conditions as leather to be used in the manufacture of footwear, except that the affidavit filed on entry shall state that the leather is not to be used in the manufacture of the articles mentioned, and the proof of use shall show that it was used in the manufacture of articles other than footballs, basket balls, soccer balls, or medicine balls, or was exported or destroyed, and the other documents required shall be modified accordingly. If it affirmatively appears at the time of importation that the leather is being imported to be used in the manufacture of the articles mentioned, duty shall be assessed at the rate of 20 per cent ad valorem.

PATNA RICE

Art. 489. Patna rice to be used in the manufacture of T. D. 39388. canned soups.-(a) Tariff act of 1930, paragraph 1752 (free list):

Patna rice cleaned for use in the manufacture of canned soups.

(b) Such rice may be released without the deposit of duty in the same manner and subject to the same conditions as leather to be used in the manufacture of footwear except that the proof of use shall show that the rice was used in the manufacture of canned soups and the other documents required shall be modified accordingly.

MOVING-PICTURE FILMS EXPOSED ABROAD BY
AMERICAN PRODUCERS

Art. 490. Reduced rate authorized-Procedure.-(a)
Tariff act of 1930, paragraph 1551:

*

**

Provided, That upon the importation of photographic and motion-picture films or film negatives taken from the United States and exposed in a foreign country by an American producer of motion pictures operating temporarily in said foreign country in the course of production of a picture 60 per centum or more of which is made in the United States the duty shall be 1 cent per linear foot, and the Secretary of the Treasury shall prescribe such rules and regulations as may be necessary for the entry of such films or film negatives under this proviso.

(b) Estimated duties at the appropriate rate under paragraph 1551 should be taken on motion-picture films claimed to be dutiable at the rate of 1 cent per linear foot under the above-quoted proviso, and there shall be required in connection with the entry an affidavit in substantially the following form:

I, do solemnly, sincerely, and truly swear (or affirm) that I am an American producer of motion-picture films, operating temporarily in a foreign country, and that the

T. Ds. 39917, 39984, 40035, 45247.

feet of films imported by me ex S. S. from the United States in the S. S. by me in (country)

on

on

were taken and exposed

for use in the picture entitled

(c) Within six months from the date of entry there shall be filed with the collector an affidavit of the American producer in substantially the following form:

I,

do solemnly, sincerely, and truly swear (or

affirm) that the
me ex S. S. - on

feet of motion-picture films imported by were used in connection with the

production of the picture entitled

I further swear (or affirm) that the number of feet of film in the

completed picture is

the United States and

films exposed in (country)

of which
feet were made in
feet represent the
feet of
and imported as above stated.

(d) The collector may, in his discretion, extend the six months' period during which such affidavit may be furnished and he may refer the claim to a customs agent for investigation if he deems it desirable. Liquidation should be suspended pending the production of the affidavit and the receipt of the report of the customs agent, and if after comparing the number of feet of film exposed abroad and found in the completed picture with the total number of feet in the completed picture, it appears that 60 per cent or more of the completed picture was made in the United States, and the other conditions of the proviso are met, the entry should be liquidated with duty at the rate of 1 cent per linear foot on the total number of feet exposed abroad.

WOOLS AND HAIR OF THE CAMEL FOR USE IN THE MANUFACTURE OF FLOOR COVERINGS AND OTHER ARTICLES

Art. 491. Importation under bond.-Tariff act of 1930, paragraph 1101 (a):

Wools: Donskoi, Smyrna, Cordova, Valparaiso, Ecuadorean, Syrian, Aleppo, Georgian, Turkestan, Arabian, Bagdad, Persian, Sistan, East Indian, Thibetan, Chinese, Manchurian, Mongolian, Egyptian, Sudan, Cyprus, Sardinian, Pyrenean, Oporto, Iceland, Scotch Blackface, Black Spanish, Kerry, Haslock, and Welsh Mountain; similar wools without merino or English blood; all other wools of whatever blood or origin not finer than 40s; and hair of the camel; all the foregoing, in the grease or washed, 24 cents per pound of clean content; scoured, 27 cents per pound of clean content; on the skin, 22 cents per pound of clean content; sorted, or matchings, if not scoured, 25 cents per pound of clean content: Provided, That a tolerance of not more than 10 per centum of wools not finer than 44s may be allowed in each bale or package of wools imported as not finer than 40s: Provided further, That all the foregoing may be imported under bond in an amount to be fixed by the Secretary of the Treasury and under such regulations as he shall prescribe; and if within three years from the date of importation or

withdrawal from bonded warehouse satisfactory proof is furnished that the wools or hair have been used in the manufacture of yarns which have been used in the manufacture of press cloth, camel's hair belting, rugs, carpets, or any other floor covering, or in the manufacture of knit or felt boots or heavy fulled lumbermen's socks, the duties shall be remitted or refunded: And provided further, That if any such wools or hair imported under bond as above prescribed are used in the manufacture of articles other than press cloth, camel's hair belting, rugs, carpets, or any other floor coverings, or knit or felt boots or heavy fulled lumbermen's socks, there shall be levied, collected, and paid on any such wools or hair so used in violation of the bond, in addition to the regular duties provided by this paragraph, 50 cents per pound, which shall not be remitted or refunded on exportation of the articles or for any other reason.

