. average dumping margin for each known ex- (e) Determination of countervailable subsidy porter and producer of the subject merchan- rate dise. (1) General rule (2) Exception In determining countervailable subsidy rates If it is not practicable to make individual under section 1671b(d), 1671d(c), or 1675(a) of weighted average dumping margin determina- this title, the administering authority shall tions under paragraph (1) because of the large determine an individual countervailable sub- number of exporters or producers involved in sidy rate for each known exporter or producer the investigation or review, the administering of the subject merchandise. authority may determine the weighted aver- (2) Exception age dumping margins for a reasonable number If the administering authority determines of exporters or producers by limiting its exam- that it is not practicable to determine individ- ination to— ual countervailable subsidy rates under para- (A) a sample of exporters, producers, or graph (1) because of the large number of ex- types of products that is statistically valid porters or producers involved in the investiga- based on the information available to the tion or review, the administering authority administering authority at the time of selec- may— tion, or (A) determine individual countervailable (B) exporters and producers accounting for subsidy rates for a reasonable number of ex- the largest volume of the subject merchan- porters or producers by limiting its exam- dise from the exporting country that can be ination to— reasonably examined. (i) a sample of exporters or producers (d) Determination of less than fair value that the administering authority deter- (1) Investigations mines is statistically valid based on the (A) In general information available to the administering In an investigation under part II of this authority at the time of selection, or subtitle, the administering authority shall (ii) exporters and producers accounting determine whether the subject merchandise for the largest volume of the subject mer- is being sold in the United States at less chandise from the exporting country that than fair value— the administering authority determines (i) by comparing the weighted average of can be reasonably examined; or the normal values to the weighted average (B) determine a single country-wide sub- of the export prices (and constructed ex- sidy rate to be applied to all exporters and port prices) for comparable merchandise, producers. or (ii) by comparing the normal values of The individual countervailable subsidy rates individual transactions to the export determined under subparagraph (A) shall be prices (or constructed export prices) of in- used to determine the all-others rate under dividual transactions for comparable mer- section 1671d(c)(5) of this title. chandise. (June 17, 1930, ch. 497, title VII, § 777A, as added (B) Exception Pub. L. 98–573, title VI, § 620(a), Oct. 30, 1984, 98 Stat. 3039; amended Pub. L. 103–465, title II, The administering authority may deter- §§ 229(a), 269(a), (b)(1), Dec. 8, 1994, 108 Stat. 4889, mine whether the subject merchandise is 4916.) being sold in the United States at less than fair value by comparing the weighted aver- AMENDMENTS age of the normal values to the export prices 1994—Pub. L. 103–465, § 269(b)(1), inserted ‘‘and (or constructed export prices) of individual countervailable subsidy rate’’ after ‘‘margin’’ in sec- transactions for comparable merchandise, tion catchline. if— Pub. L. 103–465, § 269(a), added subsec. (e). (i) there is a pattern of export prices (or Pub. L. 103–465, § 229(a), amended section generally, constructed export prices) for comparable substituting present provisions for provisions authoriz- merchandise that differ significantly ing use of averaging or generally recognized sampling techniques for purposes of determining United States among purchasers, regions, or periods of price or foreign market value and for purposes of an- time, and nual reviews under section 1675 of this title, and provid- (ii) the administering authority explains ing for selection of samples and averages by admin- why such differences cannot be taken into istering authority. Page 369 TITLE 19—CUSTOMS DUTIES § 1677i

EFFECTIVE DATE OF 1994 AMENDMENT for such period for provision that the rate at which such interest was payable would be 8 percent per Amendment by Pub. L. 103–465 effective, except as annum or, if higher, the rate in effect under section otherwise provided, on the date on which the WTO 6621 of title 26 on the date on which the rate or amount Agreement enters into force with respect to the United of the duty was finally determined. States [Jan. 1, 1995], and applicable with respect to investigations, reviews, and inquiries initiated and peti- EFFECTIVE DATE OF 1984 AMENDMENT tions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set Amendment by Pub. L. 98–573 applicable with respect out as a note under section 1671 of this title. to merchandise that is unliquidated on or after Nov. 4, 1984, see section 626(b)(4) of Pub. L. 98–573, set out as a EFFECTIVE DATE note under section 1671 of this title. Section applicable with respect to investigations ini- § 1677h. Drawback treatment tiated by petition or by the administering authority under parts I and II of this subtitle, and to reviews For purposes of any law relating to the draw- begun under section 1675 of this title, on or after Oct. back of customs duties, countervailing duties 30, 1984, see section 626(b)(1) of Pub. L. 98–573, as amend- and antidumping duties imposed by this subtitle ed, set out as an Effective Date of 1984 Amendment shall not be treated as being regular customs note under section 1671 of this title. duties. § 1677g. Interest on certain overpayments and (June 17, 1930, ch. 497, title VII, § 779, as added underpayments Pub. L. 98–573, title VI, § 622(a)(2), Oct. 30, 1984, 98 (a) General rule Stat. 3039; amended Pub. L. 100–418, title I, § 1334(a), (b)(1), Aug. 23, 1988, 102 Stat. 1209, 1210.) Interest shall be payable on overpayments and underpayments of amounts deposited on mer- AMENDMENTS chandise entered, or withdrawn from warehouse, 1988—Pub. L. 100–418 substituted ‘‘Drawback treat- for consumption on and after— ment’’ for ‘‘Drawbacks’’ in section catchline and ‘‘not (1) the date of publication of a countervail- be treated as being regular’’ for ‘‘be treated as any ing or antidumping duty order under this sub- other’’ in text. title or section 1303 1 of this title, or EFFECTIVE DATE OF 1988 AMENDMENT (2) the date of a finding under the Antidump- ing Act, 1921. Amendment by Pub. L. 100–418 applicable with respect to articles entered, or withdrawn from warehouse (b) Rate for consumption, on or after Aug. 23, 1988, see section The rate of interest payable under subsection 1337(d) of Pub. L. 100–418, set out as a note under sec- (a) of this section for any period of time is the tion 1671 of this title. rate of interest established under section 6621 of EFFECTIVE DATE title 26 for such period. Section effective Oct. 30, 1984, see section 626(a) of (June 17, 1930, ch. 497, title VII, § 778, as added Pub. L. 98–573, set out as an Effective Date of 1984 Pub. L. 96–39, title I, § 101, July 26, 1979, 93 Stat. Amendment note under section 1671 of this title. 188; amended Pub. L. 98–573, title VI, § 621, Oct. § 1677i. Downstream product monitoring 30, 1984, 98 Stat. 3039; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.) (a) Petition requesting monitoring

REFERENCES IN TEXT (1) In general Section 1303 of this title, referred to in subsec. (a)(1), A domestic producer of an article that is is defined in section 1677(26) of this title to mean sec- like a component part or a downstream prod- tion 1330 as in effect on the day before Jan. 1, 1995. uct may petition the administering authority The Antidumping Act, 1921, referred to in subsec. to designate a downstream product for mon- (a)(2), is act May 27, 1921, ch. 14, title II, 42 Stat. 11, as itoring under subsection (b) of this section. amended, which was classified generally to sections 160 The petition shall specify— to 171 of this title, and was repealed by Pub. L. 96–39, (A) the downstream product, title I, § 106(a), July 26, 1979, 93 Stat. 193. (B) the component product incorporated AMENDMENTS into such downstream product, and 1986—Subsec. (b). Pub. L. 99–514 substituted ‘‘Internal (C) the reasons for suspecting that the im- Revenue Code of 1986’’ for ‘‘Internal Revenue Code of position of antidumping or countervailing 1954’’, which for purposes of codification was translated duties has resulted in a diversion of exports as ‘‘title 26’’ thus requiring no change in text. of the component part into increased pro- 1984—Subsec. (a). Pub. L. 98–573 amended subsec. (a) duction and exportation to the United generally, substituting provisions making interest pay- States of such downstream product. able on and after the date of publication of a countervailing or antidumping duty order under this subtitle (2) Determination regarding petition or section 1303 of this title or the date of a finding Within 14 days after receiving a petition sub- under the Antidumping Act, 1921 for provisions making mitted under paragraph (1), the administering interest payable on and after the date on which notice authority shall determine— of an affirmative determination by the Commission under section 1671d(b) or 1673d(b) of this title with re- (A) whether there is a reasonable likeli- spect to such merchandise was published. hood that imports into the United States of Subsec. (b). Pub. L. 98–573 amended subsec. (b) gener- the downstream product will increase as an ally, substituting provisions that the rate of interest indirect result of any diversion with respect payable under subsec. (a) for any period of time is the to the component part, and rate of interest established under section 6621 of title 26 (B) whether— (i) the component part is already subject 1 See References in Text note below. to monitoring to aid in the enforcement of § 1677i TITLE 19—CUSTOMS DUTIES Page 370

