the collector upon written request by the original applicant. § 22.35

Waiver of proof where the duty is less than $50.

With the exception of the drawback entry, the above provisions relative to proof of non-conformity to sample or specifications, or of shipment without the consent of the consignee, may be waived in whole or in part if the duty on the merchandise to be exported is less than $50 and the collector is otherwise satisfied that the claim is well founded.

MERCHANDISE TRANSFERRED TO A FOREIGNTRADE ZONE FROM CUSTOMS TERRITORY § 22.36

Drawback allowance.

1644 •

* Provided further, That under the rules and regulations of the controlling Federal agencies, articles which have been taken into a zone from customs territory for the sole purpose of exportation, destruction (except destruction of distilled spirits, wines, and fermented malt liquors), or storage shall be considered to be exported for the purpose of:

"(a) The drawback, warehousing, and bonding, or any other provisions of the Tariff Act of 1930, as amended, and the regulations thereunder; and

"(b) The statutes and bonds exacted for the payment of drawback, refund, or exemption from liability for internal-revenue taxes and for the purposes of the internalrevenue laws generally and the regulations thereunder.

"Such a transfer may also be considered an exportation for the purposes of other Federal laws insofar as Federal agencies charged with the enforcement of those laws deem it advisable. Such articles may not be returned to customs territory for domestic consumption except where the Foreign-Trade Zones Board deems such return to be in the public interest, in which event the articles shall be subject to the provisions of paragraph 1615 (f) of section 1201 of this title: (19 U. S. C. 81c.)

"

proper application as prescribed in § 30.10 of this chapter.

(Sec. 3, 48 Stat. 999, as amended; 19 U.S.C. 81c)

§ 22.37

Articles manufactured or produced in the United States.

(a) The procedure prescribed in this part as to the filing of an application for a rate of drawback and other required documents shall be followed, SO far as applicable, in filing claims for drawback under the fourth proviso to section 3 of the act of June 18, 1934, as amended (19 U. S. C. 81c), on articles manufactured or produced in the United States with the use of imported or substituted merchandise, and on flavoring extracts and medicinal or toilet preparations (including perfumery) manufactured or produced with the use of domestic tax-paid alcohol, except that notices of transfer on customs Form 7513 shall be filed in lieu of notices of exportation on customs Form 7511.

(b) Notices of transfer on customs Form 7513 shall be filed in triplicate with the collector of customs at the port where the foreign-trade zone is located. Each notice shall show the number and location of the foreign-trade zone to which the articles are to be transferred, the number and kind of packages and their marks and numbers, the description of the articles and their weight (gross and net), gauge, measure, or number, the name of the transferor, and the name of the port where the drawback entry is to be filed.

(c) The notice of transfer shall be filed with the collector prior to the transfer of the articles to the zone, or within 3 years after receipt of the articles in the zone and, if filed after the transfer, shall state the foreign-trade zone lot number.

(d) The collector shall assign a number to each notice of transfer. After numbering, one copy of the notice shall be returned to the transferor for subsequent filing with the drawback entry. After the articles have been received in the zone, the customs officer at the zone shall certify on the copy of the notice of transfer received from the collector as to the receipt of the articles in the zone and forward the notice to the transferor, or the person designated by the transferor, for subsequent filing with the drawback entry. Prior to filing such

(Transferor or agent)

(Sec. 3, 48 Stat. 999, as amended; 19 U.S.C. 81c)

§ 22.38 Merchandise transferred to a foreign-trade zone from continuous customs custody.

(a) The

in

procedure prescribed §§ 22.27 to 22.30, inclusive, shall be followed, SO far as applicable, in filing claims for drawback on merchandise transferred to a foreign-trade zone from continuous customs custody. Prior to the transfer of such merchandise, the importer, or a person designated in writing by the importer for the purpose, shall file with the collector an entry in duplicate on customs Form 7541. After the merchandise has been received in the zone. the customs officer at the zone shall certify on the copy of Form 7541 received from the collector as to the receipt of the merchandise in the zone and forward it to the transferor, or the person designated by the transferor, to obtain thereon the foreign-trade zone operator's certification as to the receipt of the articles in the zone, in lieu of the bill of lading required by § 22.29 (d), and resubmit the copy to the collector.

