(b) When the appraised value of seized property exceeds $2,500 and neither an application to the Bureau for relief nor an offer to pay the domestic value thereof, as provided for in § 23.14, is made within a reasonable time, the collector shall report the facts to the United States attorney for the judicial district in which the seizure was made."

(c) If the appraised value of seized property is less than $2,500 and the claimant gives a bond on customs Form 4615, as provided for in § 23.13, within the statutory period, the collector shall likewise report the case to the United States attorney.

(Secs. 603, 610, 46 Stat. 754, as amended, 755; 19 U.S.C. 1603, 1610) [28 F.R. 14795, Dec. 31, 1963, as amended by T.D. 56288, 29 F.R. 14493, Oct. 22, 1964]

§ 23.22 Bonding of seized property; petition to the court.

When a claimant desires to file a bond for the release of seized property which is the subject of a court proceeding he

discovery are required, it shall be the duty of the collector or the principal local officer of the Customs Agency Service to report such seizure or violation to the United States attorney for the district in which such violation has occurred, or in which such seizure was made, and to include in such report a statement of all the facts and circumstances of the case within his knowledge, with the names of the witnesses and a citation to the statute or statutes believed to have been violated, and on which reliance may be had for forfeiture or conviction." (Tariff Act of 1930, sec. 603, as amended; 19 U. S. C. 1603)

"If the value returned by the appraiser or any vessel, vehicle, merchandise, or baggage so seized is greater than $2,500, the collector shall transmit a report of the case, with the names of available witnesses, to the United States attorney for the district in which the seizure was made for the institution of the proper proceedings for the condemnation of such property." (Tariff Act of 1930, sec. 610; 19 U. S. C. 1610)

"Notwithstanding any provisions of law relating to the return on bond of any vessel or vehicle seized for the violation of any law of the United States the court having jurisdiction of the subject matter, may, in its discretion and upon good cause shown by the United States, refuse to order such return of any such vessel or vehicle to the claimant thereof. (Internal Revenue Code, sec. 3173 (d); 26 U. S. C. 3173 (d))

The bond prescribed by this section is a substitute for and in lieu of the property released, and the Government, if forfeiture is decreed, is entitled to recover the penal sum of the bond. See U. S. v. Two Trunks, Fed. Cas. 16592.

shall be referred to the United State attorney.

§ 23.23 Fines, penalties, and forfeitures: remission of.

(a) Every offender under the custom or navigation laws shall be advised of any fine or penalty incurred by him as well as any liability to forfeiture. Whenever possible, customs officers shall inform each interested person of his right to apply for relief under section 618, Tarif Act of 1930" or any other applicable statute authorizing mitigation or remis sion of penalties.

(b) In the case of smuggling of articles of small value, demand shall be made for an immediate deposit on ac count of the penalty incurred in an amount equivalent to the domestic value of the articles whether or not a petition for relief is filed. Such demand need not be made in connection with any lia bility incurred by the master of a vessel under the provisions of section 453, Tariff Act of 1930.

(c) Except as provided for in § 23 21 (b), if the person liable for any violation of the customs or navigation laws fails to petition for relief or pay the penalty within 60 days from the date of mailing

"Whenever any person interested in ar vessel, vehicle, merchandise, or baggage seized under the provisions of this Act, or who bas incurred, or is alleged to have incurred, any fine or penalty thereunder, files with the Sec retary of the Treasury if under the customs laws, and with the Secretary of Commerce under the navigation laws, before the sale d such vessel, vehicle, merchandise, or baggag a petition for the remission or mitigation such fine, penalty, or forfeiture, the Secretary of the Treasury, or the Secretary of Com merce, if he finds that such fine, penalty, forfeiture, was incurred without willful neg ligence or without any intention on the part of the petitioner to defraud the revenue of to violate the law, or finds the existence of such mitigating circumstances as to justif the remission or mitigation of such fine, pen alty, or forfeiture, may remit or mitigate the same upon such terms and conditions as he deems reasonable and just, or order discon tinuance of any prosecution relating thereta In order to enable him to ascertain the facts the Secretary of the Treasury may issue commission to any customs agent, collector judge of the United States Customs Court, United States commissioner, to take test) mony upon such petition: Provided, That nothing in this section shall be construed to deprive any person of an award of com pensation made before the filing of such peti tion." (Tariff Act of 1930, sec. 618; 19 U. S. C 1618)

