Upon execution of a seizure warrant, the seizing agent will give the person from whom or from whose premises the property was taken, a copy of the seizure warrant and a receipt for the property taken, or leave the copy and receipt at the place from which the property was taken.

The return of a seizure warrant to a Federal magistrate shall be made promptly and shall be accompanied by a written inventory of any property taken.

The US Attorney's office should prepare the warrant of arrest in rem pursuant to which property will formally be brought within the control of the court. The warrant should set forth the date of the filing of the forfeiture action and should notify the recipient of the requirement that a claim be filed within 10 days and an answer within 20 days thereafter. It should also command the Treasury agent to arrest the property.

Pre-arrest planning is critical to the successful forfeiture of properties. Accordingly, Treasury law enforcement agencies shall ensure to the greatest degree possible, that all aspects of pre-arrest analysis are undertaken and fully discussed with the Assistant United States Attorney (AUSA). Activities include, but are not limited to, identity of all persons with an interest in the property, net equity, liens, mortgages, outstanding taxes, appraisals, hazard or toxic waste on property, title reports, IRS tax liens, estimated property management costs, estimated disposal costs, live stock, historically significant properties, occupants, tenants, inspections, inventory, writs of entry, contents and appurtenances, need for security-new locks, alarm systems, anticipation that violence or resistance will be encountered in executing the warrant, etc.

Execution of Process: The Treasury agent arrests the property by serving the possessor with the warrant of arrest in rem and a copy of the complaint by attaching a copy of the documentation to the property. Service on other identified parties may be served by sending the same documentation to them via certified, return receipt mail. Whether the Treasury agent will have actual custody depends on a number of factors governed by case law in the judicial circuit. The AUSA must be consulted in the decision as to whether to take custody of the property. The general rules are as follows:

Unless otherwise instructed by the responsible AUSA, the return of service of the warrant shall be made to the AUSA within 3 days of the execution of the warrant of arrest in rem on the Department of the Treasury Process Receipt and Return form (see Exhibit 9.7.6-1). This form mirrors the US Marshals Service Form, USM 285. See EOAF Directive Number 23 for instructions for completing and distributing the Process Receipt and Return Form.

Notice:
The US Attorney's office is required to prepare all legal notices regarding the property subject to forfeiture by virtue of a warrant of arrest in rem. Since the Treasury agency is responsible for the disposition of the asset, it is in Treasury's best interest to determine whether or not the notice requirements have been met to avoid disposition problems associated with unknown claimants, which may lead to title transfer problems. The Departments of the Treasury and Justice have an existing agreement to refund to the Department of Justice (DOJ) costs for these services. In those situations where the Office of the US Attorney will not undertake the notice requirements, the Treasury law enforcement agency is authorized to serve and publish notice as may be required with funding provided by the Treasury Forfeiture Fund. See EOAF Directive Number 23, Execution of Warrants of Arrest In Rem by Treasury Law Enforcement Agencies for more information.

Rule 32.2, Criminal Forfeiture, of the Federal Rules of Criminal Procedure (Fed. R. Crim. P.) authorizes the seizure of specific property subject to forfeiture upon entry of a preliminary order of forfeiture. The seizing agent will give the person from whom, or from whose premises, the property was taken a copy of the preliminary order of forfeiture, or will leave the copy at the place from which the property was taken.

The AFC is the local CI representative authorized to communicate with and task the seized property contractor to perform stated seized property management services. All arrangements for the transfer of seized property to the property contractor must be arranged by the AFC. The AFC should be aware of and/or approve any contact between the seized property contractor and the asset forfeiture support services contractor or any other CI contact.

The Warrants and Forfeitures Section (CI:OPS:WF) will communicate and deal directly with the seized property contractor.

The seized property contractor is required to be available to provide stated seized property management services 24 hours a day, 365 days a year. The seized property contractor will provide telephone numbers to the AFC to use to reach its offices 24 hours a day, including nights, weekends and holidays.

The seized property contractor will keep the AFC informed on how to contact appropriate representatives for off hours pick-up of vehicles, vessels, aircraft, etc.

A seized property contractor operated facility (COF) is a facility located in a high volume area workload area which has been designated to store, maintain, and dispose of seized property. It may also function as a sales center.

The seized property contractor will be responsive to AFC requests to have seized property placed in appropriate storage facilities.

Based on frequent changes in workload, the seized property contractor will locate, evaluate and solicit subcontractors and vendors on a continuous basis to supplement the seized property contractor's capabilities to manage and store property.

