[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR127.14]



[Page 683]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 127_GENERAL ORDER, UNCLAIMED, AND ABANDONED MERCHANDISE--Table 

of Contents

 

              Subpart B_Unclaimed and Abandoned Merchandise

 

Sec.  127.14  Disposition of merchandise in Customs custody beyond time 

fixed by law.



    (a) Merchandise subject to sale or other disposition--(1) General. 

If storage or other charges due the United States have not been paid on 

merchandise remaining in Customs custody after the expiration of the 

bond period in the case of merchandise entered for warehouse, or after 

the expiration of the general order period, as defined in Sec.  127.4, 

in any other case, even though any duties due have been paid, such 

merchandise will be sold as provided in subpart C of this part, retained 

for official use as provided in subpart E of this part, destroyed, or 

otherwise disposed of as authorized by the Commissioner of Customs under 

the law, unless the merchandise is entered or withdrawn for consumption 

in accordance with paragraph (b) of this section.

    (2) Destruction of merchandise.--(i) Proprietor responsibility. If 

the port director concludes that merchandise in general order has no 

commercial value or is otherwise unsalable and cannot be disposed of at 

public auction (see Sec.  127.29), and that its destruction is 

warranted, the warehouse proprietor must assume responsibility under 

bond, including the expense, for destroying the merchandise (see Sec.  

113.63(c)(3) of this chapter). The port director will authorize such 

destruction on Customs Form (CF) 3499, or on a similar Customs document 

as designated by the port director or an electronic equivalent as 

authorized by Customs.

    (ii) Notice of destruction. Before destroying the merchandise, the 

warehouse proprietor must first make a reasonable effort under bond (see 

Sec.  113.63(b) and (c) of this chapter), to identify and inform the 

importer (owner) or consignee regarding the intended destruction of the 

merchandise. When the appropriate party is identified, notice of 

destruction will be provided to the party on Customs Form (CF) 5251, 

appropriately modified, or other similar Customs document as designated 

by the port director or an electronic equivalent as authorized by 

Customs, at least 30 calendar days prior to the date of intended 

destruction.

    (b) Entry of merchandise subject to sale. Merchandise subject to 

sale (except merchandise abandoned under section 506(1) or 563(b), 

Tariff Act of 1930, as amended (19 U.S.C. 1506(1), 1563(b))), may be 

entered or withdrawn for consumption at any time prior to the sale upon 

payment of the duties, any internal revenue tax, and all charges and 

expenses that may have accrued thereon. Such merchandise may not be 

exported without payment of duty nor entered for warehouse.

    (c) Release of merchandise to warehouse proprietor. The following 

merchandise for which a permit to release has been issued shall be held 

to be no longer in the custody of Customs officers and shall be released 

to the warehouse proprietor:

    (1) Merchandise upon which all duties and charges have been paid.

    (2) Free and duty-paid merchandise upon which all charges have been 

paid, not entered for warehouse which remains in bonded warehouse for 

more than the general order period.



[T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 75-161, 40 

FR 28790, July 9, 1975; T.D. 79-221, 44 FR 46814, Aug. 9, 1979; T.D. 82-

204, 47 FR 49375, Nov. 1, 1982; T.D. 02-65, 67 FR 68034, Nov. 8, 2002]