other specific authority for that purpose (except as provided for in § 21.4 (b)), and "importers' cartage," which may be done by any licensed customhouse cart

man.

[13 F. R. 8077, Dec. 18, 1948, as amended by T. D. 52742, 16 F. R. 5394, June 7, 1951]

§ 21.4 Government cartage. (a) The cartage of packages designated for examination at the appraiser's stores shall be done by a cartman under contract or other specific authority for that purpose. Contracts for government cartage shall be let annually after not less than 30 days' notice by publication in one or more newspapers, or otherwise if the Bureau shall so direct. Bids for such cartage shall be supported by bid bonds and shall be submitted to the collector who has solicited such bids. The contract will be let by the Commissioner of Customs on customs Form 3083 upon execution of the bond provided as a part of such contract in a sum to be fixed by the Commissioner for the faithful performance of the contract. Such contract cartman shall be licensed as a customhouse cartman. The cartage will be paid by the Government through the collector of customs for the district in which the service is rendered from the appropriation "Collecting the Revenue from Customs."

(b) Merchandise designated for examination at an importer's premises or other place not in charge of a customs officer may be carted, lightered, or carried to any such place by the importer without a cartman's or lighterman's license, when in the judgment of the collector the revenue will not be endangered. Otherwise, such transfer shall be done by a licensed cartman, who shall be the contract cartman whenever practicable.

(c) Merchandise withdrawn from general order for regular entry shall be conveyed under such contract at the expense of the importer to the place designated by the collector for appraisement.

(d) Unclaimed merchandise shall be carted to the public stores or bonded warehouse by bonded cartmen designated by the Commissioner and under contract for that purpose. Bond on customs Form 3083, in a sum to be approved by the Commissioner, shall be required for the faithful performance of the work. The cost of such cartage shall be charged against the merchandise and collected

prior to delivery under a regular entry or paid from the proceeds of sale.

(e) Seized merchandise shall be delivered to the custody of the collector by the most practicable means available to the seizing officer.

[18 F. R. 8077, Dec. 18, 1948, as amended by T. D. 52742, 16 F. R. 5394, June 7, 1951]

§ 21.5 Importers' cartage. (a) Any licensed customhouse cartman may transfer merchandise at the expense of the importer or other party in interest from the importing vessel or other conveyance to bonded warehouse, from one vessel or conveyance to another, from one bonded warehouse to another, from the public stores to a bonded warehouse, from warehouse for transportation or for exportation, and from an internal-revenue warehouse for exportation under the internal-revenue laws without payment of tax.

(b) The collector may license any importer as a customhouse cartman for the purpose of carting his own imported merchandise.

(c) Importers and exporters shall designate on the entry and permit of bonded merchandise the bonded cartman or lighterman by whom they wish their merchandise to be conveyed and approval of such designation shall be indicated on the entry papers by the initials of the appropriate customs officer placed in close proximity to the designation.

(d) If an importer does not cart his merchandise or designate a licensed customhouse cartman for the purpose, it shall be carted by a public-store cartman authorized by contract or designated by the collector for that purpose, the cost thereof to be paid by the importer or owner of the merchandise before its release from customs custody.

(e) Nothing in this section shall apply to the cartage of examination packages to the place of examination, which shall be done only by the contract cartman, except as provided for in § 21.4 (b).

§ 21.6 Suspension or revocation of license of cartman or lighterman. Inspectors or other customs officers may demand of any person claiming to be a customhouse cartman or lighterman, or employee thereof, his license or identification card for inspection. If it is not produced, or if the vehicle is not properly marked, or if the cartman or lighterman refuses or neglects to obey any proper order of the inspector or any customs

order, rule, or regulation relative to the cartage or lighterage of merchandise, the collector may suspend or revoke the license of the cartman or lighterman chargeable with the offense.

§ 21.7 Supervision of cartage and lighterage. (a) All licensed vehicles or lighters shall be subject to the control and direction of the officer having charge of the merchandise being carried.

(b) The vehicles or lighters designated for the purpose shall be present to take the merchandise when the customs officer in charge is ready to send it; otherwise, after waiting a reasonable time, such officer shall send the merchandise by any licensed vehicle or lighter available.