a bilateral arrangement (within the mean- (2) Reports ing of section 804 of the Trade and Tariff The Commission shall make quarterly re- Act of 1984), ports to the administering authority regarding (ii) merchandise related to the compo- the monitoring and analyses conducted under nent part and manufactured in the same paragraph (1). The Commission shall make the foreign country in which the component reports available to the public. part is manufactured has been the subject of a significant number of investigations (c) Action on basis of monitoring reports suspended under section 1671c or 1673c of The administering authority shall review the this title or countervailing or antidumping information in the reports submitted by the duty orders issued under this subtitle or Commission under subsection (b)(2) of this sec- section 1303 1 of this title, or tion and shall— (iii) merchandise manufactured or ex- (1) consider the information in determining ported by the manufacturer or exporter of whether to initiate an investigation under sec- the component part that is similar in de- tion 1671a(a) or 1673a(a) of this title regarding scription and use to the component part any downstream product, and has been the subject of at least 2 investiga- (2) request the Commission to cease mon- tions suspended under section 1671c or itoring any downstream product if the infor- 1673c of this title or countervailing or anti- mation indicates that imports into the United dumping duty orders issued under this sub- States are not increasing and there is no rea- title or section 1303 1 of this title. sonable likelihood of diversion with respect to (3) Factors to take into account component parts. In making a determination under paragraph (d) Definitions (2)(A), the administering authority may, if ap- For purposes of this section— propriate, take into account such factors as— (1) The term ‘‘component part’’ means any (A) the value of the component part in re- imported article that— lation to the value of the downstream prod- (A) during the 5-year period ending on the uct, date on which the petition is filed under sub- (B) the extent to which the component section (a) of this section, has been subject part has been substantially transformed as a to— result of its incorporation into the down- (i) a countervailing or antidumping duty stream product, and order issued under this subtitle or section (C) the relationship between the producers 1303 1 of this title that requires the deposit of component parts and producers of down- of estimated countervailing or antidump- stream products. ing duties imposed at a rate of at least 15 (4) Publication of determination percent ad valorem, or The administering authority shall publish in (ii) an agreement entered into under sec- the Federal Register notice of each determination 1671c, 1673c, or 1303 1 of this title after tion made under paragraph (2) and, if the de- a preliminary affirmative determination termination made under paragraph (2)(A) and under section 1671b(b), 1673b(b)(1), or 1303 1 a determination made under any subparagraph of this title was made by the administer- of paragraph (2)(B) are affirmative, shall ing authority which included a determina- transmit a copy of such determinations and tion that the estimated net counter- the petition to the Commission. vailable subsidy was at least 15 percent ad (5) Determinations not subject to judicial re- valorem or that the estimated average view amount by which the normal value exceed- Notwithstanding any other provision of law, ed the export price (or the constructed ex- any determination made by the administering port price) was at least 15 percent ad valo- authority under paragraph (2) shall not be sub- rem, and ject to judicial review. (B) because of its inherent characteristics, (b) Monitoring by Commission is routinely used as a major part, compo- (1) In general nent, assembly, subassembly, or material in If the determination made under subsection a downstream product. (a)(2)(A) of this section and a determination (2) The term ‘‘downstream product’’ means made under any clause of subsection (a)(2)(B) any manufactured article— of this section with respect to a petition are (A) which is imported into the United affirmative, the Commission shall imme- States, and diately commence monitoring of trade in the (B) into which is incorporated any compo- downstream product that is the subject of the nent part. determination made under subsection (a)(2)(A) (June 17, 1930, ch. 497, title VII, § 780, as added of this section. If the Commission finds that Pub. L. 100–418, title I, § 1320(a), Aug. 23, 1988, 102 imports of a downstream product being mon- Stat. 1189; amended Pub. L. 103–465, title II, itored increased during any calendar quarter §§ 233(a)(1)(E), (2)(A)(vi), 261(d)(1)(B)(iv), by 5 percent or more over the preceding quar- 270(a)(1)(M), Dec. 8, 1994, 108 Stat. 4898, 4910, ter, the Commission shall analyze that in- 4917.) crease in the context of overall economic conditions in the product sector. REFERENCES IN TEXT Section 804 of the Trade and Tariff Act of 1984, re- 1 See References in Text note below. ferred to in subsec. (a)(2)(B)(i), is section 804 of Pub. L. Page 371 TITLE 19—CUSTOMS DUTIES § 1677j

98–573, which is set out as a note under section 2253 of (2) Determination of whether process is minor this title. or insignificant Section 1303 of this title, referred to in subsecs. (a)(2)(B)(ii), (iii) and (d)(1)(A)(i), (ii), is defined in sec- In determining whether the process of as- tion 1677(26) of this title to mean section 1330 as in ef- sembly or completion is minor or insignificant fect on the day before Jan. 1, 1995. under paragraph (1)(C), the administering authority shall take into account— AMENDMENTS (A) the level of investment in the United 1994—Subsec. (c)(1). Pub. L. 103–465, § 261(d)(1)(B)(iv), States, substituted ‘‘or 1673a(a)’’ for ‘‘, 1673a(a), or 1303’’. (B) the level of research and development Subsec. (d)(1)(A)(ii). Pub. L. 103–465, § 270(a)(1)(M), in- in the United States, serted ‘‘countervailable’’ before ‘‘subsidy’’. (C) the nature of the production process in Pub. L. 103–465, § 233(a)(1)(E), (2)(A)(vi), substituted ‘‘normal value’’ for ‘‘foreign market value’’ and ‘‘ex- the United States, port price (or the constructed export price)’’ for (D) the extent of production facilities in ‘‘United States price’’. the United States, and (E) whether the value of the processing EFFECTIVE DATE OF 1994 AMENDMENT performed in the United States represents a Amendment by sections 233(a)(1)(E), (2)(A)(vi) and small proportion of the value of the mer- 270(a)(1)(M) of Pub. L. 103–465 effective, except as other- chandise sold in the United States. wise provided, on the date on which the WTO Agree- (3) Factors to consider ment enters into force with respect to the United States [Jan. 1, 1995], and applicable with respect to in- In determining whether to include parts or vestigations, reviews, and inquiries initiated and peti- components in a countervailing or antidump- tions filed under specified provisions of this chapter ing duty order or finding under paragraph (1), after such date, see section 291 of Pub. L. 103–465, set the administering authority shall take into out as a note under section 1671 of this title. account such factors as— Amendment by section 261(d)(1)(B)(iv) of Pub. L. (A) the pattern of trade, including sourc- 103–465 effective on the effective date of title II of Pub. L. 103–465, Jan. 1, 1995, see section 261(d)(2) of Pub. L. ing patterns, 103–465, set out as a note under section 1315 of this title. (B) whether the manufacturer or exporter of the parts or components is affiliated with § 1677j. Prevention of circumvention of anti- the person who assembles or completes the dumping and countervailing duty orders merchandise sold in the United States from the parts or components produced in the for- (a) Merchandise completed or assembled in eign country with respect to which the order United States or finding described in paragraph (1) applies, (1) In general and (C) whether imports into the United States If— of the parts or components produced in such (A) merchandise sold in the United States foreign country have increased after the ini- is of the same class or kind as any other tiation of the investigation which resulted merchandise that is the subject of— in the issuance of such order or finding. (i) an antidumping duty order issued under section 1673e of this title, (b) Merchandise completed or assembled in (ii) a finding issued under the Antidump- other foreign countries ing Act, 1921, or (1) In general (iii) a countervailing duty order issued If— under section 1671e of this title or section (A) merchandise imported into the United 1 1303 of this title, States is of the same class or kind as any (B) such merchandise sold in the United merchandise produced in a foreign country States is completed or assembled in the that is the subject of— United States from parts or components pro- (i) an antidumping duty order issued duced in the foreign country with respect to under section 1673e of this title, which such order or finding applies, (ii) a finding issued under the Antidump- (C) the process of assembly or completion ing Act, 1921, or in the United States is minor or insignifi- (iii) a countervailing duty order issued cant, and under section 1671e of this title or section (D) the value of the parts or components 1303 1 of this title, referred to in subparagraph (B) is a signifi- (B) before importation into the United cant portion of the total value of the mer- States, such imported merchandise is com- chandise, pleted or assembled in another foreign coun- the administering authority, after taking into try from merchandise which— account any advice provided by the Commis- (i) is subject to such order or finding, or sion under subsection (e) of this section, may (ii) is produced in the foreign country include within the scope of such order or find- with respect to which such order or finding ing the imported parts or components referred applies, to in subparagraph (B) that are used in the (C) the process of assembly or completion completion or assembly of the merchandise in in the foreign country referred to in sub- the United States at any time such order or paragraph (B) is minor or insignificant, finding is in effect. (D) the value of the merchandise produced in the foreign country to which the anti- 1 See References in Text note below. dumping duty order applies is a significant § 1677j TITLE 19—CUSTOMS DUTIES Page 372

portion of the total value of the merchandise ricultural products that have undergone minor exported to the United States, and processing), whether or not included in the (E) the administering authority deter- same tariff classification. mines that action is appropriate under this (2) Exception paragraph to prevent evasion of such order or finding, Paragraph (1) shall not apply with respect to altered merchandise if the administering au- the administering authority, after taking into thority determines that it would be unneces- account any advice provided by the Commis- sary to consider the altered merchandise with- sion under subsection (e) of this section, may in the scope of the investigation, order, or include such imported merchandise within the finding. scope of such order or finding at any time such (d) Later-developed merchandise order or finding is in effect. (2) Determination of whether process is minor (1) In general or insignificant For purposes of determining whether mer- In determining whether the process of as- chandise developed after an investigation is 2 sembly or completion is minor or insignificant initiated under this subtitle or section 1303 of under paragraph (1)(C), the administering au- this title (hereafter in this paragraph referred thority shall take into account— to as the ‘‘later-developed merchandise’’) is (A) the level of investment in the foreign within the scope of an outstanding antidump- country, ing or countervailing duty order issued under 2 (B) the level of research and development this subtitle or section 1303 of this title as a in the foreign country, result of such investigation, the administering (C) the nature of the production process in authority shall consider whether— the foreign country, (A) the later-developed merchandise has (D) the extent of production facilities in the same general physical characteristics as the foreign country, and the merchandise with respect to which the (E) whether the value of the processing order was originally issued (hereafter in this performed in the foreign country represents paragraph referred to as the ‘‘earlier prod- a small proportion of the value of the mer- uct’’), chandise imported into the United States. (B) the expectations of the ultimate purchasers of the later-developed merchandise (3) Factors to consider are the same as for the earlier product, In determining whether to include merchan- (C) the ultimate use of the earlier product dise assembled or completed in a foreign coun- and the later-developed merchandise are the try in a countervailing duty order or an anti- same, dumping duty order or finding under para- (D) the later-developed merchandise is sold graph (1), the administering authority shall through the same channels of trade as the take into account such factors as— earlier product, and (A) the pattern of trade, including sourc- (E) the later-developed merchandise is ad- ing patterns, vertised and displayed in a manner similar (B) whether the manufacturer or exporter to the earlier product. of the merchandise described in paragraph (1)(B) is affiliated with the person who uses The administering authority shall take into the merchandise described in paragraph account any advice provided by the Commis- (1)(B) to assemble or complete in the foreign sion under subsection (e) of this section before country the merchandise that is subse- making a determination under this subpara- quently imported into the United States, graph. and (2) Exclusion from orders (C) whether imports into the foreign coun- The administering authority may not ex- try of the merchandise described in para- clude a later-developed merchandise from a graph (1)(B) have increased after the initi- countervailing or antidumping duty order ation of the investigation which resulted in merely because the merchandise— the issuance of such order or finding. (A) is classified under a tariff classifica- (c) Minor alterations of merchandise tion other than that identified in the peti- (1) In general tion or the administering authority’s prior The class or kind of merchandise subject notices during the proceeding, or to— (B) permits the purchaser to perform addi- (A) an investigation under this subtitle, tional functions, unless such additional (B) an antidumping duty order issued functions constitute the primary use of the under section 1673e of this title, merchandise and the cost of the additional (C) a finding issued under the Antidumping functions constitute more than a significant Act, 1921, or proportion of the total cost of production of (D) a countervailing duty order issued the merchandise. under section 1671e of this title or section (e) Commission advice 1303 2 of this title, (1) Notification to Commission of proposed ac- shall include articles altered in form or ap- tion pearance in minor respects (including raw ag- Before making a determination— (A) under subsection (a) of this section 2 See References in Text note below. with respect to merchandise completed or Page 373 TITLE 19—CUSTOMS DUTIES § 1677k