of the notice of violation as provided for n paragraph (a) of this section, the case hall be referred immediately to the Jnited States attorney for appropriate ction, unless it appears that the person lable for the penalty is absent from the Inited States or during the said period as absent for more than 30 days, in thich event the collector may withhold ach action for a further reasonable time, r unless other action is expressly auhorized by the Bureau. A decision to itigate a penalty or to remit a foriture upon condition that a stated mount is paid shall be effective for not ore than 60 days from the date of notice

the offender of such decision, unless he decision itself prescribes a different fective period or the decision is later mended to change the effective period.

payment of the stated amount is not eceived within the effective period, the all penalty or forfeiture shall be deemed pplicable and shall be enforced. If ayment of the stated amount is not lade or a supplemental petition filed ithin the effective period, the matter hall be promptly referred to the United tates attorney for appropriate attenon, unless other action has been dicted by the Bureau.

(d) No action looking to the remission t mitigation of a fine, penalty, or foriture shall be taken on any petition, respective of the amount involved, if le case has been referred to the Departent of Justice for the institution of gal proceedings.

(e) In the case of vessels or vehicles warded for official use, a petition shall ot be considered unless filed before final sposition of the property is made. lec. 618, 46 Stat. 757; 19 U.S.C. 1618) 23.24 Petitions for the remission or mitigation of fines, penalties, and forfeitures, and restoration of proceeds of sale.

(a) Any petition for the remission or itigation of a fine, penalty, or foriture incurred under any law adminered by the Bureau of Customs or for e restoration of the proceeds of a sale property forfeited under the customs ws shall be addressed to the Commisoner of Customs, unless final action ereon may be taken by the collector customs, in which event it shall be adessed to the collector concerned, and all be signed by the petitioner and filed th the collector of customs of the disict in which the property was seized or

the fine or penalty imposed. It shall be filed in duplicate or in triplicate, as required by the collector, and shall set forth a description of the property involved; the date and place of violation or seizure; and the facts relied upon by the petitioner to justify the remission or mitigation. In addition, when the petition is for relief from forfeiture or for the restoration of the proceeds of a sale, it shall show the interest of the petitioner in the property and in appropriate cases shall be supported by bills of sale, contracts, mortgages, or other satisfactory documentary evidence. If the property was in the possession of another person who was responsible for the act which caused the fine, penalty, or forfeiture, evidence shall be produced as to the manner in which the property came into the possession of such other person. Evidence of any investigation made by the petitioner prior to parting with the property shall also be produced, or the reason for the lack of such investigation given.

(b) A petitioner holding a chattel mortgage or conditional sale contract covering seized property shall submit with his petition evidence showing whether, prior to extending credit, he made a thorough investigation of the moral character and financial responsibility of the mortgagor or purchaser of the property and, if so, whether such investigation showed that the mortgagor or purchaser was a good credit risk or disclosed any facts indicating a probability that the property would be used in violation of law.

(c) When the petition is for the restoration of the proceeds of sale under section 613, Tariff Act of 1930, as amended, it shall be filed within 3

38

38 "Any person claiming any vessel, vehicle, merchandise, or baggage, or any interest therein, which has been forfeited and sold under the provisions of this Act, may at any time within three months after the date of sale apply to the Secretary of the Treasury if the forfeiture and sale was under the customs laws, or to the Secretary of Commerce if the forfeiture and sale was under the navigation laws, for a remission of the forfeiture and restoration of the proceeds of such sale, or such part thereof as may be claimed by him. Upon the production of satisfactory proof that the applicant did not know of the seizure prior to the declaration or condemnation of forfeiture, and was in such circumstances as prevented him from knowing of the same, and that such forfeiture was incurred without any willful negligence or intention to defraud on the part of the applicant, the Sec

months after the date of sale and shall be supported by satisfactory proof that the petitioner did not know of the seizure prior to the declaration or decree of forfeiture and was in such circumstances as prevented him from knowing it.