The seized property contractor is required to adhere to established subcontracting guidelines and ensure, on a continuing basis, that all property management service subcontractors and vendors maintain insurance adequate to protect the value of the seized property in accordance with the seized property contract.

A Disposition Order (see Exhibit 9.7.6-2) is used to instruct or task the seized property contractor to perform stated seized property management services. An AFC is the only authorized CI contact to sign disposition orders.

Disposition orders may be sent to the seized property contractor by facsimile (fax); however, the original order must be sent to the contractor. The original document may not be required where the seized property contractor allows a statement to be included in the disposition order instructing the seized property contractor to use the faxed disposition order as the original.

The original disposition order will be signed by the seized property contractor upon completion of any property management services, and returned to the AFC.

In the event of a pending seizure, the AFC will notify the seized property contractor as far in advance as possible and will prepare a disposition order and consignment order requesting the pick-up of any seized property.

The seized property contractor will respond to a request for transfer of property from the AFC within the time period specified in the SOW unless another date and time is mutually agreed upon.

Seized property will be transferred to the seized property contractor at a designated site or site of mutual agreement. The seized property contractor will inspect and accept custody of property associated with each consignment.

The seized property contractor will conduct a joint inventory of seized property with the AFC or designated CI contact at the time of transfer.

Accessories, equipment, and spare parts required for the operation and/or maintenance of the seized property are normally included in the seizure of the property. Criminal Investigation should remove all other contents such as personal effects for return to the owner before the seized property contractor assumes custody of the seized property.

A properly completed and executed Form 9573, Custody Receipt for Retained or Seized Property and Form 9572, Custody Receipt for Retained or Seized Property - Continuation Sheet, are required for all seized real and personal property transferred to the custody of the seized property contractor. Form 9573 serves as the chain of custody form. The AFC should maintain a supply available of the multiple copy/carbon copy version of Forms 9573 and 9572.

At a minimum, the following information will be entered on the Form 9573 when transferring custody of seized property:

The seized property contractor will verify the Form 9573 for accuracy and completeness before or during acceptance of seized property.

The seized property contractor will not add anything or write on the Form 9573 except:

The seized property contractor will keep the original Forms 9573 and 9572, and provide the remaining copies to the AFC or other designated CI contact on site. The original Form 9573 will be returned to the AFC upon disposition of the seized property (see IRM 9.7.8, Disposition of Seized and Forfeited Property).

A completed property Form 181, Inventory of Seized Vehicle, Vessel, Aircraft, is required for all seized vehicles, vessels, and aircraft transferred to the custody of the seized property contractor. The AFC should maintain a supply available of the multiple-copy/carbon copy version of Form 181.

The seized property contractor will verify the Form 181 for accuracy and note any discrepancies.

The seized property contractor will keep the original Form 181 and provide the remaining copies to the AFC, or other designated CI contacts on site.

The seized property contractor will also complete its own forms upon the receipt and transfer of any seized property. The AFC, or other designated CI contact on site, will verify the accuracy of the information contained on the seized property contractor's forms before signing them. The seized property contractor will provide a copy of each form completed to the AFC or other designated CI contact on site.

The seized property contractor will provide the AFC with the Seizure Case and Asset Tracking System (SEACATS) generated seizure number used to track and identify seized property by the seized property contractor.

Any movement of seized property from its current physical storage location must be approved by the AFC. The seized property contractor will provide the AFC with the Form 9573, which shows the new location of the seized property. The seized property contractor, or its designated agent, may contact the AFC to confirm details of the proposed transfer.

At the time of the receipt and/or transfer of the seized property, it is the responsibility of the seized property contractor to document the condition of the seized property in writing, videos, and/or photographs.

The AFC, or other designated CI contact on site, will also document the condition of the seized property in writing and may photograph or videotape the property.

The seized property contractor will arrange for the safe, secure, and cost-effective transportation of seized property from point of acceptance to an approved storage site.

While the common method of transfer is for the seized property contractor's agent/vendor/subcontractor to physically assume custody at the location designated by the AFC, alternate methods may also be agreed upon. For example, seized property which has been designated for transfer to the seized property contractor and can be packaged and shipped via US Mail, United Postal Service, or other responsible delivery service, can be so handled when the seized property contractor and the AFC have determined this procedure to be the most cost-effective.

The seized property contractor will perform necessary emergency repairs to facilitate movement and storage of seized property in accordance with the threshold levels established in the SOW.