assembled in the United States (other than 1921, ch. 14, title II, 42 Stat. 11, as amended, which was minor completion or assembly), classified generally to sections 160 to 171 of this title, (B) under subsection (b) of this section and was repealed by Pub. L. 96–39, title I, § 106(a), July 26, 1979, 93 Stat. 193. with respect to merchandise completed or Section 1303 of this title, referred to in subsecs. assembled in other foreign countries, or (a)(1)(A)(iii), (b)(1)(A)(iii), (c)(1)(D), and (d)(1), is defined (C) under subsection (d) of this section in section 1677(26) of this title to mean section 1330 as with respect to any later-developed mer- in effect on the day before Jan. 1, 1995. chandise which incorporates a significant AMENDMENTS technological advance or significant alteration of an earlier product, 1994—Subsecs. (a), (b). Pub. L. 103–465, § 230(a), amended subsecs. (a) and (b) generally, to include provisions with respect to an antidumping or counter- relating to whether process of assembly or completion vailing duty order or finding as to which the of merchandise in United States or foreign countries is Commission has made an affirmative injury minor or insignificant. determination, the administering authority Subsec. (f). Pub. L. 103–465, § 230(b), added subsec. (f). shall notify the Commission of the proposed EFFECTIVE DATE OF 1994 AMENDMENT inclusion of such merchandise in such counter- Amendment by Pub. L. 103–465 effective, except as vailing or antidumping order or finding. Not- otherwise provided, on the date on which the WTO withstanding any other provision of law, a de- Agreement enters into force with respect to the United cision by the administering authority regard- States [Jan. 1, 1995], and applicable with respect to in- ing whether any merchandise is within a cat- vestigations, reviews, and inquiries initiated and peti- egory for which notice is required under this tions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set paragraph is not subject to judicial review. out as a note under section 1671 of this title. (2) Request for consultation EFFECTIVE DATE After receiving notice under paragraph (1), the Commission may request consultations Section applicable with respect to articles entered, or withdrawn from warehouse for consumption, on or with the administering authority regarding after Aug. 23, 1988, see section 1337(d) of Pub. L. 100–418, the inclusion. Upon the request of the Com- set out as an Effective Date of 1988 Amendment note mission, the administering authority shall under section 1671 of this title. consult with the Commission and any such consultation shall be completed within 15 days § 1677k. Third-country dumping after the date of the request. (a) Definitions (3) Commission advice For purposes of this section: If the Commission believes, after consulta- (1)(A) The term ‘‘Agreement’’ means the tion under paragraph (2), that a significant in- Agreement on Implementation of Article VI of jury issue is presented by the proposed inclu- the GATT 1994 (relating to antidumping meas- sion, the Commission may provide written ad- ures). vice to the administering authority as to (B) The term ‘‘GATT 1994’’ has the meaning whether the inclusion would be inconsistent given that term in section 3501(1)(B) of this with the affirmative determination of the title. Commission on which the order or finding is (2) The term ‘‘Agreement country’’ means a based. If the Commission decides to provide foreign country that has accepted the Agree- such written advice, it shall promptly notify ment. (3) The term ‘‘Trade Representative’’ means the administering authority of its intention to the United States Trade Representative. do so, and must provide such advice within 60 days after the date of notification under para- (b) Petition by domestic industry graph (1). For purposes of formulating its ad- (1) A domestic industry that produces a prod- vice with respect to merchandise completed or uct that is like or directly competitive with assembled in the United States from parts or merchandise produced by a foreign country components produced in a foreign country, the (whether or not an Agreement country) may, if Commission shall consider whether the inclu- it has reason to believe that— sion of such parts or components taken as a (A) such merchandise is being dumped in an whole would be inconsistent with its prior af- Agreement country; and firmative determination. (B) such domestic industry is being materially injured, or threatened with material in- (f) Time limits for administering authority deter- jury, by reason of such dumping; minations The administering authority shall, to the submit a petition to the Trade Representative maximum extent practicable, make the deter- that alleges the elements referred to in subpara- minations under this section within 300 days graphs (A) and (B) and requests the Trade Rep- from the date of the initiation of a countervail- resentative to take action under subsection (c) ing duty or antidumping circumvention inquiry of this section on behalf of the domestic indus- under this section. try. (2) A petition submitted under paragraph (1) (June 17, 1930, ch. 497, title VII, § 781, as added shall contain such detailed information as the Pub. L. 100–418, title I, § 1321(a), Aug. 23, 1988, 102 Trade Representative may require in support of Stat. 1192; amended Pub. L. 103–465, title II, § 230, the allegations in the petition. Dec. 8, 1994, 108 Stat. 4891.) (c) Application for antidumping action on behalf REFERENCES IN TEXT of domestic industry The Antidumping Act, 1921, referred to in subsecs. (1) If the Trade Representative, on the basis of (a)(1)(A)(ii), (b)(1)(A)(ii), and (c)(1)(C), is act May 27, the information contained in a petition submit- § 1677l TITLE 19—CUSTOMS DUTIES Page 374 ted under paragraph (1), determines that there is part of the Tariff Act of 1930 which comprises this chap- a reasonable basis for the allegations in the pe- ter. tition, the Trade Representative shall submit to TRANSFER OF FUNCTIONS the appropriate authority of the Agreement For transfer of functions, personnel, assets, and li- country where the alleged dumping is occurring abilities of the United States Customs Service of the an application pursuant to Article 12 of the Department of the Treasury, including functions of the Agreement which requests that appropriate Secretary of the Treasury relating thereto, to the Sec- antidumping action under the law of that coun- retary of Homeland Security, and for treatment of re- try be taken, on behalf of the United States, lated references, see sections 203(1), 551(d), 552(d), and with respect to imports into that country of the 557 of Title 6, Domestic Security, and the Department merchandise concerned. of Homeland Security Reorganization Plan of Novem- (2) At the request of the Trade Representative, ber 25, 2002, as modified, set out as a note under section 542 of Title 6. the appropriate officers of the Department of Commerce and the United States International § 1677m. Conduct of investigations and adminis- Trade Commission shall assist the Trade Rep- trative reviews resentative in preparing the application under paragraph (1). (a) Treatment of voluntary responses in countervailing or antidumping duty investigations (d) Consultation after submission of application and reviews After submitting an application under sub- In any investigation under part I or II of this section (c)(1) of this section, the Trade Rep- subtitle or a review under section 1675(a) of this resentative shall seek consultations with the ap- title in which the administering authority has, propriate authority of the Agreement country under section 1677f–1(c)(2) of this title or section regarding the request for antidumping action. 1677f–1(e)(2)(A) of this title (whichever is appli- (e) Action upon refusal of Agreement country to cable), limited the number of exporters or pro- act ducers examined, or determined a single coun- If the appropriate authority of an Agreement try-wide rate, the administering authority shall country refuses to undertake antidumping establish an individual countervailable subsidy measures in response to a request made therefor rate or an individual weighted average dumping by the Trade Representative under subsection margin for any exporter or producer not ini- (c) of this section, the Trade Representative tially selected for individual examination under shall promptly consult with the domestic indus- such sections who submits to the administering try on whether action under any other law of authority the information requested from ex- the United States is appropriate. porters or producers selected for examination, if— (Pub. L. 100–418, title I, § 1317, Aug. 23, 1988, 102 (1) such information is so submitted by the Stat. 1188; Pub. L. 103–465, title VI, § 621(a)(1), date specified— Dec. 8, 1994, 108 Stat. 4992.) (A) for exporters and producers that were CODIFICATION initially selected for examination, or (B) for the foreign government, in a coun- Section was enacted as part of the Omnibus Trade tervailing duty case where the administer- and Competitiveness Act of 1988, and not as part of the ing authority has determined a single coun- Tariff Act of 1930 which comprises this chapter. try-wide rate; and AMENDMENTS (2) the number of exporters or producers who 1994—Subsec. (a)(1). Pub. L. 103–465 designated exist- have submitted such information is not so ing provisions as subpar. (A), substituted ‘‘GATT 1994’’ large that individual examination of such ex- for ‘‘General Agreement on Tariffs and Trade’’, and porters or producers would be unduly burden- added subpar. (B). some and inhibit the timely completion of the EFFECTIVE DATE OF 1994 AMENDMENT investigation. Section 621(b) of Pub. L. 103–465 provided that: ‘‘The (b) Certification of submissions amendments made by this section [amending this sec- Any person providing factual information to tion and sections 2171, 2411, 2702, 2905, 2906, 3107, 3111, the administering authority or the Commission and 3202 of this title] shall take effect on the date on which the WTO Agreement enters into force with re- in connection with a proceeding under this sub- spect to the United States [Jan. 1, 1995].’’ title on behalf of the petitioner or any other interested party shall certify that such informa- § 1677l. Antidumping and countervailing duty tion is accurate and complete to the best of that collections person’s knowledge. The Commissioner of Customs shall before the (c) Difficulties in meeting requirements 60th day of each fiscal year after fiscal year 1994 (1) Notification by interested party submit to Congress a report regarding the col- If an interested party, promptly after receiv- lection during the preceding fiscal year of duties ing a request from the administering author- imposed under the antidumping and countervail- ity or the Commission for information, noti- ing duty laws. fies the administering authority or the Com- (Pub. L. 103–182, title VI, § 691(a), Dec. 8, 1993, 107 mission (as the case may be) that such party Stat. 2223.) is unable to submit the information requested in the requested form and manner, together CODIFICATION with a full explanation and suggested alter- Section was enacted as part of the North American native forms in which such party is able to Free Trade Agreement Implementation Act, and not as submit the information, the administering au- Page 375 TITLE 19—CUSTOMS DUTIES § 1677m

thority or the Commission (as the case may mation submitted in an investigation or review be) shall consider the ability of the interested under this subtitle, it shall, to the extent prac- party to submit the information in the re- ticable, provide to the person submitting the in- quested form and manner and may modify formation a written explanation of the reasons such requirements to the extent necessary to for not accepting the information. avoid imposing an unreasonable burden on (g) Public comment on information that party. Information that is submitted on a timely (2) Assistance to interested parties basis to the administering authority or the The administering authority and the Com- Commission during the course of a proceeding mission shall take into account any difficul- under this subtitle shall be subject to comment ties experienced by interested parties, particu- by other parties to the proceeding within such larly small companies, in supplying informa- reasonable time as the administering authority tion requested by the administering authority or the Commission shall provide. The admin- or the Commission in connection with inves- istering authority and the Commission, before tigations and reviews under this subtitle, and making a final determination under section shall provide to such interested parties any as- 1671d, 1673d, 1675, or 1675b of this title shall cease sistance that is practicable in supplying such collecting information and shall provide the par- information. ties with a final opportunity to comment on the (d) Deficient submissions information obtained by the administering au- If the administering authority or the Commis- thority or the Commission (as the case may be) sion determines that a response to a request for upon which the parties have not previously had information under this subtitle does not comply an opportunity to comment. Comments contain- with the request, the administering authority or ing new factual information shall be dis- the Commission (as the case may be) shall regarded. promptly inform the person submitting the re- (h) Termination of investigation or revocation of sponse of the nature of the deficiency and shall, order for lack of interest to the extent practicable, provide that person with an opportunity to remedy or explain the The administering authority may— deficiency in light of the time limits established (1) terminate an investigation under part I for the completion of investigations or reviews or II of this subtitle with respect to a domestic under this subtitle. If that person submits fur- like product if, prior to publication of an order ther information in response to such deficiency under section 1671e or 1673e of this title, the and either— administering authority determines that pro- (1) the administering authority or the Com- ducers accounting for substantially all of the mission (as the case may be) finds that such production of that domestic like product have response is not satisfactory, or expressed a lack of interest in issuance of an (2) such response is not submitted within the order; and applicable time limits, (2) revoke an order issued under section 1671e or 1673e of this title with respect to a domestic then the administering authority or the Com- like product, or terminate an investigation mission (as the case may be) may, subject to suspended under section 1671c or 1673c of this subsection (e) of this section, disregard all or title with respect to a domestic like product, part of the original and subsequent responses. if the administering authority determines (e) Use of certain information that producers accounting for substantially In reaching a determination under section all of the production of that domestic like 1671b, 1671d, 1673b, 1673d, 1675, or 1675b of this product, have expressed a lack of interest in title the administering authority and the Com- the order or suspended investigation. mission shall not decline to consider informa- (i) Verification tion that is submitted by an interested party and is necessary to the determination but does The administering authority shall verify all not meet all the applicable requirements estab- information relied upon in making— lished by the administering authority or the (1) a final determination in an investigation, Commission, if— (2) a revocation under section 1675(d) of this (1) the information is submitted by the dead- title, and line established for its submission, (3) a final determination in a review under (2) the information can be verified, section 1675(a) of this title, if— (3) the information is not so incomplete that (A) verification is timely requested by an it cannot serve as a reliable basis for reaching interested party as defined in section the applicable determination, 1677(9)(C), (D), (E), (F), or (G) of this title, (4) the interested party has demonstrated and that it acted to the best of its ability in pro- (B) no verification was made under this viding the information and meeting the re- subparagraph during the 2 immediately pre- quirements established by the administering ceding reviews and determinations under authority or the Commission with respect to section 1675(a) of this title of the same order, the information, and finding, or notice, except that this clause (5) the information can be used without shall not apply if good cause for verification undue difficulties. is shown. (f) Nonacceptance of submissions (June 17, 1930, ch. 497, title VII, § 782, as added If the administering authority or the Commis- Pub. L. 103–465, title II, § 231(a), Dec. 8, 1994, 108 sion declines to accept into the record any infor- Stat. 4893.) § 1677n TITLE 19—CUSTOMS DUTIES Page 376

EFFECTIVE DATE ministering authority and the Commission Section effective, except as otherwise provided, on under this section shall be treated as final deter- the date on which the WTO Agreement enters into minations made under section 1673d of this title. force with respect to the United States [Jan. 1, 1995], (g) Access to information and applicable with respect to investigations, reviews, and inquiries initiated and petitions filed under speci- Section 1677f of this title shall apply to inves- fied provisions of this chapter after such date, see sec- tigations under this section, to the extent speci- tion 291 of Pub. L. 103–465, set out as an Effective Date fied by the Trade Representative, after consulta- of 1994 Amendment note under section 1671 of this title. tion with the administering authority and the Commission. § 1677n. Antidumping petitions by third countries (June 17, 1930, ch. 497, title VII, § 783, as added Pub. L. 103–465, title II, § 232(a), Dec. 8, 1994, 108 (a) Filing of petition Stat. 4897; amended Pub. L. 104–295, § 20(b)(17), The government of a WTO member may file Oct. 11, 1996, 110 Stat. 3528.) with the Trade Representative a petition requesting that an investigation be conducted to AMENDMENTS determine if— 1996—Subsec. (f). Pub. L. 104–295 substituted ‘‘sub- (1) imports from another country are being section (e)’’ for ‘‘subsection (d)’’. sold in the United States at less than fair EFFECTIVE DATE value, and (2) an industry in the petitioning country is Section effective, except as otherwise provided, on materially injured by reason of those imports. the date on which the WTO Agreement enters into force with respect to the United States [Jan. 1, 1995], (b) Initiation and applicable with respect to investigations, reviews, The Trade Representative, after consultation and inquiries initiated and petitions filed under speci- with the administering authority and the Com- fied provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set out as an Effective Date mission and obtaining the approval of the WTO of 1994 Amendment note under section 1671 of this title. Council for Trade in Goods, shall determine whether to initiate an investigation described in SUBTITLE V—REQUIREMENTS APPLICABLE subsection (a) of this section. TO IMPORTS OF CERTAIN CIGARETTES (c) Determinations AND SMOKELESS TOBACCO PRODUCTS Upon initiation of an investigation under this CODIFICATION section, the Trade Representative shall request Subtitle is comprised of title VIII of act June 17, 1930, the following determinations be made according as added by Pub. L. 106–476, title IV, § 4004(a), Nov. 9, to substantive and procedural requirements 2000, 114 Stat. 2178. Another title VIII of act June 17, specified by the Trade Representative, notwith- 1930, was added by Pub. L. 110–246, title III, § 3301(a), standing any other provision of this subtitle: June 18, 2008, 122 Stat. 1844, and is classified to subtitle (1) The administering authority shall deter- VI (§ 1683 et seq.) of this chapter. mine whether imports into the United States § 1681. Definitions of the subject merchandise are being sold at less than fair value. In this subtitle: (2) The Commission shall determine whether (1) Secretary an industry in the petitioning country is ma- Except as otherwise indicated, the term terially injured by reason of imports of the ‘‘Secretary’’ means the Secretary of the subject merchandise into the United States. Treasury. (d) Public comment (2) Primary packaging An opportunity for public comment shall be The term ‘‘primary packaging’’ refers to the provided, as appropriate— permanent packaging inside of the innermost (1) by the Trade Representative, in making cellophane or other transparent wrapping and the determination required by subsection (b) labels, if any. Warnings or other statements of this section, and shall be deemed ‘‘permanently imprinted’’ (2) by the administering authority and the only if printed directly on such primary pack- Commission, in making the determination re- aging and not by way of stickers or other simi- quired by subsection (c) of this section. lar devices. (e) Issuance of order (3) Delivery sale If the administering authority makes an af- The term ‘‘delivery sale’’ means any sale of firmative determination under paragraph (1) of cigarettes or a smokeless tobacco product to a subsection (c) of this section, and the Commis- consumer if— sion makes an affirmative determination under (A) the consumer submits the order for paragraph (2) of subsection (c) of this section, such sale by means of a telephone or other the administering authority shall issue an anti- method of voice transmission, the mail, or dumping duty order in accordance with section the Internet or other online service, or the 1673e of this title and take such other actions as seller is otherwise not in the physical pres- are required by section 1673e of this title. ence of the buyer when the request for pur- (f) Reviews of determinations chase or order is made; or For purposes of review under section 1516a of (B) the cigarettes or smokeless tobacco this title or review under section 1675 of this product is delivered by use of a common car- title, if an order is issued under subsection (e) of rier, private delivery service, or the mail, or this section, the final determinations of the ad- the seller is not in the physical presence of Page 377 TITLE 19—CUSTOMS DUTIES § 1681a

