162 SUNKEN GOODS-MANUFACTURING WAREHOUSES

shall be extended, under such regulations as the Secretary of the Treasury shall prescribe,

to the vessels of war of any nation in ports of the United States which may reciprocate such privileges toward the vessels of war of the United States in its ports."

SEC. 22. That whenever any vessel laden with merchandise, in whole or in part subject to duty,

has been sunk in any river, harbor, bay, or waters subject to the jurisdiction of the United States, and within its limits, for the period of two years, and is abandoned by the owner thereof,

any person who may raise such vessel shall be permitted to bring any merchandise recovered therefrom

into the port nearest to the place where such vessel was so raised

free from the payment of any duty thereupon, but

under such regulations as the Secretary of the Treasury may prescribe.

SEC. 23.

That all articles manufactured in whole or in part of imported materials,

or of materials subject to internal-revenue tax, and intended for exportation without being charged with duty, and without having an internal-revenue stamp affixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, in order to be so manufactured and exported, be made and manufactured in bonded warehouses similar to those known and designated in Treasury Regulations as bonded warehouses, class six:

Provided, That the manufacturer of such articles shall first give satisfactory bonds for the faithful observance of all the provisions of law and of such regulations as shall be prescribed by the Secretary of the Treasury:

Provided further, That the manufacture of distilled spirits from grain, starch, molasses or sugar,

including all dilutions or mixtures of them or either of them, shall not be permitted in such manufacturing warehouses.

Whenever goods manufactured in any bonded warehouse established under the provisions of the preceding paragraph shall be exported directly therefrom

or shall be duly lad n for transportation and immediate

exportation under the supervision of the proper officer who shall be duly designated for that purpose,

such goods shall be exempt from duty and from the requirements relating to revenue stamps.

Any materials used in the manufacture of such goods, and any packages, coverings, vessels, brands, and labels used in putting up the same may,

under the regulations of the Secretary of the Treasury,

be conveyed without the payment of revenue tax or duty into any bonded manufacturing warehouse, and

imported goods may, under the aforesaid regulations, be transferred without the exaction of duty from any bonded warehouse into any bonded manufacturing warehouse;

but this privilege shall not be held to apply to implements, machinery, or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the prosecution of the business carried on therein.

No articles or materials received into such bonded manufacturing warehouse shall be withdrawn or removed therefrom

except for direct shipment and exportation

or for transportation and immediate exportation in bond to foreign countries or to the Philippine Islands

under the supervision of the officer duly designated therefor by the collector of the port,

who shall certify to such shipment and exportation, or ladening for transportation, as the case may be,

describing the articles by their mark or otherwise, the quantity, the date of exportation, and the name of the vessel: Provided, That the waste material or by-products incident to the processes of manufacture in said bonded warehouses may be withdrawn for domestic consumption

on the payment of duty equal to the duty which would be assessed and collected, by law, if such waste or by-products were imported from a foreign country.

All labor performed and services rendered under these provisions shall be under the supervision of a duly designated officer of the customs and

at the expense of the manufacturer.

A careful account shall be kept by the collector of all mer

chandise delivered by him to any bonded manufacturing warehouse, and

a sworn monthly return, verified by the customs officers in charge,

shall be made by the manufacturers containing a detailed statement of all imported merchandise used by him in the manufacture of exported articles.

Before commencing business the proprietor of any manufacturing warehouse

shall file with the Secretary of the Treasury a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and

the names and quantities of the ingredients to be used therein. Articles manufactured under these provisions may be withdrawn under such regulations as the Secretary of the Treasury may prescribe

for transportation and delivery into any bonded warehouse at an exterior port for the sole purpose of immediate export therefrom.

The provisions of Revised Statutes thirty-four hundred and thirty-three shall, so far as may be practicable,

apply to any bonded manufacturing warehouse established under this Act and

to the merchandise conveyed therein.

SEC. 24. That the works of manufacturers engaged in smelting or refining, or both, of ores and crude metals, may upon the giving of satisfactory bonds be designated as bonded smelting warehouses.

Ores or crude metals may be removed from the vessel or other vehicle in which imported, or from a bonded warehouse, into a bonded smelting warehouse

without the payment of duties thereon and there smelted or refined, or both,

together with other ores or crude metals of home or foreign production:

Provided, That the several charges against such bonds may be canceled

upon the exportation or delivery to a bonded manufacturing warehouse, established under section twenty-three of this Act, of the actual amount of lead produced from the smelting or refining, or both, of such ores or crude metals:

And provided further, That said lead may be withdrawn for domestic consumption

or transferred to a bonded customs warehouse and withdrawn therefrom

upon the payment of the duties chargeable against it in that condition:

Provided further, That all labor performed and services rendered pursuant to this section

shall be under the supervision of an officer of the customs, to be appointed by the Secretary of the Treasury, and

at the expense of the manufacturer:

Provided further, That all regulations for the carrying out of this section shall be prescribed by the Secretary of the Treasury.

SEC. 25. That where imported materials on which duties have been paid are

used in the manufacture of articles manufactured or produced in the United States,

there shall be allowed on the exportation of such articles a drawback equal in amount to the duties paid on the materials used,

less one per centum of such duties:

Provided, That when the articles exported are made in part from domestic materials

the imported materials, or the parts of the articles made from such materials,

shall so appear in the completed articles that the quantity or measure thereof may be ascertained:

And provided further, That the drawback on any article allowed under existing law shall be continued at the rate herein provided.

That the imported materials used in the manufacture or production of articles entitled to drawback of custom duties when exported shall,

in all cases where drawback of duties paid on such materials is claimed,

be identified,

the quantity of such materials used and the amount of duties paid thereon shall be ascertained,

the facts of the manufacture or production of such articles in

the United States and their exportation there from shall be

determined, and

the drawback due thereon shall be paid to the manufacturer, producer, or exporter, to the agent of either

or to the person to whom such manufacturer, producer, exporter, or agent shall in writing order such drawback paid, under such regulations as the Secretary of the Treasury shall prescribe.

That on the exportation of medicinal or toilet preparations (including perfumery)

bereafter manufactured or produced in the United States in part from domestic alcohol on which an internal-revenue tax has been paid,

there shall be allowed a drawback equal in amount to the tax found to have been paid on the alcohol so used:

Provided, That no other than domestic tax-paid alcohol shall have been used in the manufacture or production of such preparations.

Such drawback shall be determined and paid under such rules and regulations,

and upon the filing of such notices, bonds, bills of lading, and other evidence of payment of tax and exportation,

as the Secretary of the Treasury shall prescribe.

That the provisions of this section shall apply to materials 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.

SEC. 26. That upon the reimportation of articles once exported,

of the growth, product, or manufacture of the United States, upon which no internal tax has been assessed or paid, or upon which such tax has been paid and refunded by allowance or drawback,

there shall be levied, collected, and paid a duty equal to the tax imposed by the internal-revenue laws upon such articles, except articles manufactured in bonded warehouses and exported pursuant to law,

which shall be subject to the same rate of duty as if originally imported,