Art. 492. Entry.-(a) Such wool or hair may be entered on customs Form 7501 (consumption entry) and be immediately released under bond, or may be entered for warehouse on customs Form 7502 and remain in bonded warehouse under the ordinary warehouse bond until appropriately withdrawn or otherwise disposed of in accordance with law.

(b) When entry is made on customs Form 7501, it shall have indorsed thereon the following notation: "Above merchandise entered under bond for use in the manufacture of (press cloth, belting, floor coverings, knit or felt boots, or lumbermen's socks) under the provisions of Title I, schedule 11, paragraph 1101 (a), tariff act of 1930," which indorsement shall be signed by the obligor on the bond. When the merchandise is entered for warehouse, withdrawals for use in the manufacture of the articles enumerated shall be made on customs Form 7506 in the name of the obligor on the bond.

(c) When wool or hair of the above class has been withdrawn under bond from warehouse and delivered for use in the manufacture of the enumerated articles, it shall not be returned to the bonded warehouse and be again entitled to this privilege.

Art. 493. 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 bond on Customs Form 7547 or 7549.

T.

43905.

(b) A single entry or term bond shall be given by each D. 39668, and every dealer, manipulator, or manufacturer through whose hands the bonded wool or hair passes until it is manufactured into the enumerated articles.

Art. 494. Refund of duty.—(a) Imported wool or hair of the class covered by paragraph 1101 (a), upon which the duty has been paid while in bonded warehouse, may

be withdrawn in accordance with the provisions of these regulations, and upon the production of the proof hereinafter required the duty paid may be refunded.

(b) Imported wool or hair upon which the duty has been paid under a consumption entry and which is unconditionally released from customs custody shall not be entitled to the privilege of being entered under bond under the provisions of paragraph 1101 (a) and such duty shall not be refunded.

Art. 495. Sworn statements.-(a) Each manufacturer or manipulator shall file with the collector of customs in whose district the abstracts will be liquidated, a sworn statement setting forth the business organization, the location of the factory, the process of manufacture or manipulation, the method of storing the various lots of imported wool or hair, the manner in which the records of manufacture are kept for the purpose of establishing the quantity of wool or hair used, the quantity of each size and kind of articles produced, the quantity and value of each kind of waste resulting, and such other pertinent information as may be required for liquidation or for release from liability under the bond.

(b) The collector will transmit the sworn statement for verification to the proper supervising customs agent. That officer, after verification, will transmit two copies of the document to the bureau with his report in duplicate. Upon approval by the bureau, the collector will liquidate the abstracts and properly credit the bond.

Art. 496. Records of manufacture.-(a) Each lot of wool or hair released under bond shall be marked or stored in such manner as to identify it with the import entry so long as it remains in the original bales, or in the bales or packages in which it is withdrawn from a manipulating warehouse under the provisions of section 562 of the tariff act of 1930.

(b) In the preliminary processes of pulling, washing, sorting, scouring, and carbonizing, the wool or hair may be processed in separate lots, in which case the records shall show the quantity and identity of the imported wool or hair used, and the quantity of clean wool or hair obtained, and if sorted, the quantity of each sort. Two or more import lots or parts thereof may be combined into one or more manufacturing or sorting lots to be thereafter identified by lot numbers or symbols, and the records shall show the quantity of wool or hair from each import lot

used in making up the manufacturing or sorting lot. The entire product of a period of manufacture may be designated as a manufacturing lot.

(c) The yarn spinner may trace the wool or hair while in his possession by means of individual manufacturing lots or by periods of manufacture. In either case his records shall show the quantity of wool or hair received by him, identifying it by import lots, if received in the condition as imported, or by manufacturing lots if received from a prior manipulator or manufacturer. His records shall also show the quantity of wool or hair from each lot used in making up the manufacturing lot of yarn, or during the period of manufacture, as the case may be, the quantity of each kind or number of yarn obtained, the quantity of noils obtained and the disposition thereof, together with the quantity of each kind of waste.

(d) If the manufacturer of the enumerated articles spins his own yarns he will proceed as provided in the preceding paragraphs of this article. Yarns, whether spun by such manufacturer or otherwise obtained, shall be identified by manufacturing lots. The records of each such manufacturer shall show the quantities of each lot of yarn withdrawn from stock, and the period of manufacture during which it is used. Each such manufacturer shall keep permanent records of the quantity of each kind and size of articles manufactured, the period of manufacture thereof, the quantities sold, the quantities and values of each kind of waste, and the names and addresses of the purchasers of the articles.

(e) In addition to the above the records of each manipulator or manufacturer shall show from whom the material manipulated or manufactured by him was received and to whom the finished product was transferred.

Art. 497. Abstracts of records of manufacturer.-(a) Upon the completion of each lot or each period of manufacture, as the case may be, the manipulator or manufacturer shall file with the collector of customs where his bond is deposited, an abstract from his records of manufacture showing the receipt and disposition of the wool or hair or products thereof in the manner indicated above. The manufacturer of the enumerated articles may omit from his abstract the names and addresses of his customers.

(b) Each such abstract shall bear the following affidavit, signed by a responsible officer or member of the firm:

I, do hereby solemnly swear (affirm) that this document is a true and correct copy of our records of manufacture