the buyer when the buyer obtains personal or smokeless tobacco products (or a person au- possession of the delivered cigarettes or thorized to act on behalf of such owner) has smokeless tobacco product. consented to the importation of such cigarettes or smokeless tobacco products into the (June 17, 1930, ch. 497, title VIII, § 801, as added United States; and Pub. L. 106–476, title IV, § 4004(a), Nov. 9, 2000, 114 (5) the importer has submitted at the time of Stat. 2178; amended Pub. L. 109–432, div. C, title entry all of the certificates described in sub- IV, § 401(a), Dec. 20, 2006, 120 Stat. 3047.) section (c) of this section. AMENDMENTS (b) Exemptions 2006—Par. (3). Pub. L. 109–432 added par. (3). Cigarettes or smokeless tobacco products sat- EFFECTIVE DATE OF 2006 AMENDMENT isfying the conditions of any of the following Pub. L. 109–432, div. C, title IV, § 401(g), Dec. 20, 2006, paragraphs shall not be subject to the require- 120 Stat. 3050, provided that: ‘‘The amendments made ments of subsection (a) of this section: by this section [amending this section, sections 1681a (1) Personal-use cigarettes or smokeless to- and 1681b of this title, and sections 5754 and 5761 of bacco products Title 26, Internal Revenue Code] shall apply with respect to goods entered, or withdrawn from warehouse Cigarettes or smokeless tobacco products for consumption, on or after the 15th day after the date that are imported into the United States in of the enactment of this Act [Dec. 20, 2006].’’ personal use quantities that are allowed entry free of tax and duty under subchapter IV of EFFECTIVE DATE chapter 98 of the Harmonized Tariff Schedule Pub. L. 106–476, title IV, § 4004(b), Nov. 9, 2000, 114 of the United States. The preceding sentence Stat. 2181, provided that: ‘‘The amendment made by shall not apply to any cigarettes or smokeless subsection (a) [enacting this subtitle] shall take effect 30 days after the date of the enactment of this Act tobacco products sold in connection with a de- [Nov. 9, 2000].’’ livery sale. (2) Cigarettes or smokeless tobacco products § 1681a. Requirements for entry of certain ciga- imported into the United States for analy- rettes and smokeless tobacco products sis (a) General rule Cigarettes or smokeless tobacco products Except as provided in subsection (b) of this that are imported into the United States sole- section, cigarettes or smokeless tobacco prod- ly for the purpose of analysis in quantities ucts may be imported into the United States suitable for such purpose, but only if the im- only if— porter submits at the time of entry a certifi- (1) the original manufacturer of those ciga- cate signed, under penalties of perjury, by the rettes or smokeless tobacco products has consignee (or a person authorized by such con- timely submitted, or has certified that it will signee) providing such facts as may be re- timely submit, to the Secretary of Health and quired by the Secretary to establish that such Human Services the lists of the ingredients consignee is a manufacturer of cigarettes or added to the tobacco in the manufacture of smokeless tobacco products, a Federal or such cigarettes or smokeless tobacco products State government agency, a university, or is as described in section 1335a of title 15 or sec- otherwise engaged in bona fide research and tion 4403 of title 15, as the case may be; stating that such cigarettes or smokeless to- (2) the precise warning statements in the bacco products will be used solely for analysis precise format specified in section 1333 of title and will not be sold in domestic commerce in 15 or section 4402 of title 15, as the case may the United States. be, are permanently imprinted on both— (3) Cigarettes or smokeless tobacco products (A) the primary packaging of all those intended for noncommercial use, reexport, cigarettes or smokeless tobacco products; or repackaging and (B) any other pack, box, carton, or con- Cigarettes or smokeless tobacco products— tainer of any kind in which those cigarettes (A) for which the owner of such United or smokeless tobacco products are to be of- States trademark registration for cigarettes fered for sale or otherwise distributed to or smokeless tobacco products (or a person consumers; authorized to act on behalf of such owner) has consented to the importation of such (3) the manufacturer or importer of those cigarettes or smokeless tobacco products cigarettes or smokeless tobacco products is in into the United States; and compliance with respect to those cigarettes or (B) for which the importer submits a cer- smokeless tobacco products being imported tificate signed by the manufacturer or ex- into the United States with a rotation plan ap- port warehouse (or a person authorized by proved by the Federal Trade Commission pur- such manufacturer or export warehouse) to suant to section 1333(c) 1 of title 15 or section which such cigarettes or smokeless tobacco 4402(d) 1 of title 15, as the case may be; products are to be delivered (as provided in (4) if such cigarettes or smokeless tobacco subparagraph (A)) stating, under penalties of products bear a United States trademark reg- perjury, with respect to those cigarettes or istered for such cigarettes or smokeless to- smokeless tobacco products, that it will not bacco products, the owner of such United distribute those cigarettes or smokeless to- States trademark registration for cigarettes bacco products into domestic commerce unless prior to such distribution all steps have 1 See References in Text note below. been taken to comply with paragraphs (1), § 1681a TITLE 19—CUSTOMS DUTIES Page 378

(2), and (3) of subsection (a) of this section, ferred to in subparagraph (A) is accurate, re- and, to the extent applicable, section mains in effect, and has not been withdrawn. 5754(a)(1)(B) and (C) of title 26. The Secretary may provide by regulation for the For purposes of this section, a trademark is reg- submission of certifications under this section istered in the United States if it is registered in in electronic form if, prior to the entry of any the United States Patent and Trademark Office cigarettes or smokeless tobacco products into under the provisions of title I of the Act of July the United States, the person required to pro- 5, 1946 [15 U.S.C. 1051 et seq.] (popularly known vide such certifications submits to the Sec- as the ‘‘Trademark Act of 1946’’), and a copy of retary a written statement, signed under pen- the certificate of registration of such mark has alties of perjury, verifying the accuracy and been filed with the Secretary. The Secretary completeness of all information contained in shall make available to interested parties a cur- such electronic submissions. rent list of the marks so filed. (d) State access to customs certifications (c) Customs certifications required for cigarette A State, through its Attorney General, shall or smokeless tobacco product imports be entitled to obtain copies of any certification The certificates that must be submitted by required under subsection (c) directly— the importer of cigarettes or smokeless tobacco (1) upon request to the agency of the United products at the time of entry in order to comply States responsible for collecting such certifi- with subsection (a)(5) of this section are— cation; or (1) a certificate signed by the manufacturer (2) upon request to the importer, manufac- of such cigarettes or smokeless tobacco prod- turer, or authorized official of such importer ucts or an authorized official of such manufac- or manufacturer. turer stating under penalties of perjury, with (June 17, 1930, ch. 497, title VIII, § 802, as added respect to those cigarettes or smokeless to- Pub. L. 106–476, title IV, § 4004(a), Nov. 9, 2000, 114 bacco products, that such manufacturer has Stat. 2178; amended Pub. L. 109–432, div. C, title timely submitted, and will continue to submit IV, § 401(b), (c), (e)(1), (2), (4)(B), Dec. 20, 2006, 120 timely, to the Secretary of Health and Human Stat. 3048, 3049.) Services the ingredient reporting information required by section 1335a of title 15 or section REFERENCES IN TEXT 4403 of title 15, as the case may be; The Harmonized Tariff Schedule of the United States, (2) a certificate signed by such importer or referred to in subsec. (b)(1), is not set out in the Code. an authorized official of such importer stating See Publication of Harmonized Tariff Schedule note set under penalties of perjury that— out under section 1202 of this title. (A) the precise warning statements in the The Trademark Act of 1946, referred to in subsec. (b), is act July 5, 1946, ch. 540, 60 Stat. 427, as amended, also precise format required by section 1333 of popularly known as the Lanham Act. Title I of the Act title 15 or section 4402 of title 15, as the case is classified generally to subchapter I (§ 1051 et seq.) of may be, are permanently imprinted on chapter 22 of Title 15, Commerce and Trade. For com- both— plete classification of this Act to the Code, see Short (i) the primary packaging of all those Title note set out under section 1051 of Title 15 and cigarettes or smokeless tobacco products; Tables. and Sections 1333 and 4402 of title 15, referred to in sub- (ii) any other pack, box, carton, or con- secs. (a)(3) and (c)(2)(B), were amended by Pub. L. 111–31, div. A, title II, §§ 201(a), 202(b), 204(a), 205(a), 206, tainer of any kind in which those ciga- June 22, 2009, 123 Stat. 1842, 1845, 1846, 1848, 1849, and, as rettes or smokeless tobacco products are so amended, sections 1333(c) and 4402(d) no longer relate to be offered for sale or otherwise distrib- to the Federal Trade Commission’s approval of a rota- uted to consumers; and tion plan. (B) with respect to those cigarettes or CODIFICATION smokeless tobacco products being imported Another section 802 of act June 17, 1930, is classified into the United States, such importer has to section 1683 of this title. complied, and will continue to comply, with a rotation plan approved by the Federal AMENDMENTS Trade Commission pursuant to section 2006—Pub. L. 109–432, § 401(e)(4)(B), inserted ‘‘and 1333(c) 1 of title 15 or section 4402(d) 1 of title smokeless tobacco products’’ after ‘‘cigarettes’’ in sec- 15, as the case may be; and tion catchline. Subsec. (a). Pub. L. 109–432, § 401(e)(1), inserted ‘‘or (3)(A) if such cigarettes or smokeless to- smokeless tobacco products’’ after ‘‘cigarettes’’ in in- bacco products bear a United States trade- troductory provisions. mark registered for cigarettes or smokeless Subsec. (a)(1). Pub. L. 109–432, § 401(e)(2)(A)(i), inserted tobacco products, a certificate signed by the ‘‘or section 4403 of title 15, as the case may be’’ after ‘‘section 1335a of title 15’’. owner of such United States trademark reg- Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless to- istration for cigarettes or smokeless tobacco bacco products’’ after ‘‘cigarettes’’ in two places. products (or a person authorized to act on be- Subsec. (a)(2). Pub. L. 109–432, § 401(e)(2)(A)(ii), in- half of such owner) stating under penalties of serted ‘‘or section 4402 of title 15, as the case may be,’’ perjury that such owner (or authorized person) after ‘‘section 1333 of title 15’’ in introductory provi- consents to the importation of such cigarettes sions. or smokeless tobacco products into the United Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’ in subpars. (A) and States; and (B). (B) a certificate signed by the importer or an Subsec. (a)(3). Pub. L. 109–432, § 401(e)(2)(A)(iii), in- authorized official of such importer stating serted ‘‘or section 4402(d) of title 15, as the case may under penalties of perjury that the consent re- be’’ after ‘‘section 1333(c) of title 15’’. Page 379 TITLE 19—CUSTOMS DUTIES § 1683

Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless to- was imported into the United States or is sought bacco products’’ after ‘‘cigarettes’’ in two places. to be imported into the United States in viola- Subsec. (a)(4). Pub. L. 109–432, § 401(e)(1), inserted ‘‘or tion of, or without meeting the requirements of, smokeless tobacco products’’ after ‘‘cigarettes’’ wherever appearing. section 1681a of this title shall be forfeited to Subsec. (b). Pub. L. 109–432, § 401(e)(1), which directed the United States, or to any State in which such insertion of ‘‘or smokeless tobacco products’’ after tobacco product, cigarette papers, or tube is ‘‘cigarettes’’ wherever appearing, was executed by found. Notwithstanding any other provision of making the insertion after ‘‘Cigarettes’’ in introduc- law, any product forfeited to the United States, tory provisions, to reflect the probable intent of Con- or to any State, pursuant to this subtitle shall gress. Subsec. (b)(1). Pub. L. 109–432, § 401(e)(2)(B)(i), inserted be destroyed. ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’ in (June 17, 1930, ch. 497, title VIII, § 803, as added heading. Pub. L. 106–476, title IV, § 4004(a), Nov. 9, 2000, 114 Pub. L. 109–432, § 401(e)(1), which directed insertion of ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’ Stat. 2180; amended Pub. L. 109–432, div. C, title wherever appearing, was executed by making the inser- IV, § 401(d), (e)(1), (3), Dec. 20, 2006, 120 Stat. 3048, tion after ‘‘Cigarettes’’ in subsec. (b)(1), to reflect the 3049.) probable intent of Congress. REFERENCES IN TEXT Pub. L. 109–432, § 401(b), inserted at end ‘‘The preceding sentence shall not apply to any cigarettes or Chapter 52 of the Internal Revenue Code of 1986, re- smokeless tobacco products sold in connection with a ferred to in subsec. (a), is classified to section 5701 et delivery sale.’’ seq. of Title 26, Internal Revenue Code. Subsec. (b)(2), (3). Pub. L. 109–432, § 401(e)(2)(B)(ii), inserted ‘‘or smokeless tobacco products’’ after ‘‘Ciga- CODIFICATION rettes’’ in heading. Another section 803 of act June 17, 1930, is classified Pub. L. 109–432, § 401(e)(1), which directed insertion of to section 1683a of this title. ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’ wherever appearing, was executed by making the inser- AMENDMENTS tion after ‘‘Cigarettes’’ and ‘‘cigarettes’’ wherever ap- 2006—Subsec. (a). Pub. L. 109–432, § 401(e)(1), inserted pearing, to reflect the probable intent of Congress. ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’. Subsec. (c). Pub. L. 109–432, § 401(e)(2)(C)(i), inserted Subsec. (b). Pub. L. 109–432, § 401(d), (e)(3), in first sen- ‘‘or smokeless tobacco product’’ after ‘‘cigarette’’ in tence, inserted ‘‘, or any smokeless tobacco product,’’ heading. before ‘‘that was imported’’ and ‘‘, or to any State in Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless to- which such tobacco product, cigarette papers, or tube is bacco products’’ after ‘‘cigarettes’’ in introductory and found’’ before period at end and, in second sentence, in- concluding provisions. serted ‘‘, or to any State,’’ after ‘‘United States’’. Subsec. (c)(1). Pub. L. 109–432, § 401(e)(2)(C)(ii), inserted ‘‘or section 4403 of title 15, as the case may be’’ EFFECTIVE DATE OF 2006 AMENDMENT after ‘‘section 1335a of title 15’’. Amendment by Pub. L. 109–432 applicable with re- Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless to- spect to goods entered, or withdrawn from warehouse bacco products’’ after ‘‘cigarettes’’ in two places. for consumption, on or after the 15th day after Dec. 20, Subsec. (c)(2)(A). Pub. L. 109–432, § 401(e)(2)(C)(iii), inserted ‘‘or section 4402 of title 15, as the case may be,’’ 2006, see section 401(g) of Pub. L. 109–432, set out as a after ‘‘section 1333 of title 15’’ in introductory provi- note under section 1681 of this title. sions. SUBTITLE VI—SOFTWOOD LUMBER Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’ in cls. (i) and (ii). CODIFICATION Subsec. (c)(2)(B). Pub. L. 109–432, § 401(e)(2)(C)(iv), inserted ‘‘or section 4402(d) of title 15, as the case may Subtitle is comprised of title VIII of act June 17, 1930, be’’ after ‘‘section 1333(c) of title 15’’. as added by Pub. L. 110–246, title III, § 3301(a), June 18, Pub. L. 109–432, § 401(e)(1), inserted ‘‘or smokeless to- 2008, 122 Stat. 1844. Another title VIII of act June 17, bacco products’’ after ‘‘cigarettes’’. 1930, was added by Pub. L. 106–476, title IV, § 4004(a), Subsec. (c)(3)(A). Pub. L. 109–432, § 401(e)(1), inserted Nov. 9, 2000, 114 Stat. 2178, and is classified to subtitle ‘‘or smokeless tobacco products’’ after ‘‘cigarettes’’ V (§ 1681 et seq.) of this chapter. wherever appearing. Subsec. (d). Pub. L. 109–432, § 401(c), added subsec. (d). § 1683. Definitions

EFFECTIVE DATE OF 2006 AMENDMENT In this subtitle: Amendment by Pub. L. 109–432 applicable with re- (1) Appropriate congressional committees spect to goods entered, or withdrawn from warehouse The term ‘‘appropriate congressional com- for consumption, on or after the 15th day after Dec. 20, mittees’’ means the Committee on Finance of 2006, see section 401(g) of Pub. L. 109–432, set out as a the Senate and the Committee on Ways and note under section 1681 of this title. Means of the House of Representatives. § 1681b. Enforcement (2) Country of export (a) Civil penalty The term ‘‘country of export’’ means the Any person who violates a provision of section country (including any political subdivision of 1681a of this title shall, in addition to the tax the country) from which softwood lumber or a and any other penalty provided by law, be liable softwood lumber product is exported before en- for a civil penalty for each violation equal to tering the United States. the greater of $1,000 or 5 times the amount of the (3) Customs laws of the United States tax imposed by chapter 52 of the Internal Reve- The term ‘‘customs laws of the United nue Code of 1986 on all cigarettes or smokeless States’’ means any law or regulation enforced tobacco products that are the subject of such or administered by U.S. Customs and Border violation. Protection. (b) Forfeitures (4) Export charges Any tobacco product, cigarette papers, or The term ‘‘export charges’’ means any tax, tube, or any smokeless tobacco product, that charge, or other fee collected by the country § 1683 TITLE 19—CUSTOMS DUTIES Page 380

from which softwood lumber or a softwood (iv) the person is an officer or director of lumber product, described in section 1683b(a) such other person; or of this title, is exported pursuant to an inter- (v) the person is the employer of such national agreement entered into by that coun- other person. try and the United States. (C) Tenure rights (5) Export price For purposes of this paragraph, the term (A) In general ‘‘tenure rights’’ means rights to harvest tim- The term ‘‘export price’’ means one of the ber from public land granted by the country following: of export. (i) In the case of softwood lumber or a (D) Export price where F.O.B. value cannot softwood lumber product that has under- be determined gone only primary processing, the value (i) In general that would be determined F.O.B. at the facility where the product underwent the In the case of softwood lumber or a soft- last primary processing before export. wood lumber product described in clause (ii)(I) In the case of softwood lumber or (i), (ii), or (iii) of subparagraph (A) for a softwood lumber product described in which an F.O.B. value cannot be deter- subclause (II), the value that would be de- mined, the export price shall be the mar- termined F.O.B. at the facility where the ket price for the identical lumber or prod- lumber or product underwent the last pri- uct sold in an arm’s-length transaction in mary processing. the country of export at approximately the (II) Softwood lumber or a softwood lum- same time as the exported lumber or prod- ber product described in this subclause is uct. The market price shall be determined lumber or a product that underwent the in the following order of preference: last remanufacturing before export by a (I) The market price for the lumber or manufacturer who— a product sold at substantially the same (aa) does not hold tenure rights pro- level of trade as the exported lumber or vided by the country of export; product but in different quantities. (bb) did not acquire standing timber (II) The market price for the lumber or directly from the country of export; and a product sold at a different level of (cc) is not related to the person who trade than the exported lumber or prod- holds tenure rights or acquired standing uct but in similar quantities. timber directly from the country of ex- (III) The market price for the lumber port. or a product sold at a different level of trade than the exported lumber or prod- (iii)(I) In the case of softwood lumber or uct and in different quantities. a softwood lumber product described in (ii) Level of trade subclause (II), the value that would be determined F.O.B. at the facility where the For purposes of clause (i), ‘‘level of product underwent the last processing be- trade’’ shall be determined in the same fore export. manner as provided under section 351.412(c) (II) Softwood lumber or a softwood lum- of title 19, Code of Federal Regulations (as ber product described in this subclause is in effect on January 1, 2008). lumber or a product that undergoes the (6) F.O.B. last remanufacturing before export by a The term ‘‘F.O.B.’’ means a value consisting manufacturer who— of all charges payable by a purchaser, includ- (aa) holds tenure rights provided by ing those charges incurred in the placement of the country of export; merchandise on board of a conveyance for (bb) acquired standing timber directly shipment, but does not include the actual from the country of export; or shipping charges or any applicable export (cc) is related to a person who holds charges. tenure rights or acquired standing timber directly from the country of export. (7) HTS (B) Related persons The term ‘‘HTS’’ means the Harmonized Tariff Schedule of the United States (19 U.S.C. For purposes of this paragraph, a person is 1202) (as in effect on January 1, 2008). related to another person if— (i) the person bears a relationship to (8) Person such other person described in section The term ‘‘person’’ includes any individual, 152(a) of title 26; partnership, corporation, association, organi- (ii) the person bears a relationship to zation, business trust, government entity, or such other person described in section other entity subject to the jurisdiction of the 267(b) of such title, except that ‘‘5 percent’’ United States. shall be substituted for ‘‘50 percent’’ each (9) United States place it appears; (iii) the person and such other person are The term ‘‘United States’’ means the cus- part of a controlled group of corporations, toms territory of the United States, as defined as that term is defined in section 1563(a) of in General Note 2 of the HTS. such title, except that ‘‘5 percent’’ shall be (June 17, 1930, ch. 497, title VIII, § 802, as added substituted for ‘‘80 percent’’ each place it Pub. L. 110–246, title III, § 3301(a), June 18, 2008, appears; 122 Stat. 1844.) Page 381 TITLE 19—CUSTOMS DUTIES § 1683b

REFERENCES IN TEXT (A) the export price provided pursuant to The Harmonized Tariff Schedule of the United States, subsection (b)(1) is determined in accordance referred to in par. (7), is not set out in the Code. See with the definition provided in section Publication of Harmonized Tariff Schedule note set out 1683(5) of this title; under section 1202 of this title. (B) the export price provided pursuant to CODIFICATION subsection (b)(1) is consistent with the export price provided on the export permit, if Another section 802 of act June 17, 1930, is classified any, granted by the country of export; and to section 1681a of this title. (C) the exporter has paid, or committed to EFFECTIVE DATE pay, all export charges due— Pub. L. 110–246, title III, § 3301(b), June 18, 2008, 122 (i) in accordance with the volume, export Stat. 1853, provided that: ‘‘The amendments made by price, and export charge rate or rates, if this section [enacting this subtitle] shall take effect on any, as calculated under an international the date that is 60 days after the date of the enactment agreement entered into by the country of of this Act [June 18, 2008].’’ export and the United States; and § 1683a. Establishment of softwood lumber im- (ii) consistent with the export charge de- porter declaration program terminations published by the Under Sec- retary for International Trade pursuant to (a) Establishment of program section 1683c(b) of this title. (1) In general (June 17, 1930, ch. 497, title VIII, § 803, as added The President shall establish and maintain Pub. L. 110–246, title III, § 3301(a), June 18, 2008, an importer declaration program with respect 122 Stat. 1847.) to the importation of softwood lumber and softwood lumber products described in section REFERENCES IN TEXT 1683b(a) of this title. The importer declaration Section 1683 of this title, referred to in subsec. program shall require importers of softwood (c)(2)(A), was in the original section ‘‘802’’, and was lumber and softwood lumber products de- translated as meaning the section 802 of act June 17, scribed in section 1683b(a) of this title to pro- 1930, as added by section 3301(a) of Pub. L. 110–246, to re- vide the information required under sub- flect the probable intent of Congress. section (b) and declare the information re- CODIFICATION quired by subsection (c), and require that such Another section 803 of act June 17, 1930, is classified information accompany the entry summary to section 1681b of this title. documentation. (2) Electronic record § 1683b. Scope of softwood lumber importer dec- The President shall establish an electronic laration program record that includes the importer information (a) Products included in program required under subsection (b) and the declara- The following products shall be subject to the tions required under subsection (c). importer declaration program established under (b) Required information section 1683a of this title: The President shall require the following in- (1) In general formation to be submitted by any person seek- All softwood lumber and softwood lumber ing to import softwood lumber or softwood lum- products classified under subheading 4407.10.00, ber products described in section 1683b(a) of this 4409.10.10, 4409.10.20, or 4409.10.90 of the HTS, title: including the following softwood lumber, (1) The export price for each shipment of flooring, and siding: softwood lumber or softwood lumber products. (A) Coniferous wood, sawn or chipped (2) The estimated export charge, if any, ap- lengthwise, sliced or peeled, whether or not plicable to each shipment of softwood lumber planed, sanded, or finger-jointed, of a thick- or softwood lumber products as calculated by ness exceeding 6 millimeters. applying the percentage determined and pub- (B) Coniferous wood siding (including lished by the Under Secretary for Inter- strips and friezes for parquet flooring, not national Trade of the Department of Com- assembled) continuously shaped (tongued, merce pursuant to section 1683c of this title to grooved, rabbeted, chamfered, v-jointed, the export price provided in subsection (b)(1). beaded, molded, rounded, or the like) along (c) Importer declarations any of its edges or faces, whether or not Pursuant to procedures prescribed by the planed, sanded, or finger-jointed. President, any person seeking to import soft- (C) Other coniferous wood (including strips wood lumber or softwood lumber products de- and friezes for parquet flooring, not assem- scribed in section 1683b(a) of this title shall de- bled) continuously shaped (tongued, grooved, clare that— rabbeted, chamfered, v-jointed, beaded, (1) the person has made appropriate inquiry, molded, rounded, or the like) along any of including seeking appropriate documentation its edges or faces (other than wood moldings from the exporter and consulting the deter- and wood dowel rods) whether or not planed, minations published by the Under Secretary sanded, or finger-jointed. for International Trade of the Department of (D) Coniferous wood flooring (including Commerce pursuant to section 1683c(b) of this strips and friezes for parquet flooring, not title; and assembled) continuously shaped (tongued, (2) to the best of the person’s knowledge and grooved, rabbeted, chamfered, v-jointed, belief— beaded, molded, rounded, or the like) along § 1683b TITLE 19—CUSTOMS DUTIES Page 382

any of its edges or faces, whether or not scribed on the entry documents, with no fur- planed, sanded, or finger-jointed. ther processing required. None of the compo- (E) Coniferous drilled and notched lumber nents contained in the package may exceed and angle cut lumber. 1 inch in actual thickness or 83 inches in (2) Products continually shaped length. Any product classified under subheading (3) Radius-cut box-spring frame components 4409.10.05 of the HTS that is continually Radius-cut box-spring frame components, shaped along its end or side edges. not exceeding 1 inch in actual thickness or 83 (3) Other lumber products inches in length, ready for assembly without further processing, if radius cuts are present Except as otherwise provided in subsection on both ends of the boards and are substantial (b) or (c), softwood lumber products that are cuts so as to completely round 1 corner. stringers, radius-cut box-spring frame components, fence pickets, truss components, pallet (4) Fence pickets components, and door and window frame parts Fence pickets requiring no further process- classified under subheading 4418.90.46.95, ing and properly classified under subheading 4421.90.70.40, or 4421.90.97.40 of the HTS. 4421.90.70 of the HTS, 1 inch or less in actual (b) Products excluded from program thickness, up to 8 inches wide, and 6 feet or The following products shall be excluded from less in length, and having finials or decorative the importer declaration program established cuttings that clearly identify them as fence under section 1683a of this title: pickets. In the case of dog-eared fence pickets, (1) Trusses and truss kits, properly classified the corners of the boards shall be cut off so as under subheading 4418.90 of the HTS. to remove pieces of wood in the shape of isos- (2) I-joist beams. celes right angle triangles with sides measur- 3 (3) Assembled box-spring frames. ing ⁄4 of an inch or more. (4) Pallets and pallet kits, properly classified (5) United States-origin lumber under subheading 4415.20 of HTS. Lumber originating in the United States (5) Garage doors. that is exported to another country for minor (6) Edge-glued wood, properly classified processing and imported into the United under subheading 4421.90.97.40 of the HTS. States if— (7) Complete door frames. (A) the processing occurring in another (8) Complete window frames. country is limited to kiln drying, planing to (9) Furniture. create smooth-to-size board, and sanding; (10) Articles brought into the United States and temporarily and for which an exemption from (B) the importer establishes to the satis- duty is claimed under subchapter XIII of chap- faction of U.S. Customs and Border Protec- ter 98 of the HTS. tion upon entry that the lumber originated (11) Household and personal effects. in the United States. (c) Exceptions for certain products (6) Softwood lumber The following softwood lumber products shall Any softwood lumber or softwood lumber not be subject to the importer declaration pro- product that originated in the United States, gram established under section 1683a of this if the importer, exporter, foreign processor, or title: original United States producer establishes to (1) Stringers the satisfaction of U.S. Customs and Border Stringers (pallet components used for run- Protection upon entry that the softwood lum- ners), if the stringers— ber entered and documented as originating in (A) have at least 2 notches on the side, po- the United States was first produced in the sitioned at equal distance from the center, United States. to properly accommodate forklift blades; (7) Home packages or kits and (A) In general (B) are properly classified under subheading 4421.90.97.40 of the HTS. Softwood lumber or softwood lumber products contained in a single family home pack- (2) Box-spring frame kits age or kit, regardless of the classification (A) In general under the HTS, if the importer declares that Box-spring frame kits, if— the following requirements have been met: (i) the kits contain— (i) The package or kit constitutes a full (I) 2 wooden side rails; package of the number of wooden pieces (II) 2 wooden end (or top) rails; and specified in the plan, design, or blueprint (III) varying numbers of wooden slats; necessary to produce a home of at least 700 and square feet produced to a specified plan, design, or blueprint. (ii) the side rails and the end rails are ra- (ii) The package or kit contains— dius-cut at both ends. (I) all necessary internal and external (B) Packaging doors and windows, nails, screws, glue, Any kit described in subparagraph (A) subfloor, sheathing, beams, posts, and shall be individually packaged, and contain connectors; and the exact number of wooden components (II) if included in the purchase con- needed to make the box-spring frame de- tract, the decking, trim, drywall, and Page 383 TITLE 19—CUSTOMS DUTIES § 1683e

roof shingles specified in the plan, de- (b) Publication sign, or blueprint. The Under Secretary for International Trade (iii) Prior to importation, the package or shall immediately publish any determination kit is sold to a United States retailer that made under subsection (a) on the website of the sells complete home packages or kits pur- International Trade Administration of the De- suant to a valid purchase contract ref- partment of Commerce, and in any other man- erencing the particular home design, plan, ner the Under Secretary considers appropriate. or blueprint, and the contract is signed by (June 17, 1930, ch. 497, title VIII, § 805, as added a customer not affiliated with the im- Pub. L. 110–246, title III, § 3301(a), June 18, 2008, porter. 122 Stat. 1851.) (iv) Softwood lumber products entered as part of the package or kit, whether in a § 1683d. Reconciliation single entry or multiple entries on mul- The Secretary of the Treasury shall conduct tiple days, are to be used solely for the reconciliations to ensure the proper implemen- construction of the single family home tation and operation of international agree- specified by the home design, plan, or blue- ments entered into between a country of export print matching the U.S. Customs and Bor- of softwood lumber or softwood lumber products der Protection import entry. described in section 1683b(a) of this title and the (B) Additional documentation required for United States. The Secretary of Treasury shall home packages and kits reconcile the following: In the case of each entry of products de- (1) The export price declared by a United scribed in clauses (i) through (iv) of subpara- States importer pursuant to section 1683a(b)(1) graph (A) the following documentation shall of this title with the export price reported to be retained by the importer and made avail- the United States by the country of export, if able to U.S. Customs and Border Protection any. (2) The export price declared by a United upon request: (i) A copy of the appropriate home de- States importer pursuant to section 1683a(b)(1) of this title with the revised export price re- sign, plan, or blueprint matching the cus- ported to the United States by the country of toms entry in the United States. (ii) A purchase contract from a retailer export, if any. of home kits or packages signed by a cus- (June 17, 1930, ch. 497, title VIII, § 806, as added tomer not affiliated with the importer. Pub. L. 110–246, title III, § 3301(a), June 18, 2008, (iii) A listing of all parts in the package 122 Stat. 1851.) or kit being entered into the United States REFERENCES IN TEXT that conforms to the home design, plan, or blueprint for which such parts are being Section 1683a of this title, referred to in pars. (1) and (2), was in the original section ‘‘803’’, and was trans- imported. lated as meaning the section 803 of act June 17, 1930, as (iv) If a single contract involves multiple added by section 3301(a) of Pub. L. 110–246, to reflect the entries, an identification of all the items probable intent of Congress. required to be listed under clause (iii) that are included in each individual shipment. § 1683e. Verification (d) Products covered (a) In general For purposes of determining if a product is The Secretary of Treasury shall periodically covered by the importer declaration program, verify the declarations made by a United States the President shall be guided by the article de- importer pursuant to section 1683a(c) of this scriptions provided in this section. title, including by determining whether— (1) the export price declared by a United (June 17, 1930, ch. 497, title VIII, § 804, as added States importer pursuant to section 1683a(b)(1) Pub. L. 110–246, title III, § 3301(a), June 18, 2008, of this title is the same as the export price 122 Stat. 1848.) provided on the export permit, if any, issued REFERENCES IN TEXT by the country of export; and Section 1683a of this title, referred to in subsecs. (a) (2) the estimated export charge declared by to (c), was in the original section ‘‘803’’, and was trans- a United States importer pursuant to section lated as meaning the section 803 of act June 17, 1930, as 1683a(b)(2) of this title is consistent with the added by section 3301(a) of Pub. L. 110–246, to reflect the determination published by the Under Sec- probable intent of Congress. retary for International Trade pursuant to section 1683c(b) of this title. § 1683c. Export charge determination and publication (b) Examination of books and records (1) In general (a) Determination Any record relating to the importer declara- The Under Secretary for International Trade tion program required under section 1683a of of the Department of Commerce shall deter- this title shall be treated as a record required mine, on a monthly basis, any export charges to be maintained and produced under title V of (expressed as a percentage of export price) to be this Act.1 collected by a country of export from exporters of softwood lumber or softwood lumber products (2) Examination of records described in section 1683b(a) of this title in order The Secretary of the Treasury is authorized to ensure compliance with any international to take such action, and examine such records, agreement entered into by that country and the United States. 1 See References in Text note below. § 1683f TITLE 19—CUSTOMS DUTIES Page 384

under section 1509 of this title, as the Sec- (3) there is not substantial evidence indicat- retary determines necessary to verify the dec- ing that the importer knew that the fact to larations made pursuant to section 1683a(c) of which the importer made the declaration was this title are true and accurate. false. (June 17, 1930, ch. 497, title VIII, § 807, as added (June 17, 1930, ch. 497, title VIII, § 808, as added Pub. L. 110–246, title III, § 3301(a), June 18, 2008, Pub. L. 110–246, title III, § 3301(a), June 18, 2008, 122 Stat. 1851.) 122 Stat. 1852.)

