23

manufacturer's fiscal year. No specific form is prescribed in which such statement shall be prepared. As basic information, the statement shall show the quantities of ore and crude metal on hand at the beginning of the period, and the dutiable contents thereof; quantities of ore and crude metal received during the period, and the dutiable contents thereof; total ore and crude metal to be accounted for, and the dutiable contents thereof; quantities of ore and crude metal on hand at the end of the period, and the dutiable contents thereof; and the quantities of ore and crude metal worked during the period, and the dutiable contents thereof. The statement of the quantity of ore and crude metal worked during the period shall show the quantity of foreign material and the quantity of domestic material put in process during the smelting operations. The statement shall contain such further information concerning the quantities and kinds of metals and intermediary products produced at the plant as will show the wastage sustained in the smelting and refining operation.

(b) Complete smelting and refining records shall be kept from which the annual statement shall be prepared. These records shall be made available to the collector of customs for such verification of the manufacturer's statement as the collector shall deem advisable. (Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) [13 F. R. 8070, Dec. 18, 1948]

§ 19.20 Withdrawal of products from bonded smelting or refining warehouses-(a) For exportation. The general procedure governing warehouse withdrawals for exportation shall be followed in the case of the withdrawal for exportation of metal producible from a bonded smelting or refining warehouse.

(b) For transfer to another bonded warehouse. (1) Withdrawal for transfer to another bonded warehouse shall be at the risk and expense of the applicant, and the general regulations governing the transfer of bonded merchandise from one warehouse to another or the transfer of imported materials from a bonded storage warehouse to a bonded manufacturing warehouse shall be followed so far as applicable.

23 By "dutiable contents" is meant the quantity of each metal of a kind subject to duty contained in the material treated.

(2) In the case of transportation to another port, the transportation entry shall show the quantity of metal withdrawn, the wastage applicable thereto, the imported material from which such metal was produced, together with any dutiable metal charged on entry, and the credit on the warehouse ledger shall be made accordingly.

(Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) [13 F. R. 8070, Dec. 18, 1948]

§ 19.21 Smelting and refining in separate establishments. (a) If the operations of smelting and refining are not carried on in the same establishment, the smelting and unrefined products obtained from the smelting of imported materials in a bonded smelting warehouse may be removed therefrom for shipment to a bonded refining warehouse located at the same or another port under the general procedure for transfer from one bonded warehouse to another.

(b) When the transfer is to a bonded refining warehouse located at another port, the smelted and unrefined products or bullion obtained from the smelting of the imported material shall be weighed, sampled, and assayed before withdrawal, the sampling to be performed under Government supervision in accordance with the commercial practice in effect at the plant.

(c) The withdrawal for transportation shall show the gross weight of the smelted and unrefined products withdrawn, the weight of the dutiable metal contained therein, the wastage applicable thereto, and the duties properly chargeable on the withdrawn products as shown by the import entry, except the duties for which credit has been given for loss in smelting of zinc contained in lead, tin, or copper ores or lead contained in copper, gold, tin, or silver ores or copper mattes.

(d) The rewarehouse entry covering the smelted and unrefined products at the bonded refining warehouse to which they are transferred shall be made out in accordance with the weights and duties shown on the withdrawal for transportation.

(e) Upon withdrawal of the metal from the bonded refining warehouse for export, the warehouse account of the refining warehouse shall be credited with the amount of metal so withdrawn, plus the refining wastage prescribed for said refining warehouse, plus the smelting wastage prescribed for the bonded smelt

ing warehouse in which the smelted and unrefined products were produced, together with the amount of any dutiable metals entirely lost in the smelting or refining, or both. However, when the metal is withdrawn for consumption, duty shall be collected on an amount of ore or crude metals in their condition as imported equivalent to that from which such metal would be producible. No allowance for either smelting or refining wastage shall be permitted, except that allowance shall be made for zinc in lead, tin, or copper ores, and lead in copper, gold, tin, or silver ores or copper mattes to the extent that such zinc or lead has actually been lost in smelting or refining, or both.

(Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) [13 F. R. 8070, Dec. 18, 1948, as amended by T. D. 52626, 15 F. R. 8965, Dec. 16, 1950]

§ 19.22 Withdrawal of metal refined in part from imported crude metal and in part from crude metal produced from imported materials. Upon withdrawal for exportation of metal from a bonded warehouse engaged in refining, or smelting and refining, part of which metal was obtained from imported crude metal and part from crude metal produced by smelting imported materials, the warehouse account shall be credited with the quantity of metal so withdrawn, plus (a) the refining wastage allowance prescribed for that establishment, and (b) the smelting wastage allowance prescribed for the establishment in which the imported materials were smelted, and (c) any dutiable metals shown on the warehouse entry or the rewarehouse entry filed at the first-mentioned warehouse which have been lost and are attributable to the exported product. However, upon withdrawal of such refined metal for consumption, no allowance shall be made for wastage except that allowance shall be made for zinc contained in lead, tin, or copper ores, and for lead contained in copper, gold, tin, or silver ores, or copper mattes when such zinc or lead has actually been lost in smelting or refining, or both. (Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) [13 F. R. 8071, Dec. 18, 1948, as amended by T. D. 52626, 15 F. R. 8965, Dec. 16, 1950; T. D. 53399, 18 F. R. 8690, Dec. 24, 1953]