(d) If forfeited property the subject of a claim under such section 613 has been authorized for official use, retention or delivery shall be regarded as the sale thereof for the purposes of the abovementioned section, and the appropriation available to the receiving agency for the purchase, hire, operation, maintenance, and repair of property of the kind so received is available for the granting of relief to the claimant and for the satisfaction of liens for freight, charges, and contributions in general average that may have been filed."

(Secs. 613, 618, 46 Stat. 756, as amended, 757, secs. 305, 306, 49 Stat. 880; 19 U. S. C. 1613, 1618, 40 U.S.C. 304), 304k)

retary of the Treasury or the Secretary of Commerce may order the proceeds of the sale. or any part thereof, restored to the applicant, after deducting the cost of seizure and of sale, the duties, if any, accruing on the merchandise or baggage, and any sum due on a lien for freight, charges, or contribution in general average that may have been filed. (Tariff Act of 1930, sec. 613, as amended; 19 U. S. C. 1613)

"The appropriation available to any agency for the purchase, hire, operation, maintenance, and repair of property of any kind shall be available for the payment of expenses of operation, maintenance, and repair of property of the same kind received by it under any provision of sections 304g to 8041 of this title for official use; for the payment of any lien recognized and allowed pursuant to law, and for the payment of all moneys found to be due any person upon the duly authorized remission or mitigation of any forfeiture; and for reimbursement of other agencies as hereafter provided. The costs of hauling, transporting, towing, and storage of such property shall be paid by the agency which has seized such property or to which it has been abandoned; and, if such property is later delivered to another agency or official under section 304g, 304h, or 3041 of this title, the latter shall make reimbursement for all such costs incurred prior to the date of delivery to it of such property." (40 U. S. C. 3041)

"Retention or delivery of forfeited or abandoned property under sections 304g to 3041 of this title shall be regarded as the sale thereof for the purpose of laws providing for informer's fees or remission or mitigation of any forfeiture. Any property so acquired when no longer needed for official use shall be disposed of in the same manner as other surplus property." (40 U. 8. C. 304k)

(1) Fines and other pecuniary penalties aggregating $2,000 or less in respect of any one offense.

(2) Forfeiture of imported merchandise or the value thereof when the merchandise is valued at $2,000 or less.

(3) Forfeiture of merchandise other than imported merchandise when the merchandise is valued at $2,000 or less, and no liability outside the purview of any subparagraph of this paragraph (a) has been incurred in connection with the same offense.

(4) Penalties and forfeitures, aggregating not over $20,000 in any one case and incurred under section 460, Tariff Act of 1930, as amended, for failure to report as required by section 459, Tariff Act of 1930, as amended, in the following cases:

(i) Violations due to ignorance of the reporting requirements or to inadvertence and either no merchandise, or only typical personal or souvenir merchandise which would have been free of duty, if entered, is carried in the vessel or ve hicle, or

(ii) Where the violation is the first offense, although not due to ignorance or inadvertence, and no intended commer cial use or threat to the revenue is involved.

(5) Penalties imposed under title 13, United States Code, section 304, and in the amounts prescribed by 15 CFR 30.24, for the failure to timely file the com plete manifest of the carrier when required and all required shipper's export declarations, when clearance or permis sion to depart prior to the filing thereof is granted upon the filing of the required bond.

(6) Penalty and forfeiture incurred under section 497, Tariff Act of 1930, for failure to declare merchandise valued at more than $2,000, but not over $20,000, if

39 As to remission or mitigation of fines. penalties, and forfeitures in cases of the seizure of unendorsed mail parcels and articles in passengers' baggage, see §§ 9.5 (b) and (c) of this chapter and 23.5 (b), respectively.

the failure to declare is a first offense and involves a noncommercial importation. (Cases involving undeclared merchandise valued at $2,000 or less can be handled under subparagraphs (1) and (2) of this paragraph.)

