Sec. 20.4 Articles subject to internal-revenue tax. 20.5 Sale of unclaimed and abandoned merchandise. 20.6 Proceeds of sale; payment of charges and expenses; surplus; deficit. AUTHORITY: The provisions of this Part 20 issued under R.S. 161, 251, sec. 624, 46 Stat. 759, sec. 101, 76 Stat. 72; 5 U.S.C. 22, 19 U.S.C. 66, 1624, Gen. Hdnote. 11, Tariff Schedules of the United States, except as otherwise noted. SOURCE: The provisions of this Part 20 appear at 28 F.R. 14773, Dec. 31, 1963, unless otherwise noted. § 20.1 Storage of unclaimed and abandoned merchandise. (a) Unclaimed and abandoned merchandise,' including merchandise formally abandoned to the Government, shall be sent under a permit to a suitable warehouse of class 2, 3, 4, or 5 specially designated for the purpose by the collector (see § 19.1(a) (2), (3), (4), and (5) of this chapter), or to a public store. (b) Whenever, pursuant to section 457 or 490, Tariff Act of 1930, the collector shall take possession of a cargo which is unclaimed and not unladen, he shall require, as a condition for granting a permit to discharge, that the vessel be removed at the expense of the owner to the wharf, pier, or other place most convenient to the general-order stores. 1 "Any entered or unentered merchandise (except merchandise entered under section 557 of this Act, but including merchandise entered for transportation in bond or for exportation) which shall remain in customs custody for one year from the date of importation thereof, without all estimated duties and storage or other charges thereon having been paid, shall be considered unclaimed and abandoned to the Government and shall be appraised by the appraiser of merchandise and sold by the collector at public auction under such regulations as the Secretary of the Treasury shall prescribe. ** (Tariff Act of 1930, sec. 491, as amended; 19 U. S. C. 1491) "Merchandise upon which any duties or charges are unpaid, remaining in bonded warehouse beyond three years from the date of importation, shall be regarded as abandoned to the Government and shall be sold under such regulations as the Secretary of the Treasury shall prescribe, and the proceeds of sale paid into the Treasury, as in the case of unclaimed merchandise covered by section 493 of this Act, subject to the payment to the owner or consignee of such amount, if any, as shall remain after deducand tion of duties, charges, expenses. *" (Tariff Act of 1930, sec. 550, as amended; 19 U. S. C. 1559) * (a) Merchandise in general order may be exported without examination or appraisement if the merchandise is delivered to the exporting carrier within 1 year from the date of importation. Such merchandise may be entered within 1 year from the date of importation for immediate transportation without appraisement to any port of entry designated by the consignee. Any imported merchandise, including merchandise entered for transportation, for which entry for consumption or warehouse or delivery to a carrier for exportation has not been completed prior to the expiration of 1 year from the date of original arrival shall be treated as abandoned. Entry for immediate transportation without appraisement shall be permitted after the expiration of the 1-year period only for the purpose of filing an entry for consumption at the port of destination. (b) The withdrawal from general order of less than a single general-order lot shall not be permitted except as provided for in § 8.8 of this chapter. (Sec. 490, 46 Stat. 726; 19 U. S. C. 1490) § 20.3 Merchandise remaining in customs custody or in bonded warehouse beyond the time fixed by law. (a) If storage or other charges due the United States have not been paid on merchandise remaining in customs custody after the expiration of the bond period in the case of merchandise entered for warehouse, or after the expiration of 1 year from the date of importation in any other case, even though any duties due have been paid, such merchandise shall be sold as provided for in § 20.5 unless entered or withdrawn for consumption in accordance with paragraph (b) of this section. (b) Merchandise subject to sale (except merchandise abandoned under section 506 (1) or 563 (b), Tariff Act of 1930) may be entered or withdrawn for consumption at any time prior to sale upon payment of the duties, any internal-revenue tax, and all charges and ex penses that may have accrued thereon. Such merchandise may not be exported without payment of duty nor entered for warehouse." 3 (c) Duty paid merchandise for which a permit to release has been issued but which remains in warehouse beyond the bond period shall be released to the warehouse proprietor. Free and dutypaid merchandise not entered for warehouse for which permits to release have been issued, remaining in bonded warehouse at the expiration of 1 year from the date of importation, shall be released to the warehouse proprietor. (Secs. 491, 559, 46 Stat. 726, as amended, 744, as amended; 19 U. 8. C. 1491, 1559) § 20.4 Articles subject to internal-reve nue tax. Articles subject to internal-revenue tax (except forfeited distilled spirits' and except voluntarily abandoned merchandise which has not been cleared by the General Services Administration) may be sold for domestic consumption, but only if they will bring an amount sufficient to pay the internal-revenue tax and, in the case of tobacco "articles" and "tobacco materials," as defined in 26 U.S.C. 