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IA#99-01 --- 3/3/88

BACKGROUND

The term "American Goods Returned" applies to products manufactured in the
United States, exported, then shipped back to the United States.  The American
consignee may or may not be the original manufacturer or distributor of the
product.

The return of a U.S. manufactured or labeled product may signal possible
problems with the product.

For example:

    *  products may be returned to the United States because the expiration
       date or shelf life has been exceeded;

    *  products may be returned having been rejected by a foreign consignee or
       refused entry by a foreign government due to adulteration or
       misbranding;

    *  products, which were legally exported for foreign distribution, but
       which are adulterated and/or misbranded because they do not meet the
       requirements of the Federal Food, Durg, and Cosmetic Act for domestic
       distribution, may be profitably resold to American consignees and
       shipped to them as "American Goods Returned" for sale in the United
       States; and

    *  foreign made counterfeit products may be invoice as genuine U.S.
       manufactured products previously exported, and entered as "American
       Goods Returned".


GUIDANCE

American Goods Returned should be considered suspect.  Districts should
seriously consider all entries of such products before release.

Determine the reason for the return of the goods.  The goods should be wharf
examined and sampled for laboratory examination if, in your judgment, there is
reason to believe that an appearance of violation may exist.  Consult with the
appropriate Center for assistance, if needed.

Goods should be detained with the appropriate charge when they appear
violative, based on examination of samples or otherwise.

If there are any questions, contact Import Operations Branch (HFC-131) at FTS
443-6553.