§ 21.8 Liability; reports of loss or damage. (a) The cartman or lighterman conveying the merchandise shall be held liable under his bond for its prompt delivery in sound condition, or in no worse than the damaged condition noted on the cartage or lighterage ticket, customs Form 6043-A, Elliott Fisher ticket or customs Form 7506, if damage is so noted. Any negligence or carelessness shall be cause for revocation of the license.

(b) Any loss or detention of bonded goods and any accident happening to a licensed vehicle or lighter while carrying them shall be immediately reported by the cartman or lighterman to the collector.

[13 F. R. 8077, Dec. 18, 1948, as amended by T. D. 53174, 18 F. R. 224, Jan. 10, 1953]

§ 21.9 Tickets for goods carted or lightered. (a) When merchandise is carted or lightered and received in a bonded store or bonded warehouse, the representative of the proprietor shall check the goods against the ticket, customs Form 6043-A, and countersign the ticket. A receipt shall be taken for all goods delivered from public store or bonded store. Such receipt may be taken on the permit to release, customs Form 7500-B, on the appraiser's release ticket at the time delivery is made, or on customs Form 6043-C. Customs Form 6043-C may also be used as a receipt for goods delivered from customs custody in any other case where the collector deems such receipt necessary. In the case of withdrawals from bonded warehouse for consumption, the merchandise shall be released only to or upon the order of the proprietor of the

warehouse who shall acknowledge such release on customs Forms 7505-A or 7505-B. If a receipt is taken on customs Form 6043-C for goods delivered from public store or bonded store, it shall be disposed of as if a receipt were taken on the permit to release, customs Form 7500-B, or on the appraiser's release ticket.

(b) The cartman or lighterman shall countersign the ticket, receipt, or permit for goods carted or lightered, customs Form 6043-A, 6043-C, or 7506, in the space provided as a receipt for the goods, noting any bad order or discrepancy. [13 F. R. 8077, Dec. 18, 1948, as amended by T. D. 53174, 18 F. R. 224, Jan. 10, 1953]

§ 21.10 Inability to deliver merchandise. If the warehouse is closed or the warehouseman refuses to receive the merchandise, it shall be returned to the sending inspector or deposited in the public store for safekeeping, unless otherwise ordered by the collector. The cartman shall notify such inspector of his inability to deliver the merchandise and the reason therefor. The inspector shall promptly report the facts to the collector (to the surveyor at New York) for instructions.

Part 22-Drawback

ARTICLES MANUFACTURED OR PRODUCED WHOLLY OR IN PART FROM IMPORTED OR SUBSTITUTED MERCHANDISE

Sec. 22.1

22.2 22.3

22.4

22.5

22.6

22.7 22.8 22.9

22.11 22.12

Drawback allowance.

Canal Zone and Guantanamo Bay. Application for establishment of drawback rate.

Identification of imported merchandise and ascertainment of quantities for allowance of drawback; establishment of drawback rates. Identification of imported merchandise and ascertainment of quantities for allowance of drawback when substituted merchandise is used. General drawback rates in effect. Notice of exportation.

Notice of exportation; mail shipments. Notice of exportation; government shipments.

22.10 Numbering notices of exportation for mail or government shipments. Amendment of notices of exportation. Examination of merchandise. Completion of drawback claims. Certificates of importation and extracts.

22.13

22.14

"(b) Substitution for drawback purposes. If imported duty-paid sugar, or metal, or ore containing metal, or flaxseed or linseed, or flaxseed or linseed oil, and duty free or domestic merchandise of the same kind and quality are used in the manufacture or production of articles within a period not to exceed three years from the receipt of such imported merchandise by the manufacturer or producer of such articles, there shall be allowed upon the exportation of any such articles, notwithstanding the fact that none of the imported merchandise may actually have been used in the manufacture or production of the exported articles, an amount of drawback equal to that which would have been allowable had the sugar, or metal, or ore containing metal, or flaxseed or linseed, or flaxseed or linseed oil, used therein been imported; but the total amount of drawback allowed upon the exportation of such articles, together with the total amount of drawback allowed in respect of such imported merchandise under any other provision of law, shall not exceed 99 per centum of the duty paid on such imported merchandise.