There are four types of custody for property:

The appraised value (APV) of seized property is the responsibility of CI. The AFC, or other designated CI contact on site, will enter the APV for each line item on the Form 9573. The seized property contractor will notify the AFC within the time period specified in the SOW when an APV was not provided on the Form 9573.

In situations where a third-party appraisal is required, the AFC may request the assistance of the seized property contractor in obtaining third-party appraisals. The third-party appraisal becomes the APV.

The following types of seized property may require third-party appraisals:

Fair market value (FMV) is defined as the value of property or merchandise in a given market at which both buyers and sellers are willing to do business.

The seized property contractor will establish a FMV for seized conveyances within the time period specified in the SOW after the property has been transferred to the seized property contractor. The seized property contractor will establish a FMV for seized general property at the time it is designated for sale.

The seized property contractor will determine the FMV of conveyances by using wholesale value publications such as:

The seized property contractor will also use past sales experience, local merchants, trade catalogs, publications, manufacturers or other persons with knowledge, and/or the internet to establish the FMV of seized property.

The seized property contractor will adjust the FMV of seized conveyances annually or immediately prior to the sale of the property, as is necessary.

The seized property contractor can acquire storage facilities through lease, subcontract, purchase order, or other contractual arrangements. The seized property contractor is able to provide temporary, short, or long term storage throughout the 50 United States and the District of Columbia, as well as Puerto Rico and all US territories.

The seized property contractor may use all established Contractor Operated Facilities (COF). The current COF leases contain a provision that all lease agreements can be assigned to a successor prime contractor. The seized property contractor will subcontract for the most cost effective facilities that meet stated requirements at all times. If the subcontractors and/or vendors are outside a particular field office location, the seized property contractor will obtain the AFC's/Contracting Officer's Technical Representative (COTR's) approval before using the vendor. Any property stored outside of the field office location will be clearly identified as such by the seized property contractor.

Government or municipally owned facilities (Federal, state, or local) may be available at little or no cost, especially for conducting sales.

Seized property will be stored by the seized property contractor in the most cost-effective method available to preclude any deterioration of the property so that the physical condition of the property is maintained as it was at the time of acceptance. Methods of storage will range from open storage to highly secured facilities, depending upon the type of seized property to be stored.

Depending on geographical area and giving consideration to climate, security and other variable factors such as value, rarity, etc., some vehicles may require inside storage.

Water is the primary cause for the deterioration of certain vessels. Salt water significantly increases the deterioration. For vessels in short or long term storage that are stored in water, the maintenance and deterioration costs may be more than the cost of removing the vessel from the water and storing the vessel on land. The seized property contractor will determine the most cost-effective type of storage on a case-by-case basis. The decision will be based on vessel size, appraised value, and condition at the time of seizure.

Humidity in the air is a major cause for the deterioration of aircraft. The storage of aircraft near large bodies of salt water significantly increases this deterioration. The short and long term storage of aircraft in non-humid environments minimizes deterioration, and is preferred when costs of transportation to such sites are not prohibitive.

The seized property contractor will accept livestock, fowl, perishables, and other unusual items of general property that may be seized in violation of laws enforced by the Department of the Treasury.

The seized property contractor will provide assistance and property management services for seized real property for both residential and commercial properties such as dwellings, buildings, farms, businesses, and associated physical items and mechanical systems. Such seizures are nonroutine, handled on a case-by-case basis, and may involve assistance on the day of seizure, post-seizure management, and disposition. Pre-seizure planning is essential when seizing real properties.

The seized property contractor will provide, or obtain from licensed professionals when requested by the AFC, the following specific services:

Pre-seizure services available from the seized property contractor are covered in IRM 9.7.4, Pre-Seizure Planning.

The seized property contractor is not authorized to conduct or perform the arresting or post and walk of real or personal property. The arresting must be conducted by CI or other Treasury law enforcement agency.

Upon receipt of a Disposition Order from the AFC which requires the contractor to make entry into the property, the seized property contractor will contact AFC or other designated CI contact regarding arrangements for the location, date, and time of the scheduled entry with CI presence.

The AFC or designated CI contact on site will have in their possession the court order that authorized entry (writ of entry) to the property and the requirements of the court. The seized property contractor will not enter the property unless accompanied by a representative from CI. The seized property contractor will provide specific services requested via Disposition Order issued by the AFC, and accompanied by the court order. These services may include but are not limited to: