manufacture of the articles enumerated shall be made on customs Form 7506 in the name of the obligor on the bond.

(c) Such wool or hair which has been released from customs custody shall not be restored to a customs status from which it could thereafter be entered or withdrawn under the provisions of item 306.00, Tariff Schedules of the United States.

(Sec. 101, 76 Stat. 72; Sch. 3, pt. 10, hdnote. 6, Tariff Schedules of the United States) [28 F.R. 14663, Dec. 31, 1963, as amended by T.D. 56298, 29 F.R. 14987, Nov. 5, 1964] § 10.92 Bond; form; penalty.

(a) At the time of making entry for consumption or withdrawal from warehouse of the wool or hair there shall be filed a single entry bond on customs Form 7547, unless the transaction is charged against a term bond on customs Form 7547, or other appropriate form. The penalty of the single entry bond shall be in the amount equal to the value of the wool or hair, as set forth in the entry, plus double the estimated duties, as determined at the time of entry. The penalty of the term bond shall be $10,000, or such larger amount as the collector of customs deems necessary to the protection of the revenue.84

(b) A single entry or term bond shall be filed by each manufacturer, processor, or dealer entering or withdrawing the wool or hair under bond or receiving it by transfer under bond in its imported or other form.

(c) Only one term bond shall be required from each manufacturer, processor, or dealer. If wool or hair is entered or withdrawn at any port other than that at which the original term bond is filed, a copy of such bond shall be filed at such other port.

(d) The district director of customs may cancel liquidated damages not in excess of $20,000 incurred under a bond mentioned in this section upon payment of less than the full amount, or without

the payment of any amount if no loss of revenue is involved, as he may deem appropriate under the law and in view of the circumstances. Application for cancellation of the liquidated damages incurred shall be made in accordance with the provisions of Part 172 of this chapter. (Sec. 101, 76 Stat. 72; Sch. 3, pt. 1C, hdnote. 6, Tariff Schedules of the United States) [28 F.R. 14663, Dec. 31, 1963, as amended by T.D. 56537, 30 F.R. 14782, Nov. 30, 1965; T.D. 70-249, 35 F.R. 18265, Dec 1, 1970]

§ 10.93 Records of receipt of wool or

hair.

(a) Each manufacturer, processor, or dealer who enters or withdraws wool or hair under bond, or who receives wool or hair by transfer under bond, shall keep records which will show:

(1) In the case of entry or withdrawal, the quantity, entered clean content, identity, and description of the wool or hair entered or withdrawn under bond; and

(2) In the case of receipt by transfer, the quantity, description, and date of transfer certificate (see § 10.95 (d)) of the wool or hair received by transfer under bond, and the name and address of the transferor from whom received.

(b) Every lot of wool or hair entered or withdrawn under bond, or received by transfer under bond, shall be marked or stored until put into process in such manner as to insure the identification of the lot with the entry, withdrawal, or transfer certificate.

(Sec. 101, 76 Stat. 72; Sch. 3, pt. 1C, hdnote. 6, Tariff Schedules of the United States) § 10.94 Manufacturing records.

(a) Each manufacturer or processor shall keep the records specified in this section with respect to products and substances resulting wholly or in part from bonded wool or hair. Such records shall be kept by 3-month periods of manufacture on a calendar-year basis and shall show:

(1) The inclusive dates of each period of manufacture;

(2) The quantity, identity, and description of the wool or hair not previously processed by the reporting manufacturer or processor put into process during the period;

(3) The quantity and description of all intermediate products, stocks in process, and wastes (including noils) not described in the preceding subdivi

Nolls

Soft (including all wastes, except noils, burr wastes, card strippings, and sweepings, produced after the scouring of the wool or hair and before the spinning operation). Hard (including all wastes, except sweepings, produced in and after the spinning operation but before completion of the weaving operation or, in the case of the manufacture of articles enumerated in item 306.00, Tariff Schedules of the United States, which are not woven, before the completion of the enumerated article). Fly (including all wastes other than noils and hard and soft wastes as above specified). White soft wastes and white threads shall be accounted for separately.

(6) The records of each manufacturer or processor shall contain a detailed inventory of all wool and hair on hand at the close of each abstract period.

(b) When the manufacturer of any enumerated articles spins the yarns used in the manufacture thereof, he shall also keep records showing the quantity and description of all the yarns so spun.

(c) Within 30 days from the end of each calendar quarter the manufacturer or processor, liable under a bond for wool or hair, shall submit to the collector of customs where his original bond has been filed an abstract of his records on customs Form 7531-B. The abstract shall be supported by copies of the processor's returns (showing the processing losses and net returns) for any bonded wool or hair processed outside the plant of the manufacturer or processor submitting such abstract. When a bonded manufacturer or processor has not manufactured or processed any bonded wool or hair during the 3months period he shall promptly so advise the collector of customs.

This applies only to materials carried over from a previous period and does not require the keeping of records of materials which are put back into process in the same period in which they resulted.