§ 19.23 Withdrawal for exportation from one port to be credited on warehouse ledger account at another port. On exportation of metal in excess of that covered by open bonds under the last

proviso to section 312, Tariff Act of 1930,** the general procedure governing warehouse withdrawals for exportation shall be followed. The proprietor of the plant from which the withdrawal is made shall prepare a sufficient number of copies of withdrawals on customs Form 7512, in addition to any other copies required by the regulations, to enable the collector of customs at the port of withdrawal to forward a copy to the collector of customs for each district where credit is to be applied and to each comptroller of customs concerned. Such withdrawals shall designate the plant or plants which are to receive the credit, shall specify the warehouse entry number or numbers to which the credit is to be applied, and shall state the quantity of metal producible which is to be applied to each warehouse entry specified. When two or more plants in a given collection district are designated to receive credit, separate copies shall be prepared for the collector and comptroller concerned to cover each such plant. If at the time of withdrawal the warehouse proprietor does not know the plants or warehouse entry numbers which are to be credited with the withdrawal, or the metallic content of the metal producible being exported, the preparation of the beforementioned copies of customs Form 7512 may be postponed for a period of not longer than 30 days from the date of the movement of the metal producible from the plant. In such cases, a so-called memorandum withdrawal, in the number of copies provided for in § 18.19 of this chapter, may be used in the first instance for the purpose of obtaining the required customs record of the exportation of the metal producible under customs supervision. All memorandum

24 44

the several charges against the bonds of any smelting warehouse established under the provisions of this section may be canceled upon the exportation or transfer to a bonded manufacturing warehouse from any other bonded smelting warehouse established under this section of a quantity of the same kind of metal, in excess of that covered by open bonds, equal to the amount of metal producible from the smelting or refining, or both, of the dutiable metal contained in the imported ores and crude metals, due allowance being made of the smelter wastage as ascertained from time to time by the Secretary of the Treasury." (Tariff Act of 1930, sec. 312; 19 U. S. C. 1312)

[13

§ 19.24 Theoretical transfer without physical shipment of metal producible. (a) Transfer may be made from one port of entry to another by a withdrawal for transportation and rewarehouse executed in regular form without physical shipment of the metal, provided enough like metal (metal in ores, crude metals, or metals producible, including products partly smelted or refined) is on hand at the establishment to which the theoretical transfer is made to satisfy the new bond obligations.

(b) The wastage allowance established for the plant from which the original withdrawal for transportation was made shall be shown on the transfer withdrawal and set up as a part of the charge against the bond at the plant to which the metal was theoretically transferred. Such wastage shall govern and be the basis for allowance when metal is withdrawn from the plant where the theoretical rewarehousing was effected. (Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) F. R. 8071, Dec. 18, 1948]

[13

§ 19.25 Credit to be applied under various forms of withdrawals. (a) The warehouse ledger account of the plant designated in the withdrawal to receive credit for the exportation shall be credited with the following:

(1) The quantity of metal producible exported.

(2) The wastage in effect on the date of withdrawal at the plant receiving the credit.

(3) The proportion of any other dutiable metals in the importation being credited which were lost at the said plant in the production of a quantity of metal producible equal to that exported.

(b) If credit is being applied to a charge set up by a theoretical transfer under § 19.24 at the plant designated in the withdrawal to receive the credit, the wastages to be applied shall be those set up at such plant in connection with the theoretical transfer, irrespective of the date of the withdrawal.

(c) On the transfer of metal producible to a bonded storage warehouse, credit shall be applied at the plant designated in the withdrawal to receive the credit in the manner provided for in paragraph (a) of this section with re

spect to withdrawals for exportation. The charge so credited at the plant shall be set up on the warehouse ledger account of the storage warehouse to which the metal producible has been transferred. In the case of the withdrawal of metal producible for transfer to a bonded manufacturing warehouse, credit shall be applied in the same manner at the plant designated in the withdrawal to receive the credit, but the charge set upon the warehouse ledger account of the bonded manufacturing warehouse shall be limited to the quantity of metal producible transferred to such warehouse.

(Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) F. R. 8071, Dec. 18, 1948]

[13

§ 19.26 Certificates as to dutiable metals entirely lost. In the foregoing sections, where reference is made to allowance for dutiable metals entirely lost in smelting or refining, or both, such allowance shall be made only upon certificate of the manufacturer furnished with his annual statement that no such dutiable metals were recovered. The annual wastage allowance established by the Bureau shall be accepted as showing the recoverable lead in copper mattes or copper, gold, tin, or silver ores, and the blanket certificate of wastage showing the total destruction of zinc in lead, tin, or copper ores shall be accepted for the purpose of making allowances in assessments of duty.