REFERENCES IN TEXT REFERENCES IN TEXT Section 1683a, referred to in text, was in the original Section 1683a of this title, referred to in subsec. (f), section ‘‘803’’, and was translated as meaning the sec- was in the original section ‘‘803’’, and was translated as tion 803 of act June 17, 1930, as added by section 3301(a) meaning the section 803 of act June 17, 1930, as added by of Pub. L. 110–246, to reflect the probable intent of Con- section 3301(a) of Pub. L. 110–246, to reflect the probable gress. intent of Congress. This Act, referred to in subsec. (b)(1), is act June 17, 1930, ch. 497, 46 Stat. 590, known as the Tariff Act of § 1683g. Reports 1930, which is classified generally to this chapter. The Act does not contain a title V. For complete classifica- (a) Semiannual reports tion of this Act to the Code, see section 1654 of this Not later than 180 days after the effective date title and Tables. of this subtitle, and every 180 days thereafter, § 1683f. Penalties the President shall submit to the appropriate (a) In general congressional committees a report— (1) describing the reconciliations conducted It shall be unlawful for any person to import under section 1683d of this title,1 and the ver- into the United States softwood lumber or soft- ifications conducted under section 1683e of this wood lumber products in knowing violation of title; this subtitle. (2) identifying the manner in which the (b) Civil penalties United States importers subject to reconcili- Any person who commits an unlawful act as ations conducted under section 1683d of this set forth in subsection (a) shall be liable for a title and verifications conducted under section civil penalty not to exceed $10,000 for each 1683e of this title were chosen; knowing violation. (3) identifying any penalties imposed under (c) Other penalties section 1683f of this title; In addition to the penalties provided for in (4) identifying any patterns of noncompli- subsection (b), any violation of this subtitle ance with this subtitle; and that violates any other customs law of the (5) identifying any problems or obstacles en- United States shall be subject to any applicable countered in the implementation and enforce- civil and criminal penalty, including seizure and ment of this subtitle. forfeiture, that may be imposed under such cus- (b) Subsidies reports tom law or title 18, with respect to the importa- Not later than 180 days after June 18, 2008, and tion of softwood lumber and softwood lumber every 180 days thereafter, the Secretary of Com- products described in section 1683b(a) of this merce shall provide to the appropriate congres- title. sional committees a report on any subsidies on (d) Factors to consider in assessing penalties softwood lumber or softwood lumber products, In determining the amount of civil penalties including stumpage subsidies, provided by coun- to be assessed under this section, consideration tries of export. shall be given to any history of prior violations (c) GAO reports of this subtitle by the person, the ability of the The Comptroller General of the United States person to pay the penalty, the seriousness of the shall submit the following reports to the appro- violation, and such other matters as fairness priate congressional committees: may require. (1) Not later than 18 months after June 18, (e) Notice 2008, a report on the effectiveness of the rec- No penalty may be assessed under this section onciliations conducted under section 1683d of against a person for violating a provision of this this title,1 and verifications conducted under subtitle unless the person is given notice and op- section 1683e of this title. portunity to make statements, both oral and (2) Not later than 12 months after June 18, written, with respect to such violation. 2008, a report on whether countries that export (f) Exception softwood lumber or softwood lumber products Notwithstanding any other provision of this to the United States are complying with any subtitle, and without limitation, an importer international agreements entered into by shall not be found to have violated subsection 1 those countries and the United States. 1683a(c) of this title if— (June 17, 1930, ch. 497, title VIII, § 809, as added (1) the importer made an appropriate inquiry Pub. L. 110–246, title III, § 3301(a), June 18, 2008, in accordance with section 1683a(c)(1) of this 122 Stat. 1852.) title with respect to the declaration; (2) the importer produces records main- REFERENCES IN TEXT tained pursuant to section 1683e(b) of this title For the effective date of this subtitle, referred to in that substantiate the declaration; and subsec. (a), see section 3301(b) of Pub. L. 110–246, set out

1 So in original. Probably should be ‘‘section’’. 1 So in original. Comma probably should not appear. Page 385 TITLE 19—CUSTOMS DUTIES § 1703 as an Effective Date note under section 1683 of this on board of any vessel and examine the vessel title. and any merchandise or person on board, and CHAPTER 5—SMUGGLING bring the same into port, and, subject to regulations of the Secretary of the Treasury, it shall Sec. be their duty to pursue and seize or arrest and 1701. Customs-enforcement area. otherwise enforce upon such vessel, merchan- 1702. Repealed. dise, or person, the provisions of law which are 1703. Seizure and forfeiture of vessels. 1704. Refusal or revocation of registry, enrollment, made effective thereto in pursuance of sub- license or number on evidence that vessel section (a) of this section in the same manner as engaging in smuggling; appeal; immunity such officers are or may be authorized or re- from liability. quired to do in like case at any place in the 1705. Destruction of forfeited vessel or vehicle. United States by virtue of any law respecting 1706. Importation in vessels under thirty tons and the revenue: Provided, That nothing contained in aircraft; licenses; labels as prima facie evi- this section or in any other provision of law re- dence of foreign origin of merchandise. specting the revenue shall be construed to au- 1706a. Civil penalties for trading without required certificate of documentation. thorize or to require any officer of the United 1707, 1708. Repealed. States to enforce any law thereof upon the high 1709. Definitions seas upon a foreign vessel in contravention of 1710. Separability. any treaty with a foreign government enabling 1711. Citation of chapter. or permitting the authorities of the United § 1701. Customs-enforcement area States to board, examine, search, seize, or otherwise to enforce upon such vessel upon the high (a) Establishment; extent and duration; enforce- seas the laws of the United States except as such ment of laws applicable to waters adjacent to authorities are or may otherwise be enabled or customs waters permitted under special arrangement with such Whenever the President finds and declares foreign government: Provided further, That none that at any place or within any area on the high of the provisions of this Act shall be construed seas adjacent to but outside customs waters any to relieve the Secretary of Commerce of any au- vessel or vessels hover or are being kept off the thority, responsibility, or jurisdiction now vest- coast of the United States and that, by virtue of ed in or imposed on that officer. the presence of any such vessel or vessels at (Aug. 5, 1935, ch. 438, title I, § 1, 49 Stat. 517.) such place or within such area, the unlawful introduction or removal into or from the United REFERENCES IN TEXT States of any merchandise or person is being or This Act, referred to in text, means act Aug. 5, 1935, may be occasioned, promoted, or threatened, the which enacted this chapter and sections 1432a and 1601a place or area so found and declared shall con- of this title and amended sections 70, 483, 1401, 1434, stitute a customs-enforcement area for the pur- 1436, 1441, 1581, 1584, 1585, 1586, 1587, 1591, 1592, 1615, 1619, poses of this Act. Only such waters on the high 1621 of this title, sections 60, 106, and 288 of former Title seas shall be within a customs-enforcement area 46, Shipping, and sections 91, 277, 319, 325 of former Title as the President finds and declares are in such 46, Appendix. For complete classification of this Act to the Code, see Tables. proximity to such vessel or vessels that such unlawful introduction or removal of merchandise DELEGATION OF FUNCTIONS or persons may be carried on by or to or from For delegation to Secretary of the Treasury of au- such vessel or vessels. No customs-enforcement thority vested in President by this section, see Ex. Ord. area shall include any waters more than one No. 10289, § 1(b), Sept. 17, 1951, 16 F.R. 9499, set out as a hundred nautical miles from the place or imme- note under section 301 of Title 3, The President. diate area where the President declares such vessel or vessels are hovering or are being kept § 1702. Repealed. June 25, 1948, ch. 645, § 21, 62 and, notwithstanding the foregoing provision, Stat. 862, eff. Sept. 1, 1948 shall not include any waters more than fifty Section, act Aug. 5, 1935, ch. 438, title I, § 2, 49 Stat. nautical miles outwards from the outer limit of 518, related to smuggling into territory of a foreign customs waters. Whenever the President finds government. See section 546 of Title 18, Crimes and that, within any customs-enforcement area, the Criminal Procedure. circumstances no longer exist which gave rise to the declaration of such area as a customs-en- § 1703. Seizure and forfeiture of vessels forcement area, he shall so declare, and there- (a) Vessels subject to seizure and forfeiture after, and until a further finding and declaration Whenever any vessel which shall have been is made under this subsection with respect to built, purchased, fitted out in whole or in part, waters within such area, no waters within such or held, in the United States or elsewhere, for area shall constitute a part of such customs-en- the purpose of being employed to defraud the forcement area. The provisions of law applying revenue or to smuggle any merchandise into the to the high seas adjacent to customs waters of United States, or to smuggle any merchandise the United States shall be enforced in a cus- into the territory of any foreign government in toms-enforcement area upon any vessel, mer- violation of the laws there in force, if under the chandise, or person found therein. laws of such foreign government any penalty or (b) Boarding vessels; arrest and seizure; compli- forfeiture is provided for violation of the laws of ance with treaty provisions; authority of Sec- the United States respecting the customs reve- retary of Commerce unaffected nue, or whenever any vessel which shall be At any place within a customs-enforcement found, or discovered to have been employed, or area the several officers of the customs may go attempted to be employed, within the United