(e) In the case of preliminary processors, such as pullers, sorters, washers, scourers, or carbonizers, a transfer certificate, on customs Form 7531-A, revised, covering wool or hair processed and transferred by any one of them, shall be submitted to the collector of customs as an abstract of his records of manufacture, when such processor has received custody (not ownership) of the wool or hair from a transferor who has been relieved by the collector of liability under bond for the use of the wool or hair in accordance with § 10.95(d). (Sec. 101, 76 Stat. 72; Sch, 3, pt. 1C, hdnote. 6, Tariff Schedules of the United States) § 10.95

Records and reports of enumerated articles of wool or hair delivered; transfer certificates.

(a) Each manufacturer, processor, or dealer shall keep records showing the quantity, description, and wool or hair content of all wool or hair (including samples) and enumerated articles delivered from his premises pursuant to transfer under bond, purchase, consignment, or otherwise. Such records shall also show the date of delivery from the premises and the name and address of the transferee, purchaser, consignee, or other person to whom delivery is made. The records shall show also the exact designation under which any wool or hair was transferred, sold, consigned, or otherwise delivered and the price paid or agreed to be paid, or if there has been no sale or contract of sale, the price that the manufacturer, processor, or dealer would have received or was willing to receive for the wool or hair if sold in the

ordinary course of trade. The total amounts of the deliveries within the purview of this paragraph, except of enumerated articles, shall be included in the totals shown on the abstract prescribed in § 10.94 (c).

(b) Within 30 days after the delivery of wool or hair from the premises, otherwise than under a transfer certificate provided for in paragraph (d) of this section, the manufacturer, processor, or dealer making such delivery shall file a declaration with the collector of customs in whose district his original bond is filed, showing the quantity and description of merchandise delivered, the date of delivery, and the name and address of the person to whom delivered. The declaration shall show the particulars as to price specified in paragraph (a) of this section, whether representative samples have been retained, whether the merchandise resulted in the usual course of manufacture of enumerated articles, and whether such merchandise could have been used (with or without further preparation) in the manufacture of enumerted articles.

(c) The manufacturer, processor, or dealer shall retain for customs inspection a representative sample of not less than one pound of each kind of merchandise for which a report is required by § 10.96 (a) or (b). Such sample shall be properly identified in his records with the report covering such merchandise and shall be available for inspection by proper officers of the Government at all reasonable times for a period of 3 months after its delivery.

(d) When the ownership of wool or hair is transferred by one bonded manufacturer, processor, or dealer to another manufacturer, processor, or dealer the transfer shall be covered by a transfer certificate on customs Form 7531-A, revised. When a transferor transfers custody (not ownership) of wool or hair, no transfer certificate is required unless the transferor in writing specifically requests the collector of customs to be relieved of his liability under his bond. When the transfer is made by a dealer, customs Form 7531-A shall be supported by copies of processors' invoices or reports (showing processing losses and net

86a

86a Normally, when wool or hair is transferred, for scouring, blending, etc., the 11ability therefor under bond will remain with the actual owner until a change of ownership is effected.

returns) for any wool or hair processed outside the custody of the dealer. Such transfer certificates shall be filed by the dealer within 30 days after the date of the transfer. When the transfer is made by a manufacturer or processor, it shall be filed within the quarterly period allowed for the filing of the abstract on which the transfer is required to be reported. When the original bonds of both the transferor and the transferee are on file in the office of one collector of customs, the transfer certificate shall be filed with that officer in duplicate. When the original bond of the transferee is on file in another customs district, the transfer certificate shall be filed in triplicate. The transferor shall not be relieved from liability under his bond until the transferred wool or hair has been charged against the bond of the transferee.

(e) The establishments of bonded manufacturers, processors, and dealers, and the originals of all books and records kept by such manufacturers, processors, and dealers relating to bonded wool or hair shall be available at all reasonable times for inspection by proper officers of the Government.

(f) All records required to be kept by manufacturers, processors, and dealers relating to bonded wool or hair shall be retained for a period of 3 years after the imported wool or hair has been used in the manufacture of the articles enumerated in item 306.00, Tariff Schedules of the United States. Where the wool or hair has been charged against the bond of a transferee, the records of the transferor shall be retained for a period of 3 years from the date of transfer. (Sec. 101, 76 Stat. 72 Sch. 3, pt. 1C, hdnote. 6, Tariff Schedules of the United States)

§ 10.96 Reports of use or transfer for use in violation of bond.