[13

(Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) F. R. 8071, Dec. 18, 1948, as amended by T. D. 52395, 15 F. R. 584, Feb. 2, 1950; T. D. 52626, 15 F. R. 8965, Dec. 16, 1950; T. D. 53268, 18 F. R. 3094, May 29, 1953]

§ 19.27 Copper-bearing ores and concentrates and copper-bearing materials to be smelted or refined in bond. Except as hereinafter

(a)

prescribed,

laboratory report and made by the collector in the liquidation of the entry, but in the case of material to be refined only, no deduction shall be made.

(c) When the assay of the customs laboratory differs materially from the plant assay, a copy of which shall be furnished to the collector, the collector, upon the request of the importer if the plant assay is lower than the customs assay, or on his own motion if the plant assay is higher, shall call upon the customs laboratory for a reassay.

(Sec. 312, 46 Stat. 692; 19 U. S. C. 1312) [13 F. R. 8071, Dec. 18, 1948]

§ 19.28 Allowances for smelting and refining losses; dutiable zinc. (a) In the case of material to be smelted or converted, there shall be allowed a smelting loss of 10 of 1 percent of the net copper content of such material, as shown by the customs laboratory assay provided for in § 19.27 (b).

(b) In the case of material to be electrolytically refined, whether ready for such refining when imported or produced in a bonded smelting warehouse, there shall be allowed a refining loss of 10 of 1 percent of the net copper content of such material.

(c) In the case of material to be furnace or fire refined, whether ready for such refining when imported or produced in a bonded smelting warehouse, there shall be allowed a refining loss of 10 of 1 percent of the net copper content of such material.

(d) A statement shall be filed in connection with the entry showing whether such material is to be smelted or converted and electrolytically refined, smelted or converted and furnace refined, electrolytically refined, or furnace refined.

(e) The entry shall be liquidated in accordance with the net quantity of copper shown by the customs laboratory report, less the metallurgical losses."

Liquidated quantity_-_pounds.. 1, 952. 16

IMPORTED COPPER-BEARING MATERIAL TO BE
FURNACE REFINED ONLY

Dry weight of material___pounds.
Government assay------percent__

2,000 98

Net copper content of material imported

1,960

1.3

Deduction of 1.3 units...

Liquidated quantity----pounds_- 1, 956.08

allowances as provided for above shall be allowed on withdrawals for consumption.

(f) When the charge against the bond is to be canceled by the exportation or transfer to a bonded warehouse of the product of a smelting or converting operation, the quantity of such product which must be exported or transferred to a bonded warehouse to cancel the charge against the bond shall contain a quantity of copper equal to the liquidated quantity charged against the bond plus the refining loss."

(g) If the assay shows zinc in gold or silver ores in addition to lead and copper and it is desired to transfer the lead and the copper to different bonded refining warehouses, separate transportation withdrawals shall be issued for the lead and the copper, and the transfer of the charges for the zinc duty shall be determined by prorating the zinc content of the ore to the lead and the copper contained therein in accordance with the ratios which the lead content and the copper contained therein in accordance with the ratios which the lead content and the copper content, respectively, bear to the combined lead and copper content. For example, if an importation of material has 1,000 pounds of copper, 500 pounds of lead, and 150 pounds of zinc subject to duty, the transportation withdrawal to the copper refinery shall show 1,000 pounds of copper and 100 pounds of zinc, and that to the lead refinery 500 pounds of lead and 50 pounds of zinc.

(53 Stat. 415; 26 U. S. C. 3425) [13 F. R. 8072, Dec. 18, 1948]

Part 20-Disposition of Unclaimed and Abandoned Merchandise

Sec.

20.1 Storage of unclaimed and abandoned merchandise.

20.2 Withdrawal from general order for entry.

26 Example:

Liquidated quantity of copper

(charge against bond) pounds. 567.702 To cancel this charge there must be exported or transferred to a bonded warehouse products of smelting or converting operations containing 569.982 pounds copper by commercial assay; that is, 567.702 pounds plus 2.280 pounds refining loss, or 567.702 divided by 0.996 (100 percent less 10 of 1 percent).

Sec. 20.3

20.4

20.5

20.6

Merchandise remaining in customs custody or in bonded warehouse beyond the time fixed by law.

Articles subject to internal-revenue tax.

Sale of unclaimed and abandoned merchandise.

Proceeds of sale; payment of charges and expenses; surplus; deficit.

AUTHORITY: §§ 20.1 to 20.6 issued under R. S. 161, 251, sec. 624, 46 Stat. 759; 5 U. S. C. 22, 19 U. S. C. 66, 1624. Statutory provisions interpreted or applied and special rule making authority are cited to text in parentheses.

SOURCE: §§ 20.1 to 20.6 appear at 13 F. R. 8075, Dec. 18, 1948, except as 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 3, 4, or 5 specially designated for the purpose by the collector (see § 19.1 (a) (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

"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 deduction of duties, charges, and expenses. (Tariff Act of 1930, sec. 550, as amended; 19 U. S. C. 1559)