par. 23; 38287,

with the requirements of the law and the regulations of T. Ds, 33557, that department, and if found not to comply with such par. 82. requirements, should be forthwith destroyed.

(d) All merchandise at ports of entry subject to sale, including explosives, perishable articles, and articles liable to depreciation as specified in the following article, shall be promptly reported to the headquarters port for disposition. The collector may, in his discretion, sell such merchandise at the headquarters port or at some other port within the district.

Art. 994. Special sale-Explosives-Perishable merchandise. (a) Tariff act of 1930, section 491:

All gunpowder and other explosive substances and merchandise liable to depreciation in value by damage, leakage, or other cause to such extent that the proceeds of sale thereof may be insufficient to pay the duties, storage, and other charges, if permitted to remain in public store or bonded warehouse for a period of one year, may be sold forthwith, under such regulations as the Secretary of the Treasury may prescribe.

(b) Unclaimed explosives, dangerous articles, fruit and perishable articles will be sold on three days' public notice, and the proceeds disposed of and accounted for as in case of other unclaimed merchandise.

(c) Unclaimed merchandise in warehouse which, in the opinion of the collector, may, from depreciation in value by damage, leakage, or other cause, prove insufficient on sale to pay the duties, storage, and other charges, if allowed to remain in warehouse for the period of one year, and unclaimed merchandise remaining on the dock which, in the opinion of the collector, would prove insufficient to pay the cost of cartage and storage, will be sold at public auction, on giving public notice of not less than 6 nor more than 10 days, as the collector may T. D. 37374 (18) determine, and the proceeds disposed of and accounted for in like manner.

(d) When it is probable that entry will be made at an early date for unclaimed perishable merchandise, collectors may send the same to a bonded cold-storage warehouse, if T. Ds. 18499, one is available. If entry is not made within a reasonable 37654, 39548. time the merchandise should be sold.

Art. 995. Withdrawal of merchandise from sale.Merchandise subject to sale may be entered or withdrawn for consumption at any time prior to sale upon payment of the duties, internal-revenue tax, if any, and all charges and expenses that may have accrued thereon. Unclaimed merchandise may not be exported without pay

18929, 21127,

T. D. 21127.

T. D. 9720.

ment of duty nor entered for warehouse or transportation to another port after the expiration of one year from the date of importation.

Art. 996. Notice of sale-Catalogues.-(a) A brief notice of the time and place of sale will be given for three successive weeks immediately preceding the sale in one newspaper of extensive circulation published at the port, to be selected by the collector and authorized on standard Form 1053. Such notice shall designate the place where catalogues may be obtained, and reasonable opportunity shall be afforded persons desirous of purchasing to inspect the merchandise.

(b) If the collector shall be satisfied that the proceeds of sale will not be sufficient to pay the expenses and duties, a written or printed notice of the sale, in lieu of such advertisement, shall be conspicuously posted in the customhouse and, if deemed necessary, at some other proper place for three weeks, as aforesaid.

(c) Such catalogues will specify the marks, numbers, and description of packages, and their contents, including the quantity of each article, and the appraised foreign value thereof at the date of exportation, and also the appraised actual market value at the time and place of the examination of the merchandise. The catalogues will be distributed at the sale, and announcement made that the Government does not guarantee quality or value and that no allowance will be made for any deficiency found after sale.

(d) When the name and address of the consignee can be ascertained from the manifest of the importing vessel, or otherwise, notice of the date of sale should be mailed him. When unclaimed merchandise is consigned to "Order," or no consignee is given in the manifest, collectors should, where practicable, notify the shipper or his representative, or agent of the carrier, of the date when the goods are to be sold.

Art. 997. Record of sale. A record of the sale shall be kept on customs Form 5177, specifying the marks, numbers, description of packages, their contents, quantity, and appraised value, the name of the vessel in which imported, the name of the person or persons to whom consigned on the manifest, the name of the purchaser, and the amount for which each lot was sold.

Art. 998. Comptroller's record.-Collectors shall notify the respective comptrollers of customs of the transfer of unclaimed and abandoned merchandise for sale and of the date when such sales are to take place.

Art. 999. Auctioneer-Expenses of sale.-(a) The duties of the auctioneer will be confined to selling the merchandise, and his charge for such service shall in no case exceed the usual commissions at the port. Such commissions shall be allowed only on the gross sum actually realized on the sale.

(b) Accounts for the auctioneer's charges and all other expenses of sale which may have accrued, properly chargeable on the merchandise, must be presented to the collector for payment within 10 days from the date of sale. Such expenses must be apportioned pro rata on the amounts received for the different lots sold.

37919.

Art. 1000. Bills of sale. At the close of the sale a bill T. Ds. 18119, for the goods sold will be prepared on customs Form 5117a or 5117b, and disposed of in accordance with Chapter XXII.

24894.

Art. 1001. Payment of charges-Warehouse merchan- T. Ds. 18681, dise.—(a) From the proceeds of sales of merchandise remaining in warehouse beyond the time fixed by law the following charges will be paid, in the order named: First. Expenses of advertisement and sale.

Second. Duties at the same rates as if the merchandise had been regularly withdrawn for consumption.

Third. Any other charges due the United States in connection with the merchandise.

Fourth. Any sum due for freight charges, or contributions in general average, of which due notice shall have been given in the manner prescribed by law.

Fifth. Storage and other charges for which the merchandise may be liable.

(b) In case of merchandise warehoused in public stores, the storage and labor due thereon will be paid from the proceeds next after the expenses of sale.

21356.

Art. 1002. Payment of charges-Unclaimed merchan- T. Ds. 19299, dise. (a) The charges against the proceeds of sale of unclaimed merchandise will be paid in the order specified in the preceding article, except that cartage and storage in bonded warehouses will take priority next after expenses of sale. When the proceeds are insufficient to pay both cartage and storage, such charges shall be paid pro rata.

(b) The duties chargeable on such merchandise will be assessed on the dutiable value found on appraisement at the rate of duty chargeable at the time the merchandise became abandoned.

Art. 1003. Surplus.-(a) Tariff act of 1930, section 493:

The surplus of the proceeds of sales under section 491 of this act, after the payment of storage charges, expenses, duties, and the satisfaction of any lien for freight, charges, or contribution in general average, shall be deposited by the collector in the Treasury of the United States, if claim therefor shall not be filed with the collector within ten days from the date of sale, and the sale of such merchandise shall exonerate the master of any vessel in which the merchandise was imported from all claims of the owner thereof, who shall, nevertheless, on due proof of his interest, be entitled to receive from the Treasury the amount of any surplus of the proceeds of sale.

(b) If the surplus proceeds of sale have been covered into the Treasury, application therefor must be made by the claimant direct to the Comptroller General.

(c) The surplus proceeds of sale of merchandise in warehouse beyond three years (or 10 months in the case of grain) shall be paid to the owner or consignee. (See art. 990.)

Art. 1004. Deficit.—(a) Should the proceeds of the sale of merchandise in warehouse beyond three years (or ten months in the case of grain) be insufficient to pay the duties, after payment of all charges having priority, the balance will be collected upon the warehouse entry bond, by suit, if necessary.

(b) When the proceeds of sale of unclaimed merchandise are insufficient to pay the charges and duties, the consignee is liable for such duties, provided he has made entry for the merchandise or claimed the same; otherwise the merchandise should be regarded as shipped to the consignee without his consent, and no effort should be made to collect from such consigneee any balance of duties due.

Art. 1005. Merchandise remaining unsold-of no commercial value.-Merchandise remaining unsold shall be included in the next regular sale of unclaimed and abandoned merchandise, unless the collector is of the opinion that such merchandise is unsalable, or of no commercial value, in which case it should be destroyed.

Art. 1006. Bonding and licensing of cartmen authorized.-Tariff act of 1930, section 565:

The cartage of merchandise entered for warehouse shall be done by cartmen to be appointed and licensed by the collector of customs and who shall give a bond, in a penal sum to be fixed by such collector, for the protection of the Government against any loss of, or damage to, such merchandise while being so carted. The cartage of merchandise designated for examination at the appraiser's stores and of merchandise taken into custody by the collector as unclaimed shall be performed by such persons as may be designated, under contract or otherwise, by the Secretary of the Treasury, and under such regulations for the protection of the owners thereof and of the revenue as the Secretary of the Treasury shall prescribe.

Art. 1007. Classes of cartage.-The cartage of merchandise in customs custody is of two kinds-"Government cartage," which must be done by a licensed customhouse cartman under contract or appointment for that purpose, and "importers' cartage," which may be done by any licensed customhouse cartman.

22346, 22550,

34479.

Art. 1008. Government cartage. (a) The cartage of T. Ds. 18769, merchandise packages designated for examination at the 28306, 33534, "appraiser's stores" shall be done by a cartman under contract for that purpose. Contracts for Government cartage shall be let annually after not less than 30 days' notice by publication in one or more newspapers, or otherwise, if the bureau shall so direct. Bids for such cartage will be submitted to the bureau. The contract will be let by the Secretary of the Treasury to the lowest responsible bidder upon a bond being given in a sum to be fixed by the Commissioner of Customs for the faithful performance of such contract. Such contract cartman must be licensed as a customs cartman. The cartage will be paid by the Government through the collector of customs for the district in which the service is rendered.

120950°-82- 40

615