(b) Forfeitures of merchandise under itle 46, United States Code, section 883, for having been illegally transported Coastwise, regardless of the value of the nerchandise, may be remitted if the application for relief establishes to the satsfaction of the collector of customs that the violation occurred as a direct result of an arrival of the transporting vessel n distress.

(c) When any imported liquor or compound or any vessel or vehicle in which the same has been transported has become subject to forfeiture for noncompliance with title 18, United States Code, section 1263 (see § 12.38 of this chapter), and the United States attorney has advised the collector that there is not sufficient evidence of intent to violate the law to warrant criminal prosecution thereunder, the forfeiture incurred is hereby remitted pursuant to the authority of section 7327, Internal Revenue Code and section 618, Tariff Act of 1930, upon the condition that the expenses of seizure, if any, shall be paid.

(d) If the interested party is not satisfied with the collector's decision, he may file a supplemental petition with the collector to be forwarded to the Bureau for reconsideration of the case.

(e) If it is definitely determined that the act or omission forming the basis of a penalty or forfeiture claim did not in fact occur, the claim shall be canceled by the collector and appropriate notations shall be made on customs Forms 5211 and 5955, or 5955-A, if the transaction has already been recorded thereon. When the determination of whether or not the claim was erroneously made depends upon a construction of law, the claim shall not be canceled without Bureau approval, unless there is in force a Bureau ruling decisive of the issue. Bureau instructions shall be requested in all doubtful cases.

(Sec. 618, 46 Stat. 757, sec. 1, 40 Stat. 223, as amended, 68A Stat. 871, R.S. 5294, as amended, sec. 9, 24 Stat. 81, as amended; 19 U.S.C. 1618, 22 U.S.C. 401, 26 U.S.C. 7327, 46 U.S.C. 7, 320)

1964]

[T.D. 56202, 29 F.R. 8479, July 7,

§ 23.26 Compromise of claims.

(a) No offer pursuant to section 617, Tariff Act of 1930, as amended," in which a specific sum of money is tendered in compromise of a Government claim arising under the customs laws, will be considered by the Bureau until it has received due notice that such sum has been

properly deposited with the Treasurer of

the United States or a Federal reserve bank." If the offer is rejected, the money will be returned to the proponent.

(b) The offer and the terms upon which it is made shall be stated in writing and shall be limited to the civil liability of the proponent in the matter which is the subject of the Government's claim.

(c) The amount offered shall be deposited in the name of the person submitting the offer.

(Sec. 617, 46 Stat. 757, as amended; 19 U. 8. C. 1617)

§ 23.27 Claims for compensation to informers.

(a) Any person not an officer of the United States " who furnishes infor

"Upon a report by a collector, district attorney, or any special attorney or customs agent, having charge of any claim arising under the customs laws, showing the facts upon which such claim is based, the probabilities of a recovery and the terms upon which the same may be compromised, the Secretary of the Treasury is hereby authorized to compromise such claim, if such action shall be recommended by the General Counsel for the Department of the Treasury.” (Tariff Act of 1930, sec. 617, as amended; 19 U. S. C. 1617)

"A proponent at a distar.ce from a Federal reserve bank may perfect his offer by tendering a bank draft for the amount of the offer payable to the Secretary of the Treasury for collection and deposit.

42 "Any officer of the United States who directly or indirectly receives, accepts, or contracts for any portion of the money which may accrue to any person making such detection and seizure, or furnishing such informa tion, shall be guilty of a felony and, upon conviction thereof shall be punished by a fine of not more than $10,000, or by imprisonment for not more than two years, or both, and shall be thereafter ineligible to any office of honor, trust, or emolument. Any such person who pays to any such officer, or to any person for the use of such officer, any portion of such money, or anything of value for or because of such money, shall have a right of action against such officer, or his legal representatives, or against such person, or his legal representatives, and shall be entitled to recover the money so paid or the thing of value so given." (Tariff Act of 1930, sec. 620; 19 U. S. C. 1620)

mation in accordance with the provisions of section 619, Tariff Act of 1930, as amended," may file a claim for an award of compensation.