5702 (j), (k), only if they will bring an amount sufficient to pay the expenses of sale as well as the internalrevenue tax. If such articles cannot be sold for domestic consumption in ac 4a ་་་་ • Merchandise subject to sale hereunder or under section 559 of this Act may be entered or withdrawn for consumption at any time prior to such sale upon payment of all duties, storage, and other charges, and expenses that may have accrued thereon, but such merchandise after becoming subject to sale may not be exported prior to sale without the payment of such duties, charges, and expenses nor may it be entered for warehouse. The computation of duties for the purposes of this section and sections 493 and 559 of this Act shall be at the rate or rates applicable at the time the merchandise becomes subject to sale." (Tariff Act of 1930, Bec. 491, as amended; 19 U. S. C. 1491) • * Merchandise upon which all duties and charges have been paid, remaining in bonded warehouse beyond three years from the date of importation, shall be held to be no longer in the custody or control of the officers of the customs." (Tariff Act of 1930, sec. 559, as amended; 19 U. S. C. 1559) 'All distilled spirits, wine, and malt beverages forfeited, summarily or by order of court, under any law of the United States, shall be disposed of in accordance with the internal-revenue law and regulations. cordance with the foregoing conditions, they shall be destroyed unless they can be advantageously sold for export from continuous customs custody or unless the Bureau has authorized other dis-position to be made under the law. Such articles may be sold for domestic consumption even though the proceeds of sale will not cover the duties due. (Sec. 492, 46 Stat. 727, sec. 201, 72 Stat. 1412, 68A Stat. 716, as amended; 19 U.S.C. 1492, 26 U.S.C. 5688, 5753) § 20.5 Sale of unclaimed and abandoned merchandise. (a) All unclaimed and abandoned merchandise shall be sold at the first regular sale held after the merchandise becomes subject to sale, unless a deferment of its sale is authorized by the Commissioner of Customs. Regular sales of unclaimed and abandoned merchandise on hand and subject to sale shall be made once in every year, or more often at the discretion of the collector. Such sales may be conducted by the collector, any employee designated by him, or by a public auctioneer. (b) Before unclaimed merchandise is offered for sale, it shall be appraised in accordance with section 402, Tariff Act "(1) Articles. ''Articles' means manufactured tobacco, cigars, cigarettes, and cigarette papers and tubes. "(k) Tobacco materials. ""Tobacco materials' means tobacco in process, leaf tobacco, and tobacco scraps, cuttings, clippings, siftings, dust, stems, and waste." 26 U. S. C. 5702 (j), (k). Except as provided in section 3369 of the Revised Statutes, as amended (relating to tobacco and snuff), and in section 901 of the Revenue Act of 1926 (relating to distilled spirits), any merchandise abandoned or forfeited to the Government under the preceding or any other provision of the customs laws, which is subject to internal-revenue tax and which the collector shall be satisfied will not sell for a sufficient amount to pay such taxes, shall be forthwith destroyed under regulations to be prescribed by the Secretary of the Treasury, instead of being sold at auction." (Tariff Act of 1930, sec. 492; 19 U. S. C. 1492) Ба of 1930, as amended. Such merchandise shall also be appraised at its actual domestic value in its condition at the time and place of examination, whether or not it has depreciated or appreciated in value since the date of exportation. The quantity of merchandise in each lot appraised shall be reported. (c) Before drugs, insecticides, seeds, plants, nursery stock, and other articles required to be inspected by the Department of Agriculture are advertised, they shall be inspected by a representative of the Department of Agriculture to ascertain whether they comply with the requirements of the law and regulations of that Department. If found not to comply with such requirements, they shall be forthwith destroyed. (d) All merchandise at ports other than a headquarters port which becomes subject to sale, including explosives, perishable articles, and articles liable to depreciation, shall be promptly reported to the headquarters port for disposition. The collector, in his discretion, may sell such merchandise, as well as merchandise at the headquarters port which is subject to sale, at the headquarters port or at any other port within the district. (e) Except as prescribed in paragraphs (f), (g), and (h) of this section, a brief notice of the time and place of sale shall be given for 3 successive weeks immediately preceding the sale in one newspaper of extensive circulation published at the port where the sale is to be held. The newspaper shall be selected by the collector and publication of the notice shall be authorized on the standard form provided for that purpose. Such notice shall designate the place where catalogs may be obtained and reasonable opportunity to inspect the merchandise shall be afforded prospective purchasers. (f) Unclaimed explosives and other dangerous articles and fruit and other perishable articles shall be sold on 3 days' public notice." ba "The function of determining values of unclaimed and abandoned merchandise in any case where the aggregate appraised value of the lot will not exceed $250 has been transferred from the appraiser to the collector. (T.D. 54430.) " • When it is probable that entry will be made at an early date for unclaimed perishable merchandise, the collector may hold the merchandise for a reasonable time in a bonded cold-storage warehouse if one is available. (T. D. 37374 (18)) (g) Other unclaimed merchandise shall be sold at public auction upon public notice of not less than 6 nor more than 10 days, as the collector may determine, if, in the opinion of the collector, such merchandise, because of depreciation in value by reason of damage, leakage, or other cause, will sell for an amount insufficient to pay the duties, storage, and other charges if allowed to remain in general order for 1 year. Unclaimed merchandise remaining on the dock which, in the opinion of the collector, will not sell for enough to pay the cost of cartage and storage shall be sold in the same manner." (h) If the collector is satisfied that the proceeds of sale will not be sufficient to pay the expenses and duties, a written or printed notice of the sale in lieu of the advertisement shall be conspicuously posted in the customhouse, and, if deemed necessary, at some other proper place for the time above specified. (i) The catalogs, if used, shall specify the marks, numbers, and description of packages, the description and quantities of their contents, the appraised value thereof and also the domestic value at the time and place of the examination of the merchandise. The catalogs shall be distributed at the sale and announcement made that the Government does not guarantee quality or value and that no allowance will be made for any deficiency found after sale. (j) When the name and address of the consignee can be ascertained, notice of the date of sale shall be mailed to him. When unclaimed merchandise was consigned to order or for other reason the name of a consignee cannot be obtained, the collector, where practicable, shall notify the shipper or his representative or the agent of the carrier of the date when and place where the goods are to be sold. (k) Merchandise offered for sale but not sold shall be included in the next regular sale of unclaimed and abandoned merchandise. If the collector is satis (a) From the proceeds of sale of merchandise remaining in public stores or in bonded warehouse beyond the time fixed by law, the following charges shall be paid in the order named: (1) Internal revenue taxes. (2) Expenses of advertising and sale. (3) Expenses of cartage, storage and labor. When the proceeds are insufficient to pay such charges fully, they shall be paid pro rata. (For merchandise entered for warehousing, see paragraph (b) of this section.) (4) Duties. (5) Any other charges due the United States in connection with the merchandise. (6) Any sum due to satisfy a lien for freight, charges, or contributions in general average, of which due notice shall have been given in the manner prescribed by law. (b) The expenses of cartage, storage, and labor for merchandise entered for warehousing shall be paid in the following order: (1) When such merchandise was warehoused in public stores, expenses of storage and labor shall be paid after expenses of sale (prorated when proceeds are insufficient to pay them fully) and any cartage charges shall be paid last. (2) When such merchandise was warehoused in a bonded warehouse, expenses of storage, cartage, and labor shall be paid last (prorated when proceeds are insufficient to pay them fully). (c) The duties chargeable on any merchandise within the purview of this section shall be assessed on the appraised dutiable value at the rate of duty chargeable at the time the merchandise became subject to sale. (d) The duties of the auctioneer shall be confined to selling the merchandise and his charge for such service shall in no case exceed the commissions usual at the port. Such commissions shall be allowed only on the gross sum actually realized on the sale. Household and personal effects of the character provided for in schedule 8, part 2A, Tariff Schedules of the United States, which belong to persons who have not arrived in this country before the effects become subject to sale are dutiable at the rates in effect when the effects become subject to sale, even though such persons arrive and make entry for the effects before they are sold. (e) Accounts for the auctioneer's charges and all other expenses of sale which may be properly chargeable on the merchandise shall be presented to the collector for payment within 10 days from the date of sale. Such expenses shall be apportioned pro rata on the amounts received for the different lots sold. (f) If a claim of the owner of unclaimed merchandise for the surplus proceeds of sale is properly established in accordance with § 24.25 of this chapter, such proceeds of sale shall be paid to him pursuant to section 493, Tariff Act of 1930.9 Any doubtful claim shall be forwarded to the Bureau with all pertinent documents and information available to the collector for the instructions of the Bureau or for reference by it to the General Accounting Office for direct settlement. (g) Claims of the owner or consignee for the surplus proceeds of a sale made pursuant to section 559, Tariff Act of 1930, shall be paid in the manner and subject to the conditions stated in paragraph (f) of this section. (h) If the proceeds of sale of merchandise in