(b) Customs Form 7541 shall be modified to indicate that the merchandise is to be transferred to a foreign-trade zone and shall bear an endorsement in the

(City and State)

111)

sole purpose of exportation, destruction, or storage, and is not to be returned to customs territory of the United States for domestic consumption. I further declare that, to the best of my knowledge and belief, this merchandise is the same in quantity, quality, value, and package, unavoidable wastage and damage excepted, as it was at the time of importation; that no allowance nor reduction of duties has been made for damage or other cause except as specified in this entry; and that no part of the duties paid has been refunded by way of drawback or otherwise.

(Transferor)

Date (Sec. 3, 48 Stat. 999, as amended; 19 U.S.C. 81c)

§ 22.39 Rejected merchandise.

(a) The procedure prescribed in §§ 22.31 to 22.35, inclusive, shall be followed, so far as applicable. The importer or a person designated in writing by the importer for the purpose shall file with the collector, prior to the transfer of any merchandise to a foreign-trade zone, an entry in duplicate on customs Form 7539. The procedure shall be the same, so far as applicable, as that governing the transfer of merchandise to a foreigntrade zone from continuous custody (§ 22.38).

(b) Customs Form 7539 shall be modified to indicate that the merchandise is to be transferred to a foreign-trade zone

(City and for the sole purpose of ex

State) portation, destruction, or storage, and is not to be returned to customs territory of the United States for domestic consumption. I further declare that, to the best of my knowledge and belief, the said merchandise is the same in quantity, quality, value, and package as specified in this entry; that no allowance nor reduction in duties has been made; and that no part of the duties paid has been refunded by way of drawback or otherwise.

duties assessed under the Antidumping Act, 1921; countervailing duties assessed under section 303, Tariff Act of 1930; and marking duties assessed under section 304 (c), Tariff Act of 1930, as amended.

§ 22.42

Merchandise sold to United States Government.

In connection with each drawback entry, except under section 313(c), Tariff Act of 1930, the claimant shall furnish a certificate showing whether or not the merchandise concerned was sold to any department, branch, or agency of the United States Government. If the merchandise was SO sold, drawback shall be allowed only when claimed by the department, branch, or agency of the United States Government or when the entry is supported by a certificate signed by a proper officer of the department, branch, or agency concerned stating that the right to drawback was reserved by the supplier with the knowledge and consent of the said department, branch, or agency. A Government instrumentality operating with nonappropriated funds is not to be considered a Government agency within the meaning of this section.

§ 22.43 Verification of drawback claims by Customs Agency Service.

Collectors shall cause drawback documents to be referred to the Customs Agency Service for verification whenever such reference is believed to be required for orderly and efficient administration of the drawback law and regulations, and occasionally in any case. Such verification shall include an examination of not only the manufacturing records but also the sales and financial records relating to the transaction. Protests. § 22.44

The decision of the collector of customs refusing to pay a drawback claim is final and conclusive upon all persons unless the person filing the drawback claim or his agent, within 60 days after but not before such decision, shall file a protest in writing with the collector in the manner required in the case of protests against the liquidation of import entries.

(Sec. 514, 46 Stat. 734; 19 U.S.C. 1514)

not more than two years, or both, and such merchandise or the value thereof shall be forfeited." (Pub. Law 772, 80th Cong.; 62 Stat. 683)

§ 22.45 Signing of documents; powers of attorney.

Powers of attorney, in accordance with § 8.19, of this chapter, shall be required from persons signing the documents listed below in all cases where such person is not a member of the firm or is not the importer, manufacturer, or exporter, as the case may be. A power of attorney shall also be required when the person signing such a document for a corporation is not the president, vice president, treasurer, or secretary of the corporation.

23.33

23.34 23.35

waters.

Identification cards.

Return of property stolen in Canada.
Customs supervision.

AUTHORITY: The provisions of this Part 23 issued under R.S. 161, 251, sec. 624, 46 Stat. 759, sec. 101, 76 Stat. 72, sec. 2, 23 Stat. 118, as amended; 5 U.S.C. 22, 19 U.S.C. 66, 1624, Gen. Hdnote. 11, Tariff Schedules of the United States, 46 U.S.C. 2, except as otherwise noted.

SOURCE: The provisions of this Part 23 appear at 28 F.R. 14795, Dec. 31, 1963, unless otherwise noted.

§ 23.1 Boarding of vessels or vehicles and inspection, examination, and search of persons, baggage, and merchandise discharged from vessels.

(a) For the purpose of examining the manifest or inspecting and searching the

vessel or vehicle, any customs officer1 at any time may go on board of:

(1) Any vessel at any place in the United States 2 or within the customs waters of the United States;

(2) Any American vessel on the high seas, when there is probable cause to believe that such vessel is violating or has violated the laws of the United States;

or

1 "The term 'officer of the customs' means any officer of the Customs Service or any commissioned, warrant, or petty officer of the Coast Guard, or agent or other person authorized by law or by the Secretary of the Treasury, or appointed in writing by a collector, to perform the duties of an officer of the Customs Service." (Tariff Act of 1930, sec. 401 (1), as amended; 19 U. S. C. 1401 (1))

"The keepers of Coast Guard stations and houses of refuge shall have the powers of inspectors of customs, but shall receive no additional compensation for duties performed as such: $11 (14 U. S. C.

104)

"Any of the officers or persons authorized to board or search vessels may stop, search, and examine, as well without as within their respective districts, any vehicle, beast, or person, on which or whom he or they shall suspect there is merchandise which is subject to duty, or shall have been introduced into the United States in any manner contrary to law, whether by the person in possession or charge, or by, in, or upon such vehicle or beast, or otherwise, and to search any trunk or envelope, wherever found, in which he may have a reasonable cause to suspect there is merchandise which was imported contrary to law; and if any such officer or other person so authorized shall find any merchandise on or about any such vehicle, beast, or person, or in any such trunk or envelope, which he shall have reasonable cause to believe is subject to duty, or to have been unlawfully introduced into the United States, whether by the person in possession or charge, or by, in, or upon such vehicle, beast, or otherwise, he shall seize and secure the same for trial.” (19 U. S. C. 482)

"The collector for the district in which any vessel or vehicle arrives from a foreign port or place may put on board of such vessel or vehicle while within such district, and if necessary while going from one district to another, one or more inspectors or other customs officers to examine the cargo and contents of such vessel or vehicle and superintend the unlading thereof, and to perform such other duties as may be required by law or the customs regulations for the protection of the revenue. Such inspector or other customs officer may, if he shall deem the same necessary for the protection of the revenue, secure the hatches or other communications or outlets of such vessel or vehicle with customs seals or other proper

(3) Any vessel within a customs-enforcement area, but customs officers shall not board a foreign vessel upon the high seas in contravention of any treaty with a foreign government, or in the absence of a special arrangement with the foreign government concerned.

fastenings while such vessel is not in the act of unlading and such fastenings shall not be removed without permission of the inspector or other customs officer. Such inspector or other customs officer may require any vessel or vehicle to discontinue or suspend unlading during the continuance of unfavorable weather or any conditions rendering the discharge of cargo dangerous or detrimental to the revenue. Any officer, owner, agent of the owner, or member of the crew of any such vessel who obstructs or hinders any such inspector or other customs officer in the performance of his duties, shall be liable to a penalty of not more than $500." (Tariff Act of 1930, sec. 455; 19 U. S. C. 1455)

"Any master of any vessel and any person in charge of any vehicle bound to the United States who does not produce the manifest to the officer demanding the same shall be liable to a penalty of $500, and if any merchandise, including sea stores, is found on board of or after having been unladen from such vessel or vehicle which is not included or described in said manifest or does not agree therewith, the master of such vessel or the person in charge of such vehicle or the owner of such vessel or vehicles shall be liable to a penalty equal to the value of the merchandise so found or unladen, and any such merchandise belonging or consigned to the master or other officer or to any of the crew of such vessel, or to the owner or person in charge of such vehicle, shall be subject to forfeiture, and if any merchandise described in such manifest is not found on board the vessel or vehicle the master or other person in charge or the owner of such vessel or vehicle shall be subject to a penalty of $500; Provided, That if the collector shall be satisfied that the manifest was lost or mislaid without intentional fraud, or was defaced by accident, or is incorrect by reason of clerical error or other mistake and that no part of the merchandise not found on board was unshipped or discharged except as specified in the report of the master, said penalties shall not be incurred. (Tariff Act of

1930, sec. 584; 19 U. S. C. 1584)

"(a) Any officer of the customs may at any time go on board of any vessel or vehicle at any place in the United States or within the customs waters or, as he may be authorized, within a customs-enforcement area established under the Anti-Smuggling Act, or at any other authorized place, without as well as within his district, and examine the manifest and other documents and papers and examine, inspect, and search the vessel or vehicle and every part thereof and any person, trunk, package or cargo on board, and