(b) Such claim shall be in duplicate on customs Form 4623 and shall be filed with the collector. Any customs officer may receive such a claim for transmittal to the collector. Any additional copies required by the collector to complete his filles shall be furnished on demand.

(c) No claim for compensation shall be forwarded to the Bureau unless a sum not less than $5 is available for an award.

(d) No claim under such section 619 shall be paid until the amount recovered has been deposited in the proper account. No such claim shall be paid out of the proceeds of a sale.

(e) Any person whose claim has not for any reason been transmitted by the

"Any person not an officer of the United States who detects and seizes any vessel, vehicle, merchandise, or baggage subject to seizure and forfeiture under the customs laws or the navigation laws, and who reports the same to an officer of the customs, or who furnishes to a district attorney, to the Secretary of the Treasury, or to any customs officer original information concerning any fraud upon the customs revenue, or a violation of the customs laws or the navigation laws perpetrated or contemplated, which detection and seizure or information leads to a recovery of any duties withheld, or of any fine, penalty, or forfeiture incurred, may be awarded and paid by the Secretary of the Treasury a compensation of 25 per centum of the net amount recovered, but not to exceed $50,000 in any case, which shall be paid out of any appropriations available for the collection of the revenue from customs. For the purposes of this section, an amount recovered under a bail bond shall be deemed a recovery of a fine incurred. If any vessel, vehicle, merchandise, or baggage is forfeited to the United States, and is thereafter, in lieu of sale, destroyed under the customs or navigation laws or delivered to any governmental agency for official use, compensation of 25 per centum of the appraised value thereof may be awarded and paid by the Secretary of the Treasury under the provisions of this section, but not to exceed $50,000 in any case." (Tariff Act of 1930, sec. 619, as amended; 19 U. S. C. 1619)

The term "in any case," as used in the statute, has reference to the information furnished and not to the recoveries growing out of such information.

The payment of the award for information furnished concerning violations of the Narcotic Drugs Import and Export Act, as amended, will be made by the court exercising jurisdiction in cases involving violations of that law.

collector to the Bureau may apply di rectly to the Commissioner of Customs (Sec. 619, 46 Stat. 758, as amended; 19 U. S. C 1619)

§ 23.28 Inspection of importer's books, records, etc.

Before demanding an inspection of an importer's books, correspondence, or records pursuant to section 511, Tarif Act of 1930," the investigating officer shall present a written request for such inspection signed by the Commissioner of Customs, appraiser, person acting as appraiser, collector, or judge of the United States Customs Court.

(Sec. 511, 46 Stat. 733; 19 U.S.C. 1511) § 23.29 Examination of importer and others.

The citation of a person pursuant to section 509, Tariff Act of 1930, ast amended," to appear and testify shall be

"If any person importing merchandise into the United States or dealing in imported merchandise fails, at the request of the Secretary of the Treasury, or an appraiser, or person acting as appraiser, or a collector, or the United States Customs Court, or a judge of such court, as the case may be, to permit a duly accredited officer of the United States to inspect his books, papers, records, accounts, documents, or correspondence, pertaining to the value or classification of such merchandise, then while such failure continues the Secretary of the Treasury under regulations prescribed by him. (1) shall prohibit the importation of merchandise into the United States by or for the account of such person and (2) shall instruct the collectors to withhold delivery of merchandise imported by or for the account of such person. If such failure continues for a period of one year from the date of such instructions the collector shall cause the merchandise, unless previously exported, to be sold at public auction as in the case of forfeited merchandise." (Tariff Act of 1930, sec. 511; 19 U. S. C. 1511)

""Collectors and appraisers may cite to appear before them or any of them and to examine upon oath, which said ofcers or any of them are hereby authorized to administer, any owner, importer, consignee, agent, or other person upon any matter or thing which they, or any of them, may deem material respecting any imported merchandise then under consideration or previously imported within one year, in ascertaining the classification or the value thereof or the rate or amount of duty; and they, or any of them, may require the production of any letters, accounts, contracts, invoices, or other documents relating to said merchandise, and may require such testimony to be reduced to writing, and when so taken it shall be filled and preserved, under such rules as the United