"(f) Exportation of meats cured with imported salt. Upon the exportation of meats, whether packed or smoked, which have been cured in the United States with imported salt, there shall be refunded, upon satisfactory proof that such meats have been cured with imported salt, the duties paid on the salt so used in curing such exported meats, in amounts not less than $100.

"(g) Materials for construction and equipment of vessels built for foreigners. The provisions of this section shall apply to materials imported and used in the construction and equipment of vessels built for foreign account and ownership, or for the government of any foreign country, notwithstanding that such vessels may not within the strict meaning of the term be articles exported.

"(h) Time limitation on exportation. No drawback shall be allowed under the provisions of this section unless the completed article is exported within five years after importation of the imported merchandise.

"(1) Regulations. Allowance of the privileges provided for in this section shall be

and ownership,' subject to compliance with the regulations in this part.

[13 F. R. 8079, Dec. 18, 1948, as amended by T. D. 52417, 15 F. R. 1133, Mar. 2, 1950; T. D. 52826, 16 F. R. 9803, Sept. 27, 1951; T. D. 52894, 17 F. R. 14, Jan. 1, 1952; T. D. 53336, 18 F. R. 5424, Sept. 9, 1953]

§ 22.2 Canal Zone and Guantanamo Bay. The Panama Canal Zone and Guantanamo Bay Naval Station shall be considered foreign territory for drawback purposes.3

[13 F. R. 8080, Dec. 18, 1948, as amended by T. D. 52894, 17 F. R. 14, Jan. 1, 1952]

§ 22.3 Application for establishment of drawback rate. (a) Each manufacturer or producer of articles intended for exportation with benefit of drawback (whether he is a primary, intermediate, or final manufacturer or producer of the articles, and whether or not the articles are of a character covered by a general drawback rate) shall make application prior to the exportation of such articles for the establishment of a rate of drawback. The application shall be made on customs Form 4477 or in a substantially

subject to compliance with such rules and regulations as the Secretary of the Treasury shall prescribe, which may include, but need not be limited to, the fixing of a time limit within which drawback entries or entries for refund under any of the provisions of this section or section 309 (b) of this Act shall be filed and completed, and the designation of the person to whom any refund or payment of drawback shall be made.

"(1) Source of payment. Any drawback of duties that may be authorized under the provisions of this Act shall be paid from the customs receipts of Puerto Rico, if the duties were originally paid into the Treasury of Puerto Rico." (Tariff Act of 1930, sec. 313, as amended; 19 U. S. C. 1313)

2 Section 313 (g), Tariff Act of 1930, applies only to materials used in the original construction and equipment of the vessels or aircraft and not to materials used for alteration or repair. The term "foreign account and ownership" contemplates only vessels or aircraft built and equipped for the account of an owner or owners residing in a foreign country and having a bona fide intention that the vessel or aircraft shall, when completed, be owned and operated under the flag of a foreign country.

There is no authority of law for the allowance of drawback of customs duty on articles manufactured or produced in the United States and shipped to Alaska, Puerto Rico, Hawaii, the Virginia Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, the island of Guam, Canton Island, Enderbury Island, Johnston Island, or Palmyra Island.

similar form and shall be filed with the collector or deputy collector of customs in charge at any port of entry. When it is desired to export articles before an application in such form can be delivered in the regular course of the mails, a telegraphic application will be accepted, provided it shows the name of the manufacturer or producer, the name of the merchandise used, the name of the articles being exported, and the location of the factory at which the articles are manufactured or produced, and provided it is followed promptly by an application in the form prescribed herein.

(b) In the case of a vessel or aircraft on which drawback is to be claimed under section 313 (g), Tariff Act of 1930, the application prescribed in paragraph (a) of this section shall be made by the builder of the vessel or aircraft.

(c) The manufacturer or producer may abandon his application for the establishment of a rate of drawback by filing a written statement to that effect addressed to the collector or deputy collector of customs with whom the application was filed or to the investigating officer. An abandoned application may not be revived to give an earlier effective date to a rate of drawback established as the result of a subsequent application. [13 F. R. 8080, Dec. 18, 1948, as amended by T. D. 52894, 17 F. R. 14, Jan. 1, 1952]

§ 22.4 Identification of imported merchandise and ascertainment of quantities for allowance of drawback; establishment of drawback rates. (a) Each manufacturer or producer shall keep records which will establish, as to all articles manufactured or produced for exportation with benefit of drawback, the date or inclusive dates of manufacture or production, the quantity and identity of the imported duty-paid merchandise or of articles manufactured or produced under drawback regulations (referred to hereafter in this part as drawback products) used, the quantity and description of the articles manufactured or produced, and the quantity of waste incurred. If claim for waste is waived, the manufacturer or producer shall keep records which will establish the quantity and identity of the imported duty-paid merchandise or drawback products appearing in the articles manufactured or produced, in which case records need not be kept of either the quantity of waste incurred or of the quantity of imported duty-paid merchandise or drawback

products used, unless such records are necessary to enable the manufacturer or producer to establish the quantity of imported duty-paid merchandise or drawback products appearing in the articles. When the waste has a value and the manufacturer or producer has not limited his claims to the quantity of imported duty-paid merchandise or drawback products appearing in the articles, the records shall show the factory value of the imported duty-paid merchandise or drawback products used and the factory value of the waste in order that in the liquidation of the drawback entry the quantity of imported duty-paid merchandise or drawback products used may be reduced by the quantity thereof which the value of the waste will replace. The records of the manufacturer or producer shall also show the quantity, if any, of duty-free or domestic merchandise used when such records are necessary to the determination of the quantity of imported dutypaid merchandise or drawback products used in the manufacture or production of the articles or appearing therein. In cases where two or more products result from the manipulation of the imported duty-paid merchandise, records shall be kept which will show the values of such products at the time of separation. An abstract of the records kept by the manufacturer or producer shall be filed with the drawback entry.

(b) The imported duty-paid merchandise or drawback products shall be stored in a manner which will enable the manufacturer or producer to determine, in conjunction with his storage records, the import entry, certificate of delivery, or certificate of manufacture and delivery number or numbers under which they were received, and to identify with respect to such import entry, certificate of delivery, or certificate of manufacture and delivery number or numbers the imported duty-paid merchandise or drawback products used in the manufacture or production of the articles, and to establish whether such articles were exported within 5 years after the importation of the duty-paid merchandise.

(c) The articles manufactured or produced shall be stored or marked in a manner which will preserve the identification established by means of the storage records and the records of manufacture or production.

(d) Each person required by § § 22.15 and 22.16 (c) to certify to the delivery of imported merchandise or drawback products shall store such merchandise or products while they are in his possession and keep records which will enable him to show the quantity, identity, and description of such merchandise or products, the date on which they were received by him, the person from whom they were received, the date on which they were delivered by him to other persons, and the persons to whom such deliveries were made. These records shall be the basis of the certificates or endorsements required under § § 22.15 and 22.16 (c).

(e) In cases where it appears to the satisfaction of the Bureau that it is impracticable for the manufacturer or producer to keep records of all the information required for the determination of the drawback which may accrue to the products manufactured or produced by him, complementary records covering the information not available to the manufacturer or producer may be kept by the person in the United States for whose account the products are manufactured or produced, and abstracts of such records shall be filed with the drawback entry.

(f) When identification is made against two or more lots of imported merchandise of different dutiable values or subject to different rates of duty, or against two or more lots of drawback products subject to different allowances of drawback, the drawback shall be based first upon the lot or lots of the lowest dutiable value, rate of duty, or drawback allowance, as the case may be, then upon the lot or lots of the next higher dutiable value, rate of duty, or drawback allowance, and so on from lower to higher until all the lots have been accounted for. The same principle shall apply in cases where the articles are commingled in storage after manufacture or production. If two or more lots of a fungible product are commingled in storage and quantities thereof are withdrawn for domestic consumption as well as for exportation with benefit of drawback, the withdrawals for domestic consumption shall be accounted for in the order in which the several lots of such product were placed in storage, exclusive of any lots in respect of which drawback has been allowed; and, in the case of the withdrawals for exportation, the drawback allowance thereon shall be based on the lot carrying the lowest al