(a) When a bonded manufacturer or processor uses any bonded wool or hair otherwise than in the manufacture of the articles enumerated in item 306.00, Tariff Schedules of the United States, or in preparation for such manufacture, he shall, within 30 days after such use, make a report thereof to the collector of customs in whose district his original bond is filed, showing the quantity and description of the wool or hair so used, the use to which it has been put, the date of such use, whether such wool or hair resulted in the usual course of manufacture of the enumerated articles, and

whether it could have been used in the usual course of manufacture of such articles.87

(b) A manufacturer, processor, or dealer shall likewise report to such collector of customs within 30 days any transfer of bonded wool or hair for use otherwise than in the manufacture of the enumerated articles. The report shall show the quantity and description of the wool or hair, the date of transfer, the name and address of the transferee, and, if known, the specific use to which the wool or hair is to be put. Such a

་་་

every dealer, manufacturer, or processor who has given a bond pursuant to the provisions of item 306.00 shall report any transfer or use of merchandise contrary to the terms of his bond, within 30 days after such transfer or use, to the collector of customs in whose district the bond is filed, and for failure to so report such dealer, manufacturer, or processor shall be liable to a penalty (in addition to the duties provided for) equal to the value of the merchandise so transferred or used at the time and place of such transfer or use; * * *." (Schedule 3, part 1C, headnote 5(c), Tariff Schedules of the United States.)

report of a manufacturer or processor shall state whether the wool or hair resulted in the usual course of manufacture of the enumerated articles and whether it could have been used in the manufacture of such articles.

(c) Whether merchandise has resulted in the usual course of manufacture shall be determined with respect to the bona fide and normal operations of the plant at which the merchandise resulted. Merchandise resulting in the usual course of manufacturing which cannot be used (with or without further preparation) in the usual course of the manufacture of enumerated articles shall be the quantity of the merchandise resulting in the usual course of manufacture in excess of the quantity thereof which is used in the bona fied and normal operations at the plant at which it resulted. In determining, for the abovementioned purposes, whether operations are bona fide and normal, consideration may be given to the conditions at the plant and in the industry as a whole.

(d) The report required by this section shall be in the following form and shall be filed in triplicate:

Date..

did

§ 10.97 Duties, exportation or destruction.

(a) All wool or hair in its imported form used or transferred for use otherwise than in the manufacture of the enumerated articles shall be assessed with duty in accordance with items 306.01, 306.02, 306.03, and 306.04, Tariff Schedules of the United States.88 As to merchandise resulting from the use of the imported wool or hair in the usual course of manufacture of the enumerated articles and which is used or transferred for use otherwise than in the manufacture of the enumerated articles, no duty shall be assessed unless such merchandise can be used (with or without further preparation) in ordinary commercial practice in the usual course of manufacture of such enumerated articles, except in the case of white soft wastes, white thread, and noils which shall be dutiable at seven-eighths of the regular duties when they are used or transferred for use otherwise than in the manufacture of the enumerated articles, irrespective of whether they can be used (with or without further preparation) in the manufacture of such enumerated articles. Wastes and other merchandise which have not resulted in the usual course of manufacture of the enumerated articles are dutiable when used or transferred for use otherwise than in the manufacture of the enumerated articles, irrespective of whether they could

88 "Any of the wool or hair entered as provided for in item 306.00, if used, or transferred for use, in its imported or any other form in any manner otherwise than in the manufacture of the articles enumerated in the said item:

"Item 306.01 White soft wastes and white threads resulting during the usual course of plicable to wool or hair in like condition.

"Item 306.02 Noils resulting during the usual course of manufacture of such enumerated articles * ** 87.5 percent of the manufacture of such enumerated articles *** 87.5 percent of the regular duties apregular duties applicable to noils.

"Item 306.03 Other merchandise resulting during the usual course of manufacture of such enumerated articles which cannot be used (with or without further preparation) in the usual course of manufacture of such enumerated articles * * Free.

"Item 306.04 Wool or hair other than a waste or byproduct described in any of the three foregoing items * ** The regular duties applicable to wool or hair in the condition in which so used or transferred." (Items 306.01, 306.02, 306.03, and 306.04, Tariff Schedules of the United States.)

(c) There shall be filed in connection with the entry of such copper-bearing ores, either for consumption or warehouse, a declaration of the importer that the material is to be used for fluxing purposes only. In the case of a consumption entry, the estimated tax shall be deposited at the time of entry. Liquidation of entries shall be suspended pending proof of use for fluxing purposes as hereinafter provided.

(d) Samples of the material shall be taken in accordance with the commercial method in effect at the plant if to be used in a bonded smelting warehouse, or in accordance with § 8.48 of this chapter if entered for consumption, and the copper content thereof shall be determined by the Government chemist in accordance with the assay.

(e) The management of the smelting or converting plant shall file with the deputy collector at Perth Amboy, N.J., a statement based on its records of operation for each quarterly period showing for each furnace or converter the total quantity of material charged during each month or part thereof of each quarter, the total quantity of material used for fluxing purposes, and the quantity of imported ores used for fluxing purposes for which free entry was claimed under the above-mentioned pro

"For an aggregate amount not to exceed 15,000 tons of copper content in ores which contain by weight not over 15 percent copper and which are entered in any calendar year for use as a flux or sulphur reagent in copper smelting or converting *** Free of duty on copper content." (Item 602.25, Tariff Schedules of the United States.)