warehouse beyond 3 years are insufficient to pay the duties after payment of all charges having priority, the deficiency shall be collected under the warehouse entry bond, by suit if necessary. (i) When the proceeds of sale of unclaimed merchandise are insufficient to pay the charges and duties, the consignee shall be liable for the deficiency unless the merchandise was shipped to him "The surplus of the proceeds of sales under section 491 of this Act, after the payment of storage charges, expenses, duties, and the satisfaction of any lien for freight, charges, or contribution in general average, shall be deposited by the collector in the Treasury of the United States, if claim therefor shall not be filed with the collector within ten days from the date of sale, and the sale of such merchandise shall exonerate the master of any vessel in which the merchandise was imported from all claims of the owner thereof, who shall, nevertheless, on due proof of his interest, be entitled to receive from the Treasury the amount of any surplus of the proceeds of sale." (Tariff Act of 1930, sec. 493; 19 U. S. C. 1493) without his consent. If no entry for the merchandise has been filed and no other attempt to control the merchandise has been made, the merchandise shall be regarded as shipped to the consignee without his consent and no effort shall be made to collect any deficiency of duties or charges from such consignee. (Secs. 491-493, 559, 46 Stat. 726, as amended, 727, 744, as amended, 77A Stat. 14; 19 U.S.C. 1202, 1491-1493, 1559) [28 F.R. 14773, Dec. 31, 1963, as amended by T.D. 56481, 30 F.R. 11853, Sept. 16, 1965] AUTHORITY: The provisions of this Part 21 issued under secs. 565, 624, 46 Stat. 747, 759, sec. 101, 76 Stat. 72; 19 U.S.C. 1565, 1624, Gen. Hdnote. 11, Tariff Schedules of the United States, except as otherwise noted. SOURCE: The provisions of this Part 21 appear at 28 F.R. 14776, Dec. 31, 1963, unless otherwise noted. § 21.1 Licensing of cartmen and lightermen; marking of vehicles and lighters. (a) Except as provided for in § 18.3 (d) of this chapter and § 21.4(b), customs cartage and lighterage shall be done by cartmen and lightermen licensed by the collector or specifically authorized by the Commissioner of Customs for that purpose. Customhouse cartage and lighterage licenses, customs Form 3857, shall be issued by the collector of customs. Before such a license is issued, the cartman or lighterman shall be required to execute a bond on customs Form 3855 in an amount to be fixed by the collector1 and pay the fee of $50 prescribed by § 24.12 of this chapter. The collector may appoint or license as a customs cartman or lighterman any common carrier who has executed and filed a carrier's bond, customs Form 3587. The license shall remain in force and effect as long as the required bond is considered sufficient or until the license is suspended or terminated. Before customhouse licenses are issued for bonded lighters or other such vessels, the vessel's marine documents, if any have been issued, shall be presented to the collector and such documents shall be returned by the collector following his examination thereof. The collector may require the applicant for a license to furnish a list showing the names and addresses of the managing officers and members of the organization or of the persons who will receive or transport imported merchandise which has not been released from customs, or a list of all such persons and their addresses. An applicant shall be required in each case to undertake to surrender promptly to the collector the identification cards of persons no longer employed by the applicant or give reasons satisfactory to the collector why such cards cannot be surrendered. The collector may also require an applicant to undertake to furnish, at such times and intervals as the collector deems necessary, a current list showing the names and addresses of the managing officers and members of the organization or of the persons who will receive or transport imported merchandise which has not been released from customs, or a list of all such persons and their addresses. A license shall be subject to suspension for failure to comply with the requirements of the two preceding sentences, or it may be revoked for sufficiently good cause. (b) Any cartman licensed by the city or State authorities who produces evidence of good moral character and his city or State license may be licensed as a customhouse cartman. (c) Every licensed vehicle used for customs cartage and every licensed barge, scow, or other lighter used for customs lighterage shall be conspicuously marked with the legend “Custom 1 "The cartage of merchandise entered for warehouse shall be done by cartmen to be appointed and licensed by the collector of customs and who shall give a bond in a penal sum to be fixed by such collector, for the protection of the Government against any loss of, or damage to, such merchandise while being so carted. The cartage of merchandise designated for examination at the appraiser's stores and of merchandise taken into custody by the collector as unclaimed shall be performed by such persons as may be designated, under contract or otherwise, by the Secretary of the Treasury, and under such regulations for the protection of the owners thereof and of the revenue as the Secretary of the Treasury shall prescribe." (Tariff Act of 1930, sec. 565; 19 U